Clients of Headwaters Strategy typically are companies that are developing and marketing new products or technology. Some are startups, while others have been in business for a number of years and are at a strategic crossroads as an enterprise.

I work side by side with entrepreneurs to prioritize the issues they need to address, analyze the options and implement practical approaches. I am one of the few business consultants who understands science and technology. I will know what you mean when you discuss composite materials, catalysts, infrared spectra, or motion sensing technology. I am familiar with what it takes to bring inventions out of the lab and into the market.

Together, we can ground your creative ideas in solid numbers, develop strategies to limit risk, figure out how to finance your growth, determine the best ways to build and motivate your team, and at every turn embed your vision in the fabric of your company.

Principal services are summarized below.

Strategy

I am a seasoned strategist, integrating product, market, legal, financial, and organizational considerations. Headwaters Strategy helps:

• Evaluate principal market strategy choices, such as whether to focus on certain vertical markets, how to set levels of pricing and types of pricing, and what services to offer.
• Guide entrepreneurs through analysis of comparable companies to gain intelligence and benchmarks.
• Guide clients through market analysis, which may include visits or interviews with potential customers, R&D partners, industry specialists, and competitors.
• Educate entrepreneurs on the benefits and pitfalls of licensing technology.
• Determine which strategies could lead to successful relationships with investors.

Quantitative Modeling

I train entrepreneurs to ground their business in quantitative analysis. With my assistance, clients build Excel models of their businesses and analyze different strategies. Strategically, models are used to gauge the level of new business initiatives a company can manage both financially and organizationally. Specific operational intelligence that drives stronger profitability is derived from the models at the same time. For example:

• A software business analyzed pricing strategies.
• A medical technology company analyzed different royalty structures for a corporate R&D partnership.
• A manufacturing business analyzed profitability by type of project, resulting in substantially improved profitability and efficiency.
• An environmental company gained understanding of economies of scale operating a complex web of equipment, people and animals in the field.
• A software company tuned up its expectations for its sales people based on a quantitative understanding of the dynamics of the sales pipeline.
• An outdoor products company developed financial performance standards by product, which, with related operational changes, added ten points to the gross margin.

In addition to strategic intelligence, the quantitative models produce the financial projections needed for business plans, budgeting and managing banking relationships.

Structure Financial Transactions; Negotiations

I bring an intricate understanding of financial transactions to entrepreneurs to enable them to:

• Value their companies for equity transactions.
• Structure and negotiate equity and debt transactions, including buying and selling businesses.
• Establish banking relationships.
• Set up stock option plans.

I enable clients to expand their networks in order to locate capital that matches the company's needs and to develop relationships with investors who have the potential to contribute positively to growth.

The analysis of business opportunities is the foundation for negotiations. I develop proposals, term sheets, and draft contracts as needed, while coaching clients through negotiations.

Business Plans

Headwaters Strategy views business plans, not as something you write, but as an analytical process that helps you make sure that you've asked the right questions, talked to the right people, and looked creatively at your options. A plan that is cogently written helps attract investors and key employees, but the underlying concepts and plans must be absolutely solid. Headwaters Strategy typically leads the client team through analysis, writing, presentation of financials, and development of presentation slides. I coach founders on presentation skills and what to expect from investors.

Building the Company; Coaching

Business owners find that they consult with me on a wide range of issues related to building their companies. Many entrepreneurs have never been a CEO, and some have not worked directly with a CEO who might serve as a role model. I have particularly deep experience coaching technical founders as they learn about finance, corporate organization and business strategy. With my assistance, they:

• Structure their team and determine key qualifications.
• Prioritize the areas of the company to develop, based largely on knowledge gained in quantitative modeling.
• Manage board and investor relations.
• Develop networking and presentation skills.
• Become adept at negotiations.

Technology Licensing

Over the past 30 years, I have handled dozens of technology licensing deals, including many from conception through implementation. Licensing involves a complex web of legal and financial issues, all on top of technical development and/or marketing processes that are uncertain. I teach entrepreneurs how to:

• Analyze the potential for licensing in their situation.
• Determine who might be possible licensing partners, how to gain introduction to good prospects, and how to sell the concept.
• Develop a proposal that takes into consideration the interests and fears of both parties.
• Negotiate the contract.
• Manage the relationship.

All this being said, many changes, particularly acquisitions, layoffs, promotions, and strategic shifts involving the partner can derail the best licensing agreements. Therefore, I also coach people on methods of decreasing their risks.

Working Together

Headwaters Strategy recognizes that entrepreneurs operate with limited resources. I therefore structure the work to leverage as much time as possible of the entrepreneur and other staff members.