Investor or Partner: How Should You Start?
Starting a business means making many difficult decisions, all of which can have a profound impact on your venture’s success. If you are like most new business owners, one of the toughest things is finding the proper funding to get started. Should you be looking for a partner, or an investor? To answer this question, it helps to know what you can expect from both options.
The Role of a Partner
Typically speaking, business owners seek out a partner for two key reasons. First, the partner offers insight and experience into the business. This can come in the form of actual industry experience or simply in the form of business administration experience. Second, the partner provides an ongoing way to help finance the startup and eventual expansion of the business. Before making any decisions, you and the prospective partner(s) should speak with a Boston business attorney to work out a mutually beneficial agreement.
The Role of an Investor
Of course, sometimes a business owner wants to maintain full creative control over business operations. In this case, he or she can seek out an investor. Investors serve only one key purpose: provide business financing. Though some investors may want to have creative input on the founding of a business, many are happy to simply provide the capital and reap the benefits as the business grows. Still, it is important to clarify exactly how involved the investor expects to be.
Which One is Right?
If you are having trouble deciding whether you need a partner or an investor, the real secret is to narrow it down to two options: either you want someone to help with the operation, or you simply want some capital to make your idea happen. In either situation, it is important to decide ahead of time what your intentions are and go forward from there. Always remember, when things are going well and you are looking to expand, you can always look at adding new partners or investors to the mix.
Ultimately, the tough decisions are the ones that will make the biggest difference in your day-to-day success. That’s why it’s so important to speak to a Boston business attorney so you can explore your options and come up with a solid plan. When it comes time to plan your family business and you wish to seek out the best professional advisers to help explore business financing options, contact Jeffrey Cymrot of Sassoon & Cymrot for individual guidance and consultation.