Credit Mark Wallace. Used with permission under Creative Commons License.
Starting a new beverage manufacturing business takes more than a good beverage, it takes money. Selling ownership shares in your business is an attractive source of start-up funding, but it’s risky. When you take money from investors in exchange for ownership, two things are true. First, your investors expect you to deliver on your promises about the success of the business. Second, federal and state securities laws make you responsible for those promises.
What happens when you don’t deliver on your promises or you violate federal or state securities laws? Often you have to give investors their money back, and that’s the best case scenario.
