Useful Capital Benefits for Perform Businesses
What is clear is that emerging and nascent firms need capital. Emerging firms are strategically biased by the leader/founder and thus need outside perspectives in evaluating and executing the long-term prospects for the business.
“Useful Capital” benefits:
- Advisors that provide more than board seat occupancy and financial controls; they provide domain guidance and operating expertise
- Previous investment experience in the specific business sector; i.e. they know the players, customers, partners, and key performance indicators intuitively
- Understand what is needed to create wealth in the specific sector, not theoretical or unproven ideas
- Created a “Franchise Effect” and Effectively Positioned a Brand as #1
- Built distribution and sales forces that are more cost-efficient than the competition
- Created scalable operating processes with measurements that exceed industry benchmarks: i.e. greater than $200k of revenue and 30% field level EBITDA per employee
- Implemented product portfolio strategies and tiered service levels
- Created Channel and Strategic Alliances that generate at least a third of new sales
- Utilized outsourcing techniques to create and implement “best of breed” processes.
Attracting ‘Useful Capital’ and external perspectives are fundamental to creating wealth!