There are many different types of entrepreneurs with various tolerances for risk. Who you are and what your risk profile is defines how you should think about financing your business.
I am always struck by how our venture capital companies like to pound their chests and talk about the great entrepreneurs that they are supporting and helping. The best of the best. Are their underlings truly entrepreneurs? They have decided to play with other people's money. They have not put up their house or personally guaranteed a thing.
I was once an advisor to an angel investor in a start-up company. The company had raised about two million dollars and was running out of one of those cool co-working spaces in San Francisco. But the company was running out of money and was having a tough time raising more money. The CEO, worried about paying his mortgage, ran for the hills and left the investors dry. Is he an entrepreneur? Not in my book.
As a contrast, I am struck by the stories that I have heard Mark Cuban tell on Shark Tank where he recalls his power getting shut down at his house at different early stages in his career. I might not agree with Mark all the time, but that is an entrepreneur.
A mentor once told me that there is a thin and uncomfortable line between success and failure. And that any entrepreneur will walk that rope several times in their careers.
Are you ready to walk that walk? Are you scared of what happens if you fall off the rope? What is your appetite for risk?
You should think long and hard about this as you decide how to build your company.
If you don't have the tolerance or stomach for it--look for investors who do. And if you think you can handle it, try to finance your business through debt and have the satisfaction of keeping control of your business, and not working for your board.
It's a tough and personal decision.