If you are just starting out, you should definitely approach the potential board members you already know.
When you are starting out, you need to preserve cash, so here are some non-cash ways to attract board members to your company.
That would be a yes! Investors are definitely more likely to fund you if you have invested your own cash. It’s a common question they ask.
There is no doubt that 2011 is a good year to be presenting your opportunity, especially if it’s in one of the hottest sectors.
As a corporate advisor, I meet with many companies who seek investment capital to help with the growth of their business. But attracting investor capital depends greatly on whether you are “investor ready” or not.
If you don’t have a good handle on the ASX, then you won’t know what you are getting yourself into. Listing sounds sexy but for many companies it is not the right growth path.
Maybe as an idea, to maintain some separation the deal should be done like an acquisition – ie. they acquire a stake in your business.
There are numerous cases where families work together and build very successful companies. Where it goes wrong is if agreements aren’t documented and communication is not open and honest.
Being unprepared when approaching investors is probably the single most common reason why entrepreneurs fail to attract capital.