What Are You Willing to Risk for Your Business?

If you were seeking capital for start-up or business growth and were asked by an investor or venture capitalist what have you invested in your business, what can you say?  How will you respond when they ask, “What are you willing to invest in your business?”

Investors want to work with entrepreneurs who are willing to invest in their own deal.  If you aren’t willing, why would they be?

The answer you give should be, “What ever it takes.”

There is a point at which you will want to walk away from a business if it isn’t working so you don’t put yourself at a disadvantage financially and end up bankrupt.   However, I know many entrepreneurs who took all their money, credit, and more and dumped it into their business ensure success.  So again, the question is, what are you willing to risk?

For some the answer is everything.  For others the answer is whatever it takes.   For others it may be whatever it takes with a condition it doesn’t go above $x.  Just remember, the answer an investor wants to hear has no conditions for you.  You are 100% committed to your business.

If you aren’t 100% committed, don’t start the business in the first place.  There will be times where you need to ask yourself the question, “What am I willing to risk?”  The answer might change from year to year based on your situation and the health of the company.

The best time to answer the question is when emotions are low.  That’s at the time when there isn’t a crisis or stressful situation.  Answer the question about what you are willing to risk and let your spouse or a good friend know so they can hold you to it.

David Gass
Founder, Business Credit Services, Inc.
Earn Expert Advisor