Jose Palomino

Fifteen Million Dollars… or “she’s right again” (part 1)

September 22, 2009

People often ask me, “Jose, how did you get started on this path?”

That is – they want to know how I started Value Prop and more importantly – what my “journey” was to get here. Well, it’s a long journey – but I think the recent catalyst or turning point was a moment about 7 years ago…

I came home to New York City, after several days at our corporate headquarters. It was late on a weeknight in April 2000. Excited as I entered my house, I woke up my wife, and sat her down. “Honey – we’re worth fifteen million dollars!”

Our company had just taken on some strategic partners and a capital infusion – and our investment bankers had just told our management team what they felt our company was now worth. This was shaping up as the single greatest day of my business life.

Calmly, even gently – she asked, “Can we spend any of it now?” Sputtering, I answered, “not yet, but…” and then my voice trailed off. All my nagging doubts became real for me in that moment. I knew the company and many like it had become so focused on positioning, strategic alliances and other marketing imperatives – that the notion of actually delivering something of value was often put on the back burner.

She was right (of course!) – we couldn’t spend any of it.

A year or so later, I left the company – owed a lot of money (never collected, naturally) – dazed and confused.

What happened? How could we be in the executive dining room at one of Wall Street’s most prestigious investment banking firms one April – and missing payroll twelve months later?

By this point in my career, I was an experienced entrepreneur. I had worked inside and for Fortune 500 companies – I had multi-million dollar sales experience and I was unique – with a strong background in marketing, sales and technology – seemingly well equipped for the intense revolution in business services that was shaping the global economy at the turn of the new millennium.

We had worked with some of the world’s largest automobile, furniture, education and legal services companies – all looking for a guide through now unfamiliar territory.

Our board had seasoned senior executives and venture capital veterans. The stars, moon and – it appeared – Wall Street had lined up behind us – ready to make us all very rich. Looking everywhere – it seemed – others were making fortunes.

Why not us? I asked.

Well – I’ll continue this tale of woe and wisdom earned soon…

{ 2 comments… read them below or add one }

mattgorman September 23, 2009 at 8:40 AM

Looking very much forward to reading part 2.

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slpappas September 24, 2009 at 1:55 AM

“Can we spend. . . .” — that made me laugh!

Looking forward to part 2 as well.

Thank you, and thanks for the free copy of Value Prop!

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