The Pillars of Success in Today’s Economy
Bill Warner Friday, January 18, 2008
Everywhere you turn in the technology industries the first or second thing you always talk about is how hard it is to get a company started and on track in today’s economy. It is hard to get market traction with customers that are reluctant to take a risk on new technology and have constrained budgets. The early stage private equity market is imploding as institutional investors take less risk by requiring terms that reflect low company valuations, leaving the early stage investors with minimal returns. There is a lack of management know-how that is required to provide leadership and operational management to young companies as they mature.
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The Ten Keys to a Successful Business Plan
Bill Warner Thursday, January 17, 2008
If you were to ask twenty experienced business people what it takes to have a successful business plan, chances are you will get many of these answers and more. Here is my view of what a successful business plan is made of.
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Know Your Market
Bill Warner Wednesday, January 16, 2008
Whether you are starting a new company, launching a new business initiative or spinning out a company, the first and most important thing you must do is know your business. I think there are two constituencies that you have to convince, other than yourself. First, you have to know your business concisely enough so that you can quickly explain it to your grandmother; so that she understands it. The second is you have to comprehensively explain it to sophisticated investors so that they are convinced it’s an attractive investment. If you can do this successfully, you understand the business.
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Who Are Your Buyers, and Who Feeds Them
Bill Warner Tuesday, January 15, 2008
Once you have the overall industry landscape figured out, the next step is to go deeper and describe who the buyers, suppliers and distributors are, and what drives them. This is the food chain that some researchers refer to. Start with the buyer; your customer. Within a company, who is the buyer? Is it a CIO? Is it a VP of service? Is it the purchasing manager? Is it the buyer for a retail store? Is it the VP of development? Whoever it is, describe the buyer’s recognition of the problem you solve, the criteria that will be used to determine the purchase, the likely availability of resources to support the purchase, and the decision process that you will be confronted with.
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What Does a CEO Do
Bill Warner Monday, January 14, 2008
One of the very important roles in a company is that of the CEO. A management staff ranges from group leader, to section manager, director, vice president, senior vice president, executive vice president and chief executive officer. Each of these positions has a different scope of responsibility, but they all have several things that they do in common with the CEO.
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Understanding Cash Flow Dynamics
Bill Warner Friday, January 11, 2008
Whether you are starting a business or expanding a current one, understanding the early cash flow dynamics is essential to both determining how much you need to finance the business and your overall success in achieving positive cash flow in the first several months of your business.
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Suspects and Prospects
Bill Warner Thursday, January 10, 2008
Successful sales people really know the difference between suspects and prospects. What makes them successful isn’t so much that they are smarter or more dynamic than others, but it is that they don’t waste their time on chasing potential customers that really won’t lead to a closed sale. Knowing the difference between suspects and prospects makes the difference between making your sales objectives and having to look for another job.
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Financing Alternatives
Bill Warner Wednesday, January 09, 2008
We are often asked about how a company can get its initial financing. There is usually considerable misunderstanding about the various alternatives and their implications. This article positions the various alternatives that a company should consider before embarking on a financing strategy.
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WRAL’s Local Tech Wire: Entrepeneurs’ Money Search
Bill Warner Wednesday, January 09, 2008
WRAL’s Local Tech Wire: Entrepreneurs’ Money Search
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Financial Management
Bill Warner Tuesday, January 08, 2008
“Can you afford this server?” “How long does your cash last?” “When are you cash flow positive?” Every get these questions? As a business owner, if you cannot answer these questions, and many others, you may need some help with financial management.
Cash is king in a start-up company. Managing revenue growth and earnings is essential to a public company. Maintaining profit and cash flow is the bread and butter for an emerging company. No matter what stage you are, achieving value for the shareholders is always the name of the game. In order to be successful at any of these objectives, you have to start with a good plan for financial management.
