As with any business, you need to convince external investors or lenders that the business has good prospects.
If you are seeking a loan, you also need to convince the lender that they will be repaid. Commonly you will offer the lender security such as a mortgage over a property. Where your company does not have sufficient assets to provide adequate security, a lender may ask you for a personal guarantee.
If you are asking outsiders to invest in shares, you need to convince them that they will be treated fairly. Although company law provides some protection for minority shareholders, this alone will not be enough for many investors. You may also need to enter into an appropriate shareholders' agreement.
The shareholders' agreement is likely to include restrictions preventing you from 'milking' the business for your own benefit. For example, the shareholders' agreement might include limits on family members' salaries. It is also likely to include a mechanism allowing shareholders to sell their shares to the company or to other shareholders if they feel unfairly treated, and specifying how the shares will be valued.
