Ways to Fund Your Business and How a Corporate Business Attorney Can Help

Raising capital to start or grow a business takes time and effort, and can be a difficult process to navigate. Whether you are considering funding sources like an SBA loan or plan to raise money by offering investors equity in your company, it is critical to seek the counsel of an experienced corporate business attorney to help you avoid potential legal pitfalls.

Things to Consider Before Seeking Funding Sources

Identifying potential sources of investment capital is usually one of the most challenging elements of funding a business. Some important questions to ask yourself include:

• How much money do you need to raise, and what will it be used for?
• Do you have any friends, family, or colleagues who have the means to help finance your business? If so, would they be interested?
• Are there any federal, state, or local government grants or loans that may be available to help fund your business?
• If you have an existing business, is a line of credit an option?
• Is your business the type of company that would be appealing to venture capital investors? If so, do you know of any that specialize in your industry and area?
• Does your local community have any angel investors who may be interested in your type of company?
• How will investors turn a profit?  Do you have a solid business plan that shows how they will make money if everything works out according to plan?

Although you may have a general idea of the answers to these questions, a seasoned business attorney can evaluate your circumstances and determine which options may be most appropriate for your business. They may also have connections with local financial institutions, angel investors, and other capital sources that could be beneficial to your business.

Benefits of Working with a Business Lawyer

If you plan on bringing in investors to raise money, it is critical to have an attorney who is well-versed in securities law. An experienced lawyer can advise you on the legal requirements for raising money from investors and ensure that you comply with complex securities law. Seeking the counsel of a seasoned lawyer for contracts like investment management agreements, equity agreements, and purchase agreements not only helps to ensure you comply with the law; it can help you avoid potential problems that may arise when raising capital for your business.

A business attorney can also help you negotiate better terms and ensure you keep a reasonable amount of equity in your company. Investment deals fall apart all the time, and having a lawyer in your corner helps protect your interests. They can also advise you on which type of business entity will provide the most benefit.

Although securing funding is likely your top priority, a local business lawyer can also assist you with business succession planning, which can protect your business and help to ensure a smooth transition when you decide to retire or unforeseen circumstances arise.

Do you need assistance with funding your company, business entity formation or other legal matters? The knowledgeable team at our law firm in West Chester can help.

This blog was originally posted at https://carosella.com/blog/ways-to-fund-your-business-and-how-a-corporate-business-attorney-can-help-2/