Advice for CEOs

Every entrepreneur looking for investors would like to find backers who have ample cash to invest and who also bring industry knowledge, savvy and contacts. But most entrepreneurs would prefer that their investors be relatively hands off, not inclined to interfere unduly in their business management process. How realistic is it to find such investors?

Bootstrapping is the traditional way to grow a startup and early stage company. It keeps equity in the founders’ hands and avoids having investors to answer to. But there is another side of the coin: not having enough working capital for marketing and other priorities to grow the company. How do companies that you know deal with the downside of bootstrapping?

A basic Human Resources best practice is to perform regular employee performance reviews. Larger companies devote significant HR resources to gathering, synthesizing and reviewing feedback from managers and then presenting the results to employees. They try to ensure that feedback is objective and not discriminatory or offensive. They strive to rationalize how evaluations relate to decisions on employee compensation.

Angel, venture capital, and private equity funding have recently produced more startups and early stage companies than ever before. Which has led to a debate about whether we’re in a “startup bubble” that is likely to create havoc when it bursts. We asked our partners with experience in both startups and venture capital/private equity funding for their thoughts.

To say that a main goal, perhaps the main goal of any company is to make money is to state the obvious — or is it? There are times when other goals are more important than profitability, especially when a company is ramping up and investing in market penetration and infrastructure. It’s a rare company that makes money consistently from Day One of its operations.

Emerging growth companies must climb a steep hill to penetrate their market, grow revenue, and attain profitability. Setbacks, disappointment, and frustration are common occurrences. The company founder is driven by a vision — and by the upside that comes from owning some or all of the company. But most employees are only getting a paycheck — and the chance to get in on the ground floor of what they hope one day will be a fast growing company. Employee morale is an indispensable driver of a company’s success. It boosts confidence, commitment, and productivity. A drop in employee morale can quickly lead to disappointment and resentment — and an exodus of employees without whom the company can’t function. We asked Newport partners how successful CEO’s they know respond to setbacks.