The 10 Reasons Not to take investment into your company

The Questions

  1. Your Piece of the Pie
    • If the investment doesn’t help / allow your company grow or strengthen it – don’t do it. It must result in you winning. Having a Smaller Slice of a Bigger Pie must make sense.
  1. Share your vision
    • An investor needs to share the Entrepreneur’s Vision and understand their dreams. If Entrepreneurs and Investors have different visions, it is destined to fail.
  1. Involvement
    • Entrepreneurs and management teams have to be let run their businesses. The right investors can help and support but don’t let them get in the way.
  1. Time Horizons
    • Both the Entrepreneur and the Investor need to understand each others’ time horizons for the partnership. While they can be different, it works better if they are aligned.
  1. Bad Days
    • Like any relationship it is tested on the bad days. Not everything is within a company’s control. Ask yourself what your partner (the investor) will be like on the bad days when the business has problems. They have to stand by you.
  1. Keep up with you
    • Entrepreneurs succeed because they move fast and have an ability to sense opportunities and trust their instincts. An investor needs to have the ability to move at the same speed as you otherwise opportunities will be missed. Don’t be slowed down.
  1. More Cash
    • If your business could require more capital in the future, sometimes it is good to have a partner that has the ability to invest further in your business. Going out to find more investors can be slow and result in too many chefs being in the kitchen.
  1. Free Expertise
    • Try and source investors who have expertise that you can leverage for Free. Senior level advice and support can be very useful additions to your business.
  1. Two Way Trust
    • Two way Trust is the glue of a good Company: Investor relationship. The Company shouldn’t feel the Investor doesn’t trust them and have faith in them. The Entrepreneur can’t feel somebody is constantly looking over their shoulder.
  1. Painful
    • Life is going to be a bit different with an investor on board but it can’t be painful. If it is Painful it is wrong. If it is Painful you have the wrong partner or you are not ready for the relationship. Growing a business can be painful on its own – something you don’t need.

A lot of the World’s Leading Companies have taken in investors along the way to ensure they had the fuel for the journey to maximise their potential. The Fuel must be used to take you to a place you can’t get to on your own fast enough.