Entrepreneurs Turn Away from Nice Honest Wealthy People

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Growth FinancingWhat does it say about entrepreneurs who need growth financing but turn away from honest, direct, successful entrepreneurs (who want to invest in a few enterprises other than their own) to look for money from secretive, game playing sharks?

Maybe:

  • it’s because shows like SHARK TANK glorify the competition or reinforce the misimpression that only highly visible people are wealthy.
  • it’s because some entrepreneurs can be arrogant. If a potential investor isn’t very blunt, somewhat confrontational, and finally hits a question the entrepreneur can’t answer…the prospective investor must be less bright than the entrepreneur.
  • the habit of treating nice honest people with kindness simply isn’t valued in a world where manners are no longer taught or expected.
  • it’s because entrepreneurs have heard so many stories about vulture capitalists who demand huge returns for their investments, require multiple seats on the board of directors, and claim too much credit for success.
  • it’s because their businesses have become their “babies” for many entrepreneurs. They get protective, distrustful, and fear loss of control. Imagine how they greet young men who want to date their teenaged daughters.

That may all be true. But my observation recently is that lots of entrepreneurs don’t recognize that their business could benefit from an infusion of capital until it is almost too late. They keep trying to prove they can do it themselves. At the same time they may not recognize that obtaining some outside guidance does not diminish them as leaders. Ironically, the most valuable element of involving angels, private investors or venture capitalists in a business is the advice that comes with the money.

When the question about “could our business benefit from capital infusion” comes into an entrepreneur’s mind, I often recommend that they look for nice non-celebrity wealthy people. They can talk and get to know one another. The entrepreneur can lower his/her guard. And if a pleasant person who has recently had a “nice liquidity event” from his/her business, hear them out. Maybe you both can enjoy the journey of taking your business to the next level. After all, he/she just did that for his/her business.

Important subjects like growth financing do not always have to start as a fight or contest!

About Aldonna Ambler:
Known as The Growth Strategist®, Aldonna Ambler built and grew a suite of companies to help midsized B2B companies achieve accelerated growth with sustained profitability® A Certified Speaking Professional (CSP), Ambler has addressed over 2000 audiences and hosted a syndicated online talk show about growth strategies for 9 years. As a growth financing intermediary, Ambler raised over $1 Bil dollars for midsized companies. The winner of over 2 dozen prestigious national and statewide "entrepreneur of the year" awards, Ambler is available to speak about “profitable growth during any economy” and/or serve on the board of a growth-oriented privately-held company.

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Aldonna Ambler played a key role in driving the rapid growth of MarketingWorks, Inc. [In addition to having] a strategic growth plan in place, we obtained appropriate growth financing, have a much stronger management team; we have expanded our services and are already profiting from our new marketing department.

Gerry Bogatz, President and Founder
MarketingWorks, Inc.

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