There’s no time to waste if your startup appears to be headed down the wrong path, writes Howard A. Tullman, chairman of the Tribeca Flashpoint Media Arts Academy. “If you’re going to try to save the business, the necessary cuts have to be quick and deep and over as soon as possible so the survivors can get back to work,” he writes. If your business simply can’t survive, manage the path to liquidation to protect — as much as possible — investors, employees, customers and yourself, Tullman suggested in his recent interview with Michael Kogan.
There are several pitfalls to dealing with a venture capital firm that is on shaky financial footing, write Sam Hock and Michael Kogan, partners at Online Ventures. Investors will still want a return on their money, but the firm may be reduced to a shell of its former self. In extreme cases, the firm may call on another company to handle its portfolio, which could pressure entrepreneurs to liquidate. “If you don’t see any activity for, say, the last five years, be wary,” Hock and Kogan write. “You could be looking at a firm that’s dying a predetermined slow death.”
Change can be difficult, but the best leaders are adept at guiding their organizations through periods of upheaval, according to Dana Theus, president and CEO of InPower Consulting. “Mastering change means understanding both the technical and social complexities of what makes change desirable and manageable,” Theus added in her interview with Michael Kogan. In addition, becoming an internal thought leader is a way to gain influence by sharing thoughts and ideas to help a company develop solutions.