Helpful insights on good business practices, commercial loans, alternative forms of financing and planning your company’s future.
January 25, 2012
Posted at 09:57 AM ET, 01/19/2012
What the —-!? We placed our order six —- weeks ago and it didn’t arrive until —- today! On top of that, you sent us the wrong —- thing! How do you sleep at night!? —-!!!

One expert says small business owners are the worst at handling conversations with irate customers, whether they take place on the phone, in person or online. (Michael Probst – AP) Not many moments are as miserable for business owners as those spent on the phone with a furious customer. Head buried in one hand, the other hand holding the receiver several inches away from your ear – there’s really nothing left to do except endure the wrath and shake it off later.
Not so fast, according to one customer service expert. On the contrary, when handled wisely, those interactions can actually turn fuming critics into loyal customers.
“Even something as simple as acknowledging the problem and admitting your company is at fault, that might be enough to give your customer a heart attack right there,” said John Tschohl, a customer service consultant and educator for more than three decades and author of a handful of best-selling books on the subject. “Customers don’t hear that sort of admission very often. Whether it’s on the phone, in person or online, you can quickly turn an irate person into an advocate for your business.”
Small business owners are “the worst offenders” when it comes to mishandling customer service problems, he said, namely because they pinch pennies when it comes to training employees on how to approach disgruntled customers – and as a direct result, many small businesses either stay small or go out of business entirely.
“One of the most important parts of providing great service is teaching people how to handle difficult situations with angry customers,” he said. “Because now matter how good your business is, mistakes happen from time to time.”
So when that angry customer does call, here are Tschohl’s six steps for difusing the situation and gaining a new advocate for your company.
1. Listen carefully: Most business owners and managers don’t actually listen to the customer, as some get lost in “all the screaming and hollering” and others simply ignore the complaints altogether. “Listening doesn’t mean completely shutting up,” Tschohl said. “It means responding with ‘aha’ and ‘okay’ and ‘I understand’ now and then, so they know you are really paying attention.”
2. Apologize, don’t blame: Your goal is to solve the customer’s problems, not enter into a debate over which party is to blame for the situation at hand. “Simply acknowledge that your company made an error and that you regret the inconvenience,” he said. “Most people never apologize because they’re afraid they’re going to lose face or because they don’t believe they were the one at fault. But that’s not the point.”
3. Express empathy: Customers will respond well to signs that you understand and care about how it must feel to be in their shoes. “A line like ‘I can understand how angry you must be that the pizza didn’t come on time, I would be pretty angry too’ can go a long way to calm the customer down and give you a chance to fix the problem,” Tschohl said.
4. Ask specific questions: Before you begin trying to solve the problem, be certain you know exactly what the problem is – the last thing you want to do is spark yet another miscommunication. “Ask the customer to go over everything with you one more time, detail by detail,” he said. “Check at the end to make sure you’ve covered all of their problems so you don’t forget to address anything they’ve mentioned.”
5. Propose alternatives: If possible, give the customer several choices when proposing solutions, allowing them to pick which option would best remedy their particular grievances. “Nearly all companies have things of high value and low cost that they can give away to the customer to make up for mistakes,” Tschohl said. “But companies don’t always take that option, and they rarely give their employees the power to offer that sort of compensation.”
6. Solve the problem quickly: Once you have come to an agreement with the customer, follow through on your part of the deal quickly and accurately. “Offer them wings right now to make up for their late pizza, or offer them a round of drinks right this second while they wait for their table,” he said. “Make an empowered decision and make it quickly.”
Follow On Small Business and J.D. Harrison .
By J.D. Harrison | 09:57 AM ET, 01/19/2012
Related Articles: Four tricks — and treats — for small businesses, Allied Affiliated Funding Provides $500,000 in Working Capital to Northeast Manufacturer, Small business optimism keeps climbing, Allied Affiliated Funding Provides $750,000 in Acquisition Financing to Wisconsin Distributor , More Americans prefer small businesses to large companies, survey finds, Five ‘cardinal rules’ for launching a business, SBA loans hit record for North Texas , More Small Businesses Are Selling Receivables at a Loss, Dallas-area entrepreneurs parlay unexpected growth into new ventures, Five Tips to Transform Your Business
Comments: (0)
Tags: Business Process, News, Small Business
January 11, 2012

Date Funded: 1/10/12
Facility Amount: $500,000
The Company: This staffing company was incorporated in 2010 and just recently began official business activity via their contract with a large government contractor for the Department of Defense. This company provides the labor to handle the maintenance, repair, overhaul or upgrade of key air, land and marine equipment.
