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Even if they did invest money, would you want to take it? The minimum it's probably worth raising is say, $50K, when you figure that the legal fees alone might
by tomkarlo 16y ago
Even if they did invest money, would you want to take it? The minimum it's probably worth raising is say, $50K, when you figure that the legal fees alone might run $3-5K. To make the investor a good return on that, you probably need to create a business worth $250K minimum (for a 5X return.) A single-writer blog just isn't going to be worth that much, especially when you consider that you have to subtract your own comp from the profits before calculating the value of the franchise.
If you're going to build a small lifestyle business that has relatively moderate growth trajectory, you need to do it without raising money that expects a big growth rate. If all you need is say 15-20K, just borrow it on a personal basis from a microlending club like LendingClub.
If you're not willing to take that kind of risk? Don't expect anyone else to, either.
- traviso 16y agoSolid, grounded advice. Thanks! You're right especially on you're last point, I gotta be willing to take the risk if I expect someone else to.