Every small cap encounters itsself in a similar point as Bert (Dick Van Dyke) from Mary Poppins. A one man show with plenty of dreams and attitude but far from performing a great full musical show.
“So what can small caps do to become great companies? Call Mary Poppins? Well that´s a good start. Start by recognizing that one needs help is a great beginning.”
But who can help a small cap develop the business to grow into a great company? Let’s first look at the minimal requirements needed to develop a small cap with success:
- Have a Plan: A business plan with milestones based on experience with objective, clear and measurable assumptions. Measurable KPIs, with clear targets and deliverables accountable to each member of the team. A plan with demanding but achievable targets that may allow fine tuning on the go incorporating learnings.
- Have a team: After a solid business plan is in place, build the right team that best fits the plan, for its correct execution.
- Have the capital: To have access to the capital required to finance the expansion of the company a solid plan and a solid team is needed. All the financial options, from funding from friends and family, mezzanine, debt or private equity need to be explored in order to find out which capital structure is ideal for each plan and company.
Therefore, whoever can collaborate as best possible in any of these fields and are best aligned with the company’s interest and objectives would be the ideal “Mary Poppins partner”.
“Nevertheless, having a Mary Poppins partner will not be sufficient to achieve success. The one-man show will have to go through a cultural change himself along with the company.”
Like Bert, to go from a one-man show to a full musical show, the entrepreneur of a small cap must change his unilateral, improvised intuitive decision making process. A shared decision making process that allows a full musical show where coordination, teamwork follow a plan based on data and targets that allow permanent learning and improvement is needed.
CHANGE, is without any doubt Bert’s and the entrepreneurs main challenge. Although the previous culture of a one-man show with agile and quick decision making based in intuition and experience have brought a one man show or small cap success.
“To move on to a full musical show or a great company, the entrepreneur must start taking decision with data instead of intuition.”
Only this way may he learn from errors to make the right decision that will lead to success to build a great company, a full musical show!