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September 27, 2004

Consensus bureau | A chat with Craig Freshley, principal of Policy Development Inc. in Brunswick.

Founded: March 2003
Revenues, year one: $43,000
Projected revenues, year two: $60,000
Address: 98 Maine St., Brunswick
Phone: 729-5607
Web: www.policy-development.com

Describe what your company does.
We help groups make good decisions. Our expertise is the process. We design and manage a process that results in great group decisions about developing new policies or programs or creating specific workplans.

How many employees do you have?
Two ˆ— myself and a part-time employee right now.

When did you get the idea for the company?
It's been a lifelong ambition to be doing this. I had done this in part, in my other job [as a program director for the Maine Development Foundation] but I always wanted [a career] that focused on group decision making. As an undergraduate, I studied political science and philosophy, and I have a master's degree in public policy. So I've been on that same track, learning about how our society makes group decisions.

What was the biggest challenge going from idea to reality?
Money and taking the risk. I have a family and a mortgage, so the stakes are high. I had to make sure I could get together enough money to provide for my family and start a business.

How did you finance the launch of your business, and what did it cost?
I refinanced my house. My house had appreciated in value [since I bought it] and with interest rates coming down, I was able to free up some cash. It cost about $15,000. What I needed money for initially was my time. I didn't need much equipment, just a computer and printer.

What's the competition like and how do you differ?
There are a lot of people doing this. [My approach] relies more on values- and belief-based principles. So before we even begin talking, we all agree to principles like "there is good in every person;" "understanding before judgment," which is one of Stephen Covey's seven habits in his Seven Habits of Highly Effective People; and "all voices will be heard."

If an individual comes into a meeting believing he or she knows it all, it's going to be hard to work with that person and come out with a group decision. I'm not afraid to confront individual beliefs and values and discuss how they impact the quality of decisions. We try to create what I call a fertile environment for coming up with ideas and solutions.

What are your plans for growth?
I'd like to publish a book about group decision making. I've already drafted a manuscript. I'd also like to hire other facilitators to help me facilitate meetings in the style I've developed.

Describe a mistake you've made in your business and what you learned from it.
My hardest challenge has been setting rates. In some cases, I have set the rate too high and lost customers. I'm learning to start a little lower and at least get business through the door. I don't want to lose opportunities because my rate is too high.

I did a survey and found the spread of rates among people doing this is huge, and it tends to depend on the client, whether it's a corporation, a government agency or a nonprofit. I'm struggling with [whether or not to tailor my fee schedule to different clients]. I'm not sure I agree with the philosophy of different clients getting different rates based my perception of their ability to pay. I'm trying to establish a rate structure based on the quality of my product. For example, on a trial basis for nonprofit boards and government groups, we're offering to facilitate a full-day retreat and write up a resulting strategic plan for $1,400.

You have two children. Do they always adhere to the principles of consensus decision making?
No! But I do play facilitator a little bit with the kids. When they get into arguments, first I let them try to work it out, but if they can't, I might intervene and try to make sure they know where each other is coming from. I do this professionally also ˆ— make sure that each side understands the other's perspective. And often when you do that, the problem goes away.


New Entrepreneurs profiles young businesses, 6-18 months old. Send your suggestions and contact information to dorothyo@mainebiz.biz.

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