Posted by 2013-11-05 15:28:29
Title: My partner and I will be launching a newly patented fashion accessory. We realize there will be sig...
Pursuing an investor or a lender will depend on the amount of money in question.
If you are seeking an amount below $50,000, I'd recommend debt financing because you and any business partners can likely raise that amount with a bank loan, money from friends and family, advance sales, etc. (Have you considered Kickstarter?)
If you require more money than $50,000, it may be worthwhile to investigate an Angel Investor (or Dragon!) or an active partner willing to contribute money and effort. An investor will want a piece of your corporation and involvement.
To me, it's not worth giving away either for less than $50K. Be sure to consult with your accountant, lawyer or financial advisory team to get their professional advice. The more heads the better.
Roger Pierce, Small Business Expert for Scotiabank