Tag Archives: Financing

New Twist on Venture Capital with Better Risk-Adjusted Investment Returns

A higher return investment can have a broad distribution of potential outcomes, as conveyed by this graph from Howard Marks of Oaktree Capital Management (the graph is from his book The Most Important Things Illuminated). This graph is a more helpful way to understand risk… Continue reading

BCG Growth Share Matrix of Cash Cows, Dogs, and Stars

Older ideas, seen anew, can be helpful to business owners.  In that spirit, I have highlighted Economies of Scale and Michael Porter’s Five Forces previously.  Today, I highlight another older idea in the Boston Consulting Group (BCG) Growth Share Matrix that was developed by the global consulting… Continue reading

Built to Last or Built to Flip?

Is your business built to last or built to flip?  No question influences your business strategy more than this one.  There is no right answer — either strategy is fine.  However, making sure that you have alignment throughout your organization on this question is very… Continue reading

Like Warren Buffett, Best Investment Philosophy Balances Discipline with Flexibility

Warren Buffett is famous for his discipline in his early investing success.  Now, I think he is demonstrating his flexibility (some are critical of his recent flexibility) in investment philosophy.  Both are important skills for business owners and managers to master and to know when… Continue reading

Unique Businesses Are A Force For Good

The best businesses are not just about making money.  It is necessary to make money to stay in business, but it is not sufficient for the business to be worth your time.  That is why the strongest businesses, in my opinion, are the ones that… Continue reading

Investment Returns of Venture Capital vs Greybull Stewardship

Investment returns in venture capital as an asset class have not been good for a long time.  To me, that result is somewhat predictable.  Great investment returns are not going to come from anything where you have to swing for the fences with every investment… Continue reading

Financial Audit Helpful for Financing, Funding, and Selling Your Business

My first financial audit was intimidating.  My company, Student Advantage, was preparing for its IPO in 1999 and the audit firm, PriceWaterhouseCoopers, needed to audit all of the material entities that had merged with Student Advantage during the prior few years.  My little start-up company,… Continue reading

Art of Balance — the Key to Business & Management Success

Balance is key to success, particularly for business owners and leaders who think about an entire organization.  This means: a) the ability to decide where and when to focus on multiple continuums, b) the ability to execute those decisions, and c) the ability to know when to reassess (a… Continue reading

Founder & VC Misalignment More Often Than Thought

The misalignment between vc’s and founders is painfully obvious from the quotes below from the IPO S-1 filing of Applied Medical Corp. (Dan Primack of Fortune did the reporting and should get the credit).  First is the company stating why they are going public (bold emphasis mine). … Continue reading

Kissing a Lot of Frogs: Smaller Companies Must Work to Find Investment Financing

Competitive advantages can both increase and decrease as a business gets larger.  One thing that gets easier for larger companies is attracting business investment and financing.  The chart below from John Paglia at the Pepperdine Business School demonstrates the shortage in capital and investment sources… Continue reading