Dave's Thoughts on Innovation and Technology:
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Advisory Board Planning

Initial-Point-Advisory-BoardEvery privately held business that has employees should have outside advisers. An advisory board's role is to protect the investment of the shareholders. Since the shareholders and entrepreneurs are often the same, the advisory board plays a special role by offering accountability, discipline, and mentoring for the entrepreneur. These dual roles help develop the business owner and business towards the goal of maximizing value. Excuses for not setting up an advisory often indicate that the business owner lacks commitment to the success of the business.
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Marketing Assessments

Initial-Point-MarketingMany small businesses fail because of poor marketing plans. The marketing plans often have these major flaws:

  1. The customer cannot easily be identified. The customer’s problem is not very apparent.
  2. Competition is underestimated and underplayed.
  3. The plan is too ambitious for the level of resources and capital that the company has to execute the plan.
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Access to Capital Print E-mail

Initial-Point-CapitalStarting or expanding a business is a challenge. One of the business obstacles to success is start-up capital. Many business owner and entrepreneurs don’t know how difficult the process can be.

Capital can be obtained in one of five ways:
1. Personal investment (savings etc.)
2. Angel investors (including friends and family)
3. Banks
4. Venture capitalists
5. Customers
Raising funds from each of these groups has its own set of challenges.  You don’t have that kind of savings.  Friends and family members don’t have large sums of money.  Banks want large collateral.  Venture Capitalists want proven entrepreneurs who can think and execute big plans.  What about customers?
For small business owners, I strongly urge them to use a bootstrap model.  It is always the least popular.  It seems to be easier to risk someone else’s money.  However, I started with $500 and grew a multi million dollar business.  It was not easy, but the rewards once established were awesome.  Here are some of the things I did to bootstrap.
1. Kept expenses to a minimum during prototype stage.
2. Did not draw a salary for a year.  I saved enough funds to live without the salary
3. Sold customers quickly.  This is critical.  Make the prototype as cheaply and quickly as possible, the sell it.  Sell, sell, sell
4. Don’t invest in mass production (all that goes with it) until you are certain that the product or service will sell.  Validate with a handful of customers at first.
5. Use customers to help you with cash flow.  Get payment terms moved forward.
6. Use the proceeds from the customers to invest in the business growth.
If you do these things, the case for investors becomes stronger.  Customers show that the product or service can be sold.  Frugal expenditures show good financial management.  Re-Investing in the business shows commitment.
Before talking to bankers, angel investors and venture capitalists, do your homework.  Understand what they are looking for.  These investors are not looking for charity investments.  They are looking for the best return for the least amount of risk.  (Don’t all investors).  You are asking them to invest in your business.  Make a rational, not emotional case for investment.
If you would like to learn more about the capital process, pleaseStarting or expanding a business is a challenge.  One of the business obstacles to success is start-up capital.  Many business owner and entrepreneurs don’t know how difficult the process can be.

Capital can be obtained in one of five ways:

  1. Personal investment (savings etc.)
  2. Angel investors (including friends and family)
  3. Banks
  4. Venture capitalists
  5. Customers
Read more...
 
Management Development

Initial-Point-Management-DevelopmentVenture Capitalists and investors consider the management team the most important consideration before investing in a company. A strong management team can make a business successful. A weak management team often leads to business failure or mediocre performance.
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Succession Planning

Initial-Point-Succession-PlanningAll entrepreneurs will leave their business some day. The big question is under what conditions. It is best to leave under your own favorable terms. Here are the ways a business owner can exit:
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Our Mission

Initial Point assists small growing technology companies by offering advisory board services. The goal of Initial Point is to assist ambitious companies achieve the goals of growing market share and profitability via the proper implementation of effective business practices and systems.