SmartAB? Wisdom #44: I Can’t Force CEOs To Use My “KEE” To The Gates Of Profitability. But Their BODs Can…
Canada Green ESCO (CGE) Inc. is a holding company launching Cleantech, Fintech, and Healthtech moonshots. As its CEO, I join Advisory Boards of entrepreneurial companies funded by VCs and PEs - in most cases as a Chairman of their Advisory Board…
It’s my business. I secure untapped revenue streams, and as an AI Veteran of 30+ years, I see patterns others don’t. Hence, I am convinced that Business Model Innovation is as important as Technology Innovation - just look at any of my 200+ LinkedIn posts, 15,500+ tweets, and 2 AI books published on Amazon…
I am truly fascinated by the profound quotes of Warren Buffett. And his quote that resonates with me the most is as follows: “Predicting rain doesn’t count; building arks… does”. And ever since I encountered it, I have searched for an equally profound definition of… Entrepreneurship…
Most of the dictionaries define entrepreneurship in vague terms. To me: “Understanding the problem doesn’t make successful entrepreneurs; Solving the problem profitably… does”. And this is how SmartAB? was born…
To me, ENTREPRENEURSHIP is all about identifying growth markets and finding a way to acquire PROFITABLE customers at low cost. Some entrepreneurs solve problems without making any money; Others make a lot of money without solving any problems. So, do both, and win!
The unprecedented slowdowns in VC investments will bring increased pressure on startups to deliver radical growth and scalable profitability - or die. And scarce funding brings even greater pressure to deliver results. On average, it takes 12 to 18 months of growth failures before BODs start asking for changes at the top…
So, to prevent companies from losing investors' confidence – I often recommend implementing my innovative business development strategy - “The Norwegian Push-Pull.” And I’ve said it for years: Growth companies can radically amplify their gains by bringing “Co-CEOs” on board and benefit from a balanced Expert/Generalist expertise.
In contrast, startup “Co-CEOs” - should relentlessly focus on executing crucial priorities such as:
? Seed Stage – Raising Funds
? Series A – Validating Product Market Fit
? Series B – Demonstrating Growth
I’ve been around the entrepreneurial block for 30+ years. The ability to share my Business Development acumen is very important to me. So, I’m on a mission to advise, mentor, coach, and reach out to the most open-minded and curious. And I am at that stage in my life where I don’t care about BOD politics and water-cooler gossip. Nor do I offer fake flatteries to CEOs…
BTW, my compensation is 100% success-based, and my interests are fully aligned with the companies I serve. If I don't bring new revenues, I don't get paid… It’s like bringing a quasi “Co-CEO” on board – but without any salary or stock options.
VAA vs. SmartAB? - Different Strokes for Different Folks…
When companies seek significant growth acceleration and when TIME IS OF THE ESSENCE – I find the execution of SmartAB? Venture Agency Agreements (VAA) to be the most productive…
However, some companies often require more time to execute the VAAs - for various reasons. In all such cases, I recommend an inexpensive subscription to SmartAB? - to start the process…
Subscribing to SmartAB?can be considered a stepping stone toward defining, reviewing, and executing customized VAAs. And whether the transition takes 3,6, or 12 months to get there… so be it.
Regardless of whether it’s VAA or SmartAB? - one can terminate my engagement at a moment’s notice. No severance pay, vacation pay, or vested equity to deal with. Below is a summary of both options:
Venture Agency Agreement – The Ultimate Growth Strategy
1. VAA’s TERM can be canceled or extended at any time. You are not locked in, and it is not exclusive.
2. We will assist through all stages of strategic planning - aiming at delivering rapid commercial growth, enhanced operational efficiency, and adequate financial controls. To do so, we will:
a. Review existing collateral such as investor presentations, corporate presentations, pitch decks, and business plans – in addition to revising such documents if needed
b. Recommend innovative, profitable, unique, and highly effective business models
c. Assist with business development and brand enhancement efforts leading to generating new and untapped revenue streams
d. Advise on using suitable AI technologies, Machine Learning & Data Analytics
e. Facilitate the creation of suitable data rooms in preparation for Legal, Financial, and Technical Due Diligence by prospective investors
f. Assist in obtaining both: indicative and binding Term Sheets and with negotiations of definitive agreements with investors
g. Help approaching new and non-existing customers to explore innovative product/market fit
h. Increase the profitability of an existing business, add new capabilities to an existing business, and explore opportunities beyond the existing business
3. Hands-on assistance leading to:
i. Overcoming existing challenges brought to my attention
ii. Maximizing monetization of innovation efforts
iii. Getting the most out of disruptive marketing strategies
iv. Boosting operational efficiency
v. Capitalizing on recommended brand enhancements
vi. Increasing revenues, reducing costs, and securing access to untapped pools of growth capital such as Venture Capital (VC), Corporate Venture Capital (CVC), Capital Pool Companies (CPCs), SPACs, SPVs, etc.
