Echoing Warren Buffett, investor Mike Schrepper advises that market dynamics—whether it's growing, shrinking, or has concentrated buyers—are the dominant factor in a company's success. Even an exceptional entrepreneur cannot overcome a fundamentally bad market, whose reputation will ultimately prevail over the founder's talent.
Leaders forfeit their right to be frustrated by subpar work if their quality bar is subjective and hasn't been explicitly communicated. To hold a team to a high standard, particularly one based on 'gut feeling,' you must document those expectations in specific detail. This transforms a subjective bar into an objective, referenceable standard.
To predict the future health of a partnership, intentionally have difficult conversations before any investment is made. If you can't productively disagree or discuss serious problems before you're formally linked, it's highly unlikely you'll be able to do so when the stakes are higher post-investment.