Be Careful About Giving Up Equity In Your Business!
(In Order To Fund Your Long Term Growth!)
Entrepreneur you see the AI generated image below? Of the businessman chained to his desk. (It’s just a metaphor!) Suggesting to you! Be extremely careful!
When it comes to giving up equity in your business and or service. In order to fund your long term growth. Because those of you who’ve already been down this road. You know the reality all too well, correct?
Your Business Equity Is Hard Fought! (Don’t Let A Temporary Quick Fix Jeopardize It All!)
For sure it’s definitely an extremely proud milestone to achieve. Whenever your business, tech company and or service etc. Has reached the point. Where more capital is needed. In order to fuel further growth! (Major congrats BTW.)
But the flip side is. Any or each time your business or service. Faces temporary cash flow shortages. Sometimes trading ownership/your equity for investors cash.
Can seem like a viable short term solution. That is until! The reality of what you’re actually trading away. Starts to become more and more obvious! Sure equity financing can temporarily relieve of having the constant pressure of making monthly or quarterly loan payments.
(And who can argue with not constantly feeling like debt repayments are literally choking off your businesses potential to grow!) But let’s all face it asap!
Giving up part of your extremely hard fought equity. In order finance/fund your future growth. Is a decision you need to consider extremely carefully!
Because your long term consequences. Might end up being far more than you ever anticipated! (BTW ladies & gentlemen. If your business, tech start up and or service based business. Is based in either US or Canada.)
And for whatever reasons! You ever get rejected for either a small business or commercial loan of ant kind. And you’re seeking at least $50K or more! Then yu and or someone you know. Definitely wants to check out reallyquickloans.com asap! (Just saying!)
Any Form Of Equity Financing Can Potentially Cost You More Than Money!
One of the main caveats to giving up equity in your business and or service. In order to raise some much needed capital. When you and I borrow money in a traditional sense.
Once you pay the debt back. Your/our loan disappears, right? Quite the contrary when you give up X% of your business. In exchange for the investor(s) money!
And the larger percentage of your enterprise they own. The less overall control you maintain. (Strictly for example purposes only!) Let’s say an outside investor or investors. Acquires a 20 or X% stake/ownership interest in your business.
Just Be Sure You Try And See As Well As Anticipate What’s Further Ahead!
This means they. Or whomever owns this X% stake in your business. They share in X% potential future earnings, growth/appreciation. As well as any future dividend payments too!
Let’s say your business, tech or service business goes on to gross millions! Hopefully you can see and appreciate “how” trading ownership in your company. For investors capital!
Might cost you a lot more than just your short term gain! The choice is ultimately yours entrepreneur! Just be aware! Of the potential dangers! Of giving up equity in your business and or service!
You Have To Be Able To See Past Your Potential Short Term Gain! (In Order To Avoid Some Long Term Pain!)
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