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Financing with equity: Selling a stake in your business/brand
ОглавлениеAn alternative to borrowing money is selling a stake in your business/brand to investors. You can offer your sister-in-law 30 percent ownership of your koi-pond business in exchange for $50,000, for example. If you do something like that, of course, I strongly encourage you to hire an attorney to draw up an agreement.
You can also sell shares in your business, which is way beyond the scope of this book. To sell shares, your business needs to be structured as a C corp or S corp. You can sell various types of stock in a business, including common stock, preferred stock, and convertible preferred stock, to name a few. If your head is spinning, that’s my point: Consult an attorney or a stockbroker to explain your options and suggest what’s best for your particular situation and preferences.