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Proactive, Reactive, & The Need To Balance Resources…

March 13th, 2014 Comments off

As we’ve recently come off a successful Series-B fundraising effort that included our original partners Khosla Ventures and Fairhaven Capital, as well as our newest partner Blackstone, it really affirmed the delicate walk we’ve managed over the last 18-months. With the initial $15 million in funding we received we knew what our mission was and the support structure we would need to have in place to make it happen. This consideration was not just to the staffing we would need to bring on, but the systems we would have in place to support our decision making.

I still remember the amusement I had when, fresh off an SAP implementation, I was given my laptop with QuickBooks installed. While that was fine for the first few months, that certainly wasn’t going to be our longer term solution. Nor was I going to pony up the dollars for an Oracle or other similar platform. With a commitment to be surgical about our spend, we mapped out what system would be needed to support our sales efforts, service deployment, as well as our financial reporting….all of which needed to be integrated. We were trying to be as proactive as possible, but new we’d have to pivot at points along the way.  We successfully brought Salesforce.com online, and with the hire of a VP of Sales, who developed the necessary criteria to report on our bookings activities. We then integrated our services management platform, which then final rolled into our financial reporting system.

However, as the business continued to mature, we found ourselves having to react to changes that forced us to pivot. We reached a point that it was necessary to extract ourselves from an early PEO commitment and bring all of our payroll and benefits administration in house.  Although we did not originally commit to the HR module, the time had come to add this on and react to our expanding business. This obviously meant more time and more money…that precious commodity we were so diligently managing. We continued to walk the path of being proactive on the critical elements, but reactive on those that we could push until the moment we actually needed to spend and weren’t creating any risk to the business.

Our earlier decisions on whether to spend proactively or reactively were put to the test during our due diligence efforts. Our earlier efforts to invest in systems have allowed us to continue operating in a very lean manner operationally. With myself and a one analyst, we were able to manage through the onslaught of document requests, additional modeling, and review of systems to achieve the final sign offs that led to our Series-B funding. Although there were some smaller operational elements that we could have fine-tuned in advance, it was a derivative of our decision to operate in a lean manner. Those elements are obviously being addressed moving forward, but do not affect our ability to service our employees, customers, or business partners.

Even now with a fresh round of funding, we will continue our prudence with spend and walk the delicate line of when we should be proactive or reactive. While it’s always preferable to head down the path of proactive decisions, it’s not always best for the company if the deployment of those resources aren’t necessarily mission critical and have an extended window for return. The one certainty…this period of early stage growth will continue to be a target rich environment!

Thanks for reading…

Jeffrey Ishmael