4. Our compensation:
a. We will be entitled to a Success Fee only on new revenues, grants, and proceeds received by the company – directly resulting from our efforts.
b. A one-time Expense Coverage Deposit (“ECD”) will be charged upon signing the VAA. Such a retainer will be fully credited toward future Success Fees.
SmartAB? - Exponential Growth Subscriptions
The ability to share my past experiences with other entrepreneurs is essential to me. Yet until now, tapping experienced advisors wasn’t easy. It was too costly for many startups that were low on cash. And equity-only compensations were often not attractive enough to draw in the rainmakers…
Welcome to SmartAB? Entrepreneurial Wisdom – a radically innovative Advisory Board service offered as a LOW-COST MONTHLY SUBSCRIPTION. At first glance, SmartAB? looks like any other subscription model: you subscribe, pay your monthly subscription fees, and get a slew of significant benefits in return. However, one small detail turns SmartAB? on its head: we transform the costs of your subscription into a… profit center.
The low monthly cost is symbolic. It separates the wheat from the chaff and ensures that companies take our advice seriously and are committed to honest, pragmatic, and direct interactions.
Essentially, SmartAB? offers the benefits of bringing a C-Level Coach on board to act as a “Co-CEO”– for as long as needed. But it comes without the downside of matching salaries, stock options, and termination pay.
After the 1999 market crash, many brilliant business plans didn’t work anymore. Similarly, the 2022 economic downturn caught many CEOs by surprise. So, how can open-minded companies benefit from the KEE (Knowledge, Experience, and Expertise) offered by entrepreneurs who overcame the dot-com pain?
The best way for me to earn companies’ trust is through low-cost subscriptions to SmartAB?. After all, trust can't be promised; it must be earned. SmartAB? lets me thoroughly understand where the companies are now and where they want to be in the future. Only then can I bring the right KEE to help them get there…
Canada Green ESCO Inc. helped hundreds of entrepreneurial companies to succeed. And now, as a Moonshot Factory, we also deploy our own startups. To date, we have finalized the plans to launch 4 such ventures and are eagerly anticipating the post-crash recovery of the VC markets. And when the launch happens, we will also introduce PROFIT SHARING with paid subscribers to SmartAB? - using revenues generated by our Moonshots.
So, in effect, we help subscribers launch innovative startups AND piggyback on the successful moonshots we deploy… In addition, Founder Level subscribers to SmartAB? are entitled to execute a VAA with NO ECD - as their annual subscription fee will be credited toward such a payment. Below is a Benefits Table of SmartAB? subscriptions. It includes:
For additional details, please see the SmartAB? narratives attached to each of my SmartAB? posts.
What Are Our Subscribers Looking For
After thousands of Q&A sessions with my SmartAB? subscribers and “subscriber wannabes”, I concluded the following: Most of the subscribers are interested in using my entrepreneurial KEEs (Knowledge, Experience, and Expertise) to “unlock” the untapped REVENUES, secure INVESTMENTS, and obtain BD GRANTS. All else… is commentary.
And to take it further a notch, I emphasized the difference between getting the answers to your business questions AND benefiting from the untapped revenues I bring to your doorsteps... Call it my SmartAB? Pareto Principle or by any other name. The important thing is to remember the relevance of the following chart:
This led me to the introduction of a SmartAB? Venture Agency – which can be further summarized below:
? As your SmartAB?Advisor - I will ask you questions you didn't think to ask...
? As your SmartAB?Venture Agent - I will bring you the revenues you didn't know existed…
If you still wonder what SmartAB? stands for, the following will help: Every strong BRAND can be described in just two words. For example:
? McDonald’s = FAST FOOD
? Walmart = LOW PRICES
So, what is SmartAB? all about? In 2 words, it’s all about Profitable Entrepreneurship or Entrepreneurial Wisdom - your pick! And it is all about my ability to share a unique blend of AI technology and business skills - encapsulating know-how, acumen, and AI aptitude…
At first glance, SmartAB? subscriptions look like all other subscription models: you subscribe, pay your monthly subscription fees, and get a slew of significant benefits in return. However, one small detail turns the SmartAB? model on its head: we transform the costs of your subscription into a profit center.
