I’m keen to move my business away from its niche area, but my investor is against the idea. Now what?
Thursday, August 18, 2011/
I’m keen to move my business away from its niche area, but my mentor/investor is against the idea. I feel there is a great opportunity in widening the business’ offering, but I also feel that I should defer to my mentor. What should I do?
Clearly the is a fundamental difference of opinion. Experience aside, you need to get to the bottom of this.
What are his/her reasons for not wanting to expand?
Your investor needs to be more compelling as to why he doesn’t want to develop the business in this way.
Similarly, you need to make your case compelling. Do your research, sketch a plan and do the numbers.
You may be able to convince him why your idea is a good one. Consider carefully whether there is a market or expertise to warrant widening your business model.
If you can’t prove that there is, then I’m tempted to agree with your investor.
If you can prove it, you should have no trouble convincing your investor that your idea is worth pursuing.
You need to find out the reasons behind the difference of opinion or you will simply go around in circles.
If there is trust in the mentor and the mentor is also an investor, communication is the most critical requirement here.
Clearly, there is a problem and it needs to be resolved to avoid resentment which in turn could lead to a breakdown in a relationship.
If there is a deadlock it doesn’t need to mean the end of the relationship but it will require thorough examination of the pros and cons and a compelling argument from both sides.