The Brain
TrustTM Link in Action - Case Studies
Case 1
Wayne, CEO of a Brain Trust Company, successfully grew his
manufacturing businesses to $7 million in short order. Wayne knew he had
plenty of growth and profit potential if he were to open additional
plants, but, he was fearful of the risk, having never operated multiple
plants.
Wayne used the Brain TrustTM Link to uncover a Brain Trust manager
Bob, a 30 year veteran of a Fortune 50 company, who not only had started
up multiple new plants, but who knew the ropes for getting maximum
financial leverage from state incentive programs, federal tax abatements
and job training credits. Not only did Wayne benefit from a safety net
of experience, but he spent a lot less hard cash to implement his
expansion plan.
Case 2
Scott, CEO of a Brain Trust Company, did not have on board the full
staff necessary to build his new business. But neither did he know
exactly what talent he should be looking for to help him achieve his
vision. Rob, a Brain Trust Angel, self-selected himself, attracted by
the vision articulated in the Scott’s Corporate ResumeTM. Rob not only
had practiced law, but had been a VP and investor in a company he helped
take public several years earlier. Rob was looking for where he could
offer his unique skills.
Here’s what Scott had to say about Rob's contribution to his growth
strategy:
"Amalgamating or merging 12 businesses at once has a number of legal,
SEC and tax challenges to it. If I had been using our law firm, which is
very good, it would have easily cost us $500,000. I never would have
come up with the structure that was as creative, and favored
shareholders, as well as this one has. Rob has been an incredible
strategic help besides getting all kinds of other things done. Again, I
didn’t really know I needed this person and if I knew I needed this
person, I wouldn’t have had a clue as to where to look. Stefania
introduced us and we put Rob on a 3 month retainer (Stefania called this
a Beta relationship) to help us when we were closing the investment deal
so we got a chance to work together for a couple of months. Now, Rob is
a very, very, very key member of the team and he came for basically some
stock options. He took a 50% cut in pay to come on board and he’s gotten
some stock options. You know he HAD to believe that this thing was going
to $100 million or he wouldn’t have done this, and he’ll make out very,
very well."
Case 3
Mark, CEO of a Brain Trust Company, was a product innovator-type who
developed a patented cooking process which gave fresh, gourmet health
food a 60 day shelf life without preservatives. When this
technologically advanced production team realized they had invested all
their money into building a state of the art plant, Mark turned to the
Brain Trust for help in generation sales. Mark uncovered a candy and
soda marketing manager with vending background who could envision
introducing a new class of healthy gourmet foods for vending machines.
Together with his vending connections and $350,000 to finance his own
marketing ideas, this Brain Trust Angel helped Mark quickly position the
company to profit from its new product class in exchange for
participation in future profits. Mark was delighted with an equity
partner who gave him credit for his future, today!
Attention Brain Trust Managers:
Your Creativity is in Demand!
We did an experiment with a group of Brain Trust members. We took one
Corporate Resume, let's call it 98.00, and asked everyone to use their
creativity to figure out what they had to offer the company. The result
was educational and insightful!!
A few people admitted they were not sure what the company’s product
was. Lee thought it might be related to the TV screens for car
dashboards to determine the best traffic routes. When he found out he
was right, he was enthused about how many other markets he had
considered that this product could address and how his marketing skills
could help the company achieve its goals.
Rick, an automotive engineer, couldn’t see how a company seeking a
growth managers could use his talents until another attendee mentioned
his project management expertise. The plan for 98.00 included the
undertaking of a national database development project to be completed
in three years; this was analogous to the scope of things in which Rick
had lots of experience. With his contacts in Detroit, Rick certainly
could offer insights into the workings of an industry which effects
98.00’s strategy.
Carol, ex-CEO of an electronic trading exchange, was positive she had
nothing to offer because she knew nothing about this product or
market…until other attendees asked her about her national contacts. Many
were industry relevant and very high level, making them potential
clients. Carol had never thought of a role as a Director wherein she
could offer the contacts she had worked so hard to develop while also
leaving her with time to pursue her full-time interests elsewhere.
Larry, a lawyer, was quick to suggest he had excellent skills in
business contracts and negotiations (even though he said it like no one
would ever agree it was relevant!). Interestingly, Larry found out the
company outsourced its sales force. A "business partner" structure
demanded Larry’s expertise, even though it was never mentioned in the
Corporate Resume. He would only know by mentioning his skills in his
Reverse Resume FlowTM.
Obviously, none of these people would offer their skills to a company
unless they were passionate about the industry and/or potential. The
point of the exercise was that all Brain Trust Angels have something to
offer all companies. It’s just a question of creativity; companies don’t
always know what they are looking for until you tell them what you have
to offer.
What if I’m Not Sure?
Cliff, founder of a Brain Trust company, is optimistic that Jerry is
just the guy to help his $12 million training company capitalize on its
huge potential. Respectful of the importance of their mutual decision,
Jerry liked the recommendation to identify a task of mutual priority and
agree on a "Beta" period – in this case 2 months – with defined results
to be achieved by the new team. Jerry gets to do his due diligence from
inside the company. Cliff gets to build confidence that he made the
right choice and accelerates his willingness to give Jerry
responsibility quickly. Both parties liked the idea of reducing
uncertainty which lowered their decision hurdle to take action. Jerry
and Cliff forged a Beta working relationship in anticipation of creating
a permanent one.
What if I Don’t Have All That It Takes to Achieve the Company’s
Goals?
In finance, a company doesn’t always get all the money it needs from
a single source. Solving strategic corporate issues can benefit from the
same approach. Bob sought a strategic growth manager. Each of the Brain
Trust members who self-selected themselves offered only a piece of the
solution; so the company took advantage of all of them! John, a CPA with
20 years experience with clients like Bob, contributed just the skills
necessary to catalyze the company’s internal team to design strategic
answers for other interested parties to take action. This attracted a
banker keenly interested in growing companies. Martin, an equity
investor interested in a Board position but not a day-to-day role,
gained confidence based on John’s financial guidance from inside the
company and appreciated the leveraging effect of the bank’s credit on
his investment. The bottom line; no single Brain Trust manager need not
be the entire solution.
Please read the
Brain Trust Principles to be sure you are getting the optimum
results out of this process.
