Progress Report: Shifting from a start-up to emerging growth company

Situation

Golf Intelligence, a Minnetonka-based technology company that creates software and systems for the golf industry, is in the process of shifting from start-up phase with seed money to an emerging company with real product, services and marketing strength.Two young founders want to pursue their vision of providing the first web-based national system for handicapping, tee time scheduling and what is called “golf life management” for golfers across the United States – without being distracted by day-to-day operations.

Challenges

• Founders are typical entrepreneurs who do not have a background in running a business or developing relationships with potential investors to ensure the company’s success.
• Company needs national visibility for attracting investors as well as customers, including golf clubs, associations, retailers, and media. A big challenge is asking an old, traditional industry to accept new technology.
• A limited infrastructure was in place.

Solution

One of the company’s original investors advised the founders to bring Platinum in as interim president and COO in mid-2004. As the founders continue to drive the vision, Platinum manages the daily operations while coaching the founders and managing the employees. It has set up the company’s accounting and HR systems, and provided the needed credibility with creditors and investors. Marketing expertise brought in by Platinum has helped the founders introduce their National Golf Network (NGN) with a positive message of how new technology is “good for the game” of golf. Platinum is also helping the founders to build a board of directors to establish the future governance structure.

Results

The company started generating revenues in late-2004 with a small but strong team of employees in place. Private investment money has been raised to support daily operations and begin a national rollout campaign. The golf industry has recognized Golf Intelligence as the “new player” and the leading technology company serving the 40 million active golfers and 1400 golf courses in the United States. The company is generating a positive cash flow and expects profitability by mid-2005.