n. A good small business investor will understand that their role is to invest in the company, not run the company. You want their invested capital working for your business, not another pseudo manager to contend with.

Small Checks Take Longer

Raising smaller amounts of capital doesn’t translate in

I don’t know if there is some sort of mathematical equation you can put to this, but it would certainly appear that the smaller the investor’s check, the bigger the headache they become to an entrepreneur.

You might think the opposite would be true, that smaller investors would only expect to play a minor role in the business while the larger investors would make all of the important calls. What you’ll find in practice, though, is that raising and managing small chunks of capital from small investors is incredibly laborious while the more manageable investments come from much larger investors.

Less Money = More Time

Smaller business investors seem to have disproportionately more time to invest than they have money. These are the guys who are putting $5,000 into your company and think they’re Gordon Gekko, trying to run the company like some big time investor. All this extra time that they have to manage these investments actually sucks the life out of your deal because you have to constantly manage their expectations to the nth degree of detail.

Certainly getting help from a small business investor to grow your business is a nice thing, but not if it involves being micro-managed to death over every decision. A good small business investor will understand that their role is to invest in the company, not run the company. You want their invested capital working for your business, not another pseudo manager to contend with.

Small Checks Take Longer

Raising smaller amounts of capital doesn’t translate in

role in the business while the larger investors would make all of the important calls. What you’ll find in practice, though, is that raising and managing small chunks of capital from small investors is incredibly laborious while the more manageable investments come from much larger investors.

Less Money = More Time

Smaller business investors seem to have disproportionately more time to invest than they have money. These are the guys who are putting $5,000 into your company and think they’re Gordon Gekko, trying to run the company like some big time investor. All this extra time that they have to manage these investments actually sucks the life out of your deal because you have to constantly manage their expectations to the nth degree of detail.

Certainly getting help from a small business investor to grow your business is a nice thing, but not if it involves being micro-managed to death over every decision. A good small business investor will understand that their role is to invest in the company, not run the company. You want their invested capital working for your business, not another pseudo manager to contend with.

Small Checks Take Longer

Raising smaller amounts of capital doesn’t translate in

More Time

Smaller business investors seem to have disproportionately more time to invest than they have money. These are the guys who are putting $5,000 into your company and think they’re Gordon Gekko, trying to run the company like some big time investor. All this extra time that they have to manage these investments actually sucks the life out of your deal because you have to constantly manage their expectations to the nth degree of detail.

Certainly getting help from a small business investor to grow your business is a nice thing, but not if it involves being micro-managed to death over every decision. A good small business investor will understand that their role is to invest in the company, not run the company. You want their invested capital working for your business, not another pseudo manager to contend with.

Small Checks Take Longer

Raising smaller amounts of capital doesn’t translate in

hese investments actually sucks the life out of your deal because you have to constantly manage their expectations to the nth degree of detail.

Certainly getting help from a small business investor to grow your business is a nice thing, but not if it involves being micro-managed to death over every decision. A good small business investor will understand that their role is to invest in the company, not run the company. You want their invested capital working for your business, not another pseudo manager to contend with.

Small Checks Take Longer

Raising smaller amounts of capital doesn’t translate in

n. A good small business investor will understand that their role is to invest in the company, not run the company. You want their invested capital working for your business, not another pseudo manager to contend with.

Small Checks Take Longer

Raising smaller amounts of capital doesn’t translate into reducing the time it takes to get a check. In fact, sometimes the smaller amounts take more time because the people writing those checks really can’t afford to invest (read: gamble) that money to begin with.

They need to be certain of every last aspect of the deal to the point where they over-analyze the deal completely. Before you know it, you’re jumping through all of these hoops over a few thousand dollars. It’s a huge waste of time.

Even if you do manage to land these small business investors, you can be certain he’s going to be on the phone with you every 15 minutes trying to get a status update on his investment. He’s got the time, and the investment is incredibly meaningful to his overall personal wealth. You’ve become his living, breathing stock ticker that he constantly wants to see updated.

Big Kids Run Faster

Believe it or not, it actually takes just as long to raise larger amounts of capital as it does smaller amounts. That’s because the larger investors (the big kids) tend to have less time to spend on any one deal. They have lots of deals to choose from, so they have to get to the point quickly and make a decision quickly.

For an entrepreneur raising capital, this is the best thi