The dynamics of non-public relationships can make or break a startup. Even if a founder and an investor or business partner start out as best friends, countless problems can arise along the way.
Sooner or later, most startups will face a power struggle, and founders need to be ready for it. The most vital thing is to follow the rules of the game; only then will founders have the option to chart their very own path. It’s like a pilot mastering flights in the air – experience breeds knowledge.
Here are 4 precious suggestions that have helped me balance power and trust throughout my profession in building successful relationships with investors and business partners.
No. 1: Don’t be pushy
Partnerships only work when each parties can achieve more together than alone. It may sound trivial, but you possibly can’t build something great in the end by focusing on achieving your personal goals. Steve Jobs he learned this the hard way – his rigid management style got him fired Apple. But when he returned, a more collaborative approach helped him lead the company to unprecedented success.
Therefore, in order to gain something for yourself – for example, to select your individual approach to solving a particular problem – you could keep in mind that you are a part of a system and consider what advantages other members of the system and the system itself can gain. To do this, analyze their motivations and try to give each participant the desired value if you manage to compromise.
No. 2: Prioritize long-term goals
While collaboration is vital, founders must keep in mind that as leaders of the enterprise, they ultimately determine its direction. Their primary responsibility is to ensure the long-term success of the company. Compromises can assist resolve conflicts, maintain relationships and drive progress towards shared goals, but they need to never come at the expense of the company.
When partners insist on drastic measures, corresponding to firing team members or selling assets, it is crucial to vigorously oppose suggestions that threaten long-term success. It is unacceptable to use short-term indicators as the basis for decisions, as this can only increase uncertainty and undermine the team’s trust in the founder’s leadership.
No. 3: Combine professionalism with warmth
While building trust is essential, it is equally vital to maintain professionalism in all interactions. This balance allows for open communication without compromising objectivity.
Regular social interactions can strengthen relationships, but personal matters have to be approached with caution. Avoiding excessive intimacy helps make sure that decisions focus on the best interests of the company, stopping any sense of obligation that would skew judgment.
Remember that for a relationship to achieve success, the constant give and take have to be in balance. Let’s say a partner helps the founder do a personal favor. This suggestions the scales of power and they could be reminded of it later, limiting their ability to protect their interests.
No. 4: Project strength and be honest
Successful entrepreneurs are resilient. How Richard Branson he said, “For the first few years it was just about survival.”
When dealing with investors and partners, founders must exhibit strength to maintain equality, not respect. Approaching discussions with too much caution can change power dynamics and be difficult to reverse.
Always keep in mind that while sugarcoating could appear attractive, radical honesty from the very starting deserves more respect. A transparent position – whether yes or no – builds credibility. Transparency builds trust, and trust drives success.