Looking to start your own business?

Ok, so you want to make a million dollars in 90 days…quite possible it says…Read the post here

We have, over the year, had personal experiences of people ready to invest in any project if you have a good story to tell. Not that we aren’t any good at story telling… If you have been reading this blog for long you will agree…Jokes apartΒ  the folks who are ready to invest money in any good sounding project will not be willing to play their money expecting to get a return of say 20% and their principal investment back. They always want to come in as equity partners.Β  Nothing less.

This would mean that any project that would be funded by a private party, the party shall come in with a stake in your company unlike a bank which will fund you giving you a rate of interest at which you will return the entire loan amount back in a fixed term period. Period.

Private investors stay on to rake in profits as long as the company stays on making them. You will do all the hard work and they will reap. Not a good position to be in right? Maybe yes and maybe not….Most banks refuse to fund a good idea on principles alone….they would like a collateral security first and then followed by your net worth to even consider reading your business proposal. However getting funded through banks are not always difficult if you have the requisites… most start ups don’t, which is where private investors come into play.

We preferred the bank simply to prevent any dilution to the equity we will hold…but if you have a good story to tell…smiley’s account could just be an ego boost for you… πŸ™‚

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4 Comments »

  1. :-) said

    Nice post. Looks like you got seasoned in the funding funda. πŸ™‚

    What you said is 100% true. I just made it sound very easy (smiley style), in reality, managing private equity partners (and their egos) is hell.

    I circumvented equity with something called “Working Partner Agreement”, where the limitations of partners (and their responsibilities) are clearly defined.

    We also outsourced management of day to day operations and keeping accouts to a third party.

    πŸ™‚ I am flying down to Bangalore in couple of days. game for a beer?

  2. Pradeep said

    Sure Smiles…Dont tempt me with beer…have been keeping away her and her stronger cousins for a few years now…
    neways do buzz – will meet – not sure about this week tho…traveliing 😦

  3. :-) said

    99494-11111 . Thats my mobile. I am in bangalor on 2, 3 and 4 th this month. SMS me when you are free. Lets do a lemon soda. πŸ™‚

  4. ravindra said

    i am interested to become a working partner and i am looking for a person who can invest in my idea.

    my phone number is 9886264889.
    sometimes my phone is not reachable. dont feel bad.
    but u can call me any time.

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