What Are You Missing? Start-up executives can become too close
to the project, to busy managing the minutia, and stretched too
thin due to lack of staff, time and financial resources to
notice the flaws in their plans. In most cases, the work is
extremely hard and requires numerous, long hours that turn into
days and then turn into months. It becomes difficult for the
Founders, and executives to stay focused on the critical tactics
and strategies necessary to lift their company to the next phase
in growth.
Meetings with trouble-shooting Consultants or venture Coaches
can help Founders navigate through the challenging times and
rough waters of launching a startup. Experienced Consultants
know how to walk the fine line between enthusiastically
recognizing the business model and market potential while
offering critical consulting advice and strategic planning.
Founders need to recognize that the Consultant's analysis and
criticism is a strategic necessity for the realization of the
company's short term and long term potential. Moreover, a good
Consultant will be able to quickly assess the strengths and
weaknesses of the plan and zone in to recognize the problems or
blockages - good Consultants are natural trouble shooters and
problem solvers. Founders need to recognize when their plans are
not being realized and take the risk by hiring and paying for an
outsider who can become a part-time addition to the company's
strategic capital.
In a recent meeting with confident and enthusiastic Founders of
a promising startup business, let's call it The Glick Company,
and myself (a business venture consultant), it became evident
that the Glick's Founders were overlooking and not performing on
several critical issues in their plan.
In this case, the Glick executives had an incomplete product
launch and capital strategy. They were busy working on the
product refinements and hoping for one large customer that they
were not paying attention other critical problems. Collectively,
the Founders could not "see" some of the problems that were
blocking the progress of their company. One of the two Founders
determined outside advice was critical for the company to reach
its potential. Many of the strategic pieces were in place, but
the firm lacked the cohesive tactical and execution plan in
several areas.
After a meeting and several telephone calls, the consultant
identified that the Glick Founders had not tested the product in
the marketplace, put together any other pricing or marketing
strategies (besides the one large deal), did not have a strong
capitalization plan in place and were not aware of how to take
advantage and re-position their strengths for an upcoming
investors meeting. There were workable solutions to their
challenges, but it took an outsider to recognize the challenges
and provide a vision and a plan for the executive management
team to follow.
During the two hour meeting between the Glick Founders and the
Consultant, the payoff was recognizing what was not working and
how to avoid additional, future problems.
The meeting ended with several new ideas, plans and strategies
for the Glick team to implement. The product was to be tested in
the market place; the Founders would have very useful and
accurate feedback from a qualified focus group. Marketing
materials outlining the features and benefits of their product
were going to be developed. The Glick sales team was to begin
marketing the product to the top 1000 qualified buyers to try to
obtain Letters of Intent and fill the manufacturing pipeline.
Back up manufacturers in place were to be found and pricing
guidelines and models were to be implemented. We determined ways
to best present the company, the team strengths and the progress
at an upcoming investors meeting to ask for additional capital
investments. Each of the solutions became milestones towards the
progress of launching the product in the marketplace.
Would this outcome have been the same without hiring a
Consultant or a Coach? It is hard to say, but the Glick team was
extremely pleased with the time and money spent working through
some of their strategic challenges and determining new solutions
to existing problems. Within a week after the meeting, I
received a email from the Founder stating that the investor
meeting went well and additional capital was raised. This was
the best news I could hope for....
Author: Carolyn L. Akel, Founder of Akel Ventures. Akel Ventures
is a professional firm specializing in business consulting and
coaching for entrepreneurs. We assist start-up, micro, and
emerging companies facing growth and strategic challenges in
becoming industry leaders.
www.akelventures.com
About the author:
Carolyn L. Akel, principal of Akel Ventures, is an active
entrepreneur and investment professional with over 15 years of
combined experience advising and investing in start-ups, real
estate, public and private securities, and domestic and foreign
debt. She is co-founder of two companies.
