Get All Access for $5/mo

Do This Before You Look for an Investor (60-Second Video) Feel like the time is right for outside investment? Consider these three things.

By Dan Bova

You've been bootstrapping, doing it all on your own...a little outside investment would be nice, but is it the right time? Here are three things to consider before looking for outside investors.

  1. Have you made the most of your resources? Is there no more you can possibly do on your own? The more value your company has before you meet potential investors will help give you leverage when negotiating with them.

  2. If all you have is a really good idea and some talent, you might want to slow your roll. An investor stepping into that situation may want a controlling share of the ownership in return for capital.

  3. Make sure the investor understands your business, your goals -- and your timeline. An investor who doesn't understand your business plan could get nervous and pull the plug at the exact wrong time.

Good luck!

Watch the next 3 Things to Know video

Dan Bova

Entrepreneur Staff

VP of Special Projects

Dan Bova is the VP of Special Projects at Entrepreneur.com. He previously worked at Jimmy Kimmel Live, Maxim, and Spy magazine. His latest books for kids include This Day in History, Car and Driver's Trivia Zone, Road & Track Crew's Big & Fast Cars, The Big Little Book of Awesome Stuff, and Wendell the Werewolf. 

Read his humor column This Should Be Fun if you want to feel better about yourself.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

More from Entrepreneur Exclusives

3 Simple Ways to Boost E-Commerce Sales

Why Your First 1,000 Customers Are Your Most Important

How to Grow Your Business By Finding New Customers

How to Beat The Working From Home Blues (60-Second Video)

Editor's Pick

Most Popular

See all
Science & Technology

Why Businesses Are Relying on Automation to Survive the Labor Crisis

Robots are revolutionizing industries by addressing labor shortages and enhancing efficiency, while businesses navigate challenges like workforce adaptation and high implementation costs.

By Robert Walker
Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.

By Kerry Chen
By Sherin Shibu
Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

By Amanda Breen
Celebrity Entrepreneurs

The Pep Talk From Mickey Mouse We All Need to Hear, Compliments of Chris Diamantopoulos

Chris Diamantopoulos, the star of "The Sticky," "Red Notice" and the voice of Mickey Mouse, gets real about resilience, chasing dreams, and his desperate wish for a normal hobby.

By Dan Bova
Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

By Blake Johnson