As I reviewed the assigned reading for valuing, I just so happened to watch an episode of “Shark Tank” and the Sharks were going back and forth with the young entrepreneur about why should they take the chance to invest. The Entrepreneur actually had a great product, and there definitely could be some upside to the business. The biggest challenge to the Shark was did they have enough time to nurture the relationship and grow the business, due to their hectic scheduling. Yes, the shark had a multitude of money, but did not have a multitude of time, and as we say time is money.
According to Stevenson (2001), “The amount of equity is really insignificant compared to the value that can be generated by a serious advisor.” I find this statement to be true as an entrepreneur I very have enough time to take vacations to re-energize, so I can imagine being a “Shark “trying to take on the responsibility of nurturing a relationship with a new entrepreneur that has great upside when it comes to business but what about your personal life and personal relationships? Sometimes money isn’t everything and we must learn that as business men and women.
Now if we do have the time to be engaging with being that start-up advisor it can have a great return to “our pockets”. According to Stevenson (2001), the pros are the relationship with the entrepreneur and his or her business gives us the opportunity to look over the entire concept so that we can give a better insures that the business will succeed.
In conclusion, we all must make decisions based on what we have on our plate at that time. We must not become so overwhelmed that we don’t make good judgement calls. So, take your time in the decisions you make in you deals, you may have to say no and come back when you have time.
David Amis-Howard Stevenson (2001). Winning angels: the seven fundamentals of early-stage investing. Pearson Education