Capital vs. Influence
Posted on July 30th, 2009 by admin in Financing - M&A
By Mike Myatt, Chief Strategy Officer, N2growth
I have long held that the influence a capital partner brings to the table is significantly more valuable than their funding in the grand scheme of things. I often work with clients helping them to navigate the complexities of the financing world, and since I’ve authored other posts on valuation, capital structure, negotiations, M&A, employment agreements, etc., in today’s post I’m going to focus on what you want out of an investment partner post closing. Hint: its not about the money.
Today’s Myatt on Monday’s question was posed by a CEO who asked: “Can you define the difference between vision and mission?” Let me begin by stating that it is always refreshing to me when executives check their ego and ask clarifying questions (a characteristic of great executives by the way). Over the years I have witnessed many an executive confuse vision and mission to the detriment of their organizations because they simply wouldn’t take the time to stop and understand the differences. In today’s post I’ll clearly explain the difference between vision and mission…
Any CEO or entrepreneur still vertical and breathing has spent more hours than they can likely count pouring over poorly conceived financial information. I probably review at least 50 spreadsheets a week, and few things chap me more than a worthless attempt at using Excel. While PowerPoint presentations certainly receive more notoriety for being the butt-end of jokes from business schools to executive boardrooms, a boring slide-show pales in comparison to the sophomoric use of a spreadsheet. I know this may seem like a trifling rant of little consequence, but if you stay with me, I promise to connect the dots in a way that will resonate with most of the senior executives that read today’s post.
Those of you reading this article looking for the latest lawyer joke will likely be disappointed in the text that follows. This piece is not meant to be yet another bashing session directed at the legal professional, but rather to give you solid information on how to avoid the common mistakes that even the brightest and most seasoned executives make in attempting to successfully work with and manage the attorney client relationship…
Can you be a true leader without possessing a command presence? In my experience, very rarely…I’m not referencing the wannabe leaders oozing bravado, false confidence, arrogance, or self-delusion spun as confidence. Nor am I referring to the weak, innocuous or timid, who while viewing themselves as leaders, are perhaps the farthest thing from a leader. Rather I’m addressing those true leaders who inspire and motivate those around them to achieve things well beyond that which they thought themselves capable of. In today’s post I’ll address the value of developing a command presence
Many businesses find that understanding their customer base is often easier said than done, which is why I’ve written often on the importance of maintaining an external focus with an emphasis on customer centricity. Let me put this as simply as I can…If you want to succeed in business, you must be in touch with the demands of the marketplace. While many businesses think they understand their customers, few of them really do. What most companies view as an understanding of their customer’s wants, needs, and desires, more often reflects their own internal biases, perceptions, and judgments. In today’s post I’ll share a few tips that will help your business succeed by achieving a better understanding of your customer’s needs…
As a person who makes their living in the field of leadership, I can tell you without any doubt that “Leadership” is different than “Management.” While there seems to be a never ending stream of politically correct pontificating in corporate circles about the differences between managers and leaders, most of it misses the mark. Leaders and managers play different roles, and have different purposes. They both are unique in their value, and in their contribution. While most of the commentary I have read on Leadership vs. Management attempts to please all constituencies, those of you who have read my work in the past know that I am rarely politically correct, nor do I ever seek to try and please all the people all the time.
When you reach a fork in the road with those you lead, what do you do? Leading those inclined to follow is significantly less of a challenge than leading those who don’t want to be led. Anyone who has ever been in a leadership position has had to deal with the inevitable tough relationship that causes more than its fair share of brain damage. At some point in time we’ve all been involved (directly or indirectly, willingly and unwillingly) in the coporate politics of turf-wars, empire building, silo-centric ignorance, title inflated ego and arrogance, and the list goes on…Regardless of the politics in play, it is a leader’s responsibility to effectively lead not only those that agree with their position, but they must also lead those that hold dissenting opinions.
Family Business…a quote from Charles Dickens sums up my feelings about family businesses: “It was the best of times, it was the worst of times.” Oh what a conundrum…Family business; should I, or shouldn’t I? Today’s Myatt on Monday’s question comes from an entrepreneur who asks: “Should I involve family members in my business venture?” In my opinion there really isn’t a right or wrong answer to this question…it is simply a matter of personal preference. When family businesses work, there is nothing that can really compare to the benefits and upside afforded with such a structure. The problem is that they don’t always work…I have observed extremely successful family enterprises that strengthen relationships and flourish across generations, and I have also witnessed business ventures that were responsible for the total destruction of what were previously very close families. Whatever decision is made with respect to bringing family members into a business, it is a decision that should not be taken lightly. In today’s post I’ll share my thoughts on the topic of family businesses…
This is a personal branding rant, by an advisor who often works in the arena of personal branding. If it sounds schizophrenic, it probably is; but stick with me as there is a lot of meat in the text that follows. I have written often on the subject of personal branding, and much of my practice focuses on shaping the personal brands of executives and entrepreneurs. Needless to say, I’m a huge believer in personal branding…just not the type of “instant personal branding” preached by so many these days. I just finished reading an 