In addition to faster execution against priorities and lower cost, we bring real world experiences starting, building, transitioning and growing new businesses. Practical experience helps the whole team execute only the best-case initiatives while helping founders stay focused on continued development and innovation and in many cases critical initial sales efforts. Faster and more effective time-to-validation preserves capital for follow-on and then substantiated investment in growth.
The argument for outsourced and interim executive talent:
- Time is a valuable commodity in today's dynamic marketplace where barriers to competitive entry are fewer if not non-existent. Early-stage entities can ill-afford to waste time on anything including attempting to hire full-time employees when the time may not be right in any event. Fast time-to-market and concept validation are paramount.
- Effort directed toward FTE hiring and related activities draws from the more important efforts of building product, selling it and building a revenue-generating customer base. There is also the potential disruption caused by hiring, ramping up and then potentially losing what may have been bad or desperate hires in the first place.
- Risks myriad at an early stage are significantly reduced or mitigated with quickly deployed and capable talent focused only implementing minimally necessary and achievable objectives. Risks otherwise a significant hindrance to validation and growth are defined and addressed proactively.
- Capital for the time and cost necessary to hire some combination of full-time CEO, COO, CTO, CFO, Chief Revenue Officer, Marketing and Customer Support can range from $500,000 to $1 million or more in annual salary expense alone not including recruiting expense, other forms of cash compensation and benefits. Reduced capital utilization during initial validation can remain available to maintain momentum and build on initial customer sales following validation and traction.
The benefits of engaging Erdman Advisory to augment foundational team members on an interim basis are:
- Nearly immediate engagement; no hiring delays.
- Less than 30 days to action and initial results.
- Lower investment in personnel and expenses.
- Founder and technical staff stay focused.
- Capital is preserved for later growth stage.
- Market validation, improved strategic visibility, reference accounts, operational awareness and better funding leads to faster growth when appropriate.
Capital efficiency and conservation is gained by deferring much of C-level hiring to point after market validation and early customer success. After early momentum is achieved through initial sales success, market validation and customer satisfaction, added funding and particularly executive talent is more appropriate, easier and less time-consuming to hire. At this point additional capital investment is more probable, available talent is less risk-averse and more inclined to commit to the venture, compensation is less of an impediment and therefore the FTE talent pool opens up and once hired these people can focus more of their attention on continuing sales growth and simply scaling an established operations model.