Ideally both partners in a business transaction want something other has to offer, but not too much. If you are small business drooling at prospect of large order from an attractive client at a time when your sales are down, be careful. You are likely to have difficulty setting boundaries and give away too much.

In order to stand firm in your negotiation, you have to have a firm sense of your worth. Fake it if you must. Refuse to make any decisions on spot if you don’t feel that you can trust your judgment under pressure.

Some clients, like some boy (and girlfriends) turn out to become demanding or difficult.

A designer is asked to perform a small, routine job. The client is not satisfied and asks for modifications. The designer complies. The client asks for more modifications. The designer complies. The designer complies. The client asks for more modifications. The client asks for more modifications …

This seemingly small job is quickly becoming costly. It is eating up designer’s time and preventing him from working on other business.

Like a woman strung along forever by a partner unwilling to commit, this designer has to set boundaries with his client.

At this point, he can try to renegotiate terms of his transaction to get additional money for his time. But if client is unwilling, designer has to decide between expending more time and effort into satisfying a difficult-to-satisfy client, or walk away from job.

By setting boundaries, designer can limit his losses in this not-uncommon situation.

Self-Employment 101: It's about making a living and creating a life! ... Observations, information and resources for those of us who are self employed or just thinking about it.

Equity financing is a form of financing your business without incurring debt. With equity financing you don't have to take out a loan since funding is already coming from an investor in exchange for a piece of ownership in business.

Many small and growth-stage businesses use equity financing as a source of funding. There are many sources of equity financing including non-professional investors such as family and friends, employees, etc. The most common source, however, are professional investors known as venture capitalists.

Venture capitalists are looking for businesses with potential to grow, thereby increasing value of their investment. They do not expect to see an immediate return on their investment.

Most venture capitalists focus on certain types of businesses such as, start-ups, specific industries (health, technology, service) or technologies.

Advantages of Equity Financing The major advantage of equity financing is that cash flow that would have been used to repay loan, can be used to grow business.

Dis-Advantages of Equity Financing The major dis-advantage of equity financing is loss of interest of ownership of your business and also possible loss of complete control that can accompany a sharing of business ownership with investors.

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