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 apart 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. 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… 🙂