Managing the relationships during business formation is just important as managing the process.
We are currently working on a project involving multiple co-founders. All of the partners bring specific expertise to the project. What I find most interesting is the dynamics of the relationships between the co-founders and the between the company and external businesses.
For example, the company is working with business investors in Indianapolis and outside of the U.S. The Indianapolis business relationship and the non-U.S. business relationships are similar regarding the business discussions. The difference is the cultural aspects of the interactions. The management of the cultural aspects requires a little more patience than the business process.
On an internal level, the co-founders each have different viewpoints of the same business issue. Some are very detail-oriented while others are focused on the macro-level. We view this as a good situation for the company. That being said, the conversation still must be managed properly in order to accomplish the micro and macro goals.
How do you mange the relationships in your organization?
When you read the title, you probably thought I was going to mention China, India, etc. Outsourcing is a broad term. For example, if your company uses an outside printing firm to complete your marketing materials, then you are outsourcing.
We are currently working on a project for a medical device start-up in Central Indiana. The scope of the project involves formation of the supply chain for the product to get to market.
During our initial conversation with the client, we discussed the potential for outsourcing the manufacturing to places outside of Indiana. I know that many of you are not happy with outsourcing in its various forms. In my opinion, I think that outsourcing can be the key to the growth of a business. The focus of the business should be on its core expertise. All the rest, you need to outsource.
Fortunately, we are working with our Indianapolis business relationships to keep the initial launch local. As a global business consulting firm, we could have worked with our partners outside of Indiana. We decided to outsource locally to control the initial process.
Is your company focusing 100% on its core business?
A non-scientific review of Indianapolis business trends reveals that technology companies are growing despite the economy. Now, I'm not selecting the technology industry to suggest that everyone should switch to that industry.
As a business consulting firm, we use technology but are far from a technology company. One of our partners, Dave Castor at Alerding Castor, keeps our team informed about technology.
I just think that other industries can learn from the technology industry. Whether your firm is a manufacturer or a business services organization, the lessons from the technology company can help you.
I could use examples from our company or our clients but I thought I would a share a video clip which prompted my thoughts on this subject. Although David Lawee, VP Corporate Development at Google is speaking about business formation issues related to technology, he presented two themes that resonated with me and probably will with you as well.
#1 - Passion, Partnerships and Speed #2 - Maximize time and people resources
We all use technology in our organizations for-profit and NGO alike. What can you or have you learned from those organizations that create the technology you use?
The time for complaining about the economy is over. Whether you are a start-up dealing with business formation issues or a existing company looking for ways to grow your business, it's time to walk through the door.
Business owners need to take a step back from the noise and review the landscape. Broadly speaking, business are failing and people are losing jobs. Upon further review, some businesses are failing due to bad management or lack of investing in their infrastructure during the good times. If your organization is looking to survive or grow, you may want to explore strategies outside of working with banks or grants for funding sources to assist with growth.
For example, one of our clients, a start-up, is working on closing their first round of funding. They will use the funding to begin production of their product. In concert with the funding round, they have secured LOIs (Letters of Intent) and other agreements which will generate revenue in their first year. As a potential solution, we have been approached by and are in talks with several marketing firms which can make the investment. The marketing firm would be the strategic partner and investor. The revenues of both companies are projected to benefit from this partnership.
Although we are a business consulting firm based in Indianapolis, we are observing the success of alternative business models from Seattle to South Africa.
Have you been successful with strategic partners investing in your business?
"We don't have the time to focus on this product." In the last week, I have heard this statement or a similar comment repeated several times from our new clients. I say "new" clients because their issue is one of our core competencies.
Not having the time to focus on the product or service should not be an obstacle. In the current economic climate, I think potentially profitable business models should be explored. This is true for business formation or licensing out of a patented product.
If you or your firm does not have the time to focus on moving a product forward, you might want to think about partnering opportunities. In our most recent experiences, our clients are moving forward by partnering on licensing agreements a distribution partnership and a an equity partnership.
