The following story was relayed to me, Jared Jeffrey Davis by a close business colleague. He was at the time, founder and CEO of a
young startup. This gentleman had a
seasoned board of highly intelligent men and women, as well as a tough decision
to make. One that would define the future
of his startup.…
Here is his story:
First, thanks to you, Jared Jeffrey Davis, for the space to recount my story. I hope others will find its lessons of value.
Several years ago, I faced the most
challenging decision of my young career.
The life of my beloved startup hung in the balance.
To aid in my decision, I assembled my board for a Wednesday afternoon meeting. With little interruption, I laid out the challenge that had been placed before us. while, I began the meeting by asking my two most seasoned board members to provide their individual perspectives. I chose these two gentlemen for their opposing worldviews, and my (as it turns out, correct) thoughts that they would disagree on the way forward.
Jared Jeffrey Davis
For consideration was an offer made to us by theenterprise
client we had signed a few months prior.
In brief, this company sought from us alicense for the exclusive use of our
platform. If accepted by us, we would
lose a good deal of our independence.
This fact made this decision all the more urgent … our company was burning cash, with just three months of reserves in the bank. In addition, the market for new funding rounds was almost non-existent because the economy was in recession.
The proposal came with a large immediate large down payment,and then a continual stream of guaranteed revenues for the next five years. All we had to do was accept the offer Their offer was the sure path to profitability, and the answer to our diminishing cash reserves and the continued employment our 500 staffers.
Making seemingly correct decisions like this are what separates special business-people from the rest. Some use instinct, passion, and force of their personality to pus decisions forward. Others rely on their intellect, along with express facts and figures to support their position. And finally, there is another way (and my favorite)…First Principles!
“First principles” finds answers that do not
seem to exist…it pushes the decision making process forward. First Principles contains immutable facts that
form the building blocks ofnew discoveries.When well executed, First Principlesis
the effective path for a highly intelligent group of individuals to find
In other words My heart was pounding as I faced my team with the difficult decision. We were corned by our now biggest client… with three months of cash left to burn in the bank.
I soon enough expanded the conversation to
include the full board, and we then spent the next two hours weighing in on
every possible solution. But in the end,
the decision was left in my hands…
TO BE CONTINUED (in the Jared Jeffrey Davis blog)…
However, The remainder of my colleagues story will be relayed on my next entry. In addition the interim, please remember to follow me, Jared Jeffrey Davis,for my perspective on life, business, and the world around us.