Do I Fundraise?
Summary
- Consider your end goal before deciding to fundraise or not. Ask yourself whether owning 100% of your business is more important than having investors.
- Assess your skills in managing multiple stakeholders. If you're new to entrepreneurship, handling a board and investors can introduce complexity that might be overwhelming.
- Weigh the pros and cons of fundraising. For instance, one pro is potentially earning more money upfront, while one con includes feeling pressured and accountable to others.
- Reflect on the value of autonomy in your business. If you prize independence, seeking investors might not align with what's important to you.
- Understand that raising funds can provide a supportive team behind you, but it comes with the tradeoff of less control and added pressure.
- Recognize that fundraising has both successful and unsuccessful outcomes. The decision to fundraise should be tailored to your specific situation and comfort level with possible downsides.
Video
How To Take Action
I would suggest thinking long and hard about what your big dream looks like before making any big choices like getting investors. Ask yourself if you'd be happier owning all of your company or if you're ok with sharing it. That can really change how you decide.
A good way of figuring this out is to look at what you're good at. If you're new to running your own business, taking care of investors and a board can be a lot to handle. So think about if you've got the right skills for this new challenge.
To make a smart decision, you should list out the good and bad things about fundraising. For example, a good thing might be getting more money right now, but a bad thing could be the stress of having to answer to other people.
Think about how important it is for you to make all the decisions in your business. If that’s really important, then having investors might not fit with what you want. But if you don't mind sharing the control and you like the idea of a team supporting you, then getting investors could be the way to go.
Remember, bringing in money from investors can end up great or not so great. It's really up to what fits best for you and how comfortable you are with the idea that it might not work out perfectly. Take your time to think about these things, so you can do what feels right for you and your business.
Quotes by Leila Hormozi
"Weigh out the pros and cons for yourself"
– Leila Hormozi
"Pros earn more money in the beginning and spend more time figuring it out"
– Leila Hormozi
"Cons that feels shitty and you're probably going to feel a lot of pressure"
– Leila Hormozi
"You answer to other people so if autonomy is important to you maybe you don't want investors"
– Leila Hormozi
"If it's not as important to you and you want a team of people backing you maybe you do want investors"
– Leila Hormozi
Full Transcript
do I fund raise I think it depends on what the end goal is would you prefer to Own 100% of the business or would you prefer not to do you have the skills it takes to manage multiple stakeholders having to manage a board and investors and all that does add a level of complexity that for a new entrepreneur is sometimes tough weigh out the pros and cons for yourself Pros earn more money in the beginning and spend more time figuring it out cons that feels shitty and you're probably going to feel a lot of pressure other cons you answer to other people so if autonomy is important to you maybe you don't want investors if it's not as important to you and you want a team of people backing you maybe you do want investors I've seen it work out and I've seen it not work out