Have you considered partnerships to increase your business opportuites?
It is often said that your reputation is defined by your community and the company you keep.
As
a global business consulting firm, we are fortunate to work with a
phenomenal community consisting our clients and partners. Although the
confidential nature of our relationships prevents me from mentioning
our entire community, I want to mention a few companies that have made
2008 a great year for our team.
Our relationships with our virtual business partners including the entrepreneurial business law firm, Alerding Castor, and the creative business blogging firm, Compendium Blogware, have helped us to expand our platform of services and geographic reach. Most recently, we have expanded our reach to Africa.
We look forward to continuing our relationships in 2009.
What do you want your equation to look like for 2009?
The temperature outside has dropped 30 degrees in the last 24 hours here in Indianapolis. With the frigid temperatures and strong winds, a strategy from staying warm has to be implemented. One of the key strategies is to dress in layers rather than wearing one big coat.
In business, we are all experiencing a change in the weather. If we try to use a one-size-fits-all solution, we may not be able to weather the storm. We prefer to advise our clients on incremental solutions similar to wearing layers of clothing to protect yourself from the cold weather. You've heard about the principles of Kaizen and Six Sigma. For those that don't know, Kaizen focuses on ocuses on continuous improvement. Six Sigma focuses on improving processes and eliminating defects.
As a business consulting firm, we help our clients (including virtual business clients) to implement the components of these principles that work for their given industry. From a law firm to an Indiana life science company, we partner with our clients to develop incremental solutions which can help to provide stability in a time of "quick fixes".
When the winter temperatures hit our area, we prefer to use layers and dress for long-term warmth. What does your winter clothing look like?
With all the doom and gloom news about the current global economy, I think there is not enough discussion about the education of the children who will and are growing up in this era of change.
Global education issues continue to be impacted by a lack of funding sources. As a result, the youth will be impacted without even having an opportunity to assist with solving the problem.
Corporations and governments are concerned about the quick fix for the current problems without investing in the real drivers of a stable future - the education of our childern. To be fair, there are several international education organizations such as the Bill & Melinda Gates Foundation and Global Education Fund working to solve the problem.
I think it is time for more public-private partnerships to invest more time and money into our educational systems. Without well-trained and well-rounded youth as the next generation of the workforce, we will have even more problems in the future.
Does your company promote a better education system?
Yesterday, I ran a 10-mile training run. At the beginning of the run, I began to think about the similarities between a running partner and partnerships in business.
Business partnerships can come in the form of joint ventures, distribution deals, co-founders and even virtual business partners. Running partners occur in several forms including a daily running partner, group running and running against/with virtual partners (see Nike+ training system).
My first running partner helped me train for the 2005 Chicago Marathon. He was faster than me but we both had one common goal - finish the 2005 Chicago Marathon. As we trained together, I became a faster runner because of him. He became a more patient runner because of me. As a result, we both finished the race and accomplished our goals. This scenario is similar to the business development efforts of a for-profit partnership or that of a social entrepreneur partnership between two NGOs. Together both entities have a common goal. Along the way, both sides learn and grow from each other while achieving their respective individual goals.
What lessons have you learned from the miles you've run with your running partners?
At the end of last week, I had the opportunity to attend a meeting for the Marriott Diversity Ownership Initiative. This meeting introduced me to new terms related to the hospitality industry such as RevPar.
My attendance was due to a client/partner project. This project involves the creation of a fund to acquire limited-service hotels in the Midwest and Southeast portions of the United States. We will then utilize various partnerships to execute acquisitions.
What intrigued me was the level of collaboration by the participants and organizations such asNABHOOD - The National Association of Black Hotel Owners, Operators & Developers, Inc. The environment reminded me of the open source world of the information technology industry. We were sharing knowledge and creating virtual business partnerships through casual business networking. Additonally, I was pleased with the program and how it also focused on our domestic emerging markets as opporunities to create jobs.
In future posts, I will let you know how this project plays out. In the meantime, have you thought about a best practice from another industry that can be utilized in your business?
