Building Your Early Stage Business – Some Things To Think About

Every Fortune 500 company was a start-up, once. Yet, in the early stages of the business life cycle, resources are often tight, sometimes forcing entrepreneurs to extinguish daily fires and be reactive to change instead of proactive and strategic. Having the vision to understand where the business might be in one, three or five years can be a challenge. Having the right management team, and surrounding your company with the right advisors, strategists and investors who have a vested interest in your company’s success can be key to having the right trajectory. Assembling a team that has the vision to get you to exit, whether acquisition or IPO, can be both exciting, but at the same time, overwhelming.

Adelson Strategies attended the Israel Dealmakers Summit 2015 held in New York City on March 24th and 25th. The annual Summit serves as an impressive gathering of global entrepreneurs, innovators, dealmakers and investors converging from around the world. During a session titled “Global Dealmaking: The Art of the Deal,” an all-star panel discussed some of the key considerations for entrepreneurs raising money for the first time with an eye toward growth and eventual exit.

Some of the key points and takeaways from the session include the following start-up strategies:

  • A significant percentage of tech start-ups are acquired by other large companies, and do not go through an IPO. How your company is viewed by future acquirers can therefore be critical;
  • With an eye toward future acquisition, entrepreneurs should focus on developing strategically relevant technologies;
  • Acquirers often focus on a management team’s track record with their current, and previous start-ups;
  • Is your team filled with significant contributors, or is their one significant contributor surrounded by a “merry band of followers”;
  • Companies that tend to get the most value invest and build teams that have proven their ability to scale;
  • A general rule of thumb is to surround yourself with great people. Great people can build a company, attract customers and investors, and generally “make it happen”;
  • Having the ability to raise venture capital is an important attribute for any entrepreneur;
  • When identifying potential investors, focus on what you expect to get out of the relationship. Venture capital, corporate, and individual investors all come to the table with different sets of goals, skills and agendas.
  • Ask yourself what will the infrastructure of the investor bring to your business, and how will it enhance and support both your business and overall strategic goals.

With all this in mind, Adelson Strategies seeks out ways to work with entrepreneurs and their start-ups, bringing our comprehensive years of experience working with both small and large companies to the table.  We can be reached at info@adelsonstrategies.com.