The 80-20 rule

You've heard of the 80-20 rule.  20% of the people do 80% of the work and so on and so on.

The same applies to financing your business.  When you look at how you finance your company (the assets) make sure that you take on at least 20% of the financing risk (equity) and ask your creditors not to take more than 80% of the risk (your bank and suppliers)

If your creditors are taking more than 80% of the risk and they have no upside, you will start getting push back or will have difficulty finding financing.  After all, you have little to no skin in the game and all the upside.

Having a hard time finding financing, compare your company against the 80-20 rule.