Post
Topic
Board Economics
Re: Would you prefer getting a loan for a startup or getting an investor?
by
milewilda
on 19/06/2024, 19:17:53 UTC
I'll choose to get an investor because I don't yet have experience running a profitable business with positive cash flow. By finding an investor, I must prepare a pitch deck, which forces me to continuously improve and verify my ideas. I also learn how to convince investors. This is a very good experience. So, besides getting a cash injection , I can learn more about the potential of my ideas because I need to convince investors by answering their concerns.
That is actually quite smart but how hard could it be to try and learn things by yourself first before trying to bring in other people to meddle with your own business? Consultants are okay but once you start bringing people in that could alter the direction of your business, it might become too complicated.

There is no shame in being a beginner and learning how things work first and maybe even making a few mistakes. Seems better than letting the decisions be ran by other people who might even do some work before your back.
Having an investor is not like doing a partnership. You may not understand, but if you borrow money from someone or someone else invests money in your business, then you set a profit limit in which you have to give the profit to your investor. Yes, if you have a partner in your profit, then he can interfere in your business and you can say that your business is in the hands of someone else. But if you have good investors, you only have to give benefits to your investors and not involve them in your business.

I think it is much better than borrowing to find good investors who keep giving them a fixed amount because debt is something that once a person takes, he can never get out of debt. If you borrow from someone and he stipulates that you have to pay interest on it, it can be more dangerous for you. I don't think his business can be more successful than if you have a good investor and you decide that they will have a profit in your business, then you give them that much money every month.
Some people would really be thinking that being an investor would really be automatically considered out to be that some sort of partnership on which its true somehow on the sense that they are part of the foundation
considering on the amount or financial approach but its true that if you would really be that tending to make up some agreement or really just that simply trying clarify that they arent that your partners but rather they are just purely investors who would really be that getting a percentage in speaking about on the profits that they are making and not really that totally have that kind of rights and control on how business operates or on how they would really be working. There's really indeed a difference in between things on which you would really be needing up to clarify if you wont really be liking any hassle about these kind of stuffs.

Going back into the possibility on getting investors online would really be that tough. Why? trust issues would really be the main issues on this one because
dealing up with things or investment in online world would really be that risky specially if you wont be able to know someone whose really that asking for.