Partnerships – When it just feels right
Who’d of thought six months ago that we’d have a Liberal-Conservative coalition government leading us through the uncertain, murky waters of policy reform needed to hoist Britain out of recession. Though not considered ideal, it does nonetheless need to succeed for the good of our economy. Two parties with different ideas and agendas now have to compromise on what they believe in to govern with “one clear purpose”; to take Britain in a historic new direction – not so unlike any potential entrepreneur-Angel investor relationship. Not every partnership will result in its parties seeing eye to eye on everything, but like Cameron and Clegg if you can identify common ground from the off you could make your differences work towards a greater end, creating something profitable for both parties and potentially building something special. Aligned with your Angel investor you could essentially leave a legacy in your wake to inspire future partnerships to follow (a little OTT, but I was really getting into my inspiring speech mode!)
As an entrepreneur you feel immense pressure to find the right capital to push your venture forward. With the banks still not lending to anywhere near the capacity that is needed partnering with an Angel investor is not only a sensible option, it can sometimes be the only option. “There is no document in the world and no agreement in the world that will keep you all together…In the end it’s about people working together…to achieve progressive ends,” said Cameron recently, and he makes a good point. There’s no clear cut way of deciding which Angel investor you could have the best relationship with, it’s just a case of being open and flexible in your approach.
A common gripe between entrepreneurs and their Angel investor partners concerns the lack of clarity in the rules of the game. Obviously both parties’ ultimate goal is to make the best return on their investment, so with such high stakes involved a good relationship can be fostered from your common goals. But if opposing ideas on how and where you want to take your company is what’s holding you and your Angel investor back, it’s time to sit down and work out the kinks.
Combining parties can extend your business’s core value as well as taking you in profitable directions you hadn’t previously considered. Both Angel investor and entrepreneur will need to know where their flexibilities lie and to understand one another’s aspirations. You need to remain focused on the key questions like: What will an Angel investor bring to the table? Do they offer skills I cannot gain elsewhere? And so on, so that if disagreements arise you can know clearly why you are in such a relationship and work through your differences for the good of the company.
Relationships between the most unlikely partners can work if everyone wins from the arrangement. B&Q and IKEA, both owned by Kingfisher, are known for using rather a lot of wood in their products; however they have partnered with the Rainforest Alliance and WWF who actively campaign to protect trees. This seemingly odd joint venture (aimed to encourage forest certification in China) has been successful for both parties. Kingfisher’s reputation as environmentally aware has helped its profitability and activists are able to better monitor the effect such companies have on the environment, helping to reduce damage in a sustainable and business viable way.
Sometimes opposites attract with mutual interests being met. Aligning your business with an Angel investor could be the best thing you ever do, both for your company and for your customers. If Cameron and Clegg can pull it off then there’s every reason to see if it could work for you.
Image ©cquarles
