Becoming an Entrepreneur

Starting a new company is not a trifling matter.  Here are a few missteps to avoid:

1. Neglect the support of your relative: Before you embark on a start-up project, it is important to properly obtain the support of your family and spouse.  Your success as an entrepreneur will be greatly facilitated with the assistance of their support, their advice, and their feedback;
2. Going too fast in your business: Evaluate your business model, search for financing, find your first customers.  These are all important milestones to not neglect.  These steps can take up to 12 months, enforcing the importance of carefully preparing and have a solid financial nest to support this major change in your new life as an entrepreneur;
3. Do not calculate your break-even point: It is important to assess the amount of revenues you will need to cover your fixed and variable costs.  You need to know when your business begins to generate income to support your way of life.  When you are an employee, we usually say that you need a 3-month cushion in case you lose your job.  As an entrepreneur, you will need at least 12 months working capital to cover all your costs and your salary;
4. Not to have your own office space:  It is important to devote as much effort to your business start-up and isolate yourself from daily routines.  It is possible to have your own office space at home, but is much better to get out and focus on your business plan.  Space-sharing is an excellent option, which can allow you to isolate you in order to carry out activities related to your business.  The cost might seem high, but the use of shared premises will also create new contacts, thus facilitating your business start-up;
5. Be unruly: Discipline, discipline, discipline.  Working alone, implies an iron discipline.  It is very important you set daily targets, for example, top 10 most important things to do in a day.  Keep a well balanced agenda (business development, administration stuff, quotes preparation, etc.).  Make sure you cover all your important stuff in your daily work since it is vital so you do not forget things.  Identify daily priorities and address them before the other tasks.
6. Forget yourself: It is necessary to spend personal time after a good work day or week.  Remember to insert in your calendar a couple period time of personal activities that will help you think about something other than work, i.e. physical activities, family time, reading, meditation, training, etc.
7. Forget to invoice your clients: Faster you will generate income; the faster you will make your business profitable.  However, it is not because you make a profit, you have money in your bank account.  You must collect your accounts receivable on a monthly basis or your finance can be affected.  For someone who gets into the business, getting paid quickly can be a difficult exercise, even annoying. It is important to understand that all work pays and that you do not have to feel bad to ask your customers to pay you.  There are several ways to get paid: weekly, on milestones, with a down payment, forfeit package, etc.  Never neglect the billing aspect of your business, because the tax man, your suppliers, and your subcontractors won’t forget to be paid;
8. Control and monitor your administrative aspect of your business: Avoid accumulating paperwork, financial management, etc.  Wait until the last minute will make you forget important things.  Good management, among other things allows you to avoid penalties or interest.  If you want to spend more time managing your business, or spend more time with your family and friends, feel free to do business with a professional accountant or likewise business service;
9. Neglect your pension fund: Have on hand a good retirement pension fund.  Set methodically money aside, to assure you a conformable retirement.  In doubt, do not hesitate to contact your accountant to establish financial goals and retirement plan;
10. Becoming poorer intellectually: Continue to keep to yourself inform, to participate in seminars, to train your brain.  Be a member of an association or order or a chamber of commerce, training options are a great way to get our yourself trained, and make business contacts;
11. Focus on prospects:  In your start-up phase, spend at least 50 % of your time on prospecting for new clients.  Even after making money, subsequently do not neglect this important aspect.  You should at least spend 20% of your time (with follow-up meetings).  Participate in activities where there is a large number of people, allowing you to have access to a larger number of contracts;
12. Negotiate your price: It often happens that a prospect wants to negotiate your price, branding a competitor that is willing to accept such a product or service.  In this kind of situation, it is highly recommended to not negotiate because it is too difficult then to return to your market price.  If the prospect does not want to pay for the fair value of your product or services, it is not a client for you.  If you accept, you might have to renegotiate every time you sell to this client.  On the other hand, if you want to get a good lead, and the price is reasonable, you can always offer a discount on of launch, on volume, a forfeit price, etc.

If you want to share your thoughts on this article, simply reply to this email or write to us at info@6dt.ca or info@stage1success.com. We look forward to reading your comments.

Equity Financing (Part 1)

Financing – A black Box

Financing activities is often a black box for the CEO of a Small and Medium company (SME). The main activity of the Manager is not to make financial management but to manage the business, to create products and sell them. In order to demystify the thing, this article is the first of a series of several articles devoted to corporate finance.

