Presentation by Joe Miler, Stanford PhD Candidate 2 May 2012 Contact Joe: sites.google.com/site/joemiler

1. Technical Consulting and
Entrepreneurial Opportunities for
Stanford Grad Students
2 May 2012
Joe Miler (joe.miler@gmail.com)
PhD Candidate
Goodson Group
Dept. of Mechanical Eng.
Stanford University
Joe Miler – 2 May 2012 1

2. Standard Interaction
Stanford GSB  Stanford Engineer
Hey SUPER GREAT talk!!
Let’s chat/sync up soon!
Umm…
{Why are you
shaking my hand so
hard?}
MBA student
Joe Miler – 2 May 2012 Grad student engineer 2

3. Standard Interaction Business people are so…
Engineers are so…
Stanford GSB  Stanford Engineer
Unrealistic Greedy
Bossy
Networking
Dorks Deaf to customer Paper-pushing Manipulative
Interchangeable
Bullshitting Money-hungry
Smelly Obsessed with Hype
the irrelevant Hey SUPER GREAT talk!! Contracts
Tricking people into
Arrogant Awkward chat/sync up soon!
Let’s
buying stuff
Sleazy
Rambling jargon
Unnecessary
Umm…
{Why are you
shaking my hand so
hard?}
MBA student
Joe Miler – 2 May 2012 Grad student engineer 3

4. Joe Miler – 2 May 2012 Grad student engineer 4

5. Do engineering grad students make good
entrepreneurs?
Transferrable Skills Skills Needed
• Work independently • Project management
• Strong work ethic – Setting priorities
• Defining problems • Big picture strategy
• Solving problems • Communication
– Deep expertise • Willingness to take risk
– Broad knowledge base
• Healthy skepticism
• Good at experimenting
Joe Miler – 2 May 2012 5

6. Outline
Technical Starting a company
Consulting at Stanford
Networking Learning more…
Joe Miler – 2 May 2012 6

7. About me
• Research • BASES (~3 years)
– PhD Candidate in the Goodson Group – External partnerships
– Research on microfluidic heat exchangers and – IP workshops
hotspot detection and prediction – Social-E Challenge
• Technical consulting • Coursework
– Med device patent litigation – Entrepreneurship
– EV battery start-up (Series-A) – Social entrepreneurship
– Grid-scale storage (Series-A) – Patent prosecution
• Various entrepreneurial projects, no winners • Miscellaneous
– EV battery secondary use (GSB Nii Award) – Filed research-related patent application
– Breast cancer detection – TA for 7 quarters
How I got here…
hi yes cool!
But also…
sh!t…
Joe Miler – 2 May 2012 7

8. About me
• Research • BASES (~3 years)
– PhD Candidate in the Goodson Group – External partnerships
– Research on microfluidic heat exchangers and – IP workshops
hotspot detection and prediction – Social-E Challenge
• Technical consulting • Coursework
– Med device patent litigation – Entrepreneurship
– EV battery start-up (Series-A) – Social entrepreneurship
– Grid-scale storage (Series-A) – Patent prosecution
• Various entrepreneurial projects, no winners • Miscellaneous
– EV battery secondary use (GSB Nii Award) – Filed research-related patent application
– Breast cancer detection – TA for 7 quarters
hi hmm… yes cool!
I’m not an expert, but I have some
experience that could be useful…
sh!t…
Joe Miler – 2 May 2012 8

9. Technical Consulting…
Joe Miler – 2 May 2012 9

10. Who hires technical consultants?
• Start-ups
• Investors
• Lawyers
http://www.pajamasandcoffee.com/?p=5161
http://beyond.customline.com/2012/01/26/where-can-you-find-article-ideas/
Joe Miler – 2 May 2012 http://billsbigmlmblog.blogspot.com/2011/09/big-mlm-tip-decisions.html 10

