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When deciding to go into business, one must decide how much upfront risk they are willing to take in relation to what reward they want on the back end.  I have seen business owners who have a great idea, but aren't confident enough in the idea, their abilities, or something else to take the plung themselves and start a business.  Because of that, they seek someone else, typically family, friends, or an outside investor, to back them and minimize the risk to the themselves.  However, invariably, after the risk is minimized, the company does well, and the entreprenuer steps back and thinks, "Why did I give away so much of my company?"

In my experience, once a business starts to become successful and distributions start to flow, the initial investor glady sits back and reaps the reward of the initial risk they took to back the company.  Conversly, the entreprenuer thinks, "I am now working my tail off, for what?  To make someone else money, and I am the one doing all the work!"

There are a couple of ways to handle this problem:

1. When establishing the company, consider debt financing instead of offering equity.  Even at a high rate of return, debt can be paid back and you don't have the risk of dilution of a company that you have built and want to reap the reward
2. If you decide to offer equity, have a buy-back provision or valuation formula that allows you, as the business owner, to buy back the equity at a predetermined price.  This eliminates future disagreements about what is the company/equity worth

Many entreprenuers fall into this trap and by seeking some initial advice from seasoned part-time CFO that have experience in capital structure and entity formation, you can reap the reward from the risk that you take as an entreprenuer.