Dear
Adam:
Ask yourself the question: do you like to be a big fish in a small pond, or
be a small fish in a big pond? It all depends on your vision for your
business and your personal goals.
Some wants to see their "baby" grow into a big business, and they know
that they can only achieve growth in the record speed they want with the
infusion of cash and assets from other investors. They're willing to share
the pie, because they know that it is an increasing pie. Plus, they
recognize that adding more people to the team allows them to focus on what
they know best, and let others contribute their talents to the team effort.
Others, on the other hand, just want to keep things on a smaller or even
personal scale. They have no big ambitions for their business, only that it
provides them with their needs plus some extras. They are more willing to
take things slower, bidding their time until it grows. Others also would
rather have total control of the business, instead of sharing the decision
making process. Or they may be more of a lifestyle entrepreneur, where the
business is simply a means for them to achieve the lifestyle they want.
There is no right or wrong approach - it simply is a matter of making a
personal choice as to how to approach the business.
Which approach will the gains be more beneficial? Still, it depends on
how you define "gains." If you want bigger profit, then a business that
grows into a $50 million business in 5 years where you own 10% may give you
higher financial returns than a business that you were only able to grow
into a business with $100,000 profit. In a big corporation with investors,
even founders can be booted out if they think you are a liability to the
business; in a small business, you can fail because you may not have the
right skills to grow the business. Either way, there are risks and gains;
what you take will depend on your tolerance for risk and your personal
objectives
About the PowerHomeBiz.com Guide:
Isabel Isidro is the
co-founder and VP-Managing Editor of PowerHomeBiz.com, an online magazine
for home business entrepreneurs that provides guidance on starting, running
and managing a home-based business.
The opinions expressed in this column are
those of the author, not of PowerHomeBiz.com.
Users
should not treat the Guide's response as legal, accounting, or
professional advice as all answers are intended to be general in
nature. Such advice can only be properly given by qualified
professionals who are fully aware of a user's specific geographical areas or circumstances, such
as
an attorney or accountant.
