How to Choose Service Providers

04/13/07 - 03:45 PM EDT

Marc Kramer

9. Will a seasoned executive be assigned to you, or will you be used to allow a junior executive to cut his teeth?

Most firms of any size will assign a partner to handle complex issues and an associate to handle the smaller issues. Many times, the associate will have developed an area of expertise that the partner doesn't have and can be more valuable. It is important to know that an experienced executive who has handled problems such as the ones you will be facing will be available.

If you want an idea of the level of service, look at the providers' business cards and see whether they list their home telephone, pager or cell phone numbers. If they list their pager or cell phone numbers, you know they provide superior service.

10. Will they introduce you to their other clients who can potentially bring you business?

All good service professionals should have a large and diverse database of contacts. Such a contact source is an extra value that they can provide. If all else between professionals under consideration is equal, you should choose the one who can open doors for new business as well as provide advice and capital.

Note: If you are pressed for time and plan to delegate to someone on your staff the interviewing and hiring of various service providers, make sure you take the time to interview the lawyer representing you. In a start-up that is raising money, the lawyer is the most important outside hire you will make.

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Kramer is the author of five business books on topics related to venture capital, management and consulting. He is a faculty member at the Wharton School of Business at the University of Pennsylvania and the veteran of over 20 start-ups and four turnarounds.
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