A Malcolm McGuire & Assoc., LLC  White Paper

Over 27 years of successful involvement in the universe of young emerging technology, product, and service companies has taught me some valuable lessons as well as enabling me to make value judgments on the companies that will survive and flourish and those destined to fail.

I am always amazed that some companies who should fail, instead become major successes while other companies that have everything going for them with phenomenal technology fail to make the grade.

Over 27 years, I have had many outright home runs and some notable failures. Given this fact, I am detailing some of the factors and characteristics of those companies that did the best. What makes winners in the competitive corporate world?

1. It begins with inspired, visionary founders. It has been said that “where there is no vision, the people perish.“ This is particularly true in that universe where the companies that will shape our tomorrows are themselves being shaped. The heroes of the corporate world are the dreamers, who simply will not let their dreams die.
2. The product or technology has to be something special, one of a kind, and superior to its competitors. Young companies who aspire to be great companies do not have the luxury of simply being better than the rest of their industry. It is like the old saying, “go big or go home.“
3. The unique technology, product or service must be in the hands of a dedicated, competent, energetic Management Team. Let me underscore, “management is to the corporate world what location is to real estate.“ In the early years of a company, enormous sacrifice and long hours are required of corporate leadership that would create great companies. There is no room for mediocrity and half hearted effort.
4. If you have a visionary founder, a one of a kind product or technology, a sacrificing capable Management Team, then what remains is to have a Plan. Much time has to be spent in the design of a Plan and a Strategy for success. The Business Plan is all important and it must be systematically, methodically implemented. While it can be fine tuned, it cannot be changed every day. I will shortly address the infusion of investment capital and one thing that will build investor loyalty is “Disciplined Direction.“ I would also note, do not be too enamoured of pro formas. One, they are always contingent on timing of capital availability, and secondly, they are at best educated guesses. When I was an Officer at Pru-Bache, we had a saying, “Pro forma is Latin for I had a dream.“
5. There needs to be a specific person who is in charge of raising capital. This is the other side of the corporate picture and it must be singularly emphasized. Raising capital takes time, it takes planning, it takes focus, it takes relationships, and it takes a history of success. The best funded companies tend to be the most successful companies as they will have the ability to access growth capital on a continuing basis.
6. Great companies are always cognizant of their debt to their shareholders. They readily accept their role as stewards of someone else’s money. They believe that part of something valuable is more than 100% of nothing. Dilution of their ownership position is part of growing a company.
7. Great companies are great communicators. The tell their story well, they tell it often, and they tell it to the appropriate audiences. In this Internet Age, a superlative, articulate, web site is additionally a necessity.
8. Growing a young company is like raising children in that it is an imperfect art. However, I have witnessed an intangible quality evidenced in my greatest and most successful clients. In spite of setbacks, problems, and challenges, they refuse to give up. TENACITY MAY BE THE GREATEST OF CORPORATE CHARACTERISTICS.

Malcolm McGuire
“My 27 years of Reflection“