Posted by 2014-04-21 17:28:15
Title: After months of searching for an investor to help me launch a small newsletter business, I ended up ...
It sounds like you need him more than he needs you. This is a good case of imbalance of needs and wants and an even better showcase of what happens when two parties have not clarified expectations very clearly.
If you have expectations on how he/she treats you and the business, these have to be clearly communicated now. Think of all partnership relationships like pre-nup agreements. I always say, fight with me now while we want to do business together, don't try to fight me when I am angry.
I would suggest a candid open conversation about the drivers for the investment and business to begin with. Then lay out clear expectations on all fronts from performance to communication frequency to financial expectations both ways. Finally, equity is the most expensive investment you can sell. If you can afford to print and make less, in the long run it will be cheaper than giving up 50% of your business.