One of the biggest mistakes entrepreneurs make is thinking that procuring financing for their startup is a win if they get the money.
But securing the money can be disastrous if it’s not from the right people. Pick an investor like you’d pick a spouse.
Investors aren’t just about gaining access to money: They’re partners and, to some extent, they’re also bosses. And just like the wrong spouse can wreck your life, the wrong investors can wreck your business.
What if investors want you to fire someone you wish to keep or prod you to hire somebody you’re not keen about? And so the world of start-up’s is littered with stories of founders kicked out by their investors.
Discern what an incompatible investor looks like
“But how will I know an incompatible investor when I see one?” you might ask.
Investors aren’t good or bad. Compatibility comes from the match between your way and theirs and between what you want and they want. Perhaps you really want investors who leave you alone to run your business without interference. They are rare but they do exist.
I believe smart founders want investors who pitch in, help with strategy and tactics and introduce them to contacts. And probably most investors want to do that. But even when they do, if they have problem-solving styles and ways of helping that are different from yours, incompatibility can be a problem. Compatibility involves matching of people like in a marriage.
source:entrepreneur