The Issue: This company needed start-up capital in order to fulfill their contract, meet payroll, and grow their business. The company was not eligible for a bank line of credit due to being a start-up and having a single account concentration.
The Solution: This client was referred to Allied by an existing Allied client. Factoring was the perfect financing solution for this company since they are a start-up and do not yet have any solid financial history. In addition, Allied was able to work with the single account concentration.
The Win: This “Funding by Allied” will enable the company to easily meet their payroll and grow their business, all while building a proven financial track record in hopes of eventually qualifying for a bank line of credit.
Related Articles: Allied Affiliated Funding Closes First Factoring/ABL Transaction of 2012, Allied Affiliated Funding Provides $1.5 Million Working Capital Facility to a Texas Manufacturing Company, Allied Affiliated Funding Provides $2,500,000 Working Capital Facility to Northeast Based Service Company , Allied Affiliated Funding Provides $4,000,000 Growth Capital Facility to New York Wholesaler , Allied Affiliated Funding Provides $300,000 Start Up/Growth Capital Facility to New York Service Company, Allied Affiliated Funding Provides $1,000,000 Growth Capital Facility to Illinois Manufacturing Company, Allied Affiliated Funding Provides $250,000 Working Capital Facility to Texas Distribution Company, Allied Affiliated Funding Provides $500,000 Working Capital Facility to Texas Service Company, Allied Affiliated Funding Provides $500,000 Working Capital Facility, Allied Affiliated Funding Provides $1,000,000 Working Capital Facility
Comments: (0)
Tags: Client Satisfaction, Recent Fundings, Small Business, Success Story, Working Capital
January 10, 2012

Market research, customer insight — they both mean tapping into a business’s greatest resource: Its customer base.
Private U.S. businesses across all industries saw an aggregate sales increase of nearly 7 percent last year, according to a financial statement analysis by Sageworks Inc. But many companies are still struggling to grow revenue in the sluggish economy, and they’re looking for new ways to do that.
One possible way is to use customer insight. You knew your customers well when you first started a business, but customer needs have probably changed at least somewhat since then. Gaining insight from customers can reassure you that you’re on the right track, or it might point you into a new growth area for the business. It can also help you decide how to spend precious dollars on marketing.
Here are four ways you can use customer insight to boost your sales:
1. Communicate. “Talk — even informally through a quick phone call — with customers to discern the real value they get from your service or product, and brainstorm with them about tangential offerings you could add to fulfill another need or want,” says Libby Bierman, a Sageworks analyst. “Long-time customers are more likely to view you as a business partner than just a vendor and would like to help your business succeed, especially if it means they might have first access to your new product or service,” she says.
2. Uncover pain points. Examine how your customers currently consume your product or service. Can you make that process easier for them? “Reducing friction points — learning curves, waiting periods, paperwork, delivery charges, and so on — in the customer experience will encourage them to use and recommend your business more often,” Bierman says. “For example, eliminate one of their trips or calls to your business by adding online ordering.”
3. Tap their expertise. Invite customers to your internal business meetings. Make them part of the process, whether it is product development or product/service reviews. This can improve the quality of ideas presented and improve the way customers think of your business.
4. Get the scoop with a survey. Send confidential surveys to clients and ask them how the business might better meet their needs. The surveys should ask both specific and general questions around how to improve services. By getting information from clients, the business will be able to better meet needs, which increase sales/revenue over time. SurveyMonkey offers free software to help you run a basic survey, and there are many other providers as well.
Mary Ellen Biery is a research specialist at Sageworks Inc.
Related Articles: How to turn fuming customers into lifelong fans, Allied Affiliated Funding Provides $500,000 in Working Capital to Northeast Manufacturer, Small business optimism keeps climbing, Allied Affiliated Funding Provides $750,000 in Acquisition Financing to Wisconsin Distributor , More Americans prefer small businesses to large companies, survey finds, Acquisition advice: Find your perfect suitor, Five ‘cardinal rules’ for launching a business, SBA loans hit record for North Texas , Four tricks — and treats — for small businesses, Allied Affiliated Funding Provides over $10.8 Million in New Fundings During September
Comments: (0)
Tags: Marketing, News
January 9, 2012

Date Funded: 1/6/12
Facility Amount: $5,500,000, including a $1.5M inventory line of credit and a $500K purchase order facility
The Company: This is a privately held corporation based in California that has been in the business of wholesaling health and beauty aid cotton products since 1994.
