When Not to Take the Money

There are times where accepting funding just isn’t the right move to make. Learn how to recognize and avoid this situation to save your business from making a big mistake.

When an entrepreneur’s total focus is on raising the money they desperately need to survive, few give any thought to the possibility that some investments might actually hurt them. The phrase "Not all money is created equal" is a truism most entrepreneurs just don’t want to face. Yet by knowing how to evaluate an investment and its potential negative impact, an entrepreneur may just decide not to take the money offered. Here are some of the common mistakes made in this arena:

* Taking too much money

* Taking money from the wrong source

* Taking money at the wrong time

* Taking money in the wrong way

Each of the above situations has their own unique, potential problems. Some may just be unnecessary blunders that cost the business founders excess dilution, while others may turn out to be fatal mistakes. Here’s a rundown on each of the mistakes noted above:

from Jim Casparie

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