Jul 202010
 
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A smaller percent of something is better than 100% of nothing. This is an issue that comes up all the time.  Entrepreneurs tend to be control oriented, and rightly at least in part, as they want to be well rewarded for the risks they take and the effort they put into their ventures.  Too often though, this translates into being obsessively focused on maintaining 100% or close to 100% of the ownership of their venture.  Leverage (financial and operational) is important in building many ventures to a meaningful scale, and without bringing other people/partners in, it is very difficult to gain any sort of leverage.  If it’s all you, then you are extremely limited by the amount of time that you and you alone can commit – it doesn’t look like there will be more than 24 hours in a day anytime soon.  That being said, not everyone needs or wants equity, so this is not an argument for giving away the store at the drop of a hat, rather it is an argument to not be so obsessed with maintaining 100% ownership that you forego opportunities to get other talented, competent performers onboard, where needed.  You should be careful to whom you grant or sell equity, but don’t be so paranoid that you unnecessarily limit your ability to attract talent and grow the business..

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