The trials of Start-up Jack
It felt like the ground was shaking beneath his feet, but he gritted his teeth and held on. His mind was made up; there was no backing down now.
Yes, seven out of ten start-ups get shot down in flames in their first year, but that wasn’t going to stop him chasing his dreams.
Yes, his friends had all started looking at him funny, since he announced that he was quitting his job and going it alone, but so what?
This was his life and he knew where he wanted it to end up.
He poured himself another coffee and ran it over in his mind for the 4000th time that day.
It went like this:
The good: He had access to a ready market and a number of quality people lined up to join him on his new venture. His business plan felt sound.
The bad: He needed bank support and would have to get it somehow. Then there was the little fact that he and his key team were all constrained by restrictive covenants.
The ugly: He was all on his own and struggling to bring the whole plan together.
He needed help.
His phone beeped. He looked down at the message again from his old friend Existing Eddie. Four words:
Call O’Byrne and Kennedy
He put down his coffee and started dialling. The rest, as they say, is history.
O’Byrne and Kennedy formed a company for Jack and advised him on the tax implications of owning the shares and of giving them to his future co-shareholders. Surprised by the potential tax liabilities associated with getting this wrong he was delighted with the solution.
O’Byrne and Kennedy prepared formal financial forecasts in a way that was more acceptable to a bank. They even did some simple sensitivity analysis and provided this to the bank to save them from having to do it themselves.
O’Byrne and Kennedy challenged Start-up Jack’s business plans but found that they were basically sound.
O’Byrne and Kennedy introduced him to, and met with, lawyers to address his restrictive covenants issues and those of his potential recruits.
Next, a bank O’Byrne and Kennedy introduced Jack to were forthcoming with the finance.
Finally, the business started.
O’Byrne and Kennedy helped Jack design his accounting and financial reporting system and provided training to his book keeper.
O’Byrne and Kennedy helped him plan his remuneration and dividend strategy around the company’s banking covenants.
“O’Byrne and Kennedy” thought Jack, years later as he laid back in his hammock looking up at the starry Californian skies, chuckling to himself.
“O’Byrne and Kennedy.”