Which is better for a Business, partners or Investors?

Submitted by prelude2cinema on Wed, 03/08/2006 - 01:21.

I am working on a partnership agreement for my Movie Studio. Someone suggested I should get investors instead. My new partners would have a financial stake in the business, but they would also have input into the operations. Investors typically have no input into operations.

 

So, I was wondering which is better, Partners or Investors?

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Building business requires collaboration

Every business situation is different. If you have everything you need but money, and someone is willing to loan or invest that and wants to provide nothing else, and the terms are fair, then that is great. The investor, even if a bank, is part of your collaboration - even working with bankers is very personal and collaborative... they learn and follow your business.

 

But many investors want to be involved in operations - even control some or all operations. Are the terms fair and reasonable - depends on you, the investors and the situations.

 

I tend to develop projects that require lots of very involved partners, so we all take jobs and stakes. More partners, split up company and jobs further. Of course, you need to find good partners, and manage everything very well. Easier said than done, but if you work openly and everone has access to information, you can make things work even through hard situations. 

Business and Involvement

Like John Donne, said, "No man is an island." I  would welcome partners who are financially involved, but also add knowledge to the Studio Incubator. I guess I need partners for their "Money and their Mind." I have been doing a lot of things myself and would welcome partners who can help move things along. I recently did a shoot for my TV series and the Director (who was also the cinematographer) was over everything. There were others helping out. I really wasn't needed on the set. Which is odd, but good. It went very smoothly cause they were good people working hard and they had a good grasp of the vision.

 

Thanks to William of CAAO, I talked to an attorney about partnerships. She gave me a lot to think about in seeking partnerships. Money is not everything in a partnership. It is more about finding the right fit. I have to talk to a potential partner. We are working on coming to terms.  And although honestly, I could use the money for the Studio Expansion, it might not be worth it if we can't work out all the details.

 

I don't mind giving up some of the operation control as long as the vision is kept in tact. I have worked before with my new director and I let him take control because he understands the story and the vision. I'd like to find the same thing in my Partners, people who can add their own knowledge, but we have to be on the same page about how the Studio will grow.

 

 

You have given me a lot to think on as well. Thanks. 

 

Sincerely,

Alex P. Michaels

Expanding the Knight Movie Studio Incubator

http://prelude2cinema.pbwiki.com