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Questions & Answers

Posted by LESLEY BRYDON on 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...
Category: Money

My partner and I will be launching a newly patented fashion accessory. We realize there will be significant costs involved in order to bring this to fruition and are wondering which approach to take. Should we seek out an investor or obtain a bank loan? Ideally, if we chose the investor route we would ideally hope that he/she had experience with overseas manufacturing. If we seek out an investor what platform which be the best approach?

Answer:

Roger Pierce
2013-11-11 17:38:39

Hi Lesley,

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