Last week (1/15/2009) a US Airways plane crash landed in the Hudson River. The pilot and co-pilot are being hailed as heroes - in addition to the ferry boat crews who reacted quickly. The members of my real estate class were discussing the incident and one had commented that the pilot was now "un-insurable" - that apparently no insurance company would cover him since he would be considered too high a risk since he has crash landed a plane.
The fact that he crash-landed "successfully" (i.e. no fatalities) would mean, to me, that he was the BEST insurance risk. He has shown his mettle in the face of adversity. If I had a choice between a new pilot who has flown less than 100 hours and has never had to deal with any plane issues and pilot Chesley Sullenberger III - it is very obvious that I am going with "Sully".
This is the problem with statistics. Statistics "would show" that Sully is a risk, but reality supports that Sully is a GOOD risk. When Verify-ED applied for angel investment, it was to our advantage that I had run a business in the past. It was even more advantageous that the business failed. The (correct) thought is that I am a better risk because I have already felt the sting of failure and most likely don't want to feel that pain again. It is a true assessment. The experience of owning Black Tie Tuxedos gave me the tenets by which I went into Verify-ED. As a result of Black Tie Tuxedos, I knew that I would not do a business as a sole proprietor (too much work for 1 person - especially a person with 3 children), I would NOT manage inventory or have crazy overhead costs, and that the market is receptive to the services I provided. Verify-ED fit all of the criteria and that is why we are here.
I am so glad that the investment community gets it - that an entrepreneur who has experienced setbacks is a great risk. Most people don't want to have multiple failures - and I am among that most.
Sully, I offer you a job to be the pilot of the private jet that I will own within the next 10 years - when Verify-ED is basking in the success that was built on the support received from investors who knew we were worth the risk. But then again, Sully will be 68 and most likely he will be in the Florida Keys somewhere living off the proceeds of the book he is sure to ghost write and those talk show circuits. Not a bad ending for "un-insurable".
Showing posts with label investment. Show all posts
Showing posts with label investment. Show all posts
Friday, January 23, 2009
Saturday, April 5, 2008
The Verify-crED Journey
We are getting ready to launch a new service called Verify-crED. As with Verify-ID (which is the reason Verify-ED even exists and I am sure I will explain more in the future), we came across an unmet need and decided to create a solution. Verify-crED allows job seekers to verify their own credentials and present a read-only view of the verification details to a prospective employer. Like many ideas, it is very straightforward and there are benefits for both sides of the hiring equation.
So - we have a great idea, a product nearing the end of development and various opportunities. What to do next? Well, one of the first things we have done is get much needed support. Since our product is innovative we decided to hire college interns. I have to say that the process of finding an intern who would be a true contributor to our company was not easy. I have conducted sessions at colleges about what employers seek, and I am saddened by the sea of uninterested faces. I keep trying to remember what I was like as a last year student, and I remember being ambitious even back then. So I wonder what these students are truly expecting when they get out there in the "real world".
I like to tell people about our hiring process. We post our intern positions through the college employment sites. When an applicant expresses interest, I always respond with 3 basic questions that "test" whether they even know what we do. It is so sad, but 9 out of 10 applicants never even answer the questions. This indicates that they are just throwing out their resumes hoping that one "sticks". No thought is even put into how the position will support their future career aspirations.
I am so happy that we have found a couple of interns who are not only interested in what we are doing, but willing to do the work involved in launching Verify-crED. It is a skill to recognize return on investment for the things that you do, and I am always impressed when that skill is exhibited in someone younger that 30.
So I met with our interns on March 31st and they hit the ground running on April 1st. On April 1, I conducted a presentation to fellow supplier members of the Council (NY & NY Minority Supplier Development Council). It was a co-presentation done with an awesome, knowledgeable presenter who represented Customized Benefits Solutions, Inc., an employee benefits and HR services provider. Her presentation was very informative and the attendees really received great information about how to approach their hiring process. I also believe that my portion of the presentation was well-received, and I greatly enjoyed the delivery (even with my "costume malfunction" at the end). I am constantly looking for more venues to talk about background screening and how it is one of the best, inexpensive ways to avoid potential liability.
As a result of that presentation, we received much interest in our services - and that is the goal. I am very happy that when people hear what I have to say, they realize the task of incorporating background screening is not daunting. This is the way that I like to do sales. I HATE cold-calling, which is a problem since I am the Sales department. One of the first things we are going to do when we receive investment dollars is establish a focused sales force. I - CAN'T - WAIT!
That leads into our current quest - proper financing. I find it interesting that I am reading all of these articles about the ways minority-owned companies finance ventures, and I realize that we have followed the (not-so-good) pattern. We have used expensive credit cards to grow to where we are now. Our revenue has grown over 2200%, but it is still not enough to support both partners. Verify-crED has such great potential to surpass the revenue opportunities that we can realize with background screening, we just have to really get it out there. We are looking at our competitors and determining what we have to do to make more of an impact than they have. We are happy that they don't seem to be on the radar other than in local markets. So, come along for the ride.
So - we have a great idea, a product nearing the end of development and various opportunities. What to do next? Well, one of the first things we have done is get much needed support. Since our product is innovative we decided to hire college interns. I have to say that the process of finding an intern who would be a true contributor to our company was not easy. I have conducted sessions at colleges about what employers seek, and I am saddened by the sea of uninterested faces. I keep trying to remember what I was like as a last year student, and I remember being ambitious even back then. So I wonder what these students are truly expecting when they get out there in the "real world".
I like to tell people about our hiring process. We post our intern positions through the college employment sites. When an applicant expresses interest, I always respond with 3 basic questions that "test" whether they even know what we do. It is so sad, but 9 out of 10 applicants never even answer the questions. This indicates that they are just throwing out their resumes hoping that one "sticks". No thought is even put into how the position will support their future career aspirations.
I am so happy that we have found a couple of interns who are not only interested in what we are doing, but willing to do the work involved in launching Verify-crED. It is a skill to recognize return on investment for the things that you do, and I am always impressed when that skill is exhibited in someone younger that 30.
So I met with our interns on March 31st and they hit the ground running on April 1st. On April 1, I conducted a presentation to fellow supplier members of the Council (NY & NY Minority Supplier Development Council). It was a co-presentation done with an awesome, knowledgeable presenter who represented Customized Benefits Solutions, Inc., an employee benefits and HR services provider. Her presentation was very informative and the attendees really received great information about how to approach their hiring process. I also believe that my portion of the presentation was well-received, and I greatly enjoyed the delivery (even with my "costume malfunction" at the end). I am constantly looking for more venues to talk about background screening and how it is one of the best, inexpensive ways to avoid potential liability.
As a result of that presentation, we received much interest in our services - and that is the goal. I am very happy that when people hear what I have to say, they realize the task of incorporating background screening is not daunting. This is the way that I like to do sales. I HATE cold-calling, which is a problem since I am the Sales department. One of the first things we are going to do when we receive investment dollars is establish a focused sales force. I - CAN'T - WAIT!
That leads into our current quest - proper financing. I find it interesting that I am reading all of these articles about the ways minority-owned companies finance ventures, and I realize that we have followed the (not-so-good) pattern. We have used expensive credit cards to grow to where we are now. Our revenue has grown over 2200%, but it is still not enough to support both partners. Verify-crED has such great potential to surpass the revenue opportunities that we can realize with background screening, we just have to really get it out there. We are looking at our competitors and determining what we have to do to make more of an impact than they have. We are happy that they don't seem to be on the radar other than in local markets. So, come along for the ride.
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