A recent article, How to Pursue Funding for Your Company by Melinda Emerson says that if you have brilliant idea for a business and you think that financing is the best option rather than bootstrapping it with your personal resources, then be careful. “Outside funding brings its own crop of distractions.”
Let’s discuss.
- You’ll learn valuable lessons without funding.
When you launch your business without a cushion (only with your personal resources) in a commercial office space, you get to learn valuable lessons about the market, about the customer, about the product and yourself. It’s a compelling reason to build your instincts and sharpen your talent.
- You’ll be put in a difficult situation.
If you don’t have financial track record, your potential investor has the power and may give a condition that puts you in a difficult situation, either by undervaluing your company or by charging you a higher cost of capital.
- Your focus will be on funding instead of the customer.
Building a clientele involves focus and commitment; obtaining funding requires the same. You will distract yourself from building your customer base (which is the linchpin of your success) once you are preoccupied to pursue funding.
- You may put your business at risk.
The proposal to fund your business usually comes with terms and conditions, so don’t make haste to agree with your investors. There’s a lot at stake, so explore them carefully and avoid making commitments abruptly.
- You could lose control of your company.
When you secure financing you’ll have to appoint a Board of Directors and as a young entrepreneur financiers don’t know how you will respond to success or difficulty so they may agree to remove you as the CEO.
Conclusion
Starting a business is not a way to instant cash, but it’s an opportunity to hone individual talents that yields long-term success. As a startup in Philly, YourOffice Philadelphia can help you launch your business by ensuring the right setup for you. YourOffice Philadelphia offers you a wide choice of office and workspace solutions: small office space Philadelphia, executive suites Philadelphia and meeting space Philadelphia. You’ll have access to a complete array of office support and concierge services as well as state-of-the-art business technology.
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