About Our Guest
Erik Rind is a seasoned technology executive dedicated to building a digital community and providing members of this community with the tools they need to easily and efficiently learn how to monetise their personal information.
Erik sold multiple businesses and has plenty of stories to share regarding the various highs and lows incurred during his path to success.
Erik is currently the Founder & CEO of ImagineBC, a revolutionary new media company starting a movement to make digital content experiences safe and equitable for all. They are a team of collaborative and innovative entrepreneurs, tech enthusiasts, and dreamers who are on a mission to change the digital landscape.
About this Episode
The Pitfalls of Being a Minority Shareholder in Business
Many entrepreneurs start their own business to control their own destiny. But with more business owners entering Software as a Service (SaaS) and technology spaces, more often than not, they’re relying on capital raises or angel funders to get the product off the ground.
While the idea of a big injection of cash might be tempting, what happens is a dilution of your share (and say) in the business. This is the risk of a minority shareholder, and something early SaaS entrepreneur, Erik Rind can speak to with earnest.
From having papers on his desk one day forcing him to resign as president of his start up, to being forced to sell a business he didn’t want to, Erik has navigated the challenges of being a minority shareholder and shares a few pieces of practical advice.
What you will learn in this episode
In this episode we’ll cover everything from:
- What it takes for a company to develop a winning piece of software
- The key to approaching a SaaS business model from revenue roadmaps to innovation
- How to navigate being a minority shareholder and what that means long-term
- How to consider your shareholders’ needs during negotiations
Connect with Erik Rind
(8:11) Since before the dawn of the internet, Erik Rind was always thinking on how to automate, how to build, and how to do something different. This is the right type of approach to figure out your next million-dollar idea.
(16:55) The key to being a software business back in the 90s (and it still holds true today) is to figure out your ongoing maintenance costs and ensure your revenue from that sale covered it so that all new sales were for growth.
(22:06) Erik had a business partner, and while he was instrumental in growing the company, Erik was a minority shareholder and his partner wanted to sell. Here’s the interesting journey they took to find their strategic acquirer.
(30:00) Erik asks himself two questions when determining whether to sell his business. Is the number right and where is the product going to go? This marriage of financial and personal elements is how to vet potential acquirers.
(50:53) Erik’s top tip to take away: Be very careful if you’re the minority shareholder, especially if you’re the creator.