Yesterday, I posted my thoughts of the first episode of the new Shark Tank season and it got me thinking. Many of these entrepreneurs come on this show to do one of two things: get an investor to help start their business or to take an existing business to the next level. They make an initial offer of “X” amount of money for “Y” percent stake in the business. It’s a partnership, in which you will gain not only money but also hopefully a great business mind that can impart invaluable knowledge.
So I ask myself this question:
Will I give up control over part of my business for some cash?
That’s a heavy question. Would I love some extra cash flowing through my business? Yes, indeed. There are a few equipment upgrades that I plan on doing this year and it will definitely help. However, do I want to give up even partial control over my business, having someone inputting his or her “two cents” on what I
can should and can’t shouldn’t do?
I am not too sure about that. Having a business mentor is one thing but an investor is a different story. There is an option to have a silent partner but I will be still a little scared to seal the deal on that because I heard that sometimes they aren’t so silent. I guess it all about choosing the right fit.
In the Shark Tank even if the Sharks say they are interested, it’s still up to the entrepreneur to accept and seal the deal because sometimes they counter. My first thoughts were if I would seek out an investor, that it should be someone who had a similar business to mines. After thinking about some more, I not so sure.
Is a trait of a successful businessperson is the ability to run any type of business? Some things can be easily adapted to different types of business. That’s something we all should think about.
Giving up control in your business doesn’t have to be all bad, there’s some good things that can come out it. Beside the money, you get someone be some business savvy, someone with business connections, a mentor and more. The best thing is to weight your options and done rush into a partnership too lightly. There has to be some trust and respect there.
So will I ever either in the near future or far, seek out an investor for my business? I think for now I will say no. What do you say?
Will you give up control of your business for some cash?