Q: I have a new company and have been approached by several people who want to invest and become partners. I’d like the cash but I don’t want to give up control.
Madison R.
A: Madison, one of the biggest mistakes I see in new companies or those who want to grow is sharing too much revenue and decision-making. This is YOUR dream. You’ve discussed it with people who care about you, including your family. And after all that, why would you let someone else walk into your dream before you’ve even generated positive cash flow? Besides, investors typically want results. And why would you need them if you were already developing that kind of result? If you bring in people too soon, the pressure for you to grow will mean your overhead will also go up, affecting your net revenue. Yes, it’s a cliche, but it’s true. Crawl. Then Walk. Then Run. Don’t get ahead of yourself. It’s your company. You don’t need to share it out of the gate.
Do I Need Partners?
