1. 10 Key Lessons in Applied Entrepreneurial Finance

2. 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)

3. 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

4. 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)

5. One Word Check-In

6. 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)

7. Entrepreneurial Mindset: Energy

8. Entrepreneurial Mindset: Optimism

9. Entrepreneurial Mindset: Risk

10. 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

11. Entrepreneurial Mindset: Results
Those who say it cannot be
done, should not interrupt those
doing it.
Chinese proverb

12. Entrepreneurial Mindset: Team

13. Entrepreneurial Mindset: Integrity

14. Entrepreneurial Mindset: Abundance

15. Entrepreneurial Mindset: Long Haul

16. Entrepreneurial Mindset: All

17. Entrepreneurial Mindset: Simplicity

18. Entrepreneurial Mindset: Sheer Will

19. 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)

20. 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?

21. 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

22. Entrepreneurial Finance: Cash Flow

23. 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

24. Entrepreneurial Finance: Motivation

25. Entrepreneurial Finance: Break Even

26. Entrepreneurial Finance: Personal Financing

27. Entrepreneurial Finance: Friends and Family

28. Entrepreneurial Finance: Customer Financing

29. Entrepreneurial Finance: Vendor Financing

30. 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.

31. Entrepreneurial Finance: Factoring

32. Entrepreneurial Finance: Merchant Account Advance

33. Entrepreneurial Finance: Government
• Taxes
– International
– Federal
– State
– Local
• International Trade
– Duties
– Tariffs
– Offsets
• Economic Development
– Abatements
– Grants
– Incentives
– Subsidized Loans

34. 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)

35. Question and Answers

36. 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)

37. One Take Away

38. Thank You
Jonathan B. Smith
Founder
ChiefOptimizer
+1(703) 569-1011
jonathan@chiefoptimizer.com
@chiefoptimizer