Finance

What fees should I expect to pay to receive help finding financing or investors for my business plan?

Guest Writer
Entrepreneur, Business Planner and Angel Investor
min read
Opinions expressed by Entrepreneur contributors are their own.

There was a time when most people used the traditional Lehman formula, which was 5 percent for the first million, 4 percent for the second, 3 percent for the third, 2 percent for the fourth, and 1 percent for everything thereafter. You can google Lehman formula to get more on that.

Nowadays, these deals go all over the map. There is little or no regulation, and little or no standards.

And that was true even before the latest financial crisis. It's even more chaotic right now. Investment activity hasn't stopped, but it has slowed a great deal, so it's very much a buyer's market.

Make sure you have a good relationship with an attorney too. You're in shark-infested waters. And I'm not saying there's anything wrong with the specific deal you're looking at, I'm not an attorney and haven't even seen it, so how would I know. What I am saying, simply, is be very careful.

More from Entrepreneur

Elizabeth's expertise can help you scale your business, build a personal brand and focus on being a value-driven CEO.
Book Your Session

For a limited time only, get this bundle of Entrepreneur PressĀ® titles for less than $30 (60% OFF) on our bookstore when you use "LEAP" at checkout.
Buy Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.