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. Smith
Founder
ChiefOptimizer
+1(703) 569-1011
jonathan@chiefoptimizer.com
@chiefoptimizer