You would assume that when you hear of a business owner selling equity in their business they are after only one thing… cash.
However, a new survey reveals something completely different.
A survey carried out by Angels Den, an investment network, discovered that 76% of business owners want a deal from new shareholders that comes with mentoring and business advice. Just 12% of those surveyed said they wanted cash and nothing else.
This is an encouraging finding because it shows that the majority of those selling equity realise there is an accountability or skill gap in their business and it needs to be filled.
Investors come in two guises: a passive investor who simply hands over the cheque, goes off into the sunset and waits for the annual dividend cheque; and then there’s the active investor who spends a day a week, a few days a month or even more frequently imparting their knowledge, skill and support.
When a business is growing there is no substitute for having a team around you who can provide input without the shackles of being blinded by the day-to-day issues.
Don’t just chase the cash; find those with cash and skills… a winning combination.