Dr. Earl R. Smith II

Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

“Change is a fundamental and unavoidable part of life. Sometimes there is more change and sometimes that change presents much more difficult challenges. During those times, companies need to adapt more quickly and more surely to new realities.” That’s how I started a recent article: Helping Companies Adapt to Changing Times – Part One – http://www.dr-smith.info/helping-companies-adapt-to-changing-times-%E2%80%93-part-one/. Let’s focus on the approaches to change management that worked. When you faced the need to orchestrate a major corporate change, what did you try? … what worked? … what came up short? Read the rest of this entry »

Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

In a recent series of articles, I tried to define ‘investment grade’. I used the term to mean the characteristics of a company that make it attractive to investors. In part six of the series, I turned my attention to the initial presentation. (http://www.dr-smith.info/the-money-chase-what-does-investment-grade-mean-part-6/ ). I am collecting stories about these initial presentations – strategies that worked and ones that did not – and would be very interested in hearing from you about your experiences. How have you approached initial meetings with investors? What worked for you and what seemed to misfire? Read the rest of this entry »

Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

I recently posted a discussion focused on the use of investment proceeds. The response was amazing. Lots of extensive and well thought out responses. I wanted to expand that discussion a bit by asking about what I consider to be the most important characteristic that a founding team can have – the ability to implement effectively and consistently. The first article in my ‘What does Investment Grade mean” focuses on this important issue. http://www.dr-smith.info/the-money-chase-what-does-investment-grade-mean-part-1/ . I would be very interested in your comments about the importance of implementation, how you develop the tendency and how founders can build teams that implement successfully. Read the rest of this entry »

(Why Investment Banks are a Better Source of Financing)

By now we all are painfully aware of the worldwide credit crisis that affects us all.  If you have a business or a project that needs capital, keep reading.    Because the traditional retail banks of the world have virtually frozen their lending practices it is imperative to locate financing that is liquid and secure!  While most of the capital that is missing from the market is being held by the banks, a great portion of the liquidity has moved from the public markets to the private.  Where do you go to find this liquid capital?  The answer is investment banking. Read the rest of this entry »

Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

One of the biggest issues in any discussion with potential investors centers on the use of proceeds. Many entrepreneurs want to use the funds to pay their own salaries. Investors prefer that funds go towards other expenses – particularly those directly connected with revenue generation. Part 4 of my series on Investment Grade ( http://www.dr-smith.info/the-money-chase-what-does-investment-grade-mean-part-4/ ) focused on this very important issue. What is your take? What is the best approach to most effectively using the proceeds of an inward investment? Read the rest of this entry »

By Erica Drake, Managing Partner
Maverick Management Consultants, LLC

I’m a veteran entrepreneur. I’ve experienced the entire process of taking an idea from conception to funding with Angel investors many times now, (and I have the battle scares to prove it).  Over the past 15 years, with limited start-up funds, I’ve raised millions with Angel investors.  Now I advise and assist other entrepreneurs in their quest for capital.  My advice to you isn’t something I learned at Harvard or Wharton, but rather at the “school of hard knocks.”  What I offer to you are hard-core recommendations straight from the trenches. Read the rest of this entry »

By Erica Drake, Managing Partner
Maverick Management Consultants, LLC

Going to Battle …

Build and Lead your Army into Battle. Investors invest in people and their ability to make a company work.  In my experiences, there are two categories of people who will want to be part of your management team: The first category is what I call “the prima donnas.” They have the impressive resumes and pedigree, and at some time in their life have earned their stripes.  They may be the founder of your intellectual property, such as a doctor, engineer, or scientist.  Typically, these veterans of past wars sit back in safety and watch the battle unfold, with no risk to their lives.  When victory seems inevitable, they’ll be the first ones to arrive at the escrow closing, dressed in their uniforms and willing to step in and claim victory. Their resumes are strong, but may lack entrepreneurial experience.  Many have grown up with the cushy-comforts of the corporate world, or, if they have been an entrepreneur, it’s been a long time since they’ve been in the trenches. Read the rest of this entry »

Andrew

Now during the first riveting installment I tackled the most common and probably the most predominant motivation of angel investors – the profit motive or the desire for a significant financial return. Now at this point, anyone who has had anything to do with angel investors have probably stopped and thought to themselves… “Well, isn’t that always the motive of an angel investor?” and I would argue that “Yes – it can often be the key motivator” but in my opinion it is not always the main motivation and often, even if it is, its blended with what I consider one or more of five of the other key motivations. Read the rest of this entry »

Andrew

I was recently asked “What are angel investors looking for?”

My knee jerk response was “a significant return on their investment…”

…and like most knee jerks responses, I was both right and wrong at the same time and (and this is probably where the phrase comes from…) I was a bit of a jerk for not thinking it through better… Read the rest of this entry »

Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

I work with a lot of companies that are seeking funding. Most are middle-market size and have successfully raised earlier rounds. Their challenge is to come to terms with the evolving criteria that investors have. Early-stage investors fund mainly on emotion – they believe in the idea or the team. But, as a company grows, investors more and more look at it as a going business. To help my clients come to terms with this, I wrote a series of articles. The first – The Money Chase: What Does Investment Grade Mean? Part 1: http://www.dr-smith.info/the-money-chase-what-does-investment-grade-mean-part-1/ focused on the first criteria that, in my experience, investors look to. Most advisers don’t start with implementation – most investors do. Read the rest of this entry »