4/6/2021 Tip: Should You Give Up Equity in Your Business? | Growthink

4/6/2021 Tip: Should You Give Up Equity in Your Business?

Today’s Quote

“An ounce of action is worth a ton of theory.”
~ Ralph Waldo Emerson

 

Today’s Tip

Are you concerned about giving up equity in your business?

There are still many entrepreneurs and business owners who are concerned about giving up too much equity and/or losing control of their company.

Let me start by saying that capital is the MOST important thing to your business. In fact, running out of capital is the reason why most businesses fail. And with capital, your business gains massive competitive advantages such as the ability to hire better personnel, buy better equipment and technology, etc.

Now, in terms of giving up equity to investors, consider this important yet simple mathematical fact: 100% of nothing is nothing. And without the capital, your company may be worth nothing. As such, it is my experience that a small piece of a big company is better than a large piece of a small company. For example, a 10% piece of a successful company (perhaps a $10 million company) is twice as great as a 100% piece of a small company, perhaps a $500,000 business.

Importantly, equity investors want YOU to maintain the lion’s share of your company’s equity, since they know it will give you the motivation you need to work really hard and make the company a huge success.

This being said, if debt financing is available to you, you should also consider that option if the interest rates are reasonable and you expect cash flow soon.

 

Today’s Resource

Why 91.2% of Companies Fail to Raise Venture Capital

Do you need funding to grow your business?

On this page, I reveal my proven strategy to raise $1 million (or more) from venture capitalists.

When you go there, you’ll learn why the old way of raising venture capital no longer works and most companies fail to raise VC funding.

And more importantly, I’ll show you what IS working today.

How to Raise Venture Capital <– 

 

Trivia

Today’s Question: Where did ALL 3 founders of Apple (Jobs, Wozniak and a gentleman named Ron Wayne) work before forming Apple?

Previous Question: What key text was added to Google’s homepage based on initial test results?

Answer: The Google Copyright message 

Let me explain. In early user tests of Google, they noted people just sitting looking at the screen. After a minute of nothing happening, testers often asked, “What’s up?”

What they found was the users weren’t doing anything since they were waiting for the rest of the page to load. To solve this problem the Google Copyright message was added to show people that the page had in fact fully loaded. 

Key point: make sure you do user testing on your web pages and other aspects of your business.

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