The replenished understand not the pain of the starving
“The replenished understand not the pain of the starving”
I believe this is the biggest problem that occurs in the Founder <—> Investor cooperation line.
Especially when the founder doesn't have a safety cushion built and is trying to earn their first significant amount of money.
Let's imagine that we are young person who, despite their passion for creating, has never made substantial money. Despite putting in a great deal of effort, for some reason, none of the projects have taken off.
When the sole purpose of creation is solely for making money, it quickly leads to failure. It is impossible to build anything lasting without a genuine desire to create real value.
An investor with capital, financial cushion, and often a thriving business can be a challenging business partner for several reasons:
1. Money is often not their priority. The company doesn't have to make a profit, and they don't have to pay themselves a salary. What matters is building value that can be assessed. This is because value influences the potential valuation of the company and the specific amount when selling their shares.
2. In large part, investors focus on the investment itself. "I invested 200k and want to earn 400k in some time." It's natural since we're talking about investors. Founders often forget that an investor is not a co-founder.
3. A person with capital feels at ease while a novice founder feels hunger. Of course, I'm referring to hunger for success 😄
A founder without capital, financial cushion, and a strong drive for success is also difficult to work with, mainly because:
1. They primarily focus on money. They treat Monthly Recurring Revenue (MRR) as the key to the hamster wheel they've been trying to escape for years. Such an approach can lead to, for example, excessive pressure on potential customers, which may discourage them from collaboration.
2. They lack consideration for real values. Most people in such a situation will think, "How can I make money?" "How can I make money quickly?" "How can I make money NOW?" In such a crowded mind, there is no time to think about customers, their needs, and solutions. Like a seasoned hamster 😉 fast, fast, sell, sell.
3. If a founder in such a situation does not see a prospect of achieving their financial goal in a short time, they usually give up quickly. I have my theory that this is the reason why so many startups fail. There was not enough time and opportunity to work on the project for a few or several months longer.
I know that there are people who are capable of creating a product and generating sales of tens or hundreds of thousands per month in an extremely short time. However, there are also those who can't 😉 they need more time, but it doesn't mean they won't succeed.
Often, quick sales without refined value can be one-time, and contrary to popular belief, life is not as short as it is commonly said.
A Co-Founder who rolls up his sleeves and starts working side by side with you is better than an investor and big money 🔥🔥🔥🔥🔥🔥🔥

