December 20, 2010
“They” say that your income is the average of the five people that you spend the most time with (outside of your family).
This helps make my Grandad’s point when he often said: “If you must judge a man, do it by those around him”.
The thinking around this post is not driven by statistics. And, this is some what unusual for me. I’ll typically make my point with hard data to support them – all of them.
However, here, I’m making a statement that I believe is true. This belief is driven by instinct. And, I trust my instincts. I will be investigating my theory. But, in the meantime, your own gut will follow my position.
This may not make you part of the solution. But, it’s a start. A big part of our job should be making money. It’s okay to do that. Really. I’ll write you a note.
Brian Patrick Cork
November 10, 2010
I’ve raised a lot of money for a broad-range of companies and industries over the years. And, one question that pops-up generationally is how to mitigate risk for investors.
Below is a real exchange between one of my Accelerator Element principals and myself. We have been successful recently in closing a round of $4mm through an Exec-with-Check (amazing in this economy, I know), and the question finds us again:
From: [mail: name protected]
Sent: Wednesday, November 10, 2010 2:21 PM
To: Brian Patrick Cork
What do companies do about the $100K limit of FDIC for deposited funds? Do they spread the money around to multiple banks? We will likely have $750K by the end of the month and hopefully the balance of the $4M by the end of the year (possibly middle of 1st Quarter).
The money is simply always at risk.
This also applies to money in savings accounts at big banks.
All of it is relative.
But, the risk is low percentage unless the vehicle is, well, risky. Banks are low risk, while ventures like DSI are deemed high risk. NOTE: The odds are your DSI is classified as high risk on the” risk pyramid (such a measurement actually exists)”, and the money will be lost.
Any effort to spread the money across multiple accounts will be compromised by cost associated with the time to manage it, and the associated fees.
One way to assuage the fear of an investor, and in this case, a new principal, would be to implement key-man insurance. Otherwise, the FDIC measure aside, there exists no other form of insurance or protection outside of best practices, great strategy, and good luck.
September 27, 2010
This isn’t new. But, reminders are always vital – just like repetition is critical for improved performance in both business and athletic efforts.
A key coaching tenant of mine is that everyone (including myself) should have a minimum of a three year plan. Five years is better because it requires stretching and having a sense of emerging trends. This is more vitally important, today, than any other time in global business.
Let’s be part of the solution.
Brian Patrick Cork