When a new venture is raising money from angel investors, a real deal killer is getting hung up on pricing. Entrepreneurs want to attain the highest price for shares of their corporation. That is, they want the least dilution of their ownership. But price should not become a significant factor in arranging investor funding.
If you have a dream for the perfect business, don’t jump in just yet. There are a lot of reasons why it might be better to shelf your small business idea and copy somebody else’s instead.
Are you a recent college graduate not sure where to go next or a recent victim of a company layoff? Many are finding a challenging job market and because of that, waving off the traditional income model in favor of starting their own small business.
Like getting a date for New Year’s Eve, raising funds from angel investors may require making a move on multiple candidates. One entrepreneur turned the journey of seeking capital into a basic component of his job description. He’s the founder of LearnBoost, a free online grade book and classroom management tool for teachers.
Transitioning from employee to entrepreneur is scary for most and for people like Penny Haynes, who started her own business after her company downsized, she was pushed in to her dream of being in charge of her own career life.
When you pitch your company to an angel investor, you already know that the experienced are more likely to invest. So you’ll want to remember that experienced investors also are inclined to prejudice about entrepreneurs. Having dealt with so many new corporations, the angels are simply conditioned to expect certain behavior. If you make sure […]
If it’s true that time is money, this can easily be seen by comparing the amount of due diligence a potential business owner completes with the price he ends up paying to purchase a company. Very rarely is a business priced based on its true worth so you, the potential business owner, have to know […]
A potential stumbling block for a group of entrepreneurs ready to launch a new corporation is how to allocate ownership among the founders. There’s no reason to delay the start of a new venture over this issue. The company founders only need to apply some objective factors to determine an equitable arrangement as shareholders.