Advice for CEOs

In the first part of this article, I discussed the sense many business owners have that “my company is different.” Many times CEO’s who belong to the “this company is different” school of thought ask me: since I don’t have experience in their particular industry, how could I be of help? My response is to ask them whether, in view of their industry knowledge and that of their top team, they might be at risk of static thinking.

I have heard innumerable times from CEO’s over the course of my career different variations on the same basic statement: “My business is different; most of what other companies do doesn’t apply to mine.” My response to this statement has always been respectful but curious. I tend to ask in return: “How is your business different? How are its underlying principles different from the fundamentals that drive all businesses?” This usually starts a conversation that follows a familiar pattern.

The Difference Firms that are trying to get past No Man’s Land must deal with the Capital Gap, the gap between their current capital structure and the funding they need to finance growth. What about Venture Capital as an alternative in the current environment?