A major decision branch in the Decision Driven® Strategy pattern begins with Equity Model, which I have framed as “What is our equity model? Who are the shareholders of our organization? What do they own, contribute and receive?”
The Equity Model branch is particularly relevant to entrepreneurs, spinouts, joint-ventures and startups (or the business incubators who assist them).
The decisions below Equity Model elaborate the startup strategy (incorporation, funding), end-game (shareholder exit strategy) and organization (governance, org design, leadership, relationships).
Many entrepreneurs are technologists who have limited experience with these broader and somewhat “fuzzier” decisions. This demonstrates the value of a decision pattern; by stating each of these fundamental questions as a “bite-sized” and well-framed decision and providing ~10 criteria to consider, we can dramatically reduce the fuzziness of these decisions and highlight the most important data to gather to accomplish due diligence.
The Equity Model decisions can be applied to non-profit organizations as well.
Filed under: Decision Driven Strategy, Sample Decisions Tagged: | criteria, decision, entrepreneur, equity model, exit strategy, funding strategy, governance, incorporation strategy, incubator, joint venture, organization, shareholders, startup, strategy
