Consulting Services – Strategic Management for Investment Type and Going-Concern Type Companies
The Plans
All businesses, including boutique investment firms managing internal money, should have a written business plan. Just as any house must have a blueprint or any car have a prototype, all businesses should have a plan. It’s a framework or spine, for your current and future organizations, before the virtual private network is installed. Most documents between you, your partners and your investors will be guided by your company’s business plan. A compliance manual will be based from your business plan. The operating manual will be based from your business plan.
An Omega Edge typical plan is structured as follows:
Concept
Mission Statement
Operating Plan Summary
Firm Identification
Management Description
Operating Procedures
Facilities & Layout
Vendor Requirements
Application of the Business Model
Industry & Competitor Analysis
The Milestones
Thinking forward across the organization we want to think about points when your group hires a dedicated analyst or brings on a full time COO / CFO. This demonstrates to your investors that you anticipate growth and how you plan to fill out the infrastructure. We will implement ways for you to track the performance of the firm, whether it’s organized as a general partner sponsor (investment type) or a corporation (ongoing-concern). This way you can assess the proximity to each of the firm’s growth milestones.
Continuity
Investors will want to know your firm’s continuity plan is or will be for the management company behind the fund. Economic incentives among existing or future partners matter to limited partners (LPs) who will look for greater transparency into the how decisions are made inside a partnership and who has the final decisions on investments. A sound operating agreement can achieve that. We can help.
For ongoing-concern companies, continuity is important but transparency of the machinations of operations and self-awareness of the business model will be important to future stakeholders. The economic moat supporting the investment thesis must be communicated clearly and succinctly to later stage investors. As the company grows the ink will dry on the nexus of contracts behind the development of the firm.
Investor Relations and Communications
One of the keys to refining the communications strategy is to focus on attracting long term investors or stakeholders to your business. Some may exit prior to maturity, either in a drawn down or in a down market in the case of investment types, or exit at later stages for the going concerns. Setting expectations is critical to maintaining good relations with LPs or with shareholders. Communicate your strategies in a clear, concise way so as to not only set yourself apart from the pack, but find those partners and investors who will trust your organization with their capital over a long time horizon.