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Today’s Quotes
If you aren’t happy with what you have now, what makes you think you’ll
be happy with more?
More Quotes
The executive who works from 8:00 a.m. to 8:00 p.m. every day will be both
very successful and fondly remembered by his widow’s next husband.
More sayings
Afraid to try something new? Most of us are. But it’s all over so soon that
our regrets will invariably be for what we didn’t do rather than for what we
did. The missing ingredient is courage.
-Harvey Mackay
Yet More Sayings
Live until you die.
- Shambala Warriors
Yet More Sayings
Never let what you can’t do interfere with what you can do.
One of the greatest mistakes Entrepreneurs make is thinking that their
current success is a permanent state. Resting on past achievements is the kiss
of death. Success in business has to be reinvented every day.
-Harvey MacKay
More sayings
Take risks. You are a lot better off being scared than being bored.
- The last Harvey MacKay
saying of this class
Creating a Personal Entrepreneurial Strategy
Recap and concluding thoughts
Why you said you took this course
I WANNA KNOW...
How to understand risk
The steps/procedures to start a biz
Whether I have what it takes/whether or
not it is the right thing for me -
the Entrepreneurial mind-set
How to use E skills in a corporate environment
How to analyze opportunities; methods to do so.
How to start a home based business
About the psychology of success
Whether to franchise or not
I WANNA KNOW...
The elements of a good business plan
The steps in getting the business plan funded
The sources of financing, what % must I have, how to estimate the amount
required
How to make the transition into an Entrepreneurial environment
What decision making tools are available
How to develop a niche
How to get the knowledge, confidence, and skills I need.
I WANNA KNOW...
How do I manage risk?
Personal strategy - The impact of starting a biz on my family and personal
life, etc.
Why would anyone want to be an Entrepreneur?
Should I be an Entrepreneur?
Opportunities can occur in any industry at any time
Factors that give rise to opportunity:
Significant change
Lags - leads
Chaos, confusion, dissatisfaction
Inconsistencies.
Vacuums, gaps
Different perceptions of risk or value
Your 4 marketing choices
Sell old products / services to old customers
Sell new products / services to old customers
Sell old products / services to new customers
Sell new products / services to new customers
Some difficult concepts
Ambiguity
How to plan for the unknown
Faith
Fear
How to Formulate Financial Strategy
1. Start
with opportunity--not the need for cash
2. Formulate business strategy appropriate to
capture the opportunity
3. Define the cash need:
a. Assets
b. Working capital
--determined by free cash flow
burn rate -- out of cash -- time to close
4. Then formulate financing plan
Value is a function of Perceived
Risk and Perceived
Reward
Why companies fail
Money isn’t everything - you have to know what you are doing.
Poor management
mismatch between strategy and capital
not generating enough sales
sufficient lack of the success factors, actions, and attitudes that we have
been discussing all course
True of False?
Entrepreneurs are high risk takers
True of False?
There is no such thing as wealth without risk
True of False?
You can change your tolerance for risk
True of False?
When you are an entrepreneur and you cannot sleep at night, you probably have
too much risk.
True of False?
Entrepreneurs are only in it for the money
True of False?
If you don’t have the right background or connections, you will not be
funded
True of False?
Entrepreneurial profiles are clearly defined
True of False?
If you get funded from a venture capital firm, you have it made in the shade
True of False?
If you fail in your entrepreneurial venture, you are finished.
True of False?
If you’ve been in corporate America for too long, you do not have what it
takes to be an entrepreneur.
True of False?
The initial team is the one that will go the whole distance with you.
True of False?
Employees, customers, and suppliers are all valuable resources that can
suggest innovative ways to run your business
True of False?
Money will solve all your problems.
True of False?
Outside directors on your board are a pain in the a**.
True of False?
The best idea always leads to success.
True or False?
You should take your salary and bonus out of cash flow.
Risk
Learn how to identify risk
Do not ignore it
Risk can be adjusted, but it takes time to work
Don’t obsess on the minor risks.
Stop taking risk when you are addicted to it and don’t like the results
Losses
Some losses will occur when you least expect them and can do nothing about
them.
You can have your share of losses and still be a successful entrepreneur.
Close the business when you cannot stop or tolerate the losses.
How to make luck
Lucky people’s true key to success is knowing how to encourage others to
help them and offer them great opportunities.
