The essence of receiving investment is ultimately responsibility. And in the process of fulfilling that responsibility, entrepreneurs grow into true managers. The final part discusses the responsibilities entrepreneurs must bear after investment and how they grow through that responsibility.
The Weight of Responsibility: I Am No Longer Alone
Sole proprietors are only responsible to themselves. If the business fails, it is just their loss. However, when they receive investment, the dimension of responsibility changes completely.
Investors have entrusted their money. It is not just free money. It is money managed on behalf of LPs (limited partners). Behind them are pension fund members and institutional investors. The entrepreneur's performance affects the returns of all these people. This trust cannot be betrayed.
Employees have also joined the entrepreneur in trust. Especially the early members have given up stable jobs to jump into an uncertain startup. They have received stock options and believe that if the company succeeds, they will succeed as well. Their careers and their families' livelihoods depend on the entrepreneur's shoulders.
Customers also trust the company. A company that has received investment provides the stability of "at least for the time being, it won't close its doors." Customers use services based on this trust and sometimes entrust important tasks.
All these responsibilities weigh heavily on the entrepreneur. In the days of being a small business owner, one could say, "Let's take it easy this year." But now, that is not possible. The expectations of investors, the trust of employees, and the dependence of customers push the entrepreneur forward.
This pressure is painful. But this pressure makes the entrepreneur a true manager. It creates achievements that were never attainable during the days of being a sole proprietor. The weight of responsibility is ultimately the driving force for growth.
Eligibility for Investment: Determination as a Manager
Not every business needs to receive investment. However, if a business requires investment and has decided to seek it, the entrepreneur must be qualified to receive it.
The first qualification for receiving investment is a clear vision. There must be a clear answer to the question, "How will this business change the world?" Simply saying, "I will make money" is not enough. A clear vision that addresses significant problems and provides value to many people is necessary to persuade investors.
The second is execution capability. No matter how good the vision is, if it cannot be executed, it is useless. The entrepreneur must prove their execution capability. They must show that they have already achieved small results and can continue to do so in the future. Creating an MVP, securing initial customers, and building a team are evidence of execution capability.
The third is the ability to learn. No one is perfect from the start. The important thing is the ability to learn from failures and improve quickly. Investors want entrepreneurs who learn quickly, not those who know everything.
The fourth is the determination to grow as a manager. Investors look at the entrepreneur's character and attitude. Does this person have the will to move away from a small business mindset and become a true manager? Are they someone who can create systems, trust their team, make data-driven decisions, and communicate transparently? These qualities and determination as a manager are the most important in the long run.
Fulfilling Responsibilities: Honesty, Best Efforts, and Growth
If an entrepreneur has received investment, they must fulfill their responsibilities. This does not simply mean repaying the money. It means using the invested money as efficiently as possible to increase the company's value, providing reasonable returns to investors, and simultaneously creating value for employees, customers, and society.
Fulfilling responsibilities means first and foremost honesty. There is a temptation to only share good news with investors and hide bad news. However, true responsibility means sharing bad news more quickly and honestly. When there is a problem, it must be reported early so that solutions can be found together.
Fulfilling responsibilities also means doing one's best. Indulging in luxuries with investors' money, recklessly jumping into unverified businesses, or using company resources for personal gain is betrayal. All invested money must be used for the company's growth.
Fulfilling responsibilities means constantly striving to become a true manager. It means resisting the temptation to return to comfortable old ways, creating systems, building frameworks, and growing as a professional manager. This is the true responsibility to investors, employees, and customers.
The Journey After Investment: Growth into a True Manager
Once investment is received, the real journey begins. The goal is not merely to secure investment but to achieve something with the invested money.
After investment, entrepreneurs must apply higher standards to themselves. To meet investors' expectations, they must move faster, make wiser decisions, and use resources more efficiently than before. But above all, it is crucial to transform into a true manager.
A manager who thinks systematically, makes data-driven decisions, builds systems, and trusts their team. A leader who communicates transparently, thinks long-term, and fulfills their responsibilities. This is the image that entrepreneurs who have received investment must strive to achieve.
This process is challenging. One must abandon familiar methods and learn new ones. But in this process, entrepreneurs grow into true managers. They transform from running a small store to leading hundreds of people, from focusing on today's sales to formulating future strategies.
Invested Companies Must Become Role Models
A company that has received investment must not only grow rapidly. It must inspire other startups to think, "I want to be like that company."
Creating good products is fundamental. On top of that, a healthy organizational culture must be established, transparent management must be practiced, and social responsibility must be fulfilled. A company that employees are proud of, a business that customers trust, and an organization that positively impacts society must be created.
Receiving investment means not just getting money but taking on the responsibility of leading the entire industry. Good precedents must be set, a healthy ecosystem must be fostered, and paths must be shown to junior entrepreneurs.
Responsibility for Failure: Responsible Failure Creates Next Opportunities
Of course, not every investment ends in success. Even with the best efforts, failure can occur. Market conditions can change rapidly, unexpected competitors can emerge, or technical limitations can be encountered.
However, even in failure, one must fail responsibly. It is essential to explain the situation honestly to investors, employees, and customers, minimize damage as much as possible, and share what has been learned. Hiding failure or blaming others is cowardice.
Responsible failure leads to the next opportunity. Investors will support entrepreneurs who have made sincere efforts but failed due to unavoidable reasons again. However, entrepreneurs who fail irresponsibly will not get a second chance.
Investment is an Opportunity to Transform into a Manager
Receiving investment is a process of transcending the limits of a sole proprietorship and leaping into a true corporation. It is not just about receiving money but being validated by the market, gaining the best partners, and taking on greater responsibilities.
But above all, the most important thing is that investment transforms entrepreneurs into true managers. It shifts them from operating based on intuition to data-driven management, from doing everything alone to building systems, and from impulsive decision-making to strategic thinking.
Investment is both a privilege and a responsibility. One must meet the trust of investors, the dedication of the team, and the expectations of customers. And in the process of fulfilling that responsibility, entrepreneurs grow into true managers.
Before receiving investment, entrepreneurs must ask themselves, "Am I ready to become a true manager? Am I prepared to abandon familiar old ways and learn new methods? Do I have the will to move away from being a small business owner and become a professional manager?" If they can answer "yes" to these questions without hesitation, they are ready to receive investment and step onto a larger stage.
Investment is not the end but the beginning. The real journey unfolds after receiving investment. Ultimately, how much entrepreneurs grow into true managers during that journey will determine success or failure.
Entrepreneurs who cling to old ways even after receiving investment will ultimately fail. However, those who use investment as a turning point to become true managers will achieve results beyond imagination. Investment is not an end in itself but a catalyst for growth into a true manager.