SMEs contribute significantly to the Quebec and Canadian economy. Their launch or expansion requires a lot of efforts and especially funds. Each SME is unique and has specific financing needs which must be tailored. We hope that our articles will provide answers to your questions about this topic less often, without flooding you too much with complex information.

Equity financing (part 1)

Equity financing is an important source of money for companies at all stages of their development. This type of financing allows an SME to remain debt-free, but on the other hand, a percentage of the company or profits shall be transferred to the investor. In contrast, some entrepreneurs borrow money to finance their business; in doing so, they will go into debt, and must repay their loans with interest. This approach allows keeping the entire possession of the company; however the entrepreneur absorbs all the risk. Remember that all debt financings require a sharing of risk between the lender and the entrepreneur, either by down payment (in equity or in the form of cash advance) or by generating surpluses with operations.

Equity financing comes mostly from the entrepreneur or by reinjection of the retained earnings and surplus. Access to external financing, in the form of venture capital, is very restricted in Quebec according to some observations and studies. If the business plan is sufficiently rigorous to convince an investor, and that the entrepreneur is surrounded by an outstanding management team, accessing equity becomes possible.

Equity financing has certain peculiarities. Unlike commercial loans, equity financing does not provide a guarantee to investors. The only guarantee is that the company is profitable so that the investor can realize a return based on the future value of its shares. The return on investment sought (by the investor) is higher for than commercial loans because warranties are non-existent. It is also not surprising that the access to this type of financing is difficult for a start-up company, moreover, if it operates in a certain industry with less margins, such as, restaurants, retails, etc.

Sources of capital

• Personal investment (personal savings, pension funds, RRSP, personal loans, etc.)
• Retained earnings (re-injection to contribute to growth)
• Friendly capital (family, suppliers, partners)
• Participatory financing (crowd funding)
• Angel Investors (experienced entrepreneurs and professionals)
• Development Capital Funds (Desjardins Business Capital régional et coopératif, Fondation, Fonds FTQ, Investissement Québec and BDC)
• Formal Venture Capital (public or private companies)
• Initial public offering (IPO) (massive need for capital, monitoring by the financial markets authority) 

Major uses of funds

• Early stage / Start-Up
• Growth
• Green economy
• Information technology company
• Export and new markets
• Acquisition of the company by managers (MBO)
• Business transfer
• Development and R & D
• Bridge loan 

Advantages

• No financial charge (excluding dividends)
• Formal risk and development capital (access to strategic partners and their advice)
• Increases the cash liquidity in a great way compared to other forms of corporate finance
• Increases the borrowing capacity for the company but reduces the level of control exercised by the owner 

Disadvantages

• Dividends are not tax-deductible (for the company)
• Strict laws on securities
• Administrative burden (creation of formal committees and a Board of Directors in some cases)

 

Sources of information

We invite you to consult the directory of Réseau Capital in order to find the ideal partner for your company if you are looking for equity financing.

Réseau Capital, the Québec Venture Capital and Private Equity Association, is the only private equity association that brings together all stakeholders involved in the Quebec investment chain. Réseau Capital as more than 425 members representing private equity, tax-advantaged and public investment companies as well as banks and insurance companies, accounting and law firms, along with many professionals working in the field.

Canadian Venture Capital and Private Equity Association (CVCA) is the Canadian penchant of Réseau Capital. This association has nearly 1500 members.

If you want to share your thoughts on this blog and its contents, simply write to us at info@stage1success.com. We look forward to reading your comments and feedback.

References: Journal Les Affaires, Réseau Capital, CVCA.

8 key control performance monitoring

Eight key control performance monitoring

You’ve spent a lot of time and have worked with passion to build your business.  Now you have a solid revenue model, a written business plan, financial forecasts and you have a superb team.  You have reached a stage where you need to strategically sustain your business.

Your Financial Director or CFO (Chief Financial Officer) can be a critical figure in securing your  business plan helping your growth, and assisting in overcoming entrepreneurial and operational  challenges.

