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Fastest Growing Private Companies: Manage Your Risks to Yield Rewards, Part I

ABD was recently recognized as one of the Bay Area’s fasting-growing private companies.  If you lead a fast-growing company, congratulations!  The rewards can be many: an expanding customer base, a growing workforce, greater brand awareness, market credibility, better access to capital, and increasing shareholder value.

Whatever rewards you are seeking, your strategic planning process should include an evaluation of the risks associated with these rewards.   The reality for emerging companies is that, rightly, two risks receive the lion’s share of attention: capital risk and product risk.

Capital risk.  Whether funding a product launch, building a sales organization, or entering a new market, fast-growing companies require capital.  Companies that effectively manage their cash to profitability or to the next funding milestone will realize the reward of increasing shareholder value.  And companies that increase shareholder value will have greater access to capital.

Product risk.  Just as capital risk is critical, the other fundamental risk on the minds of fast-growing company leadership is product risk.  Companies that bring a product to market on time, on budget, with the right feature set, and with excellent service will realize the reward of engaged customers.  And companies with engaged customers will build better products.

It is understandable that capital and product risks are on the mind of the entrepreneurial leader.  If you run out of money, the product doesn’t work, or the service stinks, nothing else matters, right?  Well, yes and no.  Yes, managing cash flow, managing to milestones, managing product development and managing service are the core objectives.

But, once you address these operational imperatives, other risks come into play that warrant attention.  Over the following posts, we will look at:

1.      Attracting and retaining employees and key management
2.     Managing the risks of customer claims of financial loss
3.     Expanding globally
4.     Protecting and securing data
5.     Managing risks of supply chain interruptions


Kurt de Grosz

About the author

Kurt de Grosz

Executive Chairman

Kurt de Grosz is the Executive Chairman of Newfront. Specializing in team building, brand development, innovation, and customer acquisition, Kurt believes Newfront's people, ethos, and core values will build the next great independent insurance brokerage operation.


The information provided is of a general nature and an educational resource. It is not intended to provide advice or address the situation of any particular individual or entity. Any recipient shall be responsible for the use to which it puts this document. Newfront shall have no liability for the information provided. While care has been taken to produce this document, Newfront does not warrant, represent or guarantee the completeness, accuracy, adequacy, or fitness with respect to the information contained in this document. The information provided does not reflect new circumstances, or additional regulatory and legal changes. The issues addressed may have legal, financial, and health implications, and we recommend you speak to your legal, financial, and health advisors before acting on any of the information provided.

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