The thing with investors’ advice – Mark MacLeod

June 1, 2020 - Mark MacLeod

The thing with investors’ advice

If there is one thing you can count on from your investors, it’s advice. I remember back in my VC days at Real Ventures, when I would spend time with entrepreneurs in our Founderfuel program they referred to it as “Mentor whiplash”. One mentor or investor would tell them to go right, the other would tell them to go left. Yet another, would tell them to just go straight. You get the picture.

I have spoken with many founders, especially newer ones, who struggle with what to do with all that advice. Particularly, if it comes in a more formal, accountable setting, like a board meeting.

Here’s the thing with all advice, no matter who it comes from: It’s all just input. The ultimate decision and accountability is yours.

Often advice is framed as suggesting to follow what worked for the person when they were in a similar position. However, that was a different time with different context and circumstances. In today’s dynamic markets what worked a few years ago may not work now.

If your investor board members are “telling” you what to do then there are a few issues. First, you’ve lost control of your board (that’s a separate topic for another time). Second, it’s a lose-lose proposition. If you follow their advice and it’s right, you won’t get full credit. They will take some or all of the credit. They will also wonder about your ability to lead since you just followed them. If you take their advice and it doesn’t work, it is 100% your fault. They might think that their advice was right, but you botched it in the execution.

Now this doesn’t mean that you can never accept that advice. After all, investors have seen a lot of rodeos. They pattern match across many companies and have vast experience to draw from. Just don’t blindly accept it. And never follow their advice because you feel pressure to do so since they fund you.

If it’s a major decision such as the launch of a new product, pivoting the business, etc. walk your board through your rationale. Whether you adopt their advice in whole, in part, or not at all, walk them through the decision logic and assumptions. That way they have the same framework you do and can apply that to monitoring the success of that decision in future board meetings.

Yes, take all the input you want. Just remember, it is only input. You must make the ultimate decision.

Your journey is never done

Sign up to my newsletter and join an inspired community of leaders who realize that the journey to achieving their full potential is never done.

    If you’re curious about my coaching and deal work you can learn more here.

    back to blog

    Latest Blog Feed

    The two side of a CEO: Selfish and Servant

    CEOs have an almost impossible job, facing a seemingly endless list of demands from their various stakeholders. To thrive, CEOs must be both selfish & servants. Something that has been coming up in my conversations with CEOs lately has been […]

    read more

    What message does your schedule send your team?

    Most CEOs I know are too busy. This is actually a common reason for them to seek coaching in the first place. They can no longer keep up and are losing effectiveness as CEO. I was speaking with a CEO […]

    read more

    What is your super power?

    What are you best at? What do you love to do more than anything else? What work, when you get to do it, doesn’t feel like work? I find myself asking CEOs questions like this a lot. CEOs come in […]

    read more


    Email :

    Follow me:


    Send Me A Message