Are You A Business Owner Or A Steward? Your Choice of Language Affects Fundraising
Do you see yourself as “losing” equity or “selling” it? Do you refer to the company and technology in personal terms i.e. my company / my technology?
Peter Adams, co-author of Venture Capital for Dummies, lets us into some insights on how the choice of words affects how investors view you and impacts on your chances of raising funds / selling your business.
Owners are in it for themselves and often see the company as a vehicle for them to maintain continued employment.
Owners are like a boat anchor on a company. They slow down progress and they will hinder development towards exit. That’s because it’s not about the company for them – it’s all about the CEO. Owners are not aligned with investors and also not with the people working at the company – so the company is out of balance and not likely to be a success.
Stewards, on the other hand, are not in it just for themselves. They treat the company as the object of their focus and all of their actions are working towards the best outcome for the company – even if it’s not necessarily the best outcome for the founder. Are you a startup business owner or a steward?