When investing in others businesses you need to take precautions to avoid throwing your money away. You just have to get what is best for you. So what rules should you follow:
Start with making sure the business is structured your own
As an investor in the business try to have the power to influence the management of the business.
Don't underestimate the value of your financial contribution of the founder of the business though yours might be higher
Adopt a structure that will give you the control to protect your investment like having a voting power.
Be In a position to be given the opportunity to elect the number of directors which is necessary for the control of the Board of Directors of the business.
Add yours
Start with making sure the business is structured your own
As an investor in the business try to have the power to influence the management of the business.
Don't underestimate the value of your financial contribution of the founder of the business though yours might be higher
Adopt a structure that will give you the control to protect your investment like having a voting power.
Be In a position to be given the opportunity to elect the number of directors which is necessary for the control of the Board of Directors of the business.
Add yours
