Risk Mitigation Advisors
GrowBiz understands the needs of the small business investment community. You are undertaking a significant risk when investing in new growing ventures. It’s clear that assessing and managing risk is fundamental to your investment strategy, but after that investment is made who drives it to a successful outcome?
The Issue – Portfolio Risk ▼
- What level of risk is acceptable at your company? Are any of your portfolio companies currently at risk? What is that risk worth? What is the opportunity cost of capital that doesn’t work out?
- The value of your firm is based on the amount of investment capital you deploy.
The discussion – Mitigating Risk ▼
- When choosing your portfolio of companies, your firm has done an excellent job of due diligence. You are represented on the board. And, you may have one of your team involved in day-to-day operations.
- Is it possible that your investment is still at risk?
- GrowBiz has assembled a team that may mitigate your level of risk.
An option – Risk Mitigation Advisors ▼
- GrowBiz.Org has assembled a Risk Mitigation Advisory group. The goal of this group is to determine that the activities of your portfolio company match your performance objectives. The Risk Mitigation Advisors make tactical assessments; we are focused on execution and will provide guidance.
- Our advisors come from a broad cross-section of businesses. GrowBiz Advisors know start-ups , second stage companies, turnarounds and acquisition plays. Our group has experience in the venture community. The advisors have strong backgrounds in software design and implementation, software engineering, healthcare, aerospace, consumer products, and manufacturing. Skill sets include general management, finance, operations, organizational development, software development, sales and marketing.
What’s in it for me – The Investor ▼
- We can help you protect investment capital. The math looks like this: say, you invest $100,000 in your portfolio companies, 10% of this capital is at risk: $10,000. But, the amount at risk doesn’t include the opportunity cost of that capital.
- The opportunity cost of that $10,000 is the value of the risk multiplier X investment. If your objective is to generate a 5X return, then the value of the original $10,000 is $50,000.
NOTE: this scenario is targeted to the investor community but the situation also fits owners, stockholders and members of a board.
If you have questions or need clarification, please contact us.
