Partnering with Management
MENTOR partners with management in a variety of ways, and to varying degrees. We limit our involvement to working with management teams with successful track records seeking to build businesses. Although deep in operating strengths, management often does not have the relationships to identify the most appropriate financing, thus causing a delay in building the business. As a member of the company's team, MENTOR identifies the appropriate funding sources, thereby freeing management to spend time building the business. MENTOR continues this partnership by guiding the company through follow-on rounds while participating in board-level input. By facilitating leadership this way, we assure a self-generating culture of supporting founders and the management they recruit.
Defining the Niche Strategy
There are many factors that affect the success of a company, particularly companies in niche industries, where the growth and pace of that growth, must be carefully thought through. MENTOR engages management to think through their decisions about product, hiring, and the pace of building the business. Expanding too quickly and increasing infrastructure ahead of sales can only accelerate a cash crunch. Benchmarks include:
- Guarding against over-optimism
- Refining process execution before roll out occurs
- Proving sales traction and customer adoption
- Recognizing that financial projections in early stage companies
serve to measure the costs, control staffing and confirm operating leverage
Developing the Value
With so many variables and options in financing a business, the path to success can be daunting. MENTOR partners with management to unravel the When, How, How Much and With Whom of financing a business. We advise on issues such as whether the business is venture-financing ready, or under what conditions will be in the future. We can also assist in determining whether a business is better built out of available cash flow, or from non-institutional private financing offering more owner flexibility. We believe it is essential for management to operate in today's business environment with a sense of urgency and efficiency - meaning, to have a perpetual inventory of available options to implement, based upon a thoughtful evaluation of internally driven objectives.