Anytime an investor loses money in a venture, even one that is somewhat volatile as is a restaurant, bitterness will be a natural reaction.
“Well, if you told me you were drowning, I would not lend a hand”
This song lyric is a sentiment that is extreme and used metaphorically as no one should really wish this on anyone.
Can you blame them?
I honestly cannot blame any investor’s emotional backlash as any entrepreneur’s apology, as noted in my post “Offering an Apology,” can only go so far.
Upset is only one of the many emotions that an investor experiences when money is lost on a venture that you hyped. This form of investment transcends any dabbling in the stock market. As much as a business decision has been made to invest (restaurants do have that romantic appeal), that doesn’t soften the blow or the reaction.
Risk
However, risk is a term associated with the restaurant business, and probably more so than any other. All investors, including the entrepreneur, should tally up the potential losses before sinking personal funds in any venture. Being prudent can never be overstated when it comes to financial affairs.
Even family involvement can elicit ill feelings, and this effect hits home in more ways than you can imagine.
Be ready
A thick skin, or better yet, a suit of armour is required when funding a venture that requires soliciting investors.
Ironically, it will allow you to keep your head above water.