And in no time, the companies will realize that SmartAB? addresses many of their challenges. It all starts with the radical departure from the status quo and the creation of brand-reinforcing narratives about:
? OPM (Other People’s Money) Strategy – to utilize smart Joint Ventures (JVs) in a way that offers strategic advantages to you and your JV partners
? The Push-Pull Strategy – to avoid the common mistakes and stop focusing just on pushing the product out the doors, while losing 70% of the untapped revenues
? The Arbitrage Strategy – to create reliable long-term hedges and permanently de-risk the ROIs
? Co-CEOs – to double profitability by using SmartAB? as a Co-CEO in Residence…
? Business Development Innovation - to convert Business Development COSTS into PROFIT centers. And so much more
Therefore, SmartAB? is designed to overcome serious challenges and it fits all the fundraising stages:
? Pre-Seed Stage – our services are offered as low-cost Monthly Subscriptions
? Seed Stage – our services are offered as Founder Level Subscriptions
领英推荐
? Post-Seed Stage – our services are offered under Venture Agency Agreements - uniquely tailored to meet and exceed pre-defined milestones
All our organically grown startups are designed to deliver highly diversified, multiple revenue streams, and early profitability. And I’ve been saying it for years: imitation works best in karaoke bars, not in business.
To escape the competition, businesses need to constantly reinvent. So, open-minded companies can now subscribe to SmartAB? on Substack and turn their Business Development costs into… profits.
I have no doubt, SmartAB? improves the decision-making process by helping the CEOs to consider different perspectives. So, I keep reminding the CEOs the following: There is not a single top athlete who does not have a coach. And yet, only 20% of CEOs are coached by Advisors. The other 80% - may never become the top performers they could have been. Thus, my advice to CEOs: “Amateurs don’t use coaches, professionals do… and so should you”...
And to reinforce the above:
? All the top athletes use sports agents…
? All the successful movie stars use movie agents…
? All the accomplished writers use literary agents…
? So, it’s time for the Moonshot CEOs to start using VENTURE AGENTS…
The best way for us to earn companies’ trust is through low-cost subscriptions to SmartAB?. After all, trust can't be promised, it must be earned. And SmartAB? lets me thoroughly understand where the companies are now and where they want to be in the future. Only then, I can bring the right KEE to help them get there...
How Venture Agency Was Born…
Essentially, it all started by categorizing the entire VC industry as below:
? VCs – are Quantitative Investors, with the main focus on increasing ROIs.
? CVCs – are Strategic Investors, heavily influenced by the internal needs of the parent company.
? VC Studios – are Qualitative Investors, offering hands-on involvement focused on creating and launching Moonshots
To me, hands-on means just that. VC Studio partners don’t just accept startup pitches and business plans landing on their desks. They are fully committed to the process and participate in all stages… They roll up their sleeves AND have their own skin in a game – demonstrating the highest level of COMMITMENT…
And as they say: what can the proverbial analogy to bacon and eggs teach us about COMMITMENT & PARTICIPATION? Well, you can say that the chicken PARTICIPATED, but the pig was definitely… COMMITTED. And so are the partners of VC Studios…
And as I mentioned at the beginning of this post, Warren Buffet once famously said: “Predicting rain doesn’t count; Building arks does”. And to me, this would be equivalent to saying that VCs just watch the founder and analyze how he uses the hammer.
On the other hand, Studio VCs… NAIL THE ARK’S LUMBER JOINTLY WITH THE ENTREPRENEURS, side by side! So, my advice? Better source the best lumber and the best carpenters - for the stormy weather ahead…
But wait, are these the only options? Not really. Perhaps keeping a huge equity stake in a startup by VC Studios makes a lot of sense – right after originating the idea and validating product/market fit. However, when the offering is pitched to VC Studios by a gifted entrepreneur – the model that works well for organically grown ventures needs to change…
Well, SmartAB? can be viewed as a unique intersection between VC Studio and Entrepreneurial Agency. You collect the same benefits but without the most obvious drawbacks. So, in essence, SmartAB? is a new class of VC industry – which I invented and called a SmartAB? Venture Agency…
The advantages of SmartAB? Venture Agency can be described as follows:
? You Keep Your Equity… All the innovative startups subscribing to SmartAB? will keep their equity intact. We offer hands-on involvement but without asking for ANY ownership - the way VC Studios do.