11. Who hires technical consultants?
• Start-ups:
– Scenario 1: Fast solution
– Scenario 2: New Ideas
– Scenario 3: Big decision
• Investors
• Lawyers
http://www.pajamasandcoffee.com/?p=5161
http://beyond.customline.com/2012/01/26/where-can-you-find-article-ideas/
Joe Miler – 2 May 2012 http://billsbigmlmblog.blogspot.com/2011/09/big-mlm-tip-decisions.html 11

12. Consulting rates: How much am I worth?
• “No free puppies”. Your rate determines how you are treated.
• Cash vs. Equity
How to determine your value:
• Default answer: 2x-3x your FT hourly rate
Annual Equiv. Consulting
• Consider costs you incur Salary Hourly Hourly
– Overhead
50K $25 $50-75
– Dispatchability
• Consider your value to the company 100K $50 $100-150
– Degrees have value
– Domain expertise
– IP contributions
– Scarcity of skills
• Consider your opportunity cost
• Other considerations
– Learning experience
– Interest in their mission
Joe Miler – 2 May 2012 12

13. Negotiating your consulting rate
• Expect negotiation
• Do your homework
– MIT salary data (link)
– Equivalent job offers
• Believe a solution exists, then look for it
• Explore interests, not positions
 Take a negotiation seminar/class, etc.
Joe Miler – 2 May 2012 13

14. NDA’s and Consulting Agreements
(NDA = Non-disclosure agreement)
• Both sides need it done right
• Read carefully
• Key issues to look for:
– Maintain right to invent in future
– Duration of agreement
– Two-way NDA or not
– IP assignment restricted to business area
• Get everything in writing
• Once you sign it, follow it.
• People will push you to disclose.
• Reputation is everything, but only you care about your
reputation.
Joe Miler – 2 May 2012 14

15. Maximizing your contribution
• Understand the problem(s)
– Warning: The company may not.
• Discuss solution options
– Trade-offs (e.g. accuracy, modularity, etc.)
– Timelines
• Get to work
• Check-in frequently
Critical skills
• Demonstrate technical expertise.
• Respect their domain-expertise.
• Be creative.
• Focus on tangible contributions.
• Adopt their goals.
Joe Miler – 2 May 2012 15

16. Building start-ups at Stanford…
Joe Miler – 2 May 2012 16

17. An engineering approach to start-ups
• Start-up companies always have 2 products:
– The widget/service
– The business itself
• An entrepreneur is a “business experimentalist”
Researcher Entrepreneur
Research idea/hypothesis Startup idea
Research proposal Business model
Research funding Risk capital
Metric: performance data, fig. of merit, etc. Metric: Customers, clicks, etc
1st experiment  garbage data 1st business model iteration
2nd experiment  “preliminary data” 2nd business model iteration
Well-designed experiment  good data Scalable business model
Graduate! Get rich!
“A start-up is a temporary organization formed to search for a repeatable
business model.”
– Steve Blank (serial entrepreneur, Stanford Prof.)
Joe Miler – 2 May 2012 17

18. An engineering approach to start-ups
• Start-up companies always have 2 products:
– The widget/service
– The business itself
• An entrepreneur is a “business experimentalist”
Researcher Entrepreneur
Research idea/hypothesis Startup idea
Research proposal Business model
Research funding Risk capital
Metric: performance data, fig. of merit, etc. Metric: Customers, clicks, etc
1st experiment  garbage data 1st business model iteration
2nd experiment  “preliminary data” 2nd business model iteration
Well-designed experiment  good data Scalable business model
Graduate! Get rich!
research team
Or… “A start-up is a temporary organization formed to search for a repeatable
business model experimental results.”
– Steve Blank (serial entrepreneur, Stanford Prof.)
Joe Miler – 2 May 2012 18

19. Where do start-ups come from?
• Technical breakthroughs
• Needs-finding
– Biofellows program
– ME Design program
– Informational Interviews
– Networking
Joe Miler – 2 May 2012 19

20. Should we apply for a patent?
• First, what is a patent?
– Right to exclude, not a right to build
– A license to sue
– Self-defense (M.A.D.)
– A business asset
– Resume/career builder
• What does it cost?
– Time:
• Garbage: 1 hour
• Good: More (depends on lawyers)
– Money:
• Provisional: $2-3k (lawyer), $100 (yourself)
• Full: $10k-20k (lawyer)
Joe Miler – 2 May 2012 20

