Growing a business is hard work and it takes much more than just being present. There are employees to worry about, equipment and much more. In fact, one of the elements that can make or break your company is funding, specifically laundromat funding. There are both pros and cons to this.
This can be a preferred method simply because it provides fast results. The process usually involves investors coming on board to give their money to you. When they do this, they are basically giving you a reason to make the owner and that exactly what happens. All the money that you would make would now have to be split equally or depend on how you have split the shares. This will also depend on who brought the most money.
The one element that many new owners dread is that apart from sharing the profit you are also required to share ownership which means there is no longer one owner. This means that decisions and other important factors will also have to be passed through them. The biggest thing to keep in mind is that if someone brings in more money than you or any other investor, they are probably going to own the most shares.
The best method to take in making sure that everyone is fairly treated is to have an agreement made. Of course, this would be drawn by the lawyers involved to make sure that everything is done correctly and legally. This will also ensure that every other investor also has a say and no one is unfair kicked-off the board because of the number of shares they hold.
You also need to remember that your investors are not out to make money viciously, they are also coming into this blinded. What sold them was the idea you had, they believed it would work and they grabbed onto it. Thereafter, it is up to the money involved to try and make the market believe in your product and service. This means their reputation is also at stake.
If you decide to use this route, you can also become well connected in the industry. Remember that your investment is likely to speak about their new venture and this is where you and your brand will surface. You could even be invited to attend events with them where they will introduce you to their other partners and acquaintances. You could even score on other negotiations from this.
Because this is quite a stressful and somewhat tedious process, the main reason for business owners taking this option is when they are not able to access funding any other way. This could be through a loan or another funding enabler. Make sure that you still try your other options before settling on this as you may not want to share ownership.
It is your choice on what route you wish to take. Remember that before you make this decision, the business is only yours, so you can decide how you want the future of it to play out.
This can be a preferred method simply because it provides fast results. The process usually involves investors coming on board to give their money to you. When they do this, they are basically giving you a reason to make the owner and that exactly what happens. All the money that you would make would now have to be split equally or depend on how you have split the shares. This will also depend on who brought the most money.
The one element that many new owners dread is that apart from sharing the profit you are also required to share ownership which means there is no longer one owner. This means that decisions and other important factors will also have to be passed through them. The biggest thing to keep in mind is that if someone brings in more money than you or any other investor, they are probably going to own the most shares.
The best method to take in making sure that everyone is fairly treated is to have an agreement made. Of course, this would be drawn by the lawyers involved to make sure that everything is done correctly and legally. This will also ensure that every other investor also has a say and no one is unfair kicked-off the board because of the number of shares they hold.
You also need to remember that your investors are not out to make money viciously, they are also coming into this blinded. What sold them was the idea you had, they believed it would work and they grabbed onto it. Thereafter, it is up to the money involved to try and make the market believe in your product and service. This means their reputation is also at stake.
If you decide to use this route, you can also become well connected in the industry. Remember that your investment is likely to speak about their new venture and this is where you and your brand will surface. You could even be invited to attend events with them where they will introduce you to their other partners and acquaintances. You could even score on other negotiations from this.
Because this is quite a stressful and somewhat tedious process, the main reason for business owners taking this option is when they are not able to access funding any other way. This could be through a loan or another funding enabler. Make sure that you still try your other options before settling on this as you may not want to share ownership.
It is your choice on what route you wish to take. Remember that before you make this decision, the business is only yours, so you can decide how you want the future of it to play out.
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