Finding an investor or a sales partner can have an incredible effect on your business, in a positive or a negative way.
The added income that a partner or investor would bring could easily help grow your company, and with some of the business responsibilities falling to someone else, it could leave you with more time in your zone of genius, whatever that might be. (ie. networking, sales, creation of products, etc)
However, if you don’t do your due diligence when finding an investor and make sure to bring on someone that aligns with your vision and values, it could also all blow up in your face.
I’ve been there. I’m not ashamed of it. It’s just another bump on my journey, but it was tough to handle when you love what you’re doing.
A while back, I co-founded a nonprofit organization, where I had a co-founder. In the very beginning we had a shared vision and we shared the same expectations. The problem was that over the years that started to shift.
Our visions started to differ and we weren’t seeing eye to eye on our mission any longer. We maintained a mutual respect for one another, but we took separate paths.
The unfortunate part, is I truly believe that we could have fixed this before it really went south. My co-founder and I should have been checking-in with one another more frequently. We would have frequent conversations, but we never sat one-on-one and just asked where each of our visions were.
I honestly believe that if we had done that, we’d still be working together today to help teen girls in San Diego through our events and programs to embrace self confidence, self love and health.
I don’t regret any part of my journey, each piece has taught me something. There are things I wish I had done differently but I know that the things that have happened are meant to be, and will somehow help me in the future.
If you’re considering working with a partner or bringing on investors, I encourage you to keep reading!
You Can’t Change Personality
Entrepreneurs are not cut from the same cloth as other individuals. We are willing to put in more hours doing what we love, then we would working at 9 to 5 job.
You’ve heard me say it a million times, being an entrepreneur means you are signing up for a 24/7 sales job. And, it’s true!
We’re constantly working, even when we’re not really working. We might be networking with the person in line with us at Starbucks, or maybe just sitting and meditating on our latest great idea – the point is, we’re always working.
Alissa Barthel, a guest on Success Unfiltered, shared with us, that originally her company had three partners. Her current partner Julie, and the third was a close friend of Alissa’s.
The problem was that the third partner did not have the personality of an entrepreneur, and ended up leaving the company.
It was incredibly tough on Alissa because of the close friendship she and this woman had. But, if someone’s heart isn’t in it, you can’t force them to be involved.
In business, especially in the early stages, you encounter these kinds of issues… A LOT! There is very little way of knowing, until you get into a situation, whether something is going to work for you or not.
There are ways to avoid it, by sitting down talking through your visions, and discussing how certain situations will be handled, but there’s no surefire way to know.
It’s a struggle, but again, it’s all part of that journey of being an entrepreneur. There are lots of ups and downs!
Lessons Learned From Setbacks
When Alissa’s third partner decided to jump ship, it left Punk Rawk Labs with a lot of setbacks.
The partner had been based in the pacific Northwest, and their very first distributor outside of their local region, was located out that way as well.
When the partner left, they also lost that distributor.
It was a HUGE setback for Alissa’s company, and it took them awhile to recover emotionally and of course financially.
However, there were so many lessons learned. Since Punk Rawk Labs transports refrigerated products, keeping it cold in transport was one huge logistical issue they encountered and weren’t sure how to make it work, at first.
Once they took the time to uncover what had been working previously, they implemented the changes and brought on a new distributor in Los Angeles.
The best part is that they were able to bring this new distributor on pretty flawlessly, because they already knew what pitfalls could occur and how to avoid them.
So, yes, the partner leaving was a pretty major failure for Alissa, it ultimately led to more success for her and her partner.
This is a really important lesson to learn, just because something seems awful in the moment, it will work out, and almost always for the better!
Maintain Respect for One Another
It’s so important to maintain respect for each other, even if you don’t see eye to eye. Everyone’s perspective is valid, and your perspective is not the only perspective that matters.
Unfortunately, not every vision will be right for the company, but that doesn’t necessarily mean that it’s the wrong perspective for that person in their situation.
If people are getting hot around the collar, take a step back and really consider what the other person may be experiencing. You may not have full empathy for them, but you can certainly understand their position.
In the end, you want what’s best for the company, and if that partner isn’t going to bring their best and give their best — you probably don’t really want them involved, anyway, right?
In Conclusion
Finding an investor or bringing in a partner doesn’t have to be scary, and doesn’t have to end in “divorce.” You just need to do your due diligence to ensure that you both have the same shared vision for your company, and then have periodic reviews.
You basically want to make sure you both still feel the way you did when you first began working together.
If you have any experience working with partners or investors, I would love for you to share your experiences in the comments below!
Now, what action are you going to take today? Do you have any experience finding an investor or a sales partner? Share with me in the comments!
