2. HJR background
• Xerox Corp
• PriceWaterhouse Coopers MCS
• Founded 8 technology or service businesses:
– consulting, restaurant, offsite records
management, fire safes (2), fire technology,
computer sales & service, SaaS software solutions
• Sold 5 businesses
• SafeSite Records Management (NYSE: IRM)
– Sold for $62M
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3. What you will learn today …
• How to be an Entre- or Intrapreneur
– Traits & Differences
• Thinkers vs. Doers
• Contracts
• How to be profitable
• Sales & Net Profit
• Customer Buying & Sales factors
• Supply Chain costs
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4. Are you a Small business
entrepreneur?
• Who has owned or run a small business?
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5. Entre/Intrepreneural traits
• Integrity
• Vision
• Not afraid to fail … learn by it … move on
• Be a change agent
• Recognize needs & problems
• Develop affordable solutions
• Independent thinker
• Passionate about your beliefs
• Perseverance
• Communications skills, esp. listening
• Admit you do not have all the answers
• Don’t worry about what others think
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6. Entre/Intrepreneural differences
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Entrepreneur Intrapreneur
Risk taken Huge Minimal
Salary + benefits Minimal Corporate std.
Investment Own $$$ Corporate $$$
Reward Big potential Minimal
Ability to execute
solution
Green light Constrained by
politics & other
priorities
7. Problem solving approaches:
Thinker vs. Doer
Generalization:
– Thinker
• 95% of the solution upfront
• 2 years later - near 100% best solution
– Doer
• 60% of the solution upfront
• 2 years later - owns the market
• DON’T OVERTHINK THE SOLUTION
• You won’t get it all right the first time
• Consumers don’t care about 100%
• Get it to market, listen to customers, then make it
better
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8. Business startup contracts
• Get Agreements in writing early on
– Who does what & other commitments
• Definition of Friendship
– Changes as sales increase
• Prenup agreements with business partners
• “DON’T TRUST ME”
– “In God We Trust,” all others have contracts
– Contracts are for successors
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9. The key to profitability
• REDUCE THE CYCLE TIME
– Manufacturing
– Customer service
– Restaurants
– Every product & service
– Investor ROI
• The shorter the cycle, the more $ you make
• Create annuity opportunities: Paychex
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11. What’s more important
Sales or Net Profit
• DEPENDS ON THE STAGE
–Start up Sales
–Early stage Sales
–Growth Sales & profit
–Established Sales & profit
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12. Customer Buying & Sales Factors
• What’s the product strategy
• Market research: Who will buy it + how many
• Why
• How much will they pay
• Marketing plan
• Sales/distribution channels
– What industry(s) channels
– Complementary& bundled sales
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13. Product costs
Which is the best supply chain option?
Product cost (ex-works)
• China $2.25
• Los Angeles $2.65
• Rochester $3.18
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14. Possible landed costs
• LANDED = DELIVERED TO MY DOCK
• Cost
• Insurance
• Freight to US port
• Freight to distribution center
• Import duties & taxes
• Bank fees
• Brokerage fees
• Other fees
• Import/export documentation must all be in order,
else delay of payments
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15. Which is the best
supply chain option?
• Whichever option:
– Minimizes most risk
– Minimizes time to market
– Optimizes cash flow
Product cost Landed cost
• China $2.00 $3.05
• Los Angeles $2.65 $3.07
• Rochester $3.08 $3.18
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16. Resources: Innovation Institute &
SCORE
http://www.wini2.com/
• Evaluates ideas for US$250
• Formerly Wal-Mart Innovation Network
• (573) 999-4518
SCORE
http://www.scorerochester.org/help/steps.php
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