Further, and critically, your CFO is instrumental in putting good management controls in place.  These controls are designed to check the adequacy of your business strategies and the performance achieved. They are often presented in a dashboard. However, before setting up a scoreboard and expensive systems, it is important to establish the following 8 key controls:

1. Have realistic budgets
2. Provide a budget of cash flow and develop a spending control system
3. Plan for asset protection strategies IP (Intellectual Property)
4. Establish a licensing system and a register of major contracts
5. Establish an accounting and administrative management manual
6. Establish frequent management meetings and an open communication system
7. Follow up on budgets versus actual results and measure performance gaps
8. Evaluate the inefficiencies and implement corrective measures

These controls are necessary but insufficient on their own for the sustainability and growth of your company. Your CFO and the entire management team will need to keep abreast of a rapidly changing world, and may from time to time need to seek outside or third party advice and assistance.

 

 

 

 

10 steps to your stage 1 project

We are often asked “what are the top 10 best advices” you could share with us for starting up a new enterprise or launching a new project or product.

1. Get your winning business plan in motion and prepare a realistic financial forecast
2. Hire the best talents
3. Be a financial savvy with investors
4. Learn or get help navigating and negotiate with financial institutions
5. Your first clients are your best marketing tool
6. Put your stamps on everything you sell and have memorable products and services
7. Always follow through your customers and clients and build lasting relationships
8. Identify project risk and mitigate
9. Review your business stages and don’t hesitate to pivot your model
10. Identify and get the best business experts for your stage 1 enterprise or project. Do not hesitate to share with your mentor or your advisor any issues with your company.

Hard work and get the best to help and advice to enable you achieve your goals

The 5 Criteria for Analysis in the Granting of Commerical Loans

You’ve tweaked your business plan and prepared your financial projections with care. Your start-up phase is a thing of the past and you have shown that your business model works. You are now ready to move on in second gear and would like to meet a lender to obtain a commercial loan. STOP! Above all else, it is important to know the 5 most important criteria of analysis of commercial loans by a financial institution, what are called in the garden of the lender, the 5 “C’s” of credit.

The assessment of the 5 ‘C’ is a method used by lenders to determine the creditworthiness of companies. This method weighs 5 company criteria and attempts to assess the risk of default of a potential borrower.

This blog will help you demystify the analysis of your business plan, of your predictions and of yourself by a typical lender. The 5 “C” are presented in order of importance.

1. CARACTER

The first criterion is of course an analysis which focuses on you (honesty, transparency, experience, training, past success, your strengths, etc.). The lender looks at the character of the leader and the company first and foremost. The lender will ask himself/herself, do I have enough confidence in the person before me to grant a loan? Will he/she repay the loan as agreed? In addition, the lender will look at the quality of managers in place. Even in difficult times, a highly competent management team will take the necessary decisions in order to maintain profitability.

2. CAPACITY

The second criterion is the ability to make your repayments (the ability to meet debt service). Often, we think that if we offer enough guarantees, we will get the loan. However, a commercial loan is offered on the basis of positive cash-flows and not on the guarantees you offer. Therefore, it becomes important to demonstrate the profitability of your business. You will need to justify how you are going to produce income as well on how you can control your costs. You will need to demonstrate how you will generate profits in order to repay the debt when it comes due.

The lender will also analyze your past results and compare them with your financial forecasts. Do not exaggerate. There is no need to demonstrate a “Hockey Stick” growth if not evidently assured, because you will lose your credibility. It is important to demonstrate to the lender a prudent and realistic repayment capacity. He/she must believe in your financial projections, which should demonstrate conservative estimations. In addition to your financial forecasts, bring your pipeline of clients, and your list of recurring clients. Further, demonstrate that you fully understand the management of your gross margin and your fixed costs.

3. CAPITAL^[1]

The third analysis criterion is capital structure. More specifically, the lender is looking for a company with a solid capital structure (equity). It is important for the lender for two reasons:

• Firstly, the company must have sufficient equity as a cushion to withstand any anomaly in the ability to generate expected cash flows. For example, if the business became unprofitable for some reason, it will start burning cash to finance its operations. Financial institutions are never interested in lending money to finance business losses. A solid capital structure allows the lender to make sure that there is enough equity to weather a temporary storm.
• Secondly, when it comes to capital, the financial institution is looking for business owners who have invested enough of their personal assets in their business, so that if a storm is underway, the owner will be motivated to work with the financial institution during a recovery phase.

