The four essential elements and inputs required to drive business activity are entrepreneurship, natural resources, labor and capital. These elements are known by economists as the “factors of production.” For economic activity to occur, all four of these factors must be acting in unison.
It all starts with an idea thought up by an entrepreneurial minded individual. In order to turn that idea into a reality, the entrepreneur must have enough resources and manpower devoted to his or her idea. To do this, the entrepreneur needs capital. Capital is the force which brings all the other elements of production together, causing them to work in unison.
Choosing the Right Option
Entrepreneurs have many options available to them when choosing a way to obtain the capital needed to turn their ideas into action. However, just because a certain method of financing a business is available to an entrepreneur does not mean that it is the ideal method for his or her situation. Obtaining capital in a poorly planned manner can result in unfavorable situations such as, saddling your business with enormous debt because of a high interest rates, limiting your choices due to the terms of a grant, sharing ownership of your company with a difficult person, or losing the purpose, spirit and values that you want your company to have.
It is important to realize that lenders, investors and donors often have their own agenda at hand. If their agenda does not mesh well with yours, it can result in a very unsavory situation for the entrepreneur. An entrepreneur should never take on capital financing without first making sure that their interests are well protected. Most of the investors and lenders already have attorneys working for their interests, you need to have someone who can protect yours.
Helping you and Protecting Your Interests Every Step of the Way
The Business Attorneys at Stoner and Davé help entrepreneurs at all steps of the capital raising process, from beginning to end. We will help counsel you on the right method of obtaining capital which fits your individual needs and the unique qualities of your business. We will help you put together and create the plans and financial statements needed to qualify for loans and investment. And when it comes time to close the deal, we will represent your interests and make sure that you are not being taken advantage of. The Business Attorneys at Stoner and Davé will help turn your ideas into a reality.
