In that case, it was a bad deal, but it was the only deal, and was something
we likely should have done. I didn't block it but did ask so many questions
they tabled the deal. Bad deals are like that--they don't do the job of
convincing everyone it should get done, and then they languish.
With deals, there's negative dilution and positive dilution. Negative
dilution is when you give up a percentage of ownership and get nothing (or
worse) for it. Positive dilution is when you give up a percentage and get
more than what you gave for it. Employee options, new capital, partnerships,
new equipment--every investment is about
positive or negative dilution.
When something costs you nothing but brings the possibility of revenue, new
markets, brand awareness, and opportunities, you're nuts to say no. When it
costs you nothing, you say yes. But many, many entrepreneurs say no for one
reason or another--scarcity mentality, control issues, fear.
And many amazing technologies go unknown and unused, without benefit to the
world or to their inventors. I've heard about this, read about it,
experienced it with Mission Research, and just recently witnessed something
in freefall that has no reason to fail and every reason to succeed. Owning
100% of nothing gets you nowhere. Sometimes you need to give to get--a
cliche, but meaningful.
But great ideas need at least mediocre execution to thrive. My dad gave all
of his kids a framed piece with a quote from Calvin Coolidge--perhaps his
only great contribution to the world:
Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan 'Press On' has solved and always will solve the problems of the human race.
Tenacity, persistence--yes. But openness and trust make a huge
difference too. The 100% of Nothing argument is a good one, but don't
ever let someone influence your choices using the fear of losing
everything.
You can lose everything and bounce back--that's why entrepreneurs are so admired. We lose everything, we fight back, we win against the odds, and then some of us lose it again, just to rediscover that tenacity and fight back to win another day. So don't give up, and don't give in to the fears.
You can lose everything and bounce back--that's why entrepreneurs are so admired. We lose everything, we fight back, we win against the odds, and then some of us lose it again, just to rediscover that tenacity and fight back to win another day. So don't give up, and don't give in to the fears.