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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.

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