Ten Commandments for
Building a Growing Company
1. Pre-Incorporation Agreement
Limit the primary participants to people who can consciously
agree upon and contribute directly to that which the enterprise is to
accomplish, for whom, and by when. Only consider investors that bring
more than money to the table: e.g. connections,
marketing skills, technical expertise, etc.
2. The Customer is King
Define the business of the enterprise in terms
of what is to be bought, precisely by whom, and why. Avoid disaster
by testing the market prior to development of a product.
3. Use a Rifle Not a Shotgun
Concentrate all available resources on accomplishing
two or three specific, operational objectives within a given time period.
4. Failing to Plan is Planning to Fail
Prepare and work from a written plan that delineates
who in the total organization is to do what, by when. Use your
business plan as a budget. If you cannot stick to that budget,
your business plan is too ambitious.
5. Pick the Winners and Pay a Premium
Employ key people with proven records of success
at doing what needs to be done, in a manner consistent with the value
system of the enterprise. When in doubt, hire your biggest or best competitor's
key people. Free agency works in business too.
6. Reward the Superstars
Reward individual performance that exceeds agreed
upon standards. Move the non-producers into administrative positions,
or replace them.
7. Is Bigger Really Better?
Expand methodically from a profitable base toward
a balanced business. A smaller, more focused business can sometimes
be far more profitable and stable than a large and fractured one.
8. Cash Flow is King, and the Secret of a Good
Project, monitor, and conserve cash,
and protect credit capability. Over-expansion, failure to see coming
trends or competition, and poor credit policies are your biggest enemies.
9. Nothing Personal, But You're Fired
Maintain a detached point of view. Never hire
family or friends, unless you are also willing to fire them. Be decisive
and do what is best for the business. This could included firing yourself
and hiring a more qualified manager!
The Only Universal Constant: "Everything Always Changes"
Anticipate constant change by periodically testing
adopted business plans for their consistency with the realities of the
world marketplace. Read Kenichi Ohmae's books, "The End of the
Nation State", "The Borderless World", and "the
Mind of the Strategist".
See our complete list of Special Venture
Capital Reports, including
"28 Ways To Finance Your Venture"
goal is to provide you the best funding tools available and to get your
Venture Planning Associates,
of the hundreds of sites offering business plan products and services, your VenturePlan
site is among the best, if not the best. "
Mike Rischard CPA, President, Agilecor
we received first round funding ($5 million) the VC firm asked us to show
how our financial models were created. They wanted to use OUR TEMPLATE (which
we developed from the 7 Venture Capital Reports) to help them evaluate alternative
scenarios for their portfolio companies!" Michael
.Lay, CFO, e-Commerce Internet Company
a Friend About This Site