So you’ve decided to sell a percentage of your company to Venture Capitalists? I’m sure you’ve had time to think through the potential pros and cons that can come with such a decision. Just in case, here are some things to consider.

1. Say you are looking at receiving an investment for a large stake in your company. At first you might be excited to have some extra money to put into new growth and marketing. After some more thought, you might start to second guess whether it’s a good idea to sell part of your company. You have good reason to question. After all, if somebody is willing to put X dollars into your company for partial ownership, is that same chunk of your company worth the investment price to you? Would you invest in your own company if you had the funds? If so then it’s probably not going to hurt you to sell, however, are you 100% positive that you even need the money? If you don’t necessarily need the money, your long term profits and worth will most likley be much higher if you don’t bring in outside investors.

2.  Following along the same question of “Do you actually need the money” is my next point. If you don’t absolutely need the extra cash, are you willing to work alongside with the headaches and extra work and time required to keep VC’s happy? Between making sure they are happy with your use of their money, and making sure that you keep them up to date with projections you will soon have your hands full. Even if their role is defined as non-hands-on you will still need to keep them happy one way or another. If you aren’t prepared to have a “boss” then you should consider everything carefully before bringing in Venture Capitalists.

There are obviously other things to consider as well, but I don’t really feel like writing a book. I’ve met with VC’s before and pitched ideas and charts and graphs. In the end it comes down to two things. The first being whether or not the VC’s like what they see. The second, and more important factor is are they willing to invest enough money to make it worth your bringing them on board with your idea. If not then a business loan could be what you are looking for. You’ll retain 100% ownership. Just remember that with 100% ownership comes 100% of the risk. There are pros and cons to every angle. Just think things through and figure out what is best for you and your business situation.