We’ve spoken of financing a young company through friends and family, known as “inside angels.” There are three classes of equity investors for early stage businesses that we have not yet considered. Often grouped into formal organizations, these investors are sophisticated, helpful, and connected.
I get these emails, summarizing one side of an argument, asking me to guess or comment on fairness. For example, in an email I just received, the one asking me has worked for 18 months “with significant intellectual contribution.”
When you have a small business, it can be tough to raise the money you need to launch, expand, or promote your company. That’s one reason a lot of smart small business owners today are turning to the newest fundraising technique—crowdfunding.
Investors do indeed back first-time entrepreneurs, but it’s clearly their second choice. Most investors prefer to find an entrepreneur who has a proven track record—at least one successful venture—and then bet that the success can be repeated. Their mantra is: “We back the jockey, not the horse.”
One of the hardest but most exciting things about being a young entrepreneur, first-time business owner, or even a startup manager is the hiring process. But there are a few things you have to think about before green-lighting a new startup employee, especially in the earliest stages of starting up.
Small Biz Club is the premier destination for small business owners and entrepreneurs. To succeed in business, you have to constantly learn about new things, evaluate what you’re doing, and look for ways to improve—that’s what we’re here to help you do.