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Registering your business or looking for investors, what would you consider first?

Frank

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When it comes to owning a business, especially a new business, a lot of things should be considered. You can have the business idea, but there are times you may need investors to startup a business. When it comes to needing investors, would you register the business first before seeking for investors or do otherwise?
 
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When it comes to owning a business, especially a new business, a lot of things should be considered. You can have the business idea, but there are times you may need investors to startup a business. When it comes to needing investors, would you register the business first before seeking for investors or do otherwise?

I am not in favour of looking for investors because i prefer utilising my personal finance in order to start a new business. Regardless of that, if I really needed to start a company and need to raise funds for that, I would inform my investors about it and try as much as possible to deal with them honestly and in a transparent manner. So, in that case, I may register the business first and get it regulated first.
 
I am not in favour of looking for investors because i prefer utilising my personal finance in order to start a new business. Regardless of that, if I really needed to start a company and need to raise funds for that, I would inform my investors about it and try as much as possible to deal with them honestly and in a transparent manner. So, in that case, I may register the business first and get it regulated first.

Well, starting off with not looking for investors show that you have the financial capacity to start the business without an external. I guess there are a lot of business owners that would want to lay the foundation of their business using their funds too.
 
In most cases, investors are not going to be interested in putting their money in your business if it is not fully registered which is why I believe that the registration of your business is one of the first important thing that you need to do before even going public with your business. This is so that everything is going to be observed and recognised by law.
 
Generally speaking, you cannot get investors for your business if it is not registered. INvestors want to invest only in a legit business and by registering your business, you will have proof that it is legit. Registering will also have your business financials in written, which makes investors easier to invest.
 
I wouldn't look for investors until the business is at least registered, because if you look for investors, they might not invest if your business isn't at least started. Now, if the business is yet to start, it could help get your business started if you find investors willing to fund it. But that's easier said than done.

Either way, you will need investors at some point, but make sure you have some work done before that process.
 
If I am an investor, I won't consider any business which isn't registered. I won't care how good the business proposal looks and the project they have built on, not being registered makes them a time ticking bomb that can blow up at any time. The business can be sued, shutdown or the owner goes AWOL and my money will go up in smoke.
 
I wouldn't look for investors until the business is at least registered, because if you look for investors, they might not invest if your business isn't at least started. Now, if the business is yet to start, it could help get your business started if you find investors willing to fund it. But that's easier said than done.

Either way, you will need investors at some point, but make sure you have some work done before that process.

Exactly! Businesses have processes. You can't jump the process A which should cover your business registration that makes it an officially legal business to jump into process B of looking for investors to help and boost the business. If the process A isn't completed, the next process is dead in its tracks.
 
If I am an investor, I won't consider any business which isn't registered. I won't care how good the business proposal looks and the project they have built on, not being registered makes them a time ticking bomb that can blow up at any time. The business can be sued, shutdown or the owner goes AWOL and my money will go up in smoke.

There are many HYIPs and investment companies that are registered with the government. However, this does not mean that they are a good company when it comes to investing your money. The fact remains that they (HYIPS) are registered, but still they scam people.
 
There are many HYIPs and investment companies that are registered with the government. However, this does not mean that they are a good company when it comes to investing your money. The fact remains that they (HYIPS) are registered, but still they scam people.
The HYIPs and investment companies which are scams will never be registered. They will forge documents of registration to use and convince people they are registered. If they truly register with the government, they will be caught easily when they scam people.
 
I think registratering your business before looking for investors is the best idea, because investors would not want to throw there money to a business that has not been registered and tested. It is during the registration stage that your business will be tested, and also the moderlities on what each investors will get at a given time.
 
I think registratering your business before looking for investors is the best idea, because investors would not want to throw there money to a business that has not been registered and tested. It is during the registration stage that your business will be tested, and also the moderlities on what each investors will get at a given time.
Customers who are smart doesn't like buying anything from a business which isn't registered because they believe the business might have substandard products being sold to the people and they are not entirely wrong.
 
Customers who are smart doesn't like buying anything from a business which isn't registered because they believe the business might have substandard products being sold to the people and they are not entirely wrong.

Well, unbranded businesses have a bad reputation. However, there is still a very big marketplace for such kind of products. Branded products seem quite expensive to many people and this is why they may prefer buying unbranded products initially. Having said that, even many unbranded companies seek investors initially before starting a business because they may not have enough resources such as capital to start their business.
 
I think registratering your business before looking for investors is the best idea, because investors would not want to throw there money to a business that has not been registered and tested. It is during the registration stage that your business will be tested, and also the moderlities on what each investors will get at a given time.

Most investors have actually been scammed by a lot of business projects that presented themselves to be something that is legitimate and were registered. This is the reason why investors today are always very careful before investing their money in any kind of business project. They are going to make sure that they verify all the documents of registration that such business project will present before they are going to invest money in it.
 
This is not true. There are so many unbranded businesses all over the world and not just in my state which are selling products which have more quality then the branded company's products. I've purchased so many unbranded products which have been durable for years.

Well, people don't know that there are a lot of unbranded products that are even of higher quality than the branded ones. No one knows the reason someone who is doing a business will decide not to brand their products. Maybe it could be as a result of a limited budget to get it too.
 
Well, people don't know that there are a lot of unbranded products that are even of higher quality than the branded ones. No one knows the reason someone who is doing a business will decide not to brand their products. Maybe it could be as a result of a limited budget to get it too.

I believe that it's probably the money it's going to take for them to have their products become a branded one that puts them off from going ahead with it. It's not like they can't sell if their products are not branded yet. It just seems like an unnecessary expenses for them at the moment.
 
Well, starting off with not looking for investors show that you have the financial capacity to start the business without an external. I guess there are a lot of business owners that would want to lay the foundation of their business using their funds too.

When you invest money of other people, you become responsible as well when it comes to losses or profits. When you invest your own capital, you may never be responsible for someone else because you have never had invested other's capital in the first place. So, there's the difference right there.
 
When you invest money of other people, you become responsible as well when it comes to losses or profits. When you invest your own capital, you may never be responsible for someone else because you have never had invested other's capital in the first place. So, there's the difference right there.

You're not supposed to be making use of another person's money to invest in any project that you don't have control over how it's going to be paying you money. Once anything goes wrong, you're going to find yourself in a very serious debt that's going to make you pay dearly.
 

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