STRIVE MASIYIWA: Why investors will get rid of you!

Listen up, because you need to hear this, and you might not like it.

“Money is king, and it is bigger than your idea”. Serious investors will never want to steal your idea, because they need you to run the business… and to run it well!

When you go to a financial investor, you pitch to convince them to invest their hard-earned money, explaining [with numbers] how if they do, your business will GROW their money. Few investors are interested in dividends, they want GROWTH! I have told you this before!

They want to invest say $50,000 and after 5 years sell their shares for at least $250,000. Most don’t want to be receiving small little dividend cheques from profits! [And remember, investors are not donors. This is about making them money!]

Investors wants you to properly manage the business created by their money. If you fail to achieve the agreed growth, then you must step aside! There should be no “Buts” about it!

If you said that the business would be generating so much revenue, and so much growth rate, after Year 1, Year 2, etc., and you achieve it, they are happy. If you come back with half or you lose the money all together, they will oust you right away. You can keep your own shares, but you cannot and must not be allowed to run the business.

If you don’t like this, then you are not INVESTABLE! You’re still a cub in the game and you’re not yet ready. No one will give you money no matter how your business idea looks. Can you manage for growth, using the 3Ps?!

Even if I have 10% in a business, no FINANCIAL investor will want to oust me if I am meeting my projected growth rates. Why? I’m a very good manager of a business. That is all.

And if I find I can’t run a business successfully, no one will ask me to leave… I will leave before they ask me!

Find financial investors and prove to them that you can actually manage and grow a business using their money. Show them you understand that “Money is King, and their money is respected before your ideas”.