Investing is not an easy route for any private equity firm. The myriad of pitfalls to look out for in an economy that is stagnating are vast and can be daunting to both the investor and the entreprenuer. With some key pointers, however, the situation can be turned around and be lucrative to partners.Here are some private equity tips that are worth embracing to get that venture off the ground and running.
In an ideal situation, the entreprenuer and the investor hit it off and bounce ideas around with a lot of zeal to make it work. More often than you think possible,ideas get stuck in the implementation stage when both teams do not compromise and come to an agreement.The investor wishes to protect his investment whereas the entreprenuer wants to grow so fast without proper footing. Maintaining proper working relationships and camaraderie, is a delicate balancing act but when mastered, goes a long way in getting proper funding, strategic direction and coaching.
Behind every great entrepreneurial venture, is a great investor team that was willing to go the extra mile.The two way traffic rule however applies.As investors are held accountable for both financial and non-financial obligations to their investees, so should the startups be accountable for their cost targets and meeting their revenue projections. A common vision and trust will build a mutually beneficial relationship even as the role of both parties change during the investment life cycle. Making strides in local enterprises is indeed possible when equal standards of accountability, commitment and realibility are applied.