Very Short Interview, Part 2

My first interview with Dr. John Meena was interesting and enlightening, but honestly I was following directions in order to meet the requirements of the assignment with regards to the questions I asked. I did formulate some questions of my own, but overall, it was directed to get the answers to the questions Dr. Pryor put forth. I was intrigued of his perspective of what I should gain from an entrepreneurship class and did wonder what I would actually get.

This is my second interview with Dr. John Meena, an UF Alumnus and President and CEO of Spring Valley Produce, Inc located in California.

Me:
I am assuming you faced some failures in the process of growing your venture. What was the most prominent failure that you eventually overcame? Also, what did it teach you?

Dr. Meena:
Easily my toughest was a financial loss experience. It felt more than a failure because it was our products division faced a three  prong loss at once and it was financially rough.

All in the same season, we had about 1 million trays of strawberries to sell in a 8-9 week window. We had a heavy investment in this crop because our sales intention for this product was to recoup that investment as well as our commissions. Unfortunately, a collision of extensive rains (no harvest and additional spraying costs for mildew), a variety of produce that was not producing a great product, and then an ecoli food scare that was covered daily on CNN and attributed  (incorrectly but months later) to strawberries during our peak. The result was a significant loss experienced in that division.

The learning curve was that diversification saved us as our brokerage division had its best year ever and offset that loss. It reinforced that lesson which always diversify your revenues with customer and supply base, products, and to the manageability you have. Meaning, don't take on more than you can successfully manage.

Also, and saying this is not always deliverable, but invest only what you are able to lose and survive. As in our case, be prepared to divest of a bad venture which we did last year. In order to stay in it properly with industry changes, we would had to vertically integrate substantially and that was not the right call. Therefore, we exited and focused on our brokerage/distribution stream and expanded under that umbrella.

Me:
What have you found to be a key ingredient in businesses gaining interest from investors? Meaning, no matter what the industry, how can one best attract investors? When you choose to invest in business, what would you look for in that business?

Dr. Meena:
Since I am wholly owned, I'm not the best to ask. However, as we invested our success has been on the personal and out view of them most of all. Second, the business model itself and if the track record which we always insist there has to be for us to look at, is reviewed  both from what success and failures are visible and returns and losses on both. Also, do I control the only receivables and payables (which is a must)? Lastly, where are opportunities for "side deals" as you have to go in with open eyes that someone might try to create revenues off of you that do not include you.

Me:
Last question. Have you thought about an exit strategy? We discussed in our class if we want our children to participate, sell the business, or do we see it coming to an end, or it may not end. I was wondering what your perspective is regarding and "exit strategy"?

Dr. Meena:
Yes and often. My business is so tied up in me that a sale is pretty touch in that, "would customers support a new buyer?". I think to a point but a diluted point. We have one large division that is very salable but probably seven years away. At that point it would require a hiring of a company to seek buyers. As for family, I have one son, but I don't think he is interested and another reason I would wait. Also note, with the industry changes, I am uncertain it would be his best avenue- time will tell.

Me:
Thank you again Dr. Meena for taking the time. It has been an honor to have you share your perspective and experiences to further my education. It has definitely ignited interest to possibly pursue my own venture concept.

Dr. Meena:
I hope this helps and best on continued success.

This second interview, I clearly was more comfortable with the subject and more at ease with asking about areas that I found of interest to me. I believe Dr. Meena was more willing to divulge information because I asked pointed questions with some "meat" behind them.

Overall, my comfort level was much higher this time around.  I could ask questions that allowed me to gauge his responses to my own thoughts and perceptions with what I have learned in the class and that I very much appreciated.