BRC MANAGEMENT CORP.
www.bluerockcapital.com
Day 1: Buying Just 1 Hour of Time with Your Company's
New Attorney, Intellectual Property Counsel, Accountant,
and Business Consultant
© TERRY COLLISON ALL RIGHTS RESERVED. MAY BE QUOTED,
EXCERTPED, OR FREELY REPRODUCED WITH PROPER ATTRIBUTION.
At the outset of your venture — you as the entrepreneur and founder
— have the unique opportunity to spend money that can help keep you out
of trouble — trouble which is usually truly costly to fix (maybe even impossible)
later on. Here's the suggestion: at the moment you begin, start by identifying
(1) a business attorney who is familiar with the special issues
involved in young entrepreneurial companies; (2) an intellectual
property attorney who understands logos, copyrights, trademark registration,
and, if relevant to your particular company, patents as well; (3)
an accountant who will help you find a qualified bookkeeper for the day-to-day
stuff and who will keep you straight on the big issues (financial statements,
tax filings, local fees and permits) and can assist in financing issues;
and (4) a business consultant (sometimes known as a Venture Consultant)
to help you with converting Opportunity into Strategy and
then converting Strategy into Operations. Buy 1 hour of time
from each advisor and do the following:
1. Basic Facts and Info
Take 5 minutes to describe who you are and what your new company is
involved in doing. (Remember: if you spend more than 5 minutes, you will
have less than 55 minutes left to hear what your professional advisor has
to tell you. Listen. And learn.)
2. What can you do for me?
Ask your new professional advisor to describe what he or she typically
does with young companies such as yours. Remember: the second dumbest question
is the one you leave unasked. The truly dumbest question is the one you
ask but don't remember the answer to. It's your nickel. Have fun. Hey,
you're the client here. (If your idea has flaws, here is where you find
out.)
3. Who do you know?
Ask what other companies like yours (or situations that may be similar
to yours), your new professional advisor has worked on. What did he or
she actually do? Can you speak with one or several of those clients? (NOTE:
If the answer is "No," you may wish to find a professional advisor who
is comfortable having you speak with current and former clients.)
4. What am I supposed to be doing?
You already have lots of ideas and tasks running around in your head.
Probably more than you can figure out how to get done. But what if they
are not the right ones? What if you have left out something? What if you
could actually eliminate one or more of these tasks and actually be better
off? What if, by changing the sequence in which you address certain issues,
you would end up with an easier process? Or a more effective result? Ask
your new professional advisors. They have experience that you don't yet
have. And they have specific expertise that is different from yours. That's
why you picked them, right?!? Use them.
5. How do you want to work with me?
It is important to get solid guidance. Find out how it will be done.
Even if it is only 1 hour per quarter. Done regularly (no kidding),
it is invaluable.
6. What's this going to cost?
You've got to end up knowing this. You might as well find out now.
(But note that this probably isn't the most useful initial question.)
And the answer might surprise you. Pleasantly. It certainly won't be (should
not be) zero. Most professionals work with entrepreneurial companies
because they enjoy the process and truly believe in its importance. There
are degrees of pricing and billing flexibility that usually make it entirely
workable. Always pay professional advisors (A) on time (you expect their
advice to be on time, right?) and (B) with real money (not stock). If things
don't work out, you want to be able to make a change. A fired advisor who
owns stock isn't pretty.
7. When should we next get together
See Question #5.
8. Fire Alarm! Fire Alarm! Fire Alarm!
Fire Alarm!
Something totally unexpected pops up. It could be either good news
or a seeming disaster. It's not yet time for the next scheduled meeting.
What should you do? You might as well discuss this possibility and agree
on a procedure right now. It costs lots less money to chat about
a possible issue today than to fix a Big Problem tomorrow. Some
issues, even ones that initially seem minor, can become life-threatening
for fragile young ventures. Like yours. Don't mess around with such risks.
And don't try to "tough it out." You and your new professional advisors
ought to be able to agree on how surprises should be handled. Advisors
hate to get an entrepreneur's phone call that begins "Maybe I should have
talked to you before I did this but . . . ."
Hey, the hour's up. Wasn't that interesting?
Feel like you've now got a better handle on what to do? Was that first
hour's worth of money well spent? If so, go use your experience with another
entrepreneur and convince him or her to "do it right." And Best Wishes
for the success of your new venture.
We'd be pleased to hear from you...
Every company should develop and use a succinct written
business plan to guide its operations.
The plan should present the company’s business model,
its specific market opportunity, its targeted customers, the benefits and
competitive advantages of its products or services, its protection strategy,
the company’s marketing and selling activities, the credentials of its
management team and advisors, the company’s funding to date, its current
requirements, and a financial forecast.
To expedite the initial review process, BLUE ROCK CAPITAL
urges companies to send or FAX a one-page synopsis of this information
rather than the entire document.
BLUE ROCK CAPITAL makes long-term equity investments in
promising seed-stage and early-stage ventures in the Mid-Atlantic region
from the Carolinas to New England. The Fund emphasizes information technology,
business services, and related fields. It does not invest in biotechnology,
invasive medical devices, pharmaceuticals and certain other situations.
For more information, please see www.bluerockcapital.com.
Virginia G. Bonker
230 Lackawanna Dr.
Andover, N J 07821-4113
Tel 973 426-1767 Fax 973 426-0224
virginia@bluerockcapital.com
|
Terry Collison
5700 Kennett Pike
Wilmington, DE 19807-1312
Tel 302 426-0981 Fax 302 426-0982
terry@bluerockcapital.com
|