You may have taken the funds, but now you have a bigger problem
26 Sep, 2017INC.COM
You conquered the scary fundraising part - you found an investor for your startup. Sit back and exhale a long sigh of relief. You have now accomplished what very few entrepreneurs ever do. It's all downhill hill from here you whisper to yourself. Right?
Not so quick emerging business maven. The money is only part of the deal; the other part is working with your investor. I know, I have been on both sides of this equation having raised millions as well as dispersed millions. I have seen the good and the bad.
In case this is your first rodeo, let me state in no uncertain terms that you will be working closely with your investors. Even if they do not want to, you will need to manage them on a monthly basis. This is how you do it right. Yes, there are active investors and passive investors. The active investors are better (on my opinion). You want their help and advice and guidance. They are an asset for you to utilize, especially in tough times. But there are bad active investors.
Here are five signals that you have a bad investor (which are also questions you should ask other founders in due diligence on your investor):
First of all, congratulations on securing an investment. Now the hard part begins. Learn to manage your investors from day one and look out for the outliers.