Ok, lets start with the basics:
You want to sell part of your company so you can get money.
You want money so you can increase your marketing and supply so you can sell more of your product and increase your revenue.
You want to increase your revenue so you make more profit.
Assuming the above is correct...
Getting cash into the company is a great thing, but selling off part of the company can have long lasting negative effects.
Yes, having one "new" shareholder (of even 1% of the total shares) will change the way you have to do your accounting and reporting.
The normal scenario would be something similar to you see on the Dragons Den, when you get a professional investor to buy some of the company off you. If you value the company at $1m (by whatever valuation) and you want $200k, he would be expecting to get 40% of the company (not 20%) as he is taking on risk. He would also be wanting to be a Director of the company, receive the monthly management report, approve budgets, salary increases and capital expenditure.
Selling off small amounts to many people is not only impractical, but near impossible. Who invests money in a company that they has no track record, whose management you don't know and having an investment that you can't transfer or cash out easily?
If your company is valued at $40m and up, I have a contact that can help you out to put you in touch with the right people. (serious corportate investing)
If your company is smaller and if you believe in your company, get more loans (mortage your house and extend your credit cards). It will pay off exponentially in the future, if your business is really that good.
How big is your company? How many employees?
Maybe you need a partner - someone to come into the business and work with you as partners. This can be infinitely easier than being shareholders in a company. Effectively the partnership (split in whatever proportion you want) will be your company and the new partner owning the business.
If you are looking for a partner, I may even be in a position to be interested.
If you want to pm me some basic details I would be interested to have a look at them.