The Advantage
Starting a business and using the proceeds to bring an invention to market prior to appealing to investors for finances would be a remarkable accomplishment. When the time comes to expand the market for the invention you would have already proven your capability to manage a company.
Presenting accurate financial records for the growth stages of your business would show investors intervals of its progression, which could give them confidence in you. And, more importantly, a small track record for the invention’s market potential would be established, which would be the key factor investors would want to know.
You would have experiences in business, achieved success, and gain a confident posture with which to possibly leverage negotiations more in your favor. Namely, your demeanor would show your willingness to grow your company at a slower pace rather than accept an offer if you don’t perceive it as equitable.
The continued growth of your company could also increase its pre-money valuation: valuation preceding an investment. A high pre-money valuation could suggest the likely high success of the company, which could mean that the cost per share could cost more. It could result with you retaining substantially more ownership of your company than you may have otherwise: conceivably more than 51% ownership. But, always educate yourself by acquiring advice from an attorney experienced in such negotiations before meeting with an investor and certainly before accepting or rejecting offers.
I have an idea for an invention for the Internet as said on the About Me tab. But, I am not a programmer. Nevertheless, ignorance was my greatest asset.
Consider this! DO NOT underestimate the potential of your ideas and certainly not the power of simplicity. Remember what Albert Einstein said: “Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction.” I definitely don’t ascribe to genius but I do have the courage. By virtue of you reading this article, you do too!
Marketing FunnelXRoi gives me the realistic expectation for generating the finances to have the beta-version of my invention developed, pursue the patent process, and start the company to market it. It will undoubted take perhaps a year, I’m patient. I have a professional advising me. I’ll get there.
“Anyone can give up, it’s the easiest thing in the world to do. But to hold it together when everyone else would understand if you fell apart, that’s true strength.” Dr. Robert Anthony
