Lessons Learned (Intern Edition)
There are many lessons you learn for the first time as an intern. While at Agile Rainmakers over the winter, I quickly learned the importance of knowing what the client expects you to deliver. Returning to Agile Rainmakers as a private equity intern this summer, I learned that auditors do not change the valuation of companies until they raise a new round of funding, which can hide changes to a firm’s value in financial reports. Here, I cover three key lessons I learned about communication and clarity through my internship.
Communication And Efficiency Go Hand In Hand
Part of Agile Rainmakers' vision includes clarity - “we are straightforward in our communication.” In the consulting business, this makes a lot of sense. If we aren't clear in our communication with clients, we can't deliver the service they are looking for, can we? Learning to communicate effectively is the very first thing any intern should learn, and it was one of the most important lessons I learned.
During my internship this summer, I found that communication with executives was the driving force behind my day-to-day work. There was plenty of written material and numerical information I could spend all day reviewing and analyzing, but often a short email exchange with the company founder, a quick meeting with the CEO, or an update from a CFO instantly gave me the information I was missing or seeking clarification on. The days I received responses from company executives were the days I was the most productive. Researching on my own felt like going out on a day when the surf is flat and waiting for hours to get even a single wave. Meanwhile, contacting executives was like generating joyful swells on command. Talking to the founders and executives provided the latest information and projections for my analyses.
The Team Guides You Below The Surface
One investment firm I researched seemed to not be performing well over the last year. There had not been much written communication and their audit seemed to indicate slow growth. However, in speaking with the management team I quickly learned that the audit had concluded just before new valuations for many holdings had been updated. The firm was actually having a productive and successful year. Speaking with the management team allowed me to understand the firm’s true standing.
Companies are like flowing rivers; information and events are constantly changing in the current. Written reports can only show you historical snapshots of the surface. You need a company leader to take you beneath the surface in real time. As an example, one company's documents showed that in the previous year the company had experienced a major setback with no explanation as to why. Speaking with the founder revealed that the monetary loss was a one-off event and that the company was in a healthier position than it had ever been.
To be sure, there are also cases where an investment may seem stable on paper, but speaking to the founder reveals insights into challenges with the business plan or in the management team. Beneath the surface is where the action is!
It Is Wise To Start With Targets You Can Hit
Great by Choice, by Jim Collins, mentions “firing bullets before cannonballs”. This means starting small, reaching close targets, and building upon successes over time. A company should reach high when empirical data and a high level of confidence exist because one single large project failing can doom a company. While every new business must have lofty dreams, having pragmatic short term goals would be wise.
One company I analyzed had projections from a few years ago relying on massive purchases from the US military. Over the years, those orders never materialized, leaving the company with a great product but no buyer and a cash shortfall. Fortunately, they remain afloat, ever ready for their ship to come in.
Lessons Learned
These are valuable lessons gained during a summer internship that I will keep in mind forever. Whether you are an investor or a founder, executive or future entrepreneur, I hope my sharing made a difference for you. - A.L.
Here's to you and your awesome future.
Until then, keep your feet on the board and keep riding your wave!
Robert J. Khoury
CEO Agile Rainmakers