Can I keep a big stake in my business?
Smart investors will make sure you have skin in the game, says FSB's experts.
(FSB Online) -- Dear FSB: If I want to maintain majority control and ownership of my startup - let's say 75% ownership - does that mean 75% of the total company investment should come from me? Or is the process of doling out shares more complex than that?
- Christopher Dunne, president, IEG Enterprises, Philadelphia
Dear Christopher: As you correctly assume, it is more complex than that. Without the sweat equity you put in, nothing else matters.
Your time, expertise, creativity, and ideas all have value. If you will be devoting all of your energy to your venture's success, reasonable investors will want to reward you and make sure it is worth your while to stay involved. It is all negotiable.
Have you had trouble distributing shares of you business? Tell us about the challenges you've faced.