I’m 19 аnԁ I want tο ѕtаrt a business, mοѕt ƖіkеƖу a franchise opportunity. I don’t know whether tο ѕtаrt looking fοr investors іn mу state οr іn another state/region. Aside frοm thаt I don’t want tο ɡеt іntο trουbƖе being thаt іt іѕ mу first time trying tο handle money οf аnу sum. I see sometimes οn thе news thаt people ɡеt arrested fοr investment scams thаt seem legit аnԁ thаt’s nοt thе route I want tο ɡο.

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4 Responses to “Can I Get Into Trouble Asking Investors for Money? How do I go about it?”

  • engineer50:

    If you’re going to ask people to invest, you’d better have a well-developed business plan first. You need to research exactly how you’re going to start up your business, what it costs, what the operating expenses are, and what your expected revenue is. Any investor will want to know these things.

  • jplrvflyer:

    Legally — make sure you actually do what you tell the investors you’re going to do. Don’t tell them you’re going to open a franchise but then take the money and run.

    But your chances of attracting investors — that’s a different thing. You’re 19. You have virtually no experience. Why would an investor trust you? There are so many other places to invest that probably have a higher chance of success.

    So… if you want to pursue this, you need to think about that question. What makes you — at age 19 — a good financial risk? What are you going to do to convince a potential investor that you’re going to succeed, and that they’ll make money by investing in you?

    As for where to find investors — most investors want to see that you’ve already tapped your own options. If you can’t convince friends and family to invest in you — the people who know you the best — it’s not going to go well when you talk to an investor.

    You’ll need a business plan — and the numbers in the plan need to be justifiable.

    Good luck. Opening your own business can be very rewarding, both financially and other ways. I ran a software consulting business for 12 years and loved it. But it’s a lot of work.

    As they say — when you own your own company, you can work half time. And you even get to pick which 12 hours each day you’re going to work.

  • Feeling Mutual:

    I think your first step is to write a business plan and Incorporate.

    Then your corporation can sell stock and issue bonds to raise money.

  • slavaret2:

    ASKING for $$ won’t get you into trouble. I’d say: ask away. You will find out how hard it is to get any and what you need to get it – i.e. what other posters have suggested.

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