Self-preservation is unavoidable in the world of start ups. It’s what keeps your start up alive. It’s what allows your start up to grow. It’s what keeps your start up yours – WRONG. Many entrepreneurs treat their start-up like their baby. And who could blame them. They have invested personal savings, time, sleepless nights and great risk. Why wouldn’t they try to grasp the rains and keep control at all costs?
As nearly every entrepreneur learns sooner or later, in order to make your start up work, you are going to have to work with many types of people – including investors, key employees, consultants and strategic partners – which could result in issuing equity in exchange for services or investment.
Being vigilant about keeping control of the start up is fine. If it is your goal to run the business, you will certainly need to be prudent about how you issue equity and to whom. However, once you have issued equity (to investors, consultants, key employees, etc), don’t make the mistake of viewing them as outsiders that are trying to steal your start up. Rather, team up with these people to develop your start up and take it to the next level. After all, now that they are co-owners, you have the same end goals.