21. IP at Stanford
Good news Bad news
• Stanford OTL helps • Stanford owns your IP
file the patent • You have to compete to
• You get royalties license your own
technology
Advice:
• Keep a dated journal for anything remotely
patentable
• Don’t underestimate the patentability of an idea…
but only if that patent would have value to you
Joe Miler – 2 May 2012 21

22. Raising $$$
• Business plan competitions
– BASES
Understand the difference between business plans
– DoE and business models
– National
• Incubators
– StartX
– Ycombinator
– Many more
• Angels
• VCs
Osterwalder Canvas
• Strategic Investors
Joe Miler – 2 May 2012 22

23. Networking…
Joe Miler – 2 May 2012 23

24. Networking Basics
• “Palm-up” networking
• Imagine a role-reversal
• Good networking opportunities
– Talks and lectures
– Networking events (e.g. CHIPS, PRL)
– Interdisciplinary classes
• You already have a network (i.e. peers at Stanford)
• Preparation:
– Business cards
– Skim headlines ahead of time
– LinkedIn
Joe Miler – 2 May 2012 24

25. Networking: the big shot ( VC partner
Rich entrepreneur )
• Likes to think: • What you can bring to the
– She’s helping people. table
– She’s important. – Fresh ideas
– Technical expertise
• But also…
– Access to your technical
– She’s missing the next big network
thing. • Strategy
– She’s irrelevant. – Do quick background
• What she has to offer: research
– Connections – Get face time
– Deal-flow – You have 30 seconds to get
their interest
– Logistics enabler (eg cash) – Be ready for 2 questions:
• How can I help you (right
now)?
• Why?
Joe Miler – 2 May 2012 25

26. Networking: the GSB’er
• Likes to think: • What you can bring to the
– He’s a leader. table
– Business runs the world. – Technology ideas
– Things work out, check the – Technical expertise
details later.
– Access to your technical
• But also… network
– Oh crap, I need (start-up)
ideas • Strategy
– Oh crap, I don’t have – Goal is to start a
technical skills relationship
• What he has to offer: – Start high-level
– Connections – Be ready for 2 questions:
– Business knowledge • What are you working on?
– Big picture perspectives • What start-up ideas do you
have?
Joe Miler – 2 May 2012 26

27. Learn more…
Joe Miler – 2 May 2012 27

28. Stanford Courses
• NSUR 278A How to start a med device company
• ME 245 IP strategy for start-ups
• E-245 Customer development, start a company
• ETL Success stories in Entrepreneurship
• EDUC 224 Success stories in social entrepreneurship
• Startup (CS-183)
• Technology Venture Formation
• High Performance Leadership
• Interpersonal and Small Group Communication
• Negotiation
• Plenty of others…
Joe Miler – 2 May 2012 28

29. Other Resources
• Ask around, it’s a good conversation starter
• Blogs
– Steve Blank
– Paul Graham
– Techcrunch
– Etc.
• Other talks:
– BASES email list
– Energy Club email list
• Stanford E-corner videos
• Books
• See Appendix
Joe Miler – 2 May 2012 29

30. Topics that are hard to learn at Stanford
• Equity and vesting
• Incorporation
• Board strategy
• Strategy for finance rounds
• Evaluating a startup for employment
Addition: Much of this is covered in CS-183, taught by Peter Thiel.
Informal coursenotes are available at :
http://blakemasters.tumblr.com/peter-thiels-cs183-startup
(thanks to Sanjay Dastoor for sharing this info)
Joe Miler – 2 May 2012 30

31. Do engineering grad students make good
entrepreneurs?
Transferrable Skills Skills Needed
• Work independently • Project management
• Strong work ethic – Setting priorities
• Defining problems • Big picture strategy
• Solving problems • Communication
– Deep expertise • Willingness to take risk
– Broad knowledge base
• Healthy skepticism
• Good at experimenting
Joe Miler – 2 May 2012 31

