Most of us have seen the legal green papers that are/were used for execution of agreements of contracts/ investment/M&A etc which in a way come to represent a “definitive milestone” to move ahead. While I have been part of numerous situations over the years, couple of instances still remind me of the situations where the Green papers were to be inked — all ready for the day and the founders (lets call them owners for this post) decided to “sleep over it and do it tomorrow”. But developed “cold feet”. …Perspective 1

Not just exiting from your business, but even inviting external investors to a growth stage company can also be something that gets jitters on — should we/do we need/we are doing good. And debates are healthy and should be encouraged within the family/management team that is involved when external investors are being explored. The question arises when only such talks happen from time to time and the loop does not close. While the fear of the unknown resides in the minds of the founder, the management team and professionals seeking “growth opportunities” in frustration end up moving out and the company no longer is able to attract the right talent to keep the company growing. Many such companies are “still alive” with revenue and profitability when they probably were in a position to thrive. (they attract other types of investors…but that’s for another story in future). Sometimes it just needs a leadership spark or are waiting for a succession date. either ways they are farther away from leveraging a chance they once had. As years pass, markets change, other competitors start chipping away a headstart that the company had…..Perspective 2

Selling is not the only motive for all founders and neither being acquired a necessary yardstick for successful businesses.

developing cold feet is normal. Anticipating is something that one learns to spot in some patterns of thinking/interactions. “What is the most suitable combination of leverage which is good for the business?” is sometimes a good way to ask oneself (or better have someone to ask you) and ascertain from stage to stage and situations (both are different). Investment is just one of the leverages that still needs to be used by the founder and the team to achieve a goal, probably earlier. But it also involves learning to work on getting shareholders together on a plan. And that means its no longer a family affair but where one is responsible in addition to an external stakeholder.

Today when ecosystems are far more prevalent and increasingly becoming inclusive (not just for startup founders alone) it could be an opportunity to learn about a life with PE from people who have leveraged it well (perceivably). All you have to do is ask and see if you can relate. Or wish to. And all of the discovery could go a long way in actually helping owners decide if it’s a path they want to pursue. Once that’s done focus on what you think is leverage and then gather the team that is aligned to the same purpose.

Contracts and clauses can always support, but don’t complicate wants and desires on clauses if the basic premise of inviting external investors is not clear. Will save the trouble and mental well being of many involved. Lawyers are not magicians (some may disagree) but they also need Principals to provide clarity. Mixed signals from the owners, in my view, doesn't help employees, customer focus, investors and even your own direction. In life or in business pain of discipline is better than the pain of regret.

When we are invested deeply in something we love we worry about the outcome. And it helps if you have someone by your side who can help you navigate that phase but also help you reach your decision. As you look to transition from an owner to founder shareholder start finding those people. Gather your leverage(s) and Pivot — may be you get back in the game if you want to play.