Business Success 4: Business Turnarounds through Venture Capital

We share another story of business success involving owners of small- to mid-size business

Venture capitalists provide funding to businesses they feel will give a great return on their investment. Many business owners avoid accepting money from venture capitalists. They heard horror stories about others who were ousted from their own companies by the venture capitalists. Many business owners also share great experiences with venture capital.

Transition Specialist

Stephen fostered a business idea into a solid enterprise. He recognized that as baby boomers aged, many created companies 20-30 years earlier. Some aging entrepreneurs want to retire, but do not have successors for the enterprise. They care about their business and want to transition to new owners that will care for their employees and maintain the reputation they worked so hard to establish.

Stephen helps these baby boomer entrepreneurs transition their companies to acceptable new ownership teams. He:

• Helps the current owner clarify what they want for the future of the company
• Identifies a new executive team to take over and eventually buy the company
• Ensures the new management team meets the owner’s expectations
• Purchases the company and installs the approved management team
• Provides the capital for the future owners to purchase the company
• Stays involved in the growth and development of the company for 5-10 years
• Allows the new owners to buy his share of the company or sell it for a profit

Benefits of Transitioning

His clients include trucking, petroleum, utility, and other kinds of companies. Stephen helps them

• Extend the life of the babies
• Calm anxiety about the future of the business
• Instill confidence in the new management team
• Helps the new managers grow the business to 5-10 times their original size
• Create jobs for hundreds of people

Potential for Great Good

Millions of baby boomers will reach retirement age in the next ten years. Hundreds of thousands started successful businesses. If Stephen transitions even a small fraction of their businesses to greater growth and profits, he could generate thousands of jobs.

Thursday we will highlight a woman who took a small craft business to a family enterprise