Weekly email of our best stuff
Hello and welcome to contact us page at eProfits
How can we help you today?
Bringing investors on board to support your business often marks the beginning of a tricky time, and one full of co...
Bringing investors on board to support your business often marks the beginning of a tricky time, and one full of conflicting emotions.
This will be especially apparent if you’ve previously been solely in charge of your company. Once investors are involved, the whole dynamic will inevitably change—and you will have to adjust.
If your investors are particularly cocky, you will have to work especially hard to make sure the new partnership works. The chances of your investors being cocky is, sadly, fairly high: after all, it’s their money that you’re spending, and in the early days they’ll be looking to you to prove that you will make their investment work.
Here are a few tips to help you out:
The time to establish boundaries with your investors is before they hand over their money. When you’re negotiating, you must make it very clear that you don’t expect them to micromanage their investment.
Autonomy is key, and if you don’t think your investors are going to allow it to you, then you might be best advised to find different investors.
As we said above, it’s best to aim for autonomy when it comes to decision-making, but in return for this you must be prepared to agree on solid milestones and targets with your investors.
If you agree on realistic targets and achieve them, there should be no need for your investors to become involved in areas of the business you’d rather they stayed away from.
While we don’t suggest you bow down to your investors as superiors, you should always respect their importance in the development of your company. After all, they are people putting up their own money because they believe in your company’s vision.
So, even when things get fraught (and they will sometimes) remember that without your investors, you wouldn’t be able to take your business to the next level—and treat the investors with appropriate respect.