Lessons Learned: Startup Equity - Choosing the Right Partner
Rick Dennen: Hello. My name is Rick Dennen. I'm the founder and CEO of Oak Street Funding and First Franchise Capital. I, too, have had to go out and raise debt and equity capital to grow my business. And what I want to share with you in this five vlog series is what I've learned throughout that process. In this vlog, I'd like to discuss startup equity and things to consider before you sign on the dotted line. You should ask yourself how much equity do I have to contribute to this plan? How much more is needed to build out this plan in the model? Is that going to result in a majority or a minority stake in the business? And does that ownership structure work for you? How do you work with others? And do you have friends and family that can help you, or should you seek out venture capital firms, angel investors, or strategic partners? The key takeaway of this vlog is choosing the right business partner. The best way to do that is having options. This will also allow you to negotiate the best deal. Never put yourself or your business in a position of desperate capital. And once you select a new capital partner, be prepared for accountability and challenge. If you are not prepared for that, don't take the money. I have had four different sets of business partners, some good, some not as good, but I will tell you that the good ones have always resulted in more growth and greater upside. Thank you so much for watching and come back for vlog two: the purpose of business financing.
The first part of the 5-part series with Rick Dennen discusses startup equity, and what to look for in a partner.