Wednesday, September 26, 2007

Screening


When looking for prospective investors in the marketplace to fund a start up company a lot of research towards that person’s character should be done prior to approaching him or her. Ideally you want an investor who understands and is educated in the intricacies of investing. The prospective investor should also have some business sense and know how to control his emotions in regards to greed and fear which have no place in a company. You do not want a co-owner who is looking only towards his own self interest but one who is looking out for the best interests of the entire company. A greedy co-owner is too much of a highly destructive individual to be operating within the beginnings of a start up company and should never be allowed to become an officer of a company because there are millions of dollars at stake. The importance of screening prospective investors must never be undervalued because a companies success is measured by the quality of its ownership values.