Bringing on an investor is a big deal.  Your investor becomes part of the family when you cash that check.  And vice versa – you have just become an important part of his or her livelihood.  Your new family member will want to meet with you at least quarterly, if not monthly, to get updates on the business, learn about your strategy, and understand the challenges and issues that you’re facing.  And this is if things are going well. If the business turns south, then you can expect much more involvement.

Before taking an investment, ask yourself if you would welcome this investor as a partner.  You’ll be dealing with him routinely for years to come, so it’s not that far from the truth.  If not, think hard about whether this is the right choice for you and your business. Don’t be afraid to walk away if it isn’t.

Matt Sand

Author Matt Sand

Passionate about making a difference through innovation and entrepreneurship.

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