Luck depends on the actions of other people.
You can be lucky by convincing the people who can make your life easier that
you’re worth helping
- Marc Meyers
How To Make Luck
The 7 Secrets of Lucky People -
Marc
Myers
Make life look easy - but don’t rub it in
Cultivate Charisma - even if you are shy
Become known for your childlike curiosity
Make other people’s lives easier
Let powerful people own a piece of you
Fireproof your bridges
Turn triumphs into lucky streaks
Ten Secrets to
Success
- Investor’s
Business Daily
How you think is everything. Always be
positive. Think success, not failure. Beware a negative environment.
Decide upon your true dreams and goals.
Write them down and develop a plan to reach them.
Take Action. Goals are nothing without
action. Don’t be afraid to get started. Just do it.
Never Stop Learning.
Be Persistent and Work Hard. Success is a
marathon, not a sprint. Never give up.
Learn to analyze details. Get all the
fact and input. Learn from your mistakes.
Focus your Time and Money. Don’t let
other people or things distract you.
Don’t be afraid to Innovate. Be
Different. Following the herd leads to mediocrity.
Deal and Communicate with people
effectively
Be honest and dependable. Take
responsibility. Otherwise the rest doesn’t matter.
How to create value
The better you do your job in creating a company run effectively and
profitably, with as few major missteps along the way as possible, the higher the
premium (multiple) you will be paid for all or part of your company.
In other words, Run your
business well!
Remember
Value is a perception that is in the eye of the beholder
Value is based on expected
worth to the
individual
Founder’s share
It is virtually impossible to determine how much $, or what percent of the
business, the founders will end up with at the end of the day. What does need to
be determined up front, before you get started, is how the founders will divide
up what is collectively theirs.
Align your investors with your goals
It is perfectly OK to have full-time employment as your venture’s only
goal. This just makes it harder to use OPM.
Biggest obstacles for entrepreneur wanna-be’s
More fear than faith
failure to find an idea with sufficient margin potential
failure to develop a sufficient sales generation scheme
failure to obtain operational financing
Key Planning Points
Should I start the business alone or with a team?
What is my distinct competence?
What advantages will I have as a small business (or as a large one?)
How can I differentiate, concentrate, and innovate?
How do I offer my customers better value?
Planning Points (cont.)
How do I finance the business?
How much money do I need?
How much money can I put into the business myself?
What risks am I prepared to take?
How much ownership am I prepared to give up?
Sources of $
Personal savings and borrowing
Friends, family, business associates
Banks, other lenders
Individual venture investors
Institutional investors
Corporate investors
Government
Go public
Your Entrepreneurial milestones
1. Desire to do it
2. Idea for a venture
3. Break with former employment
4. Hire first advisor or partner
5. Legal papers for business
6. Invest first $ in venture
7. First payroll
8. First order arrives
9. First order fulfillment begun
10. First delivery or performance is done
11. First payment received
11. First time of breaking even
12. First profitable year.
Important lessons:
Commit to yourself and your dreams
(a dream without commitment is a fantasy)
Never let failure be permanent
Continually challenge yourself
Stay optimistic
Build on your successes and learn from your failures
When things get tough, refuse to quit
Important lessons
Persistence and self-discipline are more important than anything you will
learn in school or be graded on.
Success in school has nothing to do with success in business or in life.
If you think of yourself as able to do something, you will probably do it. If
you think you’re incapable, you probably won’t.
Important lessons:
Be flexible - keep your mind and options open
Anticipate tomorrow's problems today - and solve them
Learn to love change
Change the way others think, and you can create new markets. And Luck.
HAVE FUN
Exit planning
The capital gains rate on a business that you sell is 20%
The estate tax rate on a business that you die with is 55%
Succession planning and estate planning are critical.
Retirement planning
Time is your biggest ally and biggest foe.
Social security is the world’s biggest con.
Corporate security is the second biggest.
There is no better investment than your own business and its fully funded
pension plan.
Start today. You are worth
the investment.
Entrepreneurship is the ultimate test, but there is no
"right" answer!
Avoid the big wrong answer
Do Not Run Out of Cash!
I would love to know if any of you do start a new venture
Good luck!
Final Quote (from
a hockey player, of course)
You miss 100% of the shots you never take
Wayne Gretzky
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Michael Goldman & Associates, L.L.C. - Consulting
& CPA Services 
