We keep on waiting
Waiting on Africa to change…Our fundraising timelines (referring to the oil & gas bplan) are contingent on political conditions not deteriorating any further. We should have more clarity on the political situation in our target market in the next 8 weeks. So we have an 8 week deadline for completion of the business plan.
At the same time I ask myself are we being too cautious. Should our potential investors risk appetite determine whether we are a go/no go for the business? Baron Rothschild once said that the time to make money was when there was blood on the streets. Not much empathy in the statement but to make huge gains in emerging markets we have to be very good at managing risk (financial and physical).
Not going to overanalyze anything at this point. Just going to plough ahead with the business plan and see what the numbers look like.
Thursday, March 15, 2007
Wednesday, March 07, 2007
Founders Agreement Negotiated
Our founders agreement discussions were fairly smooth. We agreed on the major points that will make up our founders agreement. We had discussions around what business the company will be in, where it will be located, and what our roles and equity ownership will be. We also discussed how we would treat equity ownership in future businesses.
Equity was divvied up for this particular venture based on industry backgrounds, prior work done to develop this opportunity, and connections each partner was bringing to the table. We both have business backgrounds so that didn't count. How we divvied up equity was the only tricky aspect of our discussions. It helped that we both felt this was not a win/lose negotiation. There will be other ventures where different experiences and connections are required. So both parties were willing to give and take.
Equally important we discussed a deadline by which we had to begin working on the venture full time. Both of us have gigs with major demands on our time. If we didn't set a deadline it would have been very easy to lose momentum or get snared by corporate america's golden handcuffs.
We also discussed duration of the founding period as well as the level of capital we are looking to raise.
Key areas highlighted below:
1. Company description
2. Potential Operating Roles and Decision Making
3. Future Businesses
4. Founders Exit
Equity was divvied up for this particular venture based on industry backgrounds, prior work done to develop this opportunity, and connections each partner was bringing to the table. We both have business backgrounds so that didn't count. How we divvied up equity was the only tricky aspect of our discussions. It helped that we both felt this was not a win/lose negotiation. There will be other ventures where different experiences and connections are required. So both parties were willing to give and take.
Equally important we discussed a deadline by which we had to begin working on the venture full time. Both of us have gigs with major demands on our time. If we didn't set a deadline it would have been very easy to lose momentum or get snared by corporate america's golden handcuffs.
We also discussed duration of the founding period as well as the level of capital we are looking to raise.
Key areas highlighted below:
1. Company description
2. Potential Operating Roles and Decision Making
3. Future Businesses
4. Founders Exit
Sunday, March 04, 2007
It's All About Execution
Status update:
Making great progress towards launching a new business. There have been multiple iterations of initial ideas - I don't put much weight on the idea phase. It's all about execution.
Initial idea was tech heavy and relied upon multiple partners in the US to execute. When time came to commit my US partners lost enthusiasm for an African venture.
At that point I decided to keep it simple. My background is in technology/telecom but I am working with my wife (she loves to shop and has a pretty good eye for fashion) on prototypes for a new line of women's clothing for an online retail play. We're bringing a unique perspective. I'll let you know when we launch in June. The important things to consider are the low startup costs, low barriers to entry, and modest upside.
Also just began working with a high school buddy, who has a Business and Oil & Gas background, on a more complex but very promising business idea. To launch we will have to bring on institutional investors. We spent the weekend discussing our founders agreement.
I know its not ideal working on multiple initiatives but I'm taking a portfolio approach for now. I also definitely feel more comfortable with these two initiatives because I'm working with partners in both cases where we have a long history.
Making great progress towards launching a new business. There have been multiple iterations of initial ideas - I don't put much weight on the idea phase. It's all about execution.
Initial idea was tech heavy and relied upon multiple partners in the US to execute. When time came to commit my US partners lost enthusiasm for an African venture.
At that point I decided to keep it simple. My background is in technology/telecom but I am working with my wife (she loves to shop and has a pretty good eye for fashion) on prototypes for a new line of women's clothing for an online retail play. We're bringing a unique perspective. I'll let you know when we launch in June. The important things to consider are the low startup costs, low barriers to entry, and modest upside.
Also just began working with a high school buddy, who has a Business and Oil & Gas background, on a more complex but very promising business idea. To launch we will have to bring on institutional investors. We spent the weekend discussing our founders agreement.
I know its not ideal working on multiple initiatives but I'm taking a portfolio approach for now. I also definitely feel more comfortable with these two initiatives because I'm working with partners in both cases where we have a long history.
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