The Issue: This company is a returning Allied client that originally factored with Allied from 2006 through 2010. They left Allied in 2010 when they obtained a traditional bank line of credit. However, they discovered within a year that factoring was a better fit for their business due to Allied’s more flexible financing structure and entrepreneurial spirit. Allied’s financing does not require any restrictive financial covenants.
The Solution: This client reapproached Allied for financing. In addition to a factoring facility, Allied also provided a $1.5M inventory line of credit and a $500K purchase order facility. Allied’s strong customer service levels, broadened asset based product offerings and flexible financing options encouraged this company to return.
The Win: This “Funding by Allied” will provide the company sufficient working capital to meet their budgeted growth for 2012 while offering less stringent, more flexible terms.
Related Articles: Allied Affiliated Funding Provides $500,000 in Start Up Financing to Texas Staffing Company, Allied Affiliated Funding Provides $1.5 Million Working Capital Facility to a Texas Manufacturing Company, Allied Affiliated Funding Provides $2,500,000 Working Capital Facility to Northeast Based Service Company , Allied Affiliated Funding Provides $4,000,000 Growth Capital Facility to New York Wholesaler , Allied Affiliated Funding Provides $300,000 Start Up/Growth Capital Facility to New York Service Company, Allied Affiliated Funding Provides $1,000,000 Growth Capital Facility to Illinois Manufacturing Company, Allied Affiliated Funding Provides $250,000 Working Capital Facility to Texas Distribution Company, Allied Affiliated Funding Provides $500,000 Working Capital Facility to Texas Service Company, Allied Affiliated Funding Provides $500,000 Working Capital Facility, Allied Affiliated Funding Provides $1,000,000 Working Capital Facility
Comments: (0)
Tags: Client Satisfaction, Recent Fundings, Small Business, Success Story, Working Capital
December 29, 2011

Date Funded: 12/22/11
Facility Amount: $500,000
The Company: A northeast manufacturer of high end footwear started in 1991.
The Issue: After funding with the same accounts receivable provider for several years, the company was seeking a new factoring relationship as their existing factoring company was looking to exit the business.
The Solution: Allied was able to quickly underwrite and fund the company at a lesser rate, relieving the company of the stress of losing their working capital provider while also saving them money on their factoring fees.
The Win: This “Funding by Allied” allowed the seamless transition to a new financing partner while also allowing the company to focus on running and growing their business.
Related Articles: Allied Affiliated Funding Provides $500,000 in Start Up Financing to Texas Staffing Company, Allied Affiliated Funding Closes First Factoring/ABL Transaction of 2012, Allied Affiliated Funding Provides $750,000 in Acquisition Financing to Wisconsin Distributor , Allied Affiliated Funding Provides $5,000,000 Working Capital/Growth Facility to West Coast Manufacturer , Allied Affiliated Funding Provides $2,500,000 Working Capital Facility to Northeast Based Service Company , Allied Affiliated Funding Provides $3,000,000 Growth Capital Facility to North Atlantic Packaging and Fulfillment Services Company, Allied Affiliated Funding Provides $4,000,000 Growth Capital Facility to New York Wholesaler , Allied Affiliated Funding Provides $750,000 Growth Capital Facility to New York Wholesaler and Distributor, Allied Affiliated Funding Provides $300,000 Start Up/Growth Capital Facility to New York Service Company, Allied Affiliated Funding Provides $1,000,000 Growth Capital Facility to Illinois Manufacturing Company
Comments: (0)
Tags: Financial, News, Recent Fundings, Small Business, Working Capital
December 28, 2011
By J.D. Harrison
The nation’s smallest employers don’t yet see the glass as half full, but they’re consistently reporting it as slightly less empty.

The latest index showed a decline in the number of employers who think business conditions and sales will soon worsen. (Jeffrey MacMillan/For The Washington Post) Small-business optimism increased for the third consecutive month, gaining 1.8 points in November, according to the National Federation of Independent Business index released Tuesday. That merely lifts the index to a yet-weak 92.0, still well below pre-recession levels and two points lower than the mark set at the start of the year.
“After so many months of pessimism, November’s modest gain made it feel like spring, again,” NFIB Chief Economist Bill Dunkelberg said in a statement. “We have good reason to be optimistic about last month’s report and hopeful about what it means for the future. Still, our current reality is still very much the ongoing economic winter.”
Eight of the 10 index components improved or remained unchanged from the October report, with the most substantial gains posted in sales expectations gains and outlooks for business conditions — again, not necessarily because more owners expect improvement in those areas, but because fewer owners expect sales and business conditions to worsen.
