Friday, April 9, 2010

First Posting to The Young Business Blog (TYBB)


I am starting The YBB because of what I see as a general lack of relevant and actionable content written by people that have actually lived through starting, growing, funding, and transitioning a business.  Most content is written by consultants or vendors (bankers, lawyers, accountants, etc.) who have only seen it from a distance or been advisors for a short period of time.  While I have been a banker helping others fund their business plans, I have also lived the dream (nightmare to some) of actually implementing growth strategies for a start-up as well as a public company.  I intend to keep these postings generally short and manageable (not massive B-school essays) that touch on the main points of an issue.  I may deepen a discussion if I get sufficient feedback requesting more detail.  I am also one that doesn't take myself too seriously, and as such I hope this to be entertaining - if not, no one will read it.

The following outlines some of the topics I intend to cover:

Key Fundamental Business Tenants regardless of business size.

Considerations for the really young business:
• Turning an idea into reality - what an idea needs to have any chance at all.
• The business plan - what do I really need to do?
• Raising money - dos and don't, banker or no? other considerations.
• The financial plan - how do I do this and what does this have to be to raise the money?
• Hiring your first staff, hiring people over the coming years, firing people.
• Strategy - what is it really and why does it matter?
• The biggest ways things go wrong.
• The most important things to get right.

Considerations for business adolesence:
• "Yippee we closed that huge account...Oh no, what is it going to do to our business?"
• Funding the growth - how much capital? what kind of capital? where do we get it? what do we give up / how much will it cost?
• Growing the team, managing the team, culling the team, incenting the team, keeping the team motivated and bought in.
• Roles of the Founders vs. other senior staff.
• Building the systems you need to scale from 3 guys and a fax machine to a real business.
• Staying Focused - avoid a huge fatal mistake.
• The Business Model - Do we have a sustainable business?
• COGS & Operations.
• Selling & Marketing.
• General & Admin costs.
• Partnering & Alliances.
• Where is it all going? Planning for the end-game.
• The biggest ways things can go wrong.
• The most important things to get right.


Considerations for managing the business in its adulthood.
• Corporate strategy & retaining competitive differentiation.
• Maintaining corporate culture and maximizing team effectiveness.
• Refining the business model to maintain high growth while improving profitability
• Considerations related to capital structure - debt vs. equity and the different permutations.
• "Should I Stay or Should I Go" - considerations around executive staff and corporate evolution.
• Executing on the end-game.  Sale to a strategic buyer, a financial buyer, an IPO, other options, etc.


My goal is to post once a week.  I expect generally to follow the above, but there may be weeks when I write about something that I feel is particularly relevant at that time that doesn't completely fit in the outline above. 

I welcome broad feedback and questions.  Feel free to email me at bobpink1@comcast.net.

Thanks

-Bob


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