10 key lessons in applied entrepreneurial finance

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

Thank You

Jonathan B. SmithFounder

ChiefOptimizer+1(703) 569-1011

jonathan@chiefoptimizer.com@chiefoptimizer