At some point, every young business comes to a crossroad. Perhaps the entrepreneur lacks the to take their idea any further. Or, maybe the business owner is good at certain aspects of running the business—such as wooing new clients and identifying areas of potential growth—but needs some assistance with budgeting and setting priorities if they want to expand.
How does a business owner know when is it time to bring in an investor?
For Paul Mann, the founder and CEO of Fetch! Pet Care, a national dog walking and pet services franchise based in Walnut Creek, Calif., the moment was when he realized his "teenager" of a business would need help in becoming an "adult" as the number of franchised units grew from 33 from from 2006 to 2008.
"The business, like many in our situation, had come to a point where it had hit a wall," he said. "We needed help in getting over the hurdle to take it to the next stage."
"It really is a smart business owner who can recognize that they need a partner to help them take advantage of a new opportunity for growth," said Harry Loyle, managing director for Cybeck Capital Partners, a Dayton, Ohio-based private equity