Straight lines are for rank and file types. The true mark of an entrepreneur is that he can zig when he needs to, or zag when the time comes. Without getting into specifics, ideatango may be taking a zag soon. So what does that mean. We’ll you’ll just have to wait.
What am I doing about it? Or more importantly, if someone comes to you with a business proposition, what should you do about it?
This particular deal would be an alternate form of financing for ideatango. Rather than the traditional private equity or angel funding we’ve been thinking about. This method of raising money was new to me. So first things first, I needed to get comfortable enough with the financing arrangement so that I could explain it to my partners and existing investors. As it turned out, the more I learned, the more questions I had, which were eventually answered.
I think it’s also helpful to figure out why the other side needs you. Think about it from their shoes? Why you? Why now? Although most people are good people, there are a few shady types. So you better get a good answer to these questions otherwise they might be in it for themselves, and only themselves.
Conduct your due diligence, check out the stories, do background checks, whatever you need. I have heard the recommendation that you should only do business with people you know well. Not only for the trust issue, but also because you know how they work, and if you won’t pull your hair out when you decide to work with them.
Getting to know the goals of each of the parties involved is a good idea. That way you can come up with an appropriate exit strategy and know what to expect. Some people may want to make this a lifestyle business, while others are only in it for the short run.
Probably the best thing to do is ask as many questions as possible. You’ll not only good a good feel for who your potential future business partners are, but it will lead to more questions, which will make you all the more knowledgeable going into this transaction.
To all the ziggers out there, keep zagging.
Bryan Daigle
