Start-ups and Emerging Growth Companies Need Pfour PfactorsSM to Achieve Success
The Pfour PfactorsSM were developed by JR Parker & Co., based in Charleston, SC, a boutique investment and merchant banking firm serving start-ups and emerging growth companies in the southeastern United States. The Pfour PfactorsSM are used by companies to assess their capabilities, their competitiveness, and their readiness for raising new rounds of capital or entering into merger/acquisition transactions. Venture capital and private equity investors also use the Pfour PfactorsSM to assess existing and potential portfolio companies.
What are the Pfour PfactorsSM?
- Product (or service) – unique, differentiable, compelling and valuable
- Plan – clear, concise, actionable; definitive milestones; both qualitative and quantitative
- People – experienced, energized, incentivized, knowing their roles, functioning as a team
- Pennies (or Pounds or Pesos!) – sufficient permanent capital; planned financial cushion
In our experience, a company that satisfies each of the four categories is highly likely to produce attractive growth and superior returns on invested capital.
Companies that are missing one or two elements (usually Plan and/or Pennies but never Product) have a chance to take corrective action and meet their goals.
JR Parker & Co. works with management teams and investment groups to assess a company’s position in each of the Pfour PfactorsSM and to design and implement programs to address any shortcomings.
J. Randall Parker, President