My Introduction to Shepherding
By Marita Greenidge
It was only a few months ago when I was sitting on a couch at Accra Beach Hotel listening to Dr. Basil Springer explain the concept of the CBET Shepherding Model™. (You can find more information here). He was contracting my company to do a marketing plan for the soon-to-be launched Barbados Business Enterprise Corp. (BBEC). It was my first major assignment.
Dr. Springer was very passionate about the shepherding component of the model, a term I had never heard before except with reference to sheep. Much like Twitter added a whole new meaning to the word generally associated with birds, Dr. Springer was well on his way to evolving the meaning of the word generally associated with tending sheep. He explained that shepherding would help reduce the failure rate for businesses. And I believed him.
There was something quite innovative about the CBET Shepherding Model™. It offered a way for entrepreneurs to develop solid foundations for their businesses. It wasn’t simply about giving funds, which many entrepreneurs identify as a hindrance to getting a business off the ground; it was also about helping the entrepreneur put the right systems in place to maximize the return on money invested.
Running out of cash is often cited as one of the main reasons businesses fail early in their life cycle. Running out of cash usually happens as a result of cash mismanagement. So suppose there was a way to help entrepreneurs more efficiently manage their cash? Whatever that “way” was, it would probably prolong, even enhance, the life of the business.
That way is shepherding.
Many entrepreneurs “don’t know what they don’t know” so they need guidance in building each functional business area so the business can poised for global success.
BBEC was to be the management company for the Barbados Entrepreneurs’ Venture Capital Fund. The Fund would be the main funding source for entrepreneurs. Yet the model wasn’t as simple as “entrepreneur approaches the Venture Capital Fund” for capital. No, Dr. Springer recognized that entrepreneurs needed help even before they reached that stage. Many persons don’t know how to pull together an adequate business plan; they don’t know how to make a formal pitch to a venture capital board. However you don’t want good ideas to “fall through the cracks” because an entrepreneur lacks the skills to package an idea in a way a board will be see as viable.
This is another reason shepherding is important. The shepherd helps the entrepreneur who has a great idea package the idea so any funding organization would recognize its potential. The shepherd doesn’t do this alone. He/She works with a team of business advisors in various specialty areas (law, marketing, finance, etc.) to assist where necessary. On top of that, the shepherd helps the entrepreneur generate sales or leads even before the entrepreneur approaches the VC Board.
Shepherds and business advisors are paid for their services. The money to pay these individuals however is advanced from the Seed Capital Fund. The only thing an entrepreneur needs to bring to the table is passion, commitment and a brilliant idea.
You market what you believe in and I believe that the CBET Shepherding Model™ is the economic development model of the future, especially for developing states. In five years we should be able to tell if my beliefs are well-founded. I’ll keep you apprised of our progress.
You do need people who will guide you in business, I believe one of the greatest business stumbling blocks is what I call the emerging business "bubble", it is when a business owner is so engrossed in his/her business that they only see things from the inside out and are almost clueless as to how their business is perceived or what changes are happening in the particular industry or industries in the whole. Many emerging business owners also lack business training in specific areas.
In any case, these articles are great and I will continue to utilise this site more often. Keep up the good content!
Regarding your point, I do agree that many entrepreneurs often live in their own bubble and often need that external perspective. It's useful to have a trusted external party that will give good, solid advice. I seek the same with my business since I know I don't know everything.
As it relates to the fund, although we don't currently offer shepherding services on their own, many of our shepherds and business advisors are independent consultants and therefore available for hire by entrepreneurs.