Generally, financial institutions prefer companies whose total debt to equity ratio is less than 3. Depending on the type of business, this ratio can vary.

4. COLLATERAL

The collateral consists of guarantees (accounts receivable, inventories, equipment, building, etc.) that you offer to your lender and are elements of mitigating risk for the latter. The lender will rarely finance assets at 100%[2]  of cost or their fair value market. A sharing of risk between the lender and the company is therefore necessary.

The financial institution is interested in the guarantee as a secondary source of repayment of the loan in the event of the need to exercise a guarantee. In addition, the financial institution may require an assessment of some of your assets, normally for real estate financing. Keep in mind that you will be responsible for the cost of third parties in the valuation of the assets. Don’t forget to take into account the time required to conduct the required assessment.

Finally, the type of guarantees is of importance, because in a liquidation scenario, intangible assets (the amounts paid in advance, investments, etc.), will not be regarded as significant, because they generate little or no liquidity.

5. CONDITIONS

The last criterion of analysis relates to the Market Conditions and the Loan Conditions.

Market conditions

The lender will assess the market conditions surrounding your business and its industry to determine key risks and how the company operates to mitigate them. Even if the historical financial performance is strong, the lender wants to ensure the future viability of your business. Here are some elements of risk that the lender may take into account in his analysis:

• The competitive landscape: Who are your competitors? How do you differentiate yourself from the competition? How does your business have access to capital compared to your competitors? How are identified risks to be mitigated? What are the risks of losing your customers to the competition?
• The nature of your relationship with your customer: Does one of your customers represent more than 10 % of your total recurrent revenues? If yes, how do you protect your relationship with this client? What is the company doing to diversify its sources of income? What is the longevity of the relationship with your customer? Are some clients subject to financial stress? Is the company sufficiently capitalized to withstand any significant impairment of bad debt caused by a defaulting customer?
• The risk of supply: Is the company subject to ruptures in supply with a key supplier? How the company is able to mitigate this risk. What is the nature of the relationship with its key suppliers?
• The problems of the industry: Is there any macroeconomic factor or policy that could affect the company? Could the passage of pending legislation harm the industry or the economy?

The lender will need your help to identify and understand these key risks and how you are able to mitigate them. Be prepared to speak on the main threats and demonstrate that you are comfortable to manage these risks and how you protect your business.

Loan conditions

Now that your loan is authorized, make sure you understand all of the credit conditions listed in the loan contract. For example, the lender may restrict your salary, your dividend payments, and the purchase of equipment, or will accept any changes or increases without its agreement. The lender may also require adherence to certain financial ratios, including debt, the debt service coverage and so on. If certain conditions or requirements are not satisfactory to you and to your business, it is best to discuss these issues with your lender, and/or seek to renegotiate the clauses that do not meet your capacity or expectations.  It is important to keep your freedom of action.

______________________________

We hope that this article has helped you understand how your lender analyzes your loan applications.  With a better understanding of the way in which your lender evaluates your application, you will be better prepared. Do not hesitate to use these 5 ‘C’ as a strategic management tool, as it will allow your company to grow, flourish and to leapfrog ahead of the competition.

[1] Some financial institution weights Collateral before Capital

[2] You could finance up to a 100 % of the cost with a capital lease.

10 (+1) Secrets of a Due Diliegence in a Foreign Country

Recently, we conducted a due diligence on a business opportunity in a foreign country. Our company wanted to settle there.  We want to share our due diligence experience, and what we learned; leading to rewarding any CFO’s best practice.

Are you ready for “BYOD”? – 9 best practices

BYOD or “Bring Your Own Device” or BYOD a trend referring to enterprises allowing employees to use their personal devices (phone, laptop, desktop unit, and notepad) in a professional location and context. The default position in many companies has been for company employees to buy their own equipment for personal and business purposes, with or without the support of the IT function of the organization. The uses varies but generally involve accessing email, contacts, calendars, documents, web apps, various applications, collaboration tools, and other enterprise systems.

With the proliferation of personal devices, lower user fees and the democratization of the use of these devices, “BYOD” is now a major trend in the world of technology. According to a survey in 2013, almost 60% of workers were accessing data related to their jobs via their privately owned smartphones or tablets. In contrast, only 1/3 of the companies had implemented management tools and processes for the maintenance and use of these devices.

