Benjamin Franklin once said that nothing in life is safe except death and taxes, and go ahead and know what future scientists will invent to avoid death. Every penny we save on taxes can be reinvested in our next investment. Taxes of course come in different shapes and sizes – there are different types we have to pay. But, did you know nearly 80% of Americans were required to file taxes this year? That’s a lot.
So it’s important to know what you should do with any returns you get and if you’re considering investing, how is the best way to go about this?
Do You Really Want an Investor?
To know the answer to this, you need to know first and foremost yourself. Partnership is not just a business and getting an investor into the business is much more than money. Since most business owners are emotionally attached to their business, one must take into account the emotional aspect and know that your ego has a role to play. Putting a partner in this business means agreeing to share with someone else your dream, your worldview, your fears and hopes and your inner ethics – whatever they are, which guides you. You need to keep in mind that the partner you work with, may be someone whose motivations and worldviews are completely different from yours. Before you start this path, you must find out for yourself where you are running. Ask yourself what kind of help do you expect to receive from an investor? Are looking for an active partner who will play a role in the business and complete features that you lack? In this case, the investment will play out as more of a collaborative deal; you will be working together in a different capacity afterall. Are you wanting to work with this person as a side hustle?
How Do You Want Things to Go in Business?
Will you be willing to accept a different opinion, and what freedom of action will your ego agree to? Once you have imagined and understood what kind of investor you are looking for, you should try to think about why it is worthwhile for them to invest in your business. In order for you to answer this question you need to look your business in the eye and be brutally honest about what its positives and negatives are, because every business has a negative aspect.
Your investor and potential partner will want to know values and figures. They will want to know that the business they invest in will provide them with income, profits and financial security for the future and so you can walk this common path together. If you want to be honest and open about moving forward and investing, you must be prepared to speak openly on every topic, so that you can move forward together and create the changes you desire.