5 Things To Consider When Choosing A Good Financier
Whether you’re running a startup or you’re already in the middle of running your own business, you might have realized at some point that trying to come up with enough funds to keep your business afloat can get difficult when you’re doing it all by yourself.
You may have started borrowing money using your business credit card, from your family and friends, or via crowdfunding. But even those funding sources might not be enough. In which case you may want to approach a financier for additional business funding.
To help you warm up to the idea of somebody else investing in your business, listed below are the five things to consider when choosing a good financier.
Know which type of financier you would like to have for your business.
The kind of financier that’s the right fit for your business depends on how much money you need to get your business going. There are three types of financiers from which to choose.
- If the amount that you need for your newly launched business is between $5,000 and $20,000, you would want to contact a seed investor. You should note though that a seed investor doesn’t need to continually invest in your business once it starts making enough profit to become successful.
- If your business needs at least $50,000 to more than $400,000, you would have to approach an angel investor instead. However, you should be careful not to let an angel investor slowly take the control of your own business away from you, especially if the sum they invested isn’t as large as they would like you to believe.
- If you need $500,000 or more to keep your business afloat, you may want to find a venture capitalist. But you should proceed with caution when entrusting the financial security of your business to venture capitalist; one might not hesitate to kick you out of the business that you started yourself.
Pick a financier that you can trust
As you’ll be doing frequent financial dealings with what initially is a complete stranger to you, it only makes sense for you to choose a financier who you can rely on, no matter the situation of your business.
- You wouldn’t want a financier who’ll leave you in an instant if your business isn’t making as much profit as you may have initially hoped.
- You and the financier that you’ll choose should have several things in common so that it would be easier for you both to trust each other in the long run. After all, you would also want a mentor, long-time supporter, and even potential business partner by your side.
Have a financier who’s always ready to hear you out.
Regardless if a financier is providing funds for your business alone or other businesses as well, you should always make sure time and undivided attention can be made to listen to any concerns or questions that you may have.
In case your financier is engaged in multiple business investments aside from yours, both of you should agree as to when and how often you should talk to each other, instead of letting someone simply give you the money that your business needs without saying a single word to you.
Be with a financier who will tell you what you need to hear.
You may not sometimes like the idea of somebody else telling you that your business has failed to turn a profit because of this or that thing you did.
But you can benefit significantly by listening to an unbiased opinion from your financier, who’s expecting a return on the money invested for your business.
Find a financier who may be able to solve your current business problems.
No matter how much you try to come up with a solution to a problem that your business might be encountering, you might have ended up empty-handed.
The right financier would not only give you sound financial advice—aside, of course, from giving you the funds that your business needs—but may also contribute to solving that business problem that has been nagging you for quite some time already.
Acquiring funds for your own business doesn’t always have to entail doing it by your lonesome. People will be able to give you advice, in whatever industry you aim to venture into. Something completely different, but let’s talk about the drug industry for a second. Whatever product you are selling, you always want to make sure it is well looked after, in case anything may happen to it. So what would be the best thing to do? To get Cannabis Insurance. In the end, regardless of the profession/industry, funding and finances is something that is important to us all.
But while you may have already borrowed money using your business credit card, from your family and friends, or via crowdfunding, these sources for your business funds might still turn out to be inadequate for you.
As a result, you may have to contact a financier who you believe can help your business get a leg up financially. If you’re looking for a helping hand for tips specifically for your needs, inquire here regarding your needs, as a financier is not an easy choice to make for any company, especially if you have big things planned ahead.
JJ is a highly qualified mortgage broker with years of experience in the finance world. JJ is CEO of Loan Base, and has a keen interest in economics and finance. JJ has a breadth of knowledge on a number of topics, ranging from the intricacies of lending in various countries, to trends in housing and commercial property markets on a global scale.