Entrepreneur Profile

EC: Briefly describe the product or service your company provides.

SRL: Produce and market, for Europe, a bioremediation product for hydrocarbon elimination. The product is patented and approved for use in USA.

EC: What is your role in the company?  How many people in your founding team and what are their roles?

SRL: We have a very small structure. I started the business alone getting a license agreement from the company (USA) that owns the formulation of the product. Then we partner with a Venture Capital Company. I continued alone for 6 months. After that, we incorporated a technical person to help me (he is not on the pay roll, he works as an independent consultant with 50% of the salary based on company sales).

EC: Current stage of development:

SRL: At present, one year and half after we started with the company, we have tested and sold the product in several markets. We have tried many things with different customers looking for new opportunities and places where to sell our product. After all this we are now starting the “focus” stage, this means concentrating all our efforts and resources in the areas which we where successful before (2 out of 8). We are also changing the product composition to try to create a new product which will cover the other 6 areas where we have not been successful before.

EC: What do you consider your greatest achievement?

SRL: In this question I have two with great importance. One has been to do everything necessary to be elected by the Government as the only bioremediation product to be used in the Prestige Spill Clean Up. The second one is to be able to make profit 3 months after the venture capital joined in.

EC: What do you wish you could do over again knowing what you know now?

SRL: I would have liked to start the “focus” stage much earlier than I did.  But for this you have to know the market and the product very well… this took us one year.

EC: What do you find the most satisfying about your life as an entrepreneur?

SRL: The most satisfying for me is taking my own decisions and assuming the risk.  If it works it was me… if it fails it was me.  The good thing (and especially in a small company) is that you can make your ideas work… it all depends on you!

EC: What is the hardest part of daily life as an entrepreneur?

SRL: For a small company (one person) the hardest part is the loneliness of the manager and the difficulty to get good feedback of the new ideas and approaches.

EC: Would you do it all over again?

SRL: Yes, but I would get someone with experience and contacts in the market from the beginning!!!

EC: If you sold or shut down your business, what was the most important thing you learned?

SRL: Running a business is nothing like an ordinary job.  You have to do everything (secretary, accounting, salesman, manager, etc..) The most important thing for me are two. The first is to understand how a company works from all aspects and the importance of making everything work towards the same objective.  The second is the importance of the experience in the market.  Having a partner which has been in the market is important to help you “focus” easier and help you introduce your company into the market (personal contacts).

EC:  Do you have any words of advice for students from the IESE MBA that are considering starting their own businesses after graduation?

SRL: I would say several…..

1. Get people with experience and contacts in the market you are going to start the business.
2. Do not let the person know how you had the idea make the business plan, nor believe in his predictions. They are normally too in “love” with the idea and their view is not objective.
3. Be very flexible and creative in the search of solutions for problems. Normally the business plan does not work 100% as planned and you have to find new solutions to make the company work.
4. Do not only look at the total cash flow and when do you or your investors recover the investment.  For a new company a very important point is when your monthly cash flow is zero.  At this time you are in a “surviving mode” which is important because it can keep your company alive until your sales increase or you make your place in the market.
5. Always look for Venture Capital. They will give you three important things:
   • Money to keep running the company longer than if you are only with private money.
   • Give you an objective view of your business plan. They are not in “love” with it so their view is always good.
   • They will bring contacts which will help you in different areas (for example our VC gave us contacts for suppliers and customers).
6. A must of the business plan is your salary. You need to be paid so you can survive (and pay your loans) for the next two years.  If not you have a big chance to close the company too early.
7. To start up a business is risky but attractive; and also normally limited in the times you can do it. If you think you have a good idea, a good business plan and an “entrepreneur soul” start a business!  If not, wait till you have them…

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