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Did You Get Screwed in Business?

By: Tim Berry

 

Did You Get Screwed in Business

This is a true story. I was there. The details are possibly not exact, and the quotes are paraphrased, but the essentials are true.  A startup founder was pitching to 22 local investors. The group had asked him to pitch because we liked his summary materials. He was local to us and had an interesting product. But he got screwed.

This is what happened

  • Two minutes into the pitch, he said he had been screwed by a partner in a previous venture.
  • Ten minutes into the pitch, he said that he had been screwed by attorneys in a previous business deal.
  • Fifteen minutes into the pitch, he said he’d been screwed by an employee he had to fire.

Normally, after every pitch, after the founder has left and we’re alone, the group takes time to discuss what we saw and heard. In this case, the room was quiet for a few seconds. Then one of us said:

“One thing we know for sure … if we invest in that guy, he’ll be blaming us for it later.”

Everybody laughed.

He didn’t get the investment from us. Do you know why not?

This is what reminded me

This morning I saw this question in Quora, the world’s best question and answer site.

Every time I’ve gone into business, I’ve gotten screwed badly, either by partners or by customers. How do I avoid this the next time around?”

I’m answering here first.

Published: July 19, 2017
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Source: Tim Berry

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Tim Berry

Tim Berry is co-founder of Have Presence, founder and Chairman of Palo Alto Software, founder of bplans.com, and a co-founder of Borland International. He is author of books and software including LivePlan and Business Plan Pro, The Plan-As-You-Go Business Plan, and Lean Business Planning, published by Motivational Press in 2015. He has a Stanford MBA degree and degrees with honors from the University of Oregon and the University of Notre Dame. He taught starting a business at the University of Oregon for 11 years.

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