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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

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10 Key Lessons in Applied Entrepreneurial Finance