Frequently Asked Questions.
How can I contact PTV?

Telephone

604-730-9706

 

Fax

604-677-5414

 

Postal address

207-2255 York Ave, Vancouver BC, V6K 1C5

 

E-mail

Cameron St John: cstjohn @ ptventures.ca

General Information: webmaster @ ptventures.ca

 

 


Who is Cameron St John, the principal of PTV since 2001?

Cameron St. John has a background in large corporations in both the old and new economies.  Until 2001, Cameron was an executive in the Asian office of Sterling Commerce, a leading provider of EDI-based middleware.

Prior to his experience at Sterling, Cameron completed an MBA with Distinction at the Australian Graduate School of Management, including a China Business specialty at the Hong Kong University of Science and Technology.

Prior to 1998, Cameron was an economics and business acquisitions researcher at Teck Corporation (now Teck Resources Corp), a major Canadian mining corporation. 

 

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Will PTV invest in my company?

PTV is more than a consultancy.  PTV will consider angel-level investments based on three principles:

  • achievement of pre-determined milestones over time
  • extensive end-to-end analysis of the company by PTV
  • continued PTV involvement in the company

PTV's participation involves more funding and ongoing involvement with the company than most angel-level investments.  If this is of interest, you can apply to see if you qualify as a "business development partner."

To qualify, companies must have all of the following characteristics:

  • be startups
  • be willing to accept a realistic company valuation that allows upside for investors
  • be willing to accept legal and valuation advice from qualified, independent sources
  • have a demonstrated history of honest and fair dealing with its other business development partners
  • have the ability to show how all of its current investors continue to be happy with the performance of their investment
  • be willing to make investments contingent on realistic milestones, with penalties for non-performance

 

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PTV offers agreements that are "structured for upside."  What does this mean?

PTV will charge reasonable per-hour fees for consulting services during strategy discussions.  If requested upon the initial retention, PTV will offer a quotation for further services (usually implementation of the recommended strategies), based largely on commission or stock options.

Because this is an investment in the client company, these services will only be performed by PTV only if the client company meets certain performance targets.  However, PTV will only consider this sort of project where PTV is given the flexibility to make business decisions that will determine success or failure.  In other words, we will not take undue risks where others are making the decisions.

Ask whether your business qualifies as a "business development unit" that can justify this sort of agreement.

 

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Can my unit qualify for PTV services that are "structured for upside?"

Any business unit may qualify for a quotation; however, the PTV quotation for upside-related services may not be commercially viable for the client.  Factors PTV takes into account are:

  • commercial strength of the client
  • prospects for immediate profitability
  • ability to meet performance targets
  • skill and personality "fit" with PTV principals

 

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Does my organization qualify for PTV services as a "business development unit"?

PTV will consider services to any unit with a defined mandate and a need for strategy.  Such a unit may be:

  • confronted with a one-off or ongoing project
  • a small firm or a unit within a large corporation
  • a self-contained small business

 

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Does my organization qualify for PTV services as "high-margin"?

PTV services can add the most value in highly competitive and complex situations where the chance of a project success is high-risk.  Because competitors also worry about failure, margins for success are usually high.

In such situations, the existence of a clear, well-conceived plan becomes critical.  It is worth the investment to do it right.  PTV will structure its service fees to accomodate this risk, possibly with an "upside" focus.

 

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What do you mean by the term "institutional partner"?

We use this term to describe any large organization in relation to a small enterprise: a venture capitalist, large corporation, or government.

In our view, institutions are not just about giving cash or buying products, but about long-term alliances where funds, expertise, and marketing synergies might flow in both directions.  When startup relationships are viewed this way, applying out-of-box thinking, long-term relationships are more likely to form and be profitable.

 

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I have never hired a consultant before.  When should I hire a consultant instead of an employee?
Most startups try to do everything  internally.  While that is often the right decision - it allows you to work on a shoestring - there are times when an independent specialist will save you huge amounts of time and money.

Normally, this is most obvious when you have a specific, technical task that you know will end.  Hiring a lawyer to draft a contract, or an accountant to do your taxes are examples of this.

Management consultants can be similarly useful for showing you how to do one-off tasks that are too important to mess up, and too complicated to learn from word-of-mouth and library books!

Examples of when you should hire a consultant include:

  • going public
  • helping to hire your first management team member
  • researching a key market (if you do not have a background in it)
  • editing your business plan for investors' perspectives
  • achieving a specific public-relations or government-relations outcome
You should hire an employee instead for tasks that will be needed on an ongoing basis, or that are core to your business.  Examples include:
  • designing your core product
  • designing your production facility, or the way your office will work once you're producing at capacity
  • hiring employees
  • repeated market studies in various markets
  • near-full-time bookkeeping, accounting, or legal work
  • mainstream operations, manufacturing, or service delivery
 

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How can I find the best consultant, and what should my deal look like?

You are right to ask!  It is harder than you would think.  Many people mistake professional consultants as simply unemployed people who can be abused.  They are not. 

The proper "care and feeding" of a good consultant is necessary for achieving value from them. It is said that if you have to worry about what you're paying a consultant, you should not be hiring them!

DOs:

  • Pay for quality.  Good consultants are worth their fees many times over; bad consultants are a waste of their low fees.
  • Define tasks carefully in your contract.  The consultant will help you refine the scope precisely, but take this wording very seriously - the consultant will take it literally. Remember, legally, you have to pay consultants even if you aren't happy with their work.
  • Make sure you are comfortable with the consultant's abilities.  They should not charge you for training; you should not expect to have to train them later.
  • Use a lawyer.  The lawyer should not draft your task list (that is a business decision, not a legal one), but can help you identify unclear milestones, and see problems for later.
  • Stick to your payment terms.  If you refuse to pay, you will not get another good consultant.  Worse, you never know who he or she knows...
  • Ask for detailed proposals from the consultant, with end-of-project templates and sample outcomes.  If the consultant refuses, ask what you can do to inspire a proposal like that - usually, a consultant will insist on exclusive bargaining (not competing with other consultants), but will do a detailed proposal for free.

DON'Ts:

  • Don't overweight your lawyer's advice.  They are advisors, and will feed you lists of risks.  You are there to manage risks, not be paralyzed by indecision in the face of them.  Many startups haggle over miniscule legal issues for minor projects - good consultants will not stick around!
  • Don't insist on a flat fee every time.  Good consultants can save you money with hourly billing or retainers, and will be more likely to do occasional non-core research by drawing on contacts or other knowledge.  Flat-fee contracts encourage consultants to get through your project as quickly as possible with the bare minimum of quality.
  • Don't hire a consultant with whom you are uncomfortable.  If you do not think they can complete the project, find another consultant.  Often enough, this is a sign of a misunderstanding about tasks - so talk it through!
  • Don't let the task list become "something for everybody."  Define the consultant's tasks only in terms of what you need them to do, and only on things you cannot do internally.  If you can provide internal support for them, do - your staff cost far less than the consultant!  Most startups allow consultants to offer a deluxe product when a targetted, lean product is all that is needed.

 

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