A recent article, How to Pursue Funding for Your Company by Melinda Emerson says that if you have brilliant idea for a business and you think that financing is the best option rather than bootstrapping it with your personal resources, then be careful. “Outside funding brings its own crop of distractions.”
- You’ll learn valuable lessons without funding.
When you launch your business without a cushion (only with your personal resources) in a commercial office space, you get to learn valuable lessons about the market, about the customer, about the product and yourself. It’s a compelling reason to build your instincts and sharpen your talent.
- You’ll be put in a difficult situation.
If you don’t have financial track record, your potential investor has the power and may give a condition that puts you in a difficult situation, either by undervaluing your company or by charging you a higher cost of capital.
- Your focus will be on funding instead of the customer.
Building a clientele involves focus and commitment; obtaining funding requires the same. You will distract yourself from building your customer base (which is the linchpin of your success) once you are preoccupied to pursue funding.
- You may put your business at risk.
The proposal to fund your business usually comes with terms and conditions, so don’t make haste to agree with your investors. There’s a lot at stake, so explore them carefully and avoid making commitments abruptly.
- You could lose control of your company.
When you secure financing you’ll have to appoint a Board of Directors and as a young entrepreneur financiers don’t know how you will respond to success or difficulty so they may agree to remove you as the CEO.
Starting a business is not a way to instant cash, but it’s an opportunity to hone individual talents that yields long-term success. As a startup in Philly, YourOffice Philadelphia can help you launch your business by ensuring the right setup for you. YourOffice Philadelphia offers you a wide choice of office and workspace solutions: small office space Philadelphia, executive suites Philadelphia and meeting space Philadelphia. You’ll have access to a complete array of office support and concierge services as well as state-of-the-art business technology.