For many business owners, starting and operating their businesses has been one of the focal points of their lives. Yet, many business owners are unable to sell the businesses they have spent much of their lives creating and the sales that do occur are often at disappointing valuations. Having an exit plan helps to ensure a sale can be completed and maximizes shareholder value. The full article can be accessed by this link:
Oregon seems to be the home of numerous incubators and accelerators, yet many entrepreneurs complain that there is a lack of institutional sources of capital in the state. Meyer Memorial Trust, one of the state's leading suppliers of capital to these incubators and accelerators, created a "roadmap" of funding in the state. It's an interesting analysis, but one of the key findings is that consumer products companies do not have a "established pathway to capital," and are usually forced to rely on bootstrapping.
Most investors expect businesses to grow in the tech company model, and are disappointed by the long ramp-up period often required by consumer product companies to reach profitability. This disconnect between the two growth models explains much of the disparity in funding between consumer products and tech companies.
For conservative and knowledgeable investors, early and growth stage investments in carefully selected consumer products companies can be less risky, although provide lower long-term returns. Until that pathway to capital exists for entrepreneurs building consumer products companies, lack of capital will continue to be a consistent limiter of growth.
Interesting perspective from people who are closely watching the food industry.
The RSM accounting firm has published an analysis of trends and transitions in the consumer products market.
The meal delivery business is hyper-competitive, with at least a dozen choices in Portland alone, not including restaurant delivery services. Some of these companies survive only by burning through investor dollars, hoping to outlast their competitors. It's rarely a successful long-term solution. The best way to build a company that lasts is always to develop a superior and differentiated product or service, and create strong bonds with customers.
The Sterling Rice Group, out of Boulder, CO, which specializes in building brands for consumer products, has given us the first food predictions for 2017. Key themes are growing interest in wellness and the environment.
Driven by increasing consumer demand for healthier products, sale of the Impossible Foods plant-based burger is expanding to the West Coast. With years of research behind it, the Impossible Foods story is difficult to duplicate, but shows the path to success for a brand that connects with its customers, and of course, a well-executed product.
Good description of KPIs - Key Performance Initiatives - and their value for CFOs. Key takeaway - KPIs are useful for companies throughout the growth cycle. However, focus on KPIs should not obscure the primary value driver of a business - connect and build relationships with customers.