10 Key Lessons in Applied Entrepreneurial Finance
Agenda
• Introduction (5 Minutes)
• One Word Check-in (10 Minutes)
• Entrepreneurial Mindset (20 Minutes)
• Entrepreneurial Finance (25 Minutes)
• Questions and Answers (30 Minutes)
• One Take Away (20 Minutes)
Introduction: Jonathan B. Smith
•Founder - ChiefOptimizer
•Professional
– Big 6 Accounting– Wall Street– Serial Entrepreneur
•Education
– Michigan State University – Certificate in Homeland Security– University of Hartford – MS Accounting– Wesleyan University – BA Social Studies
•Community– Entrepreneur’s Organization– Joint Civilian Orientation Conference (JCOC 84)– Leader Dog for the Blind– State Department Ambassador for Entrepreneurship
•Awards– 2007 Inc 500 Winner (#203) Wave Dispersion Technologies– The Leukemia and Lymphoma Society - National Man of the Year– Multiple Government Procurement Awards
Agenda
• Introduction (5 Minutes)
• One Word Check-in (10 Minutes)
• Entrepreneurial Mindset (20 Minutes)
• Entrepreneurial Finance (25 Minutes)
• Questions and Answers (30 Minutes)
• One Take Away (20 Minutes)
One Word Check-In
Agenda
• Introduction (5 Minutes)
• One Word Check-in (10 Minutes)
• Entrepreneurial Mindset (20 Minutes)
• Entrepreneurial Finance (25 Minutes)
• Questions and Answers (30 Minutes)
• One Take Away (20 Minutes)
Entrepreneurial Mindset: Energy
Entrepreneurial Mindset: Optimism
Entrepreneurial Mindset: Risk
Entrepreneurial Mindset: Tuition
Prototyping
• Innovate by iterating quickly
• Learn from calculated risks in real time
• Teaches more than 1,000 hours pondering
Source: www.ideo.com
Entrepreneurial Mindset: Results
Those who say it cannot be done, should not interrupt those doing it.
Chinese proverb
Entrepreneurial Mindset: Team
Entrepreneurial Mindset: Integrity
Entrepreneurial Mindset: Abundance
Entrepreneurial Mindset: Long Haul
Entrepreneurial Mindset: All
Entrepreneurial Mindset: Simplicity
Entrepreneurial Mindset: Sheer Will
Agenda
• Introduction (5 Minutes)
• One Word Check-in (10 Minutes)
• Entrepreneurial Mindset (20 Minutes)
• Entrepreneurial Finance (25 Minutes)
• Questions and Answers (30 Minutes)
• One Take Away (20 Minutes)
Entrepreneurial Finance: Heilmeyer’s Catechism
• What are you trying to do? In English, no CorpSpeak
• How is it done today, and what are the limits of current practice?
• What's new in your approach and why do you think it will be successful?
• Who cares?
• If you're successful, what difference will it make?
• What are the risks and the payoffs?
• How much will it cost?
• How long will it take?
• What are the midterm and final "exams" to check for success?
Entrepreneurial Mindset: Financing Priorities
Variable Inputs Objective
Results Build a Successful Business
Liquidity Sufficient $ to Fund Needs
Control Maintain
Ownership Retain
Professional Investor - Strategic Benefits Networking & Expertise
Risk Share
Rewards Share
Entrepreneurial Finance: Cash Flow
Entrepreneurial Finance: Working Capital Cycle
A good working capital cycle balances incoming and outgoing payments to maximize working capital. Simply put, you need to know you can afford to research, produce, and sell your product.
Source: www.qfinance.com
Entrepreneurial Finance: Motivation
Entrepreneurial Finance: Break Even
Entrepreneurial Finance: Personal Financing
Entrepreneurial Finance: Friends and Family
Entrepreneurial Finance: Customer Financing
Entrepreneurial Finance: Vendor Financing
Entrepreneurial Finance: Angel Financing
• Individual investors who invest in businesses seeking higher returns than traditional investments.
• Goal to help other entrepreneurs.
• Typically a bridge from the Early Stage to the Series A VC Round.
• Average funding found $150,000 to $1.5 million.
• The term "angel" comes from the practice in the early 1900's of wealthy businessmen investing in Broadway productions.
Entrepreneurial Finance: Factoring
Entrepreneurial Finance: Merchant Account Advance
Entrepreneurial Finance: Government
• Taxes– International– Federal– State– Local
• International Trade– Duties– Tariffs– Offsets
• Economic Development– Abatements– Grants– Incentives– Subsidized Loans
Agenda
• Introduction (5 Minutes)
• One Word Check-in (10 Minutes)
• Entrepreneurial Mindset (20 Minutes)
• Entrepreneurial Finance (25 Minutes)
• Questions and Answers (30 Minutes)
• One Take Away (20 Minutes)
Question and Answers
Agenda
• Introduction (5 Minutes)
• One Word Check-in (10 Minutes)
• Entrepreneurial Mindset (20 Minutes)
• Entrepreneurial Finance (25 Minutes)
• Questions and Answers (30 Minutes)
• One Take Away (20 Minutes)
One Take Away