Building a Business
Situation
A business founder had invested a significant amount of his own money in an innovative technology at the intersection of Web2.0 and the corporate healthcare cost spiral, and needed to bring financial discipline and business process to bear on his business, at the same time developing the documentation to support fundraising.
Issues
While the founder was connected to his eventual sources of capital, he had several gaps in his business:
- There was no financial plan for either budgetary/operational purposes, or for purposes of strategic planning and fundraising
- The information memorandum was at an early stage of development
- The business lacked financial and operational discipline, and did not have the reporting, communication, and control infrastructure in place to support the running of the business.
Outcome
- During the first eighteen months of finanSight involvement the company built and revised its business case and raised three tranches of capital;
- finansight developed and maintained simple accounting, reporting, and financial management procedures;
- finanSight implemented TeamSpace and other virtual team management and information sharing tools;
- finanSight managed development of the company Internet and maintained its email communications;
- finanSight provided ongoing operational, strategic, and general management oversight and input.
finanSight continues to work with this client, which has a full time COO and has generated meaningful revenues from its early stage pilot customers.