The world of investment just like politics is a dirty game. If you are not playing your card right, then someone somewhere is ready to pounce on your idea, rip it off you and make you their slave. Everyone wants a short cut. A snap of a finger and boom, money drops like manna from heaven, no one wants to sweat for it. As an entreprenuer you must have it all figure out. What do you want? What’s your plan when things don’t go South? Can youn trust the people around you with the intricacies of your business? It’s a harsh world out but like they say, survival is for the fittest. For most startups, finance is the key issue. So when someone shows up promising to fix it, most entrepreneurs will drop their guards. Here are types of investors to be wary of.
Talk That Talk Investors
They have been in the field for quite some time. They know the fine details of investment, the do’s and dont’s. One morning they invite you over a cup of cofee, ask you a thousand plus one questions back and forth, tell you how your idea is great and how it will reall be a success but they will never hit the go button.
Dumb Smart investors
Money is not a problem to them. In fact they don’t go to the intricate details of how and what you are gonna do with the money. They leave you to all the freedom in the world. Once in a while they ask you very irrelevant questions. You might be tempted to get ahead of them but these kind of investors have people in high places who understand business and will come for your head and money
Lawsuit Investors.
A simple mistake and they throw you under the bus like you were never a team. They come in clean and holy, but when you miss a foot, threaten you with lawsuits, bearing in mind that you are too broke to defend yourself in court. With such authority, they tend to gain a more dominant position in your business.
Disguised investors.
At first you think they are the real deal, but to your surprise they aren’t anything close to that. They often assume the roles of layyers or accountants, but have zero intrest in your idea. They will ask you to sign up an agreement, pay some fees before you get to meet with the actual investors. With some little assurance, they will convince that it is the right thing to do.
Clingy Investors.
All you wanted was money and a little breathing space to hit the runway, but here he is, poking his nose in your every affair. That cheque he wrote you is like a noose around your neck. You have to feed him every detail, and keep him on board. Will you rather focus on your business, or keep reporting to some guy who gave you maoney to start off with?