Forum Discussion

FenceArt23's avatar
FenceArt23
Contributor 3
2 days ago

Is it better to own 100% of the business ? Or add investors ?

Hello fellow colleagues , 

  I've ran this contract business for about 10 years and gradually increased in overall revenue.   But it seems I've hit a peak due to inflation and competition. Not to mention the economy is not doing too well.   

    I've considered adding investors and sell portion of the company to keep investing but I also know the potential we have in a healthy economy and dont want to regret bringing investors and having to pay big percentage of the earnings .  

Any advice for those that possibly went trough this or have a strategy that are in a similar situation ? 

3 Replies

  • mdrmcs11's avatar
    mdrmcs11
    Contributor 2

    It depends on what your goal is. Neither option is universally “better”—they solve different problems.

    If you own 100% of your business, you keep full control and all profits. You make every decision, move at your own pace, and don’t answer to investors. This is usually best when you can grow through contracts, reinvested profit, or small loans (like equipment financing or SBA loans). The downside is growth can be slower because you’re limited by your own cash flow and borrowing ability.

    If you bring in investors, you trade a portion of ownership for capital. That money can help you scale faster—buy equipment, hire staff, take bigger contracts, or expand into new markets. But you give up some control, and investors will expect returns, reporting, and influence over decisions.

    For a business like yours (service-based, equipment-driven, local contracts), a common strong path is:

    • Keep majority ownership early (70–100%)
    • Use debt/SBA loans for equipment growth
    • Consider investors only when you’re scaling into large contracts or infrastructure-level projects where outside capital unlocks much bigger revenue

    A good rule:
    If you can still grow with financing and contracts, keep ownership. If you’re hitting a ceiling that only capital can break, then investors make sense.

    • Fixitfellas's avatar
      Fixitfellas
      Contributor 2

      Thank you for the great advice. Love the rule of thumb. Keeping the ownership if the capital is there to still use.