Yesterday I was talking with a couple founders that had bootstrapped their company to a great spot and were debating whether or not to raise money. Having had this conversation dozens of times, I brought up the Rich or Royal concept. Simply put, there’s a tradeoff between raising money (going the “rich” route) and maintaining control (going the “royal” route). Most entrepreneurs that want to raise money don’t think through how having other investors changes things, and in most cases, reduces their control.
Here are a few questions on rich or royal:
- How much of being an entrepreneur is about controlling your own destiny and being your own boss?
- How much of being an entrepreneur is about making a large amount of money as quickly as possible?
- How much of being an entrepreneur is making a major impact on your industry or city?
- How much of being an entrepreneur is about creating a certain lifestyle or quality of life?
There’s no right answer to the rich or royal question. Yes, some entrepreneurs get to be rich and royal, but that’s even less common. My recommendation: think through the rich or royal question and be intentional about it.
What else? What are some more questions on rich or royal?