Inside Entrepreneurship: Six reasons to consider investors

A FEW WEEKS ago I met with a group of prospective entrepreneurs who have an interest in one day starting environmentally friendly businesses.

Some of these green entrepreneurs are technology- oriented engineers and scientists with new approaches to alternative energy production, home-based waste disposal systems to reduce transportation costs to landfills, or software systems to measure pollution output.

Other audience members were incubating lower-tech businesses in food production, organic fabric utilization and conservation education programs.

The nature of the discussion was how to improve the viability of these new business ideas. My view is that success is not just dependent on innovation, but how well capitalized a company is to fund the development and distribution of these new ideas, too.

Here’s where the fireworks began. Several audience members had very negative views about investors. One said, "I don’t want to bring in investors who will ruin my creative vision." Another commented, "Investors will take everything and leave nothing for the employees and founders."

It’s important to note that these impressions were developed not from firsthand experience but "what they had heard about investors."

To balance the tone of hearsay and urban myths, here are my top six reasons why ambitious entrepreneurs should consider learning more about raising capital from independent investors.

By SUSAN SCHRETER
SPECIAL TO THE P-I

Full Story: http://seattlepi.nwsource.com/business/377776_schreter05.html