I had a mid-morning meeting this morning with a business partner. His firm focuses the social media industry. During the meeting, we talked about various ways to increase business development opportunities without straying outside of your core business.
From a consulting standpoint, we discussed how we tend to forget that our most valuable assets are our knowledge and time. He mentioned how his firm has given away strategic implementation materials to potential clients. Now, his team is working on maximizing the knowledge they have acquired over the years. I know they will do just fine.
Are you leaving revenue-generating opportunities on the table?
Yesterday, I attended a performance in Chicago by the Born Again Floozies. A good friend of mine is a member of the band and invited me up for the day. My plan was to use the day to recharge and relax. I was able to do both with an added bonus.
The bonus was an introduction to a potential business partner. This potential partner is the president of a global corporate security firm and friend of my friend's husband. We talked about our virtual business model at S4X and the business consulting we provide for our clients. He explained the intricacies of corporate security.
Moving forward, we both believe by working together in some capacity we can provide more comprehensive business solutions for our clients. Of course, the next meeting will be at another Born Again Floozies concert.
A global market requires terms that are more representative of its realities. A description based on geography is like comparing apples to oranges. Whether your organization is located in London, South Africa or Dubai, the landscape of your industry should be described by how you interact with complimentary and competitive organizations.
In the New York Times yesterday, the article titled,"Cost-Cutting in New York, but a Boom in India", mentions the terms "knowledge process outsourcing" and "off-shoring". While these are standard terms, do they actually describe the nature of the relationship and the interaction. Why not keep it simple and say our "research department" or "customer service department". Global organizations already operate under a virtual business model. If you have more than one location, you are operating virtually in some form. As a result, I think there is not a need to add the geographic description.
As demographic trends continue to evolve, business solutions from diverse global locations will increase. Have you explored global partnerships? If not, why haven't you?
There are those groups of people in Indiana that continue to think the Indiana Life Science initiatives are still a fad or gimmick. Unfortunately, these are the same people that will be left behind the economic train as Indiana continues to diversify its economy. I'm not saying the Life Science Industry is the only industry in Indiana. There are several other key industries including Information Technology, Logistics and Advanced Manufacturing.
Governor Mitch Daniels, Governor, State of Indiana
Nate Feltman, Commerce Secretary, State of Indiana
Mary Walshok, University of California - San Diego
John Diekman, Founder and Managing Partner, 5AM Ventures
President France Cordova, President, Purdue University
President Michael McRobbie, President, Indiana University
This collection of speakers could spend their time at any number of events. Yet, they find it important to attend this one which is focused on Indiana Life Sciences.
If you are looking to increase your business development activity, you may want to explore potential opportunities in the Life Science Industry to stay ahead of the curve and your competitors.
When most people think of ecology, the thought of the natural environment, green-friendly and reducing carbon dioxide usually comes to mind. Being an ecologist in your business environment, you focus on several of the same principles as an ecologist dealing with nature. A balance of good ideas, good management, access to capital and an understanding of the capabilities of the people involved. From idea generation to business development activities, the ecologist of the business environment must pay close attention to how all of these components interact. Additionally the business ecologist must keep the environment in a state of balance in order to achieve the goals of the system.
In a recent article in the Indianapolis Business Journal, the Indiana Life Science environment is on display. The article describes a new venture, NICO Corp., a early-stage company in the Indiana Life Science environment. Several business ecologists are a part of the environment of this new venture including David Johnson, CEO of the BioCrossroads initiative; Jim Pearson President and CEO or NICO Corp; and NICO’s attorney, Ice Miller partner Harry Gonso. These ecologists and several others help to grow companies like NICO Corp. and move the Indiana Life Science environment toward "a self-sustaining life sciences sector" according to Mr. Johnson.
On a global level, the emerging markets in the South Africa Life Science environment are being cultivated by its business ecologists including CSIR. The Council for Scientific and Industrial Research (CSIR) in South Africa is one of the leading scientific and technology research, development and implementation organizations in Africa. It undertakes directed research and development for socio-economic growth. "Harnessing biosciences for a healthier and wealthier South Africa", this goal of CSIR represents the many facets of an ecologist including how your business environment interacts with other non-business environments.
