5 things to know before investing in business startups
Tips before investing in startups
According to the Small Business Administration, approximately 500,000 new businesses are started every year in the United States. Because it can be difficult to obtain financing, small-business entrepreneurs often turn to friends, family or acquaintances for funding. If you find yourself with the opportunity to invest in a business startup, tread carefully.
Think about liability, the valuation of the business, your timeline and your exit strategy. Before you even consider taking a partnership or jumping on board, here are some basics to know prior to investing in a new business.