Corporate Governance imperatives
One of the major aspects of Shareholder Value which is worthy of attention is Corporate Governance.
To the solo-preneur or entrepreneur, it is an almost unknown term.
To the more sophisticated entrepreneur, this need to be a very important focus as the company outgrows the founding investors and starts to look at larger capital raises.
The level of scrutiny that a company will receive from sophisticated investors, VC’s and even Institutional Investors is initially beyond the scope of the traditional entrepreneur.
As Stephen Covey said in his book 7 Habits of Highly Effective People, “We must begin with the end in mind”. With this statement in mind, what Covey refers to is that our founding decisions will often impede our ability to reach a true potential. From a corporate standpoint, that means valuation.
The challenging aspect to this is that the damage is done early but is not recognized until it is too late. Mitigation strategies for poor structure in the early genesis are critically important to prepare the company for subsequent rounds of financing.
In this video on Corporate Governance and it’s effect on Shareholder Value, Andre Voskuil shares his most critical and important tips for the evolving corporation. On most occasions as we consult to companies about shareholder value, corporate governance is worthy of immediate attention. In the minority of cases, the situation is addressed and can be improved. In many instances, we find it a lacking facet of the business. The CEO needs to view Corporate Governance as a key to their success not an inhibitor to success in order to successfully achieve the various levels of funding required.
The 65 Hour Turnaround Group focuses on providing tactical advice to corporations looking to maintain shareholder value. They can be reached at www.TheTurnaroundMindset.com or by calling 250 826 2606.