This week I had the pleasure to interview Robert A. Randick (Bob), partner, Randick O’dea & Tooliatos, LLP.  Bob was one of the founding partners of Randick & O'Dea, an Oakland civil practice and business litigation firm (formerly Spinetta, Randick & O'Dea).
 
Bob's experience encompasses a wide range of practice areas. He has retained an expertise in trade regulation matters and, in addition to antitrust, his complex litigation experience includes major product defect litigation, business fraud litigation and patent infringement litigation. Bob also serves as outside general counsel to numerous small to medium sized businesses in the Bay Area, providing services in the areas of business acquisitions and transactions, business and commercial litigation, executive estate planning, and intellectual property and trademark prosecution and litigation. The attorneys in his firm bypass the “cookie cutter” approach of other law firms and search for more cost-effective and efficient ways to resolve legal issues.
 
In this great interview, Bob gives entrepreneurs valuable advice, especially needed during these challenging times.

Roe:  In your experience, what are the top 3 ingredients driving an entrepreneur’s success?
   
Bob:  This is a simple question with no simple answer possible.  Ingredients for success depend upon a number of variables; including the industry involved the current economic climate and the goals of the enterprise.  If “success” is defined as a solid family owned business that can be passed down from generation to generation, the required entrepreneurial  ingredients may be far different than for a business where “success” is defined as an achievable five year exit strategy.  In general, top characteristics would include an innovative product or service, a realistic analysis of the market and competitive conditions for the product or service over the next five years, a realistic assessment of the amount and timing of required infusions of capital to achieve business growth projections and a strong commitment to the success of the venture, but tempered with the flexibility to make changes if some of the initial assumptions prove to be inaccurate.

Roe:  What are some of the top pitfalls or areas to watch out for?

Bob:  In my experience the skill set required for a successful start-up includes the technical or product expertise, management and financial skills and marketing skills.  Many entrepreneurs believe, incorrectly, that they can excel in all of these areas.  It is important for an entrepreneur to recognize his/her limitations in these various areas and seek qualified assistance.

Another common pitfall is the tendency of entrepreneurs to make undocumented promises of stock or ownership to other individuals.  The decision to give an ownership interest to a colleague is an important decision that needs to be carefully considered.  If retention of an
employee is the object, stock options should be considered or an ownership vesting schedule dependent upon achieving certain milestones.  It is also important for entrepreneurs to understand that an employee can have a compensation arrangement that is based on the success of the business, without being an actual owner.

Roe:  Give us an example of an amazing success or failure that can teach entrepreneurs something?

Bob:  As an attorney I can’t really answer this question because of the attorney-client confidences in our clients’ business activities.  An exit through a merger or an acquisition is generally a private transaction, and generally has confidentiality provisions.

Roe:  Is it luck or destiny or hard work that drives success?

Bob:  Success is generally the product of well reasoned and directed hard work, based on accurate research and valid assumptions; however many success stories have an element of luck or a “fortunate coincidence.”

Roe:  Parting shot or advice for our readers in these tough times.  What can or should they do?

Bob:  In these economic times, entrepreneurs need to understand that it is much more difficult to obtain funding, so they need to plan accordingly.  To maximize the chance of receiving some funding, a new enterprise should, from the beginning, a) make sure that the entity formation is properly completed and ownership properly documented, b) maintain proper financial and accounting records, and c) secure appropriate protections for all intellectual property.  A start-up business should have proper accounting and tax advice, from the beginning.