Vig Sherrill is the CEO of Aldis Inc. which commercializes and sells patent-pending, efficient traffic and energy management technology and services to municipal partners. They have a product line called GridSmart™ which is a significant advance in intelligent traffic management. Using an ultra wide angle lens with a horizon-to-horizon view in concert with proprietary software, GridSmart™ utilizes advanced vision processing science and the ability to apply logic to what is seen in the intersection and for several hundred feet in all directions around the intersection. Before starting Aldis, Vig Sherrill has been a serial entrepreneur heading Flextronics Semiconductor and ASIC International.
Aldis is still a Venture Capital backed company and has yet to post positive cash flows yet. However, the fact that they are VC based shows that Aldis shows strong promise for large profits in the future. A large advantage Aldis has over its competitors is that their system is entirely software based which means the hardware it runs off of, a PC, will inherently get cheaper and faster over time. Aldis is leveraging off of other proven technologies that other companies do the engineering on. Because Vig started the company in 2006, which is relatively late compared to his competitors, he is not stuck trying to use or upgrade old hardware but instead has leverage off of a proven technology, the PC, that other companies do the engineering on to improve.
Vig also shared with us some of the financial planning of Aldis. He explained how it is important to sell to the engineer who will be using the product who will then convince the CFO who will ultimately write the check. This was a reoccurring theme, that the ultimate user is not necessarily the person who writes the check. Another example of this is the fact that the beneficiaries of the traffic control system, the citizens, will not be the ones writing the check for the GridSmart™ system but instead the city will. Vig also shared that because there are only a limited number of intersections to place their system in, about 350,000 total in the US, even if they sold a system at every intersection, eventually, their income stream would stop. Aldis has reacted by selling in emerging markets such as China which plans to build about 200 cities larger than Knoxville in the next 25 years.
An additional opportunity that spawned from the GridSmart™ System is that they could sell the data collected by the systems to companies such as Walmart or Exxon who would like to know traffic patterns in different areas to help plan on where to build new stores and stations. This brings me to another point of advice Vig shared with us. That is, he doesn’t know a single entrepreneur who is making money on what they initially set out to make money on. Therefore, it is important to recognize that as an entrepreneur there will be a lot of left turns, and that success is dependent on knowing when and when not to make them. As Dr. Martin likes to say, “the only way to get experience is by bad judgment,” so don’t be discouraged when you make mistakes.
Vig is a very energetic man and obviously loves his work. He gave us some very insightful knowledge on owning your own business and on Venture Capital funding. A few stats he gave us which I found particularly interesting were that about 1 in 1000 companies that ask for VC funding actually get funded and of those, only about 1 in 5 are successful. Additionally, since 9/11, not a single venture capital company has made money. Vig shared that venture capitalists are not the bad guys they are made out to be but that it is important to know that whoever controls the money, ultimately controls the business. If you end up seeking VC money, you must be willing to let go of the control of your company.
Lastly, the story from Vig that most sticks in my mind is when one of Vig’s friends asked him what it was like not to have a boss. Vig replied that when you have your own company, every single customer who walks through the door is your boss. He takes his job very personally and wants to his company to reflect positively on himself and therefore he makes sure to always please his customers. It is the old adage, “the customer is always right”. This is what I believe to be Vig’s greatest success as a leader. He is a leader not that takes total control and does what he wants, but a leader that serves and does what his customers want or need.
Thursday, March 4, 2010
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