Two similar sets of ecologists and environments that are miles apart ultimately have the same goal.
What are you doing to keep your business environment in balance? Take the time to become an active business ecologist. You may find greater opportunities to help foster a more balanced and sustained environment.
By utilizing business blogging, I hope to share some of my experiences with you to move your organization forward.
During the strategic implementation phase of a recent project, I encountered a situation which could be helpful to you in future projects. One of the partners in the project was very passionate about moving forward as quickly as possible. A business partner passionate about a project can be an asset. Unfortunately, this partner whose focus was on marketing did not pay attention to the details involved in the comprehensive plan. By missing the details, the partner lost focus on the specific needs of the client. As a result, the strategic plan implementation was delayed.
I have communicated to the partner that this project involves the intricacies of business networking and relationship building. The partner has slowly started to understand that the details of the relationships move a project forward and ensure the completion of the project. Without the people, the project will not be completed.
Last week, I had the opportunity to participate in a course at The Fund Raising School course in Indianapolis, Indiana held byThe Center on Philanthropy at Indiana University. You might ask...what does philanthropy have to do with business? In our fast-paced global economy, the two become more intertwined every day. The lessons learned in the for-profit world are making their way to the non-profit world and vice versa.
For instance, the participants of the course were a social entrepreneur in one form or another each with multiple goals for their organizations. In order for social entrepreneurs to achieve their goals, they must understand the demographic trends and leverage business and personal networks to create business solutions and mission-based solutions. Sound familiar? This is the same model applied in the for-profit world. Additionally, as a social entrepreneur you are utilizing some form of a virtual business model. Two of my colleagues in the course were from The Dubai School of Government. This is a not-for-profit public policy institution that heavily leverages a virtual business model including a partnership with the Harvard University John F. Kennedy School of Government. Talk about a international business solution model.
Before the end of the course, I was able to connect with my colleagues from Dubai and a colleague who lives between Chicago and London but is a native of Nigeria. Our group represents a potential global virtual business in the future.
Next time you are involved with philanthropic organization, you might want to pay close attention to the operations of the organization. You may find a useful "best practice" for your business. Who knew the for-profit entrepreneur world could learn from the social entrepreneur by way of Dubai? If you did, you and your organization are ahead of the curve.
You never know what will happen when you connect a client, business partner or friend to something you think they may find helpful. Social networks can connect people in unexpected ways...
A few months ago, I sent an email to my clients and my personal network. The email included a link to a YouTube clip for the trailer for Two Million Minutes, a documentary on global education.
One of my clients from Indiana sent me a surprising reply. She mentioned that she had a passion for global education on a local level. This particular client is in the Indiana Life Science industry and does not have activites in the edcuation sector at the present time. From this reply, my client and I have had further discussions on global education and other opportunities to work together beyond our current endeavors.
If you haven't seen the movie, check it out or read the blog from Executive Producer, Robert Compton at http://www.2mm.typepad.com/. It may start a dialogue with a client or friend which could lead to potential collaborations. The current state of education is something for which everyone has an opinion.
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Managing the relationships during business formation is just important as managing the process. 
When you read the title, you probably thought I was going to mention China, India, etc. Outsourcing is a broad term. For example, if your company uses an outside printing firm to complete your marketing materials, then you are outsourcing. 
"We don't have the time to focus on this product." In the last week, I have heard this statement or a similar comment repeated several times from our new clients. I say "new" clients because their issue is one of our core competencies.
It is often said that your reputation is defined by your community and the company you keep.
With all the doom and gloom news about the current global economy, I think there is not enough discussion about the education of the children who will and are growing up in this era of change.
A global market requires terms that are more representative of its realities. A description based on geography is like comparing apples to oranges. Whether your organization is located in London, South Africa or Dubai, the landscape of your industry should be described by how you interact with complimentary and competitive organizations.
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