Unconventional Founder: The Harsh Reality of Broken Promises in Startups ~Bramuel Mwalo
Starting a business can be a rollercoaster ride, and one of the harsh realities entrepreneurs face is broken promises. Startup founders often strive to maintain a “picture-perfect” image, but the harsh reality is that broken promises are very common.
Whether it’s investors failing to honor their commitments, employees not following through on their responsibilities, or clients reneging on deals, the cost of a broken promise can be devastating for a startup.
The Sting of Naivety: A Founders First Experience
In the first month of starting Xetova, I met an angel investor willing to invest $500,000 to $1 million for 49% of the shares. Before I could agree to the offer, I landed a $150,000 deal from a fast-growing local company with a 50% upfront payment.
As any entrepreneur would, I held off on taking the investment offer to preserve equity and took the $150,000 contract to help start us off. However, two weeks after signing and receiving $15,000 from this company, they ghosted us. I had recruited three people and procured their work equipment to fulfill the contract. This was my first sting at Xetova.
When faced with broken promises, it is crucial to approach the situation with objectivity and not allow disappointment to cloud your judgment.
Unfortunately, it is inevitable that promises will be broken, whether through intent or circumstance. The response to such betrayal, however, varies greatly. Some individuals may express remorse, while others may attempt to shift the blame or may not care about the consequences of their actions.
As founders, we may also find ourselves in the position of breaking promises to others. Unfortunately, some of these cases would end up in ugly court battles or expensive reputation management projects. In these instances, navigate the situation with humility, integrity, honesty, and a sense of responsibility.
Getting Ugly for No Good Reason
A good example is my experience with a partner, let’s call her Cherry, whom I brought on to launch an idea that was close to my heart. She is a popular name with a cult-like following in Kenya’s corporate scene. On recommendation from two team members running the program, we quickly brought her in, discussed the vision, agreed on the deliverables, and developed a clear implementation roadmap and a responsibility chart.
The launch events went really well, and we became the talk of the town in no time. However, after a month or so, the program began to struggle due to her lack of involvement. I froze Cherry’s payment until there was proof of performance. This led to threats of legal action, and she attempted to tarnish my name and Xetova’s reputation.
As a founder, you might find yourself in a similar situation where an employee or a client you brought in breaks their promise to you. To mitigate the impact of broken promises, always be prepared for the possibility of disappointment. Have contingency plans in place and be ready to adjust your course to minimize the damage that might be caused.
Additionally, be transparent and maintain trust and respect with your team, employees, and clients. This means being upfront with them about changed plans or potential delays.
Know Your People, Naivety is Not an Excuse
Be aware of the different types of individuals you may encounter in your journey. Good people will take responsibility for their actions and be transparent with their shortcomings. Cunning individuals, on the other hand, will seek to evade responsibility and blame others.
And unfortunately, there are those who intentionally plan to harm us or our business. By identifying and appropriately dealing with these different types of individuals, you can minimize the sting of broken promises and protect yourself and your endeavors.
Conclusion
Although broken promises can be a painful reality for many startup founders, it’s important to be prepared for the possibility and navigate such situations with integrity and a sense of responsibility.
While such situations can be painful, they can also provide an opportunity for growth and learning. By handling them with integrity and grace, you can emerge stronger and more resilient.
Have you experienced the pain of broken promises before? If so, how did you navigate the situation and overcome it? Please share your experience in the comments below, and feel free to share this message with anyone who might benefit from it.
~Bramuel Mwalo
