Photo Credit: MIT Technology Review/Flickr
For businesses, expansion is usually seen as a good thing. Whether it’s revenue or physical space, growth in businesses are for the most part, seen as synonymous with advancement. But rather than seeking expansion for expansion’s sake, consider instead the importance in finding the right investor.
Ricky Pelletier, a VP at OpenView Venture Partners, urges caution and restraint for business owners as opposed to expansion without careful planning. “The initial funding stages for a startup can be exciting, frustrating and a lot of hard work — all in equal measure. But what entrepreneurs need to keep in mind is that what happens during those early stages can have a big impact on your company’s ability to mature and secure additional funding further down the road,” wrote Pelletier on Entrepreneur Magazine’s website.
Pelletier points to five tips that business should consider: (1) Raising too much money; (2) Raising at too high of a valuation; (3) Not being selective about who you want investing in your business; (4) Choosing the wrong angel route; and (5) Not feeling comfortable fully leveraging your investors. All five of these principles are based around the same concept: it is better for a small business to take calculated and cautious steps in the earlier stages of a business than to quickly expand and suffer the negative effects after the business has been well-established.
Finding the right investor is a primary objective for small business to consider, according to Pelletier. A wrong investor, whether it’s an angel investor or a company loaning money, is one that isn’t invested in promoting a business owner’s ventures. Pelletier also advises to seek money from one business or one investor, as it serves “to avoid a situation where you’re spending too much time answering to too many different stakeholders, establish one point person who has proxy for that shareholder base.”
Capital Solutions provides quality service and care to ensure that we can indirectly service to finance your business. Why rely on several stakeholders when you can receive a quick, cash-flow from us?
Capital Solutions can provide quick capital for businesses hoping to pursue smart growth. Eighty to ninety percent (80-90%) of an invoice or purchase order may be provided by Capital Solutions to business owners as a cash advance prior to payment by the customer. The remaining ten to twenty percent (10-20%) is held in reserve with the factor. When the payment is received, the factor releases the reserve less the charges incurred back to the company.
For more information on any of the financing options offered by Capital Solutions, Inc., call 1-800-901-3299 or click on the Contact Us tab and fill out the necessary information.
