Recently, an entrepreneur (let’s call him Rasul) approached me for investment.
He worked for many years in a large company, thoroughly studied the business of this profile from the inside, learned how to manage people, and only then decided to open his own company.
I liked the idea of it, and the business plan turned out to be quite well-developed.
“You know,” Rasul says – ” I’ve already talked to a few investors. Many people offer me 5-10 percent in the company. They say that you have nothing, just an idea, and from us – the most important thing – money. But I don’t agree with them. Money, of course, is important, but the idea itself is worth something. And the fact that I will be engaged in this project day and night, thinking only about it, giving all my strength to it, is also worth something. In general, I disagree with less than 20 percent.
I hid my surprise with difficulty, smiled, and answered:
“Rasul, this is your idea, your business plan, your brainchild. You should have a big stake in this company. I’m offering you 60 percent, and I’m offering myself 40 percent.
He looked at me incredulously.
“Are you serious?”
– Of course! You came up with this business, and you should be its owner. You should be rooting for the company more than I am. And how will you root for her more than me if you have a share less than me? You’re supposed to be the engine that pulls things along, and I’m just an assistant who puts wood in your furnace. When the company has a problem, it’s not me, but you should stay up at night and think about how to get it out of the hole. And when making important decisions, you should have the last word, not me. You are the founder and owner of the company. You should be most interested in its prosperity.
– What about your interest?
– I’m not an entrepreneur, I’m an investor. I’m not in business, and I’m not going to take over your business or take you over. I invest in a lot of projects and I want all of them to work successfully. The main condition: the investment must pay off in a reasonable time. And then the dividends from these companies will feed me for the rest of my life. And even better, if later, when your company becomes prosperous, I resell my share to you or another investor with a large profit and invest the proceeds in new projects. That’s what I’m interested in.
Rasul, almost crying, shook my hand and said:
– Thank you! I want to work with you!
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