funding, investors, angel-investorsI would like to know when I should ask for investements. At what stage of my company I should ask angels/venture for money. I’m developing a Website. Should I wait for a certain amount of users ? Thank you.
It is not essential to take money from investors if you are able to grow and meet your market demands from sales revenue. Usually people take money from investors when there is insufficient capital to fund the initial startup or an expansion phase. The problem with using Other People’s Money in your business is that they would want a share of your business and then they would also want a say in how the business is run. Funding out of your pocket has the advantage that you do not have to worry about that and you would not be diluting your share of the business.
In order to determine when you would need the money, calculate the monthly revenue forecast, expense forecasts and asset expenditure. If you find that you do not have the capital to fund an essential unavoidable part of your plan or cover expenses, then that is when you would need an outside investment.
Investors like to see traction in the business they are investing. It shows to them that the business idea has validity and market acceptance and it also shows your capability to implement the business plan. If you do not have users, it might be a good idea to wait before you take on an outside investor. If you do not have money to even get started, you can look for a friends and family or a small interest free loan to get started.
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