There are several advantages for companies in encouraging employee to use their personal devices to access data and organizing systems, including:

• Reduced operating costs (purchase of equipment, software and maintenance costs): Supporting a personal device costs much less than supporting a corporate terminal;
• Increased productivity: By having access at all times to data and systems, employees work 37 minutes more per week according to a Cisco study in 2011;
• Increased employee satisfaction:
  • Employees are happier and more satisfied. They use what they like – and what they have invested in with their hard earned money;
  • Employees do not have to deal with the budgetary challenges of their employer, which is often a relief to them;
  • “BYOD” facilitates teleworking, promoting a better work / life balance;
• For start-ups, the advantage of reducing costs to a minimum, is undeniable;
• This is an excellence initiative for the environment (e-waste reduction).

The trend “Bring your own device” however comes with its share of problems. Indeed, companies that have adopted the practice of “BYOD” must manage and support mobile devices heterogeneous (different brands and models) and rotating in different operating systems (iOS, Android, Windows, etc.). They face great challenges in terms of support, security, control, mobile fleet management. The professional life management problem versus employee’s personal life is also part of the equation.

What should leaders of SMEs do to limit the risks of BYOD?

Here are nine best practices for sound management of personal devices in your company:

1. Implement a remote access policy and use of personal devices and distribute it to employees.

This policy should include a list of supported devices, rules on securing devices (security code activated), the definition of an adequate and secure password (Lowercase, uppercase, number, special characters, etc.),  stipulating what can and cannot be downloaded via the company network, etc.

While your employees use their personal devices, it is important to remind them that this use is in the context of work and for the sustainability of the organization. Rules of conduct and use should be dictated. Ensure that employees have read the policy, adhere to it and respect it

2. Build an optimized infrastructure for “BYOD” including mobile devices.

The creation of a separate network for personal devices allows for better management of network traffic and increased control of data flowing to and from these devices. This also facilitates separate network authentication, in accordance with the principles dictated by the policy of use of devices that connect to the network. This will eliminate unauthorized access.

3. Establish a process to manage the departure of an employee.

Whether owing to voluntary redundancy, dismissal or death, the departure of an employee must be managed properly. It is important to ensure that an employee does not carry with him or her the organization’s secrets. Actions should be taken, well in advance of the departure of the employee. This process will indicate how to proceed in such cases.

4. Establish an access and identity management.

Access and identity management is used to initiate, capture, store and manage user identities and access granted to them. Specialized tools are available to implement such a policy and to manage permissions in an automated way. Automated management ensures that access privileges are granted according to one interpretation of the policy. Access will be properly authenticated, authorized and audited in this fashion.

Access and identity management enhances security while reducing complexity and obviating many of the risks usually associated with heterogeneous environments. A logical approach for access to corporate data and systems should include an access control policy and the separation of roles in a structured way with SSO (single sign-on) in place.

The implementation of access and identity management significantly reduces the risk of a security incident even if your employees use their personal devices on a regular basis.

5. Protect sensitive information and / or personal property.

Information has an important value for organizations today. The data about your customers, your markets, your products, your suppliers, are now computerized and can be the target of a competitor or a malicious hacker. The use of personal devices increases the risks associated with access to sensitive data. This is why it is important to ensure that the data that the company has is properly secured. We have all  read the theft of banking information, patents or manufacturing techniques.

Conversely, the organization must not have access to personal information of employees, under the law on privacy. Adequate mechanisms must be put in place to prevent access.

6. Monitor and record all activities.

For various reasons, it may be necessary to know what activities took place during a given period on your corporate network. For example, you may need to trace unauthorized access or may need to confront an employee on prohibited use. The establishment of monitoring and recording  tools is necessary to maintain control of networks and organizational systems.

7.Separate the corporate data from personal data on devices.

In an ideal world, enterprise data is separate from personal data. One way to ensure this is to create a partitioned workspace on personal devices. This approach avoids a mix of personal information or applications with those corporate and helps reduce the risks that could lead to compromise of sensitive data.

8. Implement remote wipe devices.

You must be prepared to face any eventuality. Theft or loss of a device is common nowadays. If sensitive data can be found on the device, the company must be able to take appropriate actions to prevent this information from ending up in the wrong hands. The implementation of a tool for remote wipe data on the device is a perfect example of this type of measure.

