Here’s the third reason Ironheart was founded: V* = F x A
We’ve heard it time and time again from the investment banks, accountants and lawyers we work with as they go into a new mandate or engagement: some dimension of the above formula is coming up short.
As a result, even though the company is on the cusp of its own extraordinary trajectory, it will likely instead achieve something sub-optimal:
Sub-Optimal = Doing a smaller capital round than necessary; or
Sub-Optimal = Not being able to find the right suitor (or having to settle on less than favorable terms); or
Sub-Optimal = Settling into the group of also-rans on a major tender.
Here’s the simple formula broken down:
First, ‘F’ represents the Business Fundamentals, and getting them right.
It means ensuring that the financials are not only fairly reported and compliant – but that they provide meaningful insights into key trendlines and performance indicators – and clearly demonstrate where this company is or can be competitively differentiated.
It means ensuring that the operations are tight.
It means sales and marketing are getting it done.
It means engineering and R&D are finding better ways of doing things day-over-day, whether that means generating new potential revenue streams, or improving delivery efficiency, or creating new IP with high potential asset value.
It means the company’s key personnel have the ability to hit above their weight.
Then, there is the ‘A’, which represents the Art of Storytelling.
This is not a ‘C’ for Creativity, or an ‘E’ for Embellishment, or a ‘BS’ for…
Rather, ‘The Art’ is about synthesizing the story of the business in a way which is persuasive. Which clearly articulates the core themes and differentiators. Which is rich in imagery and stories that reveal the uniqueness of the business.
This is the craftsmanship in which great companies, both large and small, differentiate themselves as special and exciting and where the future lies. This is where they find language that piques and visuals that excite. The Art is telling the story of the business that engages, both logically and emotionally.
The Art is also about ensuring that the spokespeople for the company in pursuit of its Extraordinary are well-scrimmaged, with the ability to tell the company’s story concisely, clearly, and with enough poise to manage the inevitable tough issues and zingers thrown from the crowd.
The product is V*.
V* is what happens if F and A get together well (and the ‘magic’ happens). The result is greater competitive interest, improved strategic options, better deal terms, and increased enterprise valuation.
The V in V* represents Value, and the little * is the exponent on that value by getting both the F and the A right. It can be a few basis points, or it can be multiples.
V* is a bigger pie, and its size is directly dependent upon your company’s magic.
Ping me at firstname.lastname@example.org to amplify your company’s magic.