tldr: I have an offer on the table for a cash injection with a non controlling share, and am struggling with my pride by considering fast tracking a path I am already on, and not wanting to share.
Hi all, seeking advice on an offer recieved this week. For clarity, the exact parameters on this offer (% share, total input etc) are to be ironed out - while this is obviously very important to the decision making, my query here is more of an emotional one - as i grapple with the idea of releasing some financial control of the business i am building.
Im an (australian based) consultant of 13+ years, started up my own consultancy 2 years ago, things have gone well, and in the last 3 months, very well. Ive been running solo in this time, but looking to hire at present (as I move away from contractor based solutions to more in house expansion). Turnover and profit are fantastic, and the time is ripe to expand and capitalise on the current momentum. Solid industry with no sign of slowing down, and (due to legislative requirements of the work I do) ive seen the industry weather downturns very well.
I have been jointly delivering projects with another well established consultancy (with no competing offerings) on work where both our services are required. The owner of this business has become somewhat of a mentor. We caught up to talk business/hiring/risks etc over a beer last night, and he proposed an offer with a considerable cash injection compartive to the business for some non-controlling ownership. Sees what I am doing, knows it will continue to go well, and the cash provides some additional financial cushion for hiring of qualified people (salaries are very large in my industry and my biggest financial decision to come), with an offer to assist in purchasing commercial space and provide more formalised sharing of resources within his own company.
I genuinely believe it will be non controlling relating to how the business is run on a day to day -, however as I start to see the “light” of substantial financial and industry growth after 2 very hard worked years, im reluctant to have shared ownership - especially where financial decisions are made (which part ownership WOULD have some decision making on). I have personal goals which include pulling decent money out from the business at certain stages, and, in all honesty- want to be the guy on the otherside of a pub table in 10 years offering someone new to business a chunk of change to invest in what they are doing. Not saying i cant get there if theres is some joint ownership in my main income stream, but, f*ck it - pride in my baby and what im building and my own goals.
The outcomes of the offer mentioned above are essentially a fast track of my current planned growth. Ill get there, im confident. But the difference is with this offer, some staff, an office and some other major assets that will help me along (fleet vehicles) - can all be realised on a much shorter timeframe. The difference, those decisions will be made in some way with another person.
Im very proud of what im building, 2 years in and im making more money then I ever have per annum (by well over 3x) and am excited for the new chapter of challenges and realised management dreams that is hiring personnel and footholding more presence in the industry.
The offer is an exciting fast track, but im grappling with a change in perception within what I was building, but also knowing that business, for the most part, isnt personal.
Unsure how to reach a decision, your thoughts are most welcome on this one.
Cheers.
You have offered no details that would enable anyone here to give an informed opinion other than “it depends.”
We aren’t mind readers.
Thats fair enough. As i said, im not asking for feedback on the parameters on the offer, but more in regard to the emotional attachment that comes with handing over some ownership to another party. I did hope i had made that clear in the post. Understandable that the offer details may add weight into the decision making, but my hope here was to gain feedback on the decision making between maintaining control, or moving the business ahead quicker via a cash injection.
Maybe there is another business owner out there who has been in a similar situation and has grappled with the idea of handing over some of what they have built, and may provide me some insight to how they came to a decision. Respectfully, maybe this isnt you, and could be this is the wrong sub, but ill leave it up in case someone understands where im at.
I’ll just say that a minority owner never has the final say. No offense at all taken. I wouldn’t share details here either.
I get that. End of the day im struggling with the idea of not having full ownership. No plans to share details just hoping someone has been in a similar spot as a business owner.
Thanks for your comment