9. Encrypt data on the devices.

Adding encryption on devices is an effective way to protect data from loss or theft. Today there are tools for centralized management of encryption  based on the concepts of users, groups, and sensitivity of data. By encrypting the business related data on personal devices, organizations will be able to drastically reduce the risks associated with data security.

Business Model Canvas

The business model canvas is a powerful strategic management tool. It allows you to design, challenge your ideas, deliver, and capture or event pivots your current business model. Moreover, it describes how you will make money and create wealth for your enterprise and for its shareholders.

1. WHAT IS A BUSINESS MODEL?

A business model describes how the enterprise creates, delivers and captures value for its customers and its shareholders. It is a “blue-print” of the enterprise’s strategy.

The canvas is a simple and visual way to present how an enterprise makes money. Furthermore, it is a simplified tool for analyzing the business strategy and the value creation process.

The business model differs from the business plan, the latter being much more complete (description of the enterprise and its shareholders, its market, its products / service, along with sales and marketing, human resources, operations and finance plans).

2. WHY USE SUCH A TOOL?

SME managers are often faced with strategic planning, and for some of them, it is a heavy and complex process.

The business model canvas is a simple to use tool that reduces the effort devoted to strategic planning. In addition, for the entrepreneur in the making, this tool helps in validating certain parameters or first fruits of the ecosystem, which will benefit him/her in the creation of his enterprise.

The canvas amongst other things:

• Explain the business model to stakeholders in a simple, clear and concise way; e.g. bankers, investors, employees, family, etc.;
• Identify the skills needed to implement the business plan (those that you own or those to be acquired);
• Delineate the market research and / or validate sales and marketing strategies;
• Identify the necessary resources (material, human, financial and technological);
• Prioritize objectives, monitor and, analyze progress.

3. OBJECTIVES OF THE BUSINESS MODEL CANVAS

• Describe, analyze and design 4 main dimensions of a business, i.e. customer, offer, infrastructure and financial viability. These dimensions are peeled into 9 economic aspects (building blocks) presented in a matrix.
• Allow better analysis, and above all, to have a global vision of the enterprise’s main issues.
• Facilitate dialogue and generate new ideas using creative thinking techniques.
• Identify interdependencies that connect each of the blocks and discover the strengths and weaknesses of the business.
• Develop a business model that’s makes financial sense.

4. HOW IT WORKS

The business model canvas is a visual matrix divided in 9 building blocks describing:

1. Customer Segments: serving one or several customer segments (e.g. Mass or niche market, segmented, diversified, multi-sided platforms, etc.)
2. Value Proposition – the offer – seeks to solve customers’ problems and satisfy needs
3. Channels – delivering the value proposition (communication, sales, marketing, web technologies, etc.)
4. Customer Relationships (customer acquisition, retention, boosting sales, upselling, etc.)
5. Revenue Streams (cash generated from each customer segment)
6. Key Resources (physical, intellectual, human, financial)
7. Key Activities (most important activities to generate a strong economic model)
8. Key Partners (acquired or outsourced)
9. Cost Structure (identification of all costs required to capture value)

NOTES

The Business Model Canvas is distributed under a Creative Commons License:

http://creativecommons.org/licenses/by-sa/3.0/

About the authors of the Business Model Generations:

https://strategyzer.com/

You can obtain a copy of the Canvas at the following: http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf

CONCLUSION

The first version of the Business Model Canvas appeared around 2002.  It is now a recognized international tool and its concept has been applied and tested with large organizations such as Desjardins, as well as government entities such as the Government Services Canada.

As per the authors of this blog, it is an innovative way of communicating and formulating the business model as well as a facilitating tool to merge ideas.  With this Canvas, you can create high performance enterprise.

ABOUT THE AUTHORS

Christiane Constantineau has a DESS in corporate finance as well as an Executive MBA. She is a member of the Ordre des administrateurs agréés du Québec. She is a financial management expert.  She participated in the financing of many SMEs and participated in the creation of startups.

Jean-François Thibault holds an Executive MBA in addition to the PMP and ITIL Foundation v3 / ISO 2000 certifications.  He is an expert in the field of IT Management with over 18 years’ experience in well-known organizations.

They are both associates of the Turbulence Consulting Group (www.6degrees-turbulence.com), a strategic partner who provides strategic, financial and IT expertise.