What factors should I be weary of when negotiating with external investors wanting to invest in my business?

Our business is seeking its first-round of external investment in order to expand. Like many business founders, I am weary of relinquishing shares and control to investors. I have heard a few horror stories recently about investors negatively impacting on businesses they have invested in. With that in mind, can you tell me what positive/negative experiences you have had with investors? More specifically, what areas should I look out for when negotiating investment?

You definitely want the advice of a professional. You have a lot at stake. I would look at other small businesses in your area and ask the owners who they talked to.

Also, there may be small business owner clubs in your area.

PS Multi-level marketers are not "business owners," despite what they might say.

First of all consult a lawyer who has vast knowledge about company law.Any investment taken should be okayed by the lawyer and company secretary specialist.Do not give voting rights and do not take into board.

Talk to a corporate stockbroker . Get good advice at the beginning from someone who has done it beforeand to hold your hand all the way through to flotation (?), whilst you concentrate on running the business and making money!
It will help if you are profitable or due for breakeven/profitibility in 1-2 years.