Employment also jumped last month, ending five months of declining numbers. The index, based on the responses of 781 randomly sampled small businesses, indicated an overall increase in employment of 0.12 workers per firm. Seasonally adjusted, 13 percent of the owners added workers while 11 percent reduced employment.
Follow On Small Business and J.D. Harrison on Twitter.
By J.D. Harrison | 12:32 PM ET, 12/13/2011
Related Articles: SBA loans hit record for North Texas , Dallas-area entrepreneurs parlay unexpected growth into new ventures, Five Recovery Steps Business Owners Need to Take Now, New Health Care Law Will Have Negative Impact, How to turn fuming customers into lifelong fans, Allied Affiliated Funding Provides $500,000 in Working Capital to Northeast Manufacturer, Allied Affiliated Funding Provides $750,000 in Acquisition Financing to Wisconsin Distributor , More Americans prefer small businesses to large companies, survey finds, Five ‘cardinal rules’ for launching a business, Four tricks — and treats — for small businesses
Comments: (0)
Tags: Economy, News, Small Business
December 22, 2011

Date Funded: 12/20/11
Facility Amount: $750,000 plus an inventory based term loan and an overadvance facility.
The Company: This Wisconsin company assembles and sells pedicure spa chairs to various customers, including large beauty product distributors as well as boutique salons. Their parent company has been looking to sell this portion of their business.
The Issue: An existing Allied client found an opportunity with this Wisconsin company as it would allow them to expand their market share and enter into a new niche product line. The sale of the company included a foreclosure on the existing assets of the company and an asset purchase. To complete the sale, additional funds were needed over and above a factoring facility based on accounts receivable. Moreover, the transaction had a quick closing deadline, as the prior potential buyer was unable to consummate the sale. The deadline for closing was within two weeks of Allied receiving the initial package.
The Solution: Allied’s existing client, having worked with Joel Flig at Allied when they came on board, reached out to Joel for assistance and referred this company to him. Allied was able to provide a factoring facility and help bridge the shortfall in the purchase price by providing a short term note component based on inventory and an overadvance facility. The entire transaction was closed within just ten business days.
The Win: This “Funding by Allied” provided the financing necessary to complete this acquisition which will potentially allow the company and Allied’s existing client to enter into the beauty products packaging markets with national distributor channels and grow their respective businesses.
Related Articles: Allied Affiliated Funding Provides $2,500,000 Working Capital Facility to Northeast Based Service Company , Allied Affiliated Funding Provides $1,000,000 Growth Capital Facility to Illinois Manufacturing Company, Allied Affiliated Funding Provides $500,000 in Start Up Financing to Texas Staffing Company, Allied Affiliated Funding Closes First Factoring/ABL Transaction of 2012, Allied Affiliated Funding Provides $500,000 in Working Capital to Northeast Manufacturer, Allied Affiliated Funding Provides $4,000,000 Growth Capital Facility to New York Wholesaler , Allied Affiliated Funding Provides $250,000 Working Capital Facility to Texas Distribution Company, Allied Affiliated Funding Provides $500,000 Working Capital Facility to Texas Service Company, Allied Affiliated Funding Provides $500,000 Working Capital Facility, Allied Affiliated Funding Provides $1,000,000 Working Capital Facility
Comments: (0)
Tags: Acquisition Capital, News, Small Business, Success Story, Working Capital
December 14, 2011

By Olga Khazan
Americans believe small business owners to be more ethical and honest than the CEOs of major companies, according to a new survey released Tuesday by the Public Affairs Council, a nonpartisan professional organization whose membership comprises both large and small companies. The survey was conducted by the Princeton Survey Research Associates International and includes 1,753 respondents and has a margin of error of 2.8 percentage points.
“Nearly half of Americans (47 percent) said small business owners have high ethical standards, compared with only six percent of those who say the same about CEOs of major companies,” the survey found. “Only seven percent say that small business owners have low ethics, compared with 48 percent who think the same of corporate CEOs.”
More people also had a positive opinion of small businesses than larger companies in general, with 90 percent of respondents giving small companies a favorable view, as opposed to 61 percent for major corporations. Only 35 percent have a positive few of the federal government.
In fact, two-thirds of respondents said they prefer to shop at small businesses, even if it means paying more.
The survey’s results also show a strong reaction to the earnings and perceived power of major corporate executives. “Three-quarters of the public…endorse the view that there is too much power in the hands of a few large companies,” the survey says. “And three-quarters think companies do a poor job of reining in executive pay.”
