IP, Money, People, Perception, & Reality

Many struggling inventors and start up IP companies believe that their problems would be solved with just one more round of financing, or if only the bank would loosen up the credit line one more time.

In my experience, more money rarely solves all the problems of a troubled company.

Much of the time, pieces of the company are missing, perceptions about reality are mistaken, or some other fatal flaw that money doesn’t answer, keep the firm from its potential.

Would the company benefit by finding a value added reseller, added management talent, or a joint venture partner to bring it to market, or have it manufactured?

Ignoring hard reality and fighting viable alternatives too late works for no one. Considered early as a possibility, discussions can happen, choices can be considered, put on hold, or executed later.

So often, the funder has been exhausted with failed promises and missed deadlines.

Impatient and lacking the trust and enthusiasm that began the relationship, stakeholders / funders timelines diminish and choices and bargaining power evaporate.

Beginning with all possibilities, we open doors to more choices as well as show supporters (funders) that we are open minded and willing to plan for all potential eventualities.

Have an opinion or thought to share?

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2 thoughts on “IP, Money, People, Perception, & Reality

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  1. I’ve worked with companies that lost patience just about the time we found a working strategy. We would begin to gain a foothold, build some momentum and initial customers, yet at that point it was not enough good news to bolster the funders’ belief in the opportunity. Had we gained that same momentum slightly earlier the funders would have been elated.

    It’s often the case that a product is too early in the market, is killed, and one or two years later a similar product enters the market and is a success. (Apollo vs. Sun; Netscape vs. IE; Newton vs. Palm; etc.)

    Perhaps one of the options everyone should consider is simply “Keep going for another year or two to give us time to cross the chasm.”

  2. Companies faulter for many reasons. Sometimes its lack of capital, sometimes the problems are structural or have to do with management. One of the things that companies dont do well is monitor their own progress against key objectives. Typically, they wait until what they are doing hits the bottom line and then it can be too late to recover – investors get frustrated and want out. Companies need to develop better methods of monitoring internal change initiatives, reactions of clients/customers, etc. They would then be able to correct problems in real time much earlier – before investors give up.

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