32. Thanks
Saniya LeBlanc
Ashish Nagar
Saahil Mehra
Greg Reiker
Michael Barako
Ghyrn Loveness
Polina Segalova
Amit Desai
Tom Stepien
Jeff Schox
and company…
Joe Miler – 2 May 2012 32

33. All Done
Questions / Comments / Feedback
Please:
• Email me with any
additional feedback:
joe.miler@gmail.com
• Leave me your email
address if you want a
copy of the slides
Joe Miler – 2 May 2012 33

34. Appendix
Joe Miler – 2 May 2012 34

35. Visiting companies
(eg research visits, interviews, etc.)
• Ask lots of questions to understand their pain points.
• Respect their domain-expertise (don’t be arrogant)
• Be aware of confidentiality concerns.
• Don’t be negative about anything until you know for
sure they don’t do it, never have, and don’t plan to.
(ie don’t be negative)
• Send a thank-you note within 24 hrs
Joe Miler – 2 May 2012 35

36. Helpful phrases for discussing technical
consulting opportunities
• How should we structure this consulting work?
• I’d like to discuss compensation…
• I’m not comfortable with …
• I want to provide the most value for [Insert
company name] while also…
• Perhaps what you’re looking for is an
undergraduate intern…
Joe Miler – 2 May 2012 36

37. Tips for 1st day of consulting work
• Meet in person, not phone, if possible
• Be prompt and professional
• Always bring pen and paper
• Use a dedicated “IP-legit” notebook
• Dress appropriately (probably business casual)
• Distribute business cards
• Take initiative on unsettled issues
Keep in mind:
• Stanford limits you to 8 hrs/week
• Inform your advisor
Joe Miler – 2 May 2012 37

38. Where to find cheap legal advice
• On-campus talks and workshops
• Incubators
• Call a lawyer (first 5 minutes free!)
• Network
• Marry one
• Or…pay
Joe Miler – 2 May 2012 38

39. Helpful phrases for avoiding disclosure of
protected information
• Some of my work is covered by an NDA, but…
• What is public domain is this: …
• What I can tell you is this…
• I’m not sure I’m comfortable talking about…
• You know I’m not at liberty to talk about that
right now, but I would like to discuss…
Joe Miler – 2 May 2012 39

40. Minutia: Business Skills
• Know when to call, when to email. When in doubt, call.
• Get comfortable with indirect wording, e.g.:
– “Talk off-line”
– “Sync up”
• Learn good email etiquette for different situations:
– Be direct, but polite.
– Keep conversational/high-level, add details elsewhere
(e.g. as attachments or below)
– Include your cell number in signature when appropriate
– Write a clear, interesting subject line
Joe Miler – 2 May 2012 40

41. Managing on-line introductions
• Be prompt.
• Know who you’re talking to.
• Follow-through
• Extra-credit: Follow-up with introducer.
Joe Miler – 2 May 2012 41

42. Managing on-line introductions
• Be prompt.
• Know who you’re talking to.
• Follow-through
• Extra-credit: Follow-up with introducer.
Joe Miler – 2 May 2012 Note: names changed for privacy 42

43. Online Resources
GSB Entrepreneurial Studies Reading List E-245 Resources for Start-ups
Stanford E-Corner
Joe Miler – 2 May 2012 43

44. Important topics to learn about from
on-campus talks and classes
• Do I want to found/work at a start-up?
• How to assess market opportunities?
• How do start-ups fail?
• Why are people so important at a start-up?
• How to raise money?
• How to think about IP at a start-up?
Joe Miler – 2 May 2012 44

45. Sample NDA and wage negotiation…
Joe Miler – 2 May 2012 45

46. Paperwork
My rate
Possible phone call
Details below
Joe Miler – 2 May 2012 46

47. Joe Miler – 2 May 2012 47

48. Joe Miler – 2 May 2012 48

49. Paperwork
My rate
Possible phone call
Details below
Joe Miler – 2 May 2012 49