Regardless of ideology, participants agreed that companies should put the interests of customers above those of employees, shareholders, the community and top executives. The majority of respondents also said businesses should take a more active role in providing community services and disaster relief, and that they should play a larger role in improving healthcare and infrastructure.
Related Articles: How to turn fuming customers into lifelong fans, Allied Affiliated Funding Provides $500,000 in Working Capital to Northeast Manufacturer, Small business optimism keeps climbing, Allied Affiliated Funding Provides $750,000 in Acquisition Financing to Wisconsin Distributor , Five ‘cardinal rules’ for launching a business, SBA loans hit record for North Texas , Four tricks — and treats — for small businesses, More Small Businesses Are Selling Receivables at a Loss, Dallas-area entrepreneurs parlay unexpected growth into new ventures, Five Tips to Transform Your Business
Comments: (0)
Tags: News, Small Business
December 6, 2011
By J.D. Harrison
Schoolboys eyeing the most popular girl in class, job candidates competing for interviews, employees aiming for elusive promotions –

Google has acquired 57 companies during the past nine months. (Joerg Sarbach – AP) they all grapple with the same questions.
How do I get them to notice me? How do I stand out among the crowd?
The same goes for small business owners hoping to sell their firms.
Now of course, the notion of being gobbled up by another company, often a competitor, won’t appeal to all small business owners. But consider that, in just the past day, Yahoo purchased Interlock for $270 million, GrafTech bought Fiber Materials for $14 million and, hours later, World Energy Solutions bought GSE Consulting for more than $8 million. Moreover, Google recently revealed that in the past nine months the search engine giant has smashed records by spending roughly $1.4 billion in gobbling up 57 smaller companies.
The figures are enough to leave many an entrepreneur wondering how his or her company can become number 58. But where do you start? How does your tiny firm catch the attention of big companies, how do you identify potential suitors, and if you get that far, how do you close the deal?
The challenges are many, but we’ve sought out some advice. Below, three M&A experts share tips and suggestions for entrepreneurs hoping to find potential suitors and sign high-dollar acquisition deals.
Stever Robbins, author, consultant and serial entrepreneur
• Seek a strategic fit: “Look around for potential suitors and find a way to make your startup sound like something that would compliment or complete their strategy. Intuit was a teeny tiny company that acquired the people who made TaxCut in the mid-‘90s, and now they have a fabulous story to tell customers about how they went from helping small businesses manage their checkbooks to now also helping do their taxes. That story may make the company more valuable than actually having the product because people see Intuit as a whole different company.”
• Market your customers’ credibility: “Remember, people value certain credibility indicators like your customer list. For instance, there was a company called Zefer in the Boston area back in 1999 that went on a gigantic acquisition spree buying small Web design firms. But they bought them not for any assets other than their customer list, because if one of their acquired companies had worked on a project for the Wall Street Journal, they can now say, ‘We’re Zefer and our past clients include The Wall Street Journal’ – and that alone can be valuable.”
• Tout your superstar employees: “These days, when social media is all the rage, if some of your employees are establishing themselves as real movers and shakers, someone may buy your company just to get them. A great example is Microsoft, which acquired Groove Networks several years ago so they could get Ray Ozzie and make him their chief technical officer at Microsoft. Of course, they integrated Groove into Microsoft Office, but from what I understand, they really didn’t care about Groove. They cared about getting Ray Ozzie.”
Mark Levine, managing director, Core-Capital Partners
• Start with the companies you know: “We encourage startups to start by looking at companies with whom they already have strategic relationships, investments or general distribution deals. Those companies often wind up becoming the eventual acquirers, because they have worked with you, they know your product, they know the dynamics of the product, they know what the margins are, they know how it’s made, and most importantly, their sales people are already familiar with what you’re selling.”
• Land customers your suitors would want: “One of the best ways to get attention is to land some your partners’ customers or new customers would be strategic for companies that might acquire you in the future. Generally, potential buyers are going to be the industry leaders, and if you can get your product in customers’ doors, their other suppliers will take notice.”
• Know your industry’s press: “Press relations are always vital, and you should pay close attention to trade press. If you’re in the oil-gas industry, you want to understand exactly how the trade press works in oil-gas, and if you’re in the computer industry, you want to understand exactly how that press works. Basically, you need to know the press that your strategic partners, competitors and potential acquirers are reading.”
