Learning to Let Go
Friday, March 28, 2008 at 03:25PM It's a paradox. If you give up ownership and control, your odds of achieving success and wealth are greater. This is certainly one the most difficult concepts for new entrepreneurs to grasp, but investors will want to know you understand its implications.
As you receive additional capital over time, it is virtually certain that you will lose controlling interest in your company. But, by trading equity for cash, your business can grow to a level well beyond what it could have done without the investment. Experience shows that a smaller piece of a successful venture funded business is worth more than 100% of a business that did not seek outside capital.
Another example is where the growth of the company could be optimized under someone else’s leadership. You may be a brilliant technician, but the skills of a new CEO are needed to take the business to the next level. Once again, relinquishing control yields better results.
Learning to let go may not be easy, but the rewards are worth it.
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