? You Are Not Locked-In… In many cases, Entrepreneurial Agencies demand extensive locked-ins in exchange for their services. Subscriptions to SmartAB? can be canceled at any time. No Ifs or Buts…
Better yet, SmartAB? & Venture Agency Agreements can be summarized in just 4 points:
? Our 80/20 Rule…
o Entrepreneurs need REVENUES the most. It covers 80% of their needs
o Everything else combined counts merely for the remaining… 20%
? Time Is Of The Essence
o Instead of EDUCATION, we focus on delivering untapped REVENUES, obtaining GRANTS, and raising EQUITY
? Stop Learning, Start Earning
o You don’t have time to read yet another eBook
o And do not sign-up for additional 12-week courseware
? We Are 100% Success Based
o Yet we are not asking for EXCLUSIVITY. Hence, we require Expense Coverage Deposits (“ECD”)
o All ECDs are fully credited toward future Success Fees
Please keep in mind that I receive several “equity-only” offers to join Advisory Boards per week. And based on years of experience in structuring Project Finance solutions for the Cleantech industry, Canada Green ESCO made a formal decision to utilize the VAA format for the following reasons:
1) Learning from the past - CGE used to offer 100% success fee services with no ECDs - linked to the financing of utility-scale renewable energy projects. In some cases, we worked for 3-6 months to deliver a binding term sheet to our clients. And yet the clients still chose inferior financing from their past contacts or family ties. Also, without the ECDs in place (expense coverage deposits), some of our clients would disappear for weeks on their trips to China - leaving us unable to communicate with proper urgency.
This reflected poorly on our professionalism in front of pension funds and other lending institutions. We were not compensated for our efforts, so at such time - my BOD decided to never let CGE face such a situation again…
2) You are not locked in – our VAA allows you to cancel the engagement at any time. If for whatever reason, you are not satisfied with our advice – the VAA can be terminated. Besides, the initial retainer, Expense Coverage Deposit (ECD), is fully credited against future success fees - so you’re not paying twice...
3) Red flags – companies that CAN’T make ECD commitments, do not inspire huge confidence going forward. Perhaps, it’s just too early to bring and engage a proper Advisory Board and Venture Agent. So, I would rather revisit our discussions at the time when the situation changes…
4) Data analytics – most of all, we learned to rely on our statistics collected over the last 12 years. Among all the companies that accepted our VAA framework, only 12% were delinquent in paying our Success Fees. The delinquency rate grew to a whopping 72% among the companies we agreed to help - but w/o executing the VAA. This is 6X more aggravations we are no longer prepared to accept…
5) ECDs and Exclusivity – in similarity to our Cleantech financings in the past, the following rule of thumb concerning the ECDs and Exclusivity, applies:
? If our VAA includes EXCLUSIVITY clauses – there is no need for ECDs
? Without the EXCLUSIVITY – our VAAs will always include the ECDs
And to all the entrepreneurs who emphasized how some of the advisors or agents are prepared to work with them for free, I say the following: “If you can tap equally encompassing Entrepreneurial Wisdom? at no cost – take it!. But keep in mind that you often get back… what you paid for”.
In Summary
I receive between 10 to 15 business development offers and requests for advice each day. And this is EXACTLY why I introduced SmartAB? and Venture Agency Agreements (VAA). Both options are designed to ensure that all my engagements are offered to PAID SUBSCRIBERS only….
VAAs are 100% Success Based, and the main difference between VAAs and SmartAB? can be summarized below:
? SmartAB? - is your KEE (Knowledge, Experience, and Expertise) to entrepreneurial excellence we nurture…
? VentureAgency? – is your KEE to the floodgates of new & untapped revenues we deliver…
As your SmartAB? Advisor, I ask you questions you didn't think to ask... And as your Venture Agent, we bring you the revenues you didn't think existed.
Comparing DIY advice from a run-of-the-mill “business consultant” to the help you will receive from SmartAB? Venture Agency - is like comparing a cheap digital watch to an iWatch. They both tell time, but there is so much more that iWatch has to offer…
My advice? If your SECRETARY deletes SmartAB? email – fire the SECRETARY; If your ADVISOR ignores SmartAB? advice – replace the ADVISOR; If your CEO disregards SmartAB? recommendations – dismiss the CEO...
In a not-so-perfect world, SmartAB? Venture Agency is your stepping-stone to Profitable Entrepreneurship…You can disregard my advice all you want. But at some point, look at yourself in a mirror and ask: how well is your existing strategy working for you? Unlocking opportunities with our KEEs (Knowledge, Experience, and Expertise) - is what we do… Delivering REVENUES & PROFITABILITY – is what we deliver…
For More Information
Please see my other posts on Linkedin, Twitter, Substack, and CGE’s website.
AI Boogeyman
You can also find additional info in my hardcover and paperback books published on Amazon: “AI Boogeyman – Dispelling Fake News About Job Losses” and on our YouTube Studio channel…
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