Michael McFadden, co-CEO of Lazard Middle Market
• Enter the market when growth forecasts are high: “Ideally, you want to go to market at a time when your growth for the foreseeable future is as strong or stronger than it’s been in the past, even if that means not waiting for next year’s higher revenues. One mistake many companies make is waiting for next year’s growth before entering the market. But once they achieve it, growth rates for the following year may be diminished, which can result in a lower multiple being paid for the business.”
• Don’t wait until senior management is ready to retire: “Sometimes companies will wait until senior management is ready to retire before going to market, but most buyers are looking for senior management to stay with the business. You want to go to market when you have a management team that’s energized and ready to stay in place for at least the next three to five years.”
• Create competition: “Don’t engage in exclusive conversations with one buyer. For example, you may think Company X is the best buyer for your business and so you only engage with them. But often, the buyer you think is best doesn’t value your company as high as others would. Don’t give away exclusivity too early; keep seeking competition as long as you can.”
By J.D. Harrison | 12:51 PM ET, 11/02/2011
Related Articles: How to turn fuming customers into lifelong fans, Market research can help boost sales, Allied Affiliated Funding Provides $500,000 in Working Capital to Northeast Manufacturer, Small business optimism keeps climbing, Allied Affiliated Funding Provides $750,000 in Acquisition Financing to Wisconsin Distributor , More Americans prefer small businesses to large companies, survey finds, Five ‘cardinal rules’ for launching a business, SBA loans hit record for North Texas , Four tricks — and treats — for small businesses, Allied Affiliated Funding Provides over $10.8 Million in New Fundings During September
Comments: (0)
Tags: News
December 2, 2011
By J.D. Harrison
Seek simplicity. Avoid chaos. Pick the right partners. That’s the proper recipe for starting a new company, according to one business financing and legal expert.

Cooley LLP’s Ryan Naftulin responds to entrepreneurs’ questions following his presentation on Tuesday. (J.D. Harrison/The Washington Post) Ryan Naftulin, partner-in-charge at Cooley LLP’s Washington office, presented his five business-launching “cardinal rules” to a collection of entrepreneurs and angel investors Tuesday as part of D.C. Entrepreneurship Week. Naftulin, whose firm works on several dozen financing rounds and mergers each year, opened by emphasizing that chaos — a not-so-rare component of many young businesses — typically looks “fishy” to outsiders.
“When investors or buyers come in and look at your company, the level of organization will tell them a lot about you from a business standpoint,” he said, adding that young companies often overlook tasks like signing and saving documents. “Entrepreneurs often get too busy to take care of business, but you really have to resist the temptation to get so busy you forget to pay attention to detail and stay organized.”
Naftulin suggested for owners to pursue expert advice in the early startups stages and to keep the business model simple. Entrepreneurs who think their startups are different from all the rest often overlook the latter suggestion — a point he explained with a rather blunt analogy.
“So you have a kidney stone, and you tell me it hurts worst than everyone else’s kidney stones, but still, the doctor is going to treat every single kidney stone the same,” he said. “Entrepreneurs like to tell investors that their startup is totally different, but while the company is unique, the tools and solutions for starting a business are not.”
Naftulin advised those in the room to emphasize the success of the organization, because future investors won’t care whether previous ventures failed because “it was someone else’s fault.” Individualistic mentalities among entrepreneurs also send a poor message to clients and investors and often lead to what he called the “infamous disgruntled ex-co-founder problem.”
His final suggestion was to “partner right.” Early-stage entrepreneurs, Naftulin said, should carefully select people they can see themselves working well alongside for many years, especially when vetting co-founders, advisers, lawyers, and of course, venture capitalists.
“Whereas M&A is like a divorce, in that everyone is going their separate ways, venture is like a polygamous prenuptial,” he said. “You’re going to live with these people for a very long time and you’ve got to establish rules that will make those business relationships successful.”
Follow On Small Business and J.D. Harrison on Twitter.
By J.D. Harrison | 04:40 PM ET, 11/15/2011
Related Articles: How to turn fuming customers into lifelong fans, Allied Affiliated Funding Provides $500,000 in Working Capital to Northeast Manufacturer, Small business optimism keeps climbing, Allied Affiliated Funding Provides $750,000 in Acquisition Financing to Wisconsin Distributor , More Americans prefer small businesses to large companies, survey finds, SBA loans hit record for North Texas , Four tricks — and treats — for small businesses, More Small Businesses Are Selling Receivables at a Loss, Dallas-area entrepreneurs parlay unexpected growth into new ventures, Five Tips to Transform Your Business
Comments: (0)
Tags: News, Small Business
|