My company was 5 years old. We were still involved in health care, but this was the heyday for water and water treatment. So, that portion of our business skyrocketed.
And, this was about the time that Bernie Goldhirsch started inc Magazine and Arthur Lipper III started Venture Magazine. These were the magazines that entrepreneurs and wannabe entrepreneurs devoured. Bernie, who was an MIT grad, decided that he could gain notoriety and stature for his magazine by promoting the 500 fastest growing entrepreneurial companies in the US.
You guessed it. We were among the first on that list- for three years running . But, by then, I had decided that this was the wrong measurement. Who cared if you kept growing a firm by 100, 200, or 300% a year? I cared a lot more if we grew our firm’s BOTTOM line by that value.
And, that was about the time that Arthur Lipper was trying a different method to grow the notoriety of his magazine. He had started a group called the ‘Association of Venture Founders (AVF). A simple premise- it would be a group of entrepreneurs who grew-and wanted to grow- business. The lifeblood of America.
I became an enthusiastic devotee. And, it was a great ride. We had wonderful speakers. But, more importantly, we traveled to individual member’s locations, worked with them on their problems, and served as ex-officio Boards. We all learned – because it is easier to see someone else’s problems (and blind spots) than our own. But, by seeing what their scenarios involved, we could apply these learnings we acquired for our own uses.
With time, Arthur and I became friends. No, he became my mentor. By now, I was involved in the development of a new device that would produce microbe-free and chemically pure water for the home market. BioFiltration Technologies was going to offer a device (about the size of a toaster oven) that would provideo outstanding drinking water for a family of 8.
And, had not the underwriters of this venture “borrowed” the funds they raised, we probably would have asked Arthur to be on this company’s board. But, after a few harrowing months, it was clear to the authorities that we had nothing to do with this fraud. And, Arthur, who owned his own seat on the Big Board, had lots of words of wisdom to share in this escapade.
By the early 1980’s, we had become involved in the development of a new dialysate (for hemodialysis). One that was biologically and chemically more in tune with the physiology of the patients. We convinced Arthur to serve on the Board of Bicarbolyte. Our company was going to take the dialysis business by storm.
Arthur offered his time and advice on a monthly basis in person. He helped me- and my team- stay attuned to our mission and vision, even as we outgrew 8 business plans. Yes, we exceeded the goals routinely. And, no, we were not lowballing.
Which brings up the perennial problem of skyrocketing businesses. CAPITAL. And, Arthur offered advice in this area as well. (Maybe it’s time to tell you that for a year or two, we were turning over inventory 24 times a year. Given that we had a 7 day incubation hold and a 3 day testing period for our product- and we didn’t work weekends or holidays), you can see that we were running a tightly organized, efficient, and cash-scrounging operation.)
And, one of Arthur’s best pieces of advice that is shareable was how we were positioned in the marketplace. We were considered the high quality upstart. But, as Arthur said, the only difference between us and our competitors was that they had three more zeroes associated with their enterprise. That let them make mistakes that would crush us.
Thanks, Arthur, for being there- and making sure we weren’t crushed.
(Oh, and Anni- I don’t forget your help, either!)
This is the week of thanks. I am honoring my mentors.
Cary Rollner- A big brother of sorts
Arthur Lipper- The 3rd is the charm!
