You need to make sure they were able to pertaining significant amount of control of your business when you are working with outside funding sources. If you’re working with friends and family, you should have the same contracts as you would use when working with any other type of investor for mobile app startup. You should always provide any funding source for complete resume of your abilities to operate your business on a day-to-day basis so that they can understand why you should remain in control of your business at all times.
Perfect Investor For Mobile App Startup
Your board of directors will most likely include your angel investor, which will have oversight of how you are running business. One of the alternatives to private investor for mobile app startup and capital firms is to use Small Business Investment Companies that are licensed by the Small Business Administration that will generally not require as much equity or say in how you run your venture startup company
Angel Investors and Control of Your Business
It is difficult to find private investor for mobile app startup, and many times entrepreneurs will jump at any offer for additional capital. Outside investment can aggressively and rapidly deliver growth in your business. There are a number of factors to consider when working with a private investor especially as it relates to control of your business.
Typically, only highly experienced entrepreneurs are able to raise large amounts of venture capital, but they too give up a lot of say as it relates to business growth and operation. Once you have determined the direction of your business, you must take the time to include the elements that will ensure your business’ success within the documentation that you will need to provide to your business investor. Sometimes, it is in your best interest not to work with an outside angel investor if you have issues with business control.
Many small business investment companies are not directly looking to take a very large percentage of your business. Angel investors want to know how you intend to spend the capital. In some instances, you may be able to reinvest the positive cash flow of your business when you are expanding your business operation rather than having to give up control of your business. Capital from the SBA is less expensive then equity capital and you retain 100% equity in your business.
In closing, you are going to need to determine whether or not you are comfortable with providing investors with a large amount of say as it relates to your day to day business operations. This is only something that you can determine. Additionally, it is important to work with an attorney and certified public accountant when making this decision to raise capital.