To grow, you need resources. But where those resources come from could dictate your future relationship with your own company. Investment rarely comes without strings attached, so you need to think strategically before you go after the money.
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How would you feel, for example, if your investors wanted you to hire a professional CEO, because your skills are more suited to the start-up phase than the growth phase? When you’re raising funds, you’ll clearly need to understand how much you need and by when. In addition, you may want to keep these questions in mind:
1. Do you really need the money right now? Or could you bootstrap your venture for now?
2. If you do need the money, now what type of investor do you want to target?
3. How will you be able to generate returns for them?
4. Are you willing to accept the responsibilities that come with investments? Are you willing to accept the risks?
THE TRADE-OFF ENTREPRENEURS MAKE
Founders’ choices are straightforward: do you want to be rich or king? Few have been both.