Be Sure to Say Thanks!

Occasionally, if you're really lucky you get the chance to meet a true hero. Through the Entrepreneurship Bootcamp for Veterans with Disabilities program, it’s been my good fortune to meet lots of them. As we get closer to Memorial Day, I find myself thinking more about the tremendous service each and every one of our country’s vet’s have given to the USA. Justin Constantine, the president and owner of the company Iraq and Back, is one of those hero's and wrote today in his blog….Thank ‘Em for Their Service.

And while we don’t say it often enough…to all the vet’s out there no matter when you served…thank you for your service! We are a better and safer country thanks to you!

A Truly Unusual Dog

It’s been a busy end of the semester at Syracuse University, and while I have been off the blog for a bit, I’m jumping back in today. But rather than thinking purely about entrepreneurship, take a look at a really neat piece that my wife Carrie showed me about a dog…yes, a dog…who really does make a difference. Meet Ricochet, a dog who does a bit more than the usual pet.

Entrepreneur or Vulture?

Interesting story in today’s Wall Street Journal that fits my entrepreneurship lens, not to mention my love of all things in the food industry. The story, Taking Advantage of the Wine Glut by Lettie Teague, tells the classic entrepreneurial story of finding a problem (or pain) in the marketplace, and devising a unique solution that removes the pain. While one of the winemakers in the piece says that "A guy like Hughes has a business model that revolves around other people's misfortunes… he's like a vulture feeding on carrion," … to me, Mr. Hughes is simply an entrepreneur who utilizing his own unique skill-set, found a unique way to solve an on-going problem in an industry. Calling him a “vulture” would mean that other companies such as Overstock.com and Priceline.com are of the same ilk which clearly they are not. I think that he is simply a guy who had found a business model that works... and the winemakers who get cash for their product would probably quietly and confidentially agree with that assessment. Because after all, it is their choice whether to sell to Hughes or not.

Lending to the Entrepreneur

In today’s Wall Street Journal there is a piece of interest to entrepreneurs regarding financing of new ventures…and by financing I am writing about bank financing. The article by Emily Maltby is Entrepreneurs Find Success with Specialty Lenders. In thinking of conversations with entrepreneurs who have had success with banks, the notion of leaving no stone unturned should apply. And while we’re on the subject, while it’s fashionable to take shots at the bankers for not lending, in many cases the reason they are not lending is that they’re hands are tied based on what the federal government and the regulators will allow them to do. Talk to your local banker, talk to a specialty lender and most especially, have your act together before you make the ask for the loan.

Angel Investing Q and A

Playing catch-up after a busy week at the Falcone Center for Entrepreneurship…where we gave away $45,000 in prize money to student ventures in our Panasci Business Plan Competition. Yesterday’s on-line edition carried an interview with the author one of my favorite entrepreneurship books, Susan Preston who wrote the wonderful book, Angel Financing for Entrepreneurs. I’ve pasted the entire Q and A below, but here is the link to the article by Colleen Debaise, “How to Win Angel Funding.” As a side note, if you are thinking of getting your venture in front of any angel investors, do yourself a favor and buy this book. You’ll do yourself and the angels you are pitching to a big favor. My old friend Doug Calaway used to tell my students at Rollins College that investors want to know "how much money do you want?"; "what are you going to do with my money?" and "when do I get it back?"

Here's the Q and A

Adapted from THE WALL STREET JOURNAL COMPLETE SMALL BUSINESS GUIDEBOOK (Three Rivers Press).

If you're looking for a cash infusion for your high-growth company, angel financing might be for you. (See related story, "What's an Angel Investor?")

I asked Susan Preston, author of Angel Financing for Entrepreneurs and an angel herself, to explain what an angel wants to see before making an investment. Here's her list:

• A solid potential for return. Angels want to know how your company will make money, when it will turn profitable, and when they can expect a return on their investment. You'll need to back up those promises of profitability with financial documents that include an income statement (also referred to as a profit/loss statement), a balance sheet and cash flow statements.

• A good plan for the cash. Investors want to make sure their money will be spent wisely. If you've founded, say, a consumer product company, you'll need to show how the money will be used to design, develop and distribute your product. And emphasize your thriftiness: angels don't want to see the money being used for big salaries or fancy office space.

• A winning attitude. Get fired up. Angels want to see passion; they want to see you're committed to your concept and company and that you'll stay the course when obstacles arise. Aside from enthusiasm, you must be able to clearly articulate your company's mission—and how you'll make that dream a reality.

• A seasoned team. Angels want to see a strong management team that's capable, experienced in their industry and, more important, open to suggestions and opinions. "If I don't think that a CEO or founder is coachable, I won't invest," Preston says. "Someone who comes in and says 'I know all the answers' is the kind of person who is doomed to failure."

• A competitive edge. How are customers responding to your product or service? An angel will want to know that you can capture market share quickly and beat out competitors as you ramp up. If your product or service is fairly unique, an angel will want to see you've secured the patents, copyrights or trademarks to protect your intellectual property.

• A well-defined exit strategy. Investors will want to know exactly how you plan to make them money—and just saying "IPO" or "acquisition" might not be enough. Research how other companies in your industry have returned profits to investors. Identify potential suitors for your business. "It's a homework point that they need to have done," Preston says.

The Dream Machine

Our Entrepreneurship Bootcamp for Veterans with Disabilities (EBV) program had some exciting news to share yesterday and we were able to announce it in the heart of New York city in Times Square. PepsiCo International announced a wonderful new national partnership that will provide us with help for our very special veteran’s initiative. Our EBV Program was selected over dozens of other groups, and will get not only significant funding, but tremendous national publicity as well. In an effort to increase recycling, Pepsi has decided to offer an added incentive to return bottles and cans: they are setting up thousands of “dream machines,” and for every recyclable deposited in one of these, PepsiCo will make a financial contribution to the EBV program to ‘help a veteran live the American Dream of becoming an entrepreneur.’ It’s an awesome way for Americans to protect the environment and give back to the disabled servicemen and women who served them so selflessly and so honorably. This is an exclusive and three year relationship, where the EBV program is the sole financial beneficiary of PepsiCo’s recycling campaign.

The EBV program, founded by our own Dr. Mike Haynie is based on one simple idea: helping disabled veterans with dreams of entrepreneurship to start their own businesses. Since its inception in 2007, we have graduated over 225 veterans! This is such an amazing program…truly life-changing for the participants. One of my hardest (and saddest) tasks though has been to turn away eager applicants because our program has been full. With this new partnership with Pepsi we’ll be able to open the program to even more deserving vets. For more information on this neat program, take a look at the Pepsi Dream Machine Facebook page: http://www.facebook.com/dreammachine#!/dreammachine?v=wall

Ag 4 Africa and the Dell Competition

Congratulations to Holly Tassi ’10 BS, Ryan Seeram ’10 BS, and Tamara Cohen ’09 BS from Syracuse University for their achievement in making it to the final three teams in the Dell Social Innovation Competition. Over 700 other business ideas from colleges and universities around the world had also entered the competition, which seeks projects that improve areas of critical human need through innovation.

Holly’s and the team’s business idea, Ag 4 Africa, is a rural development model for Sub-Saharan Africa, focused on promoting sustainable agriculture and self-sufficiency. The AG 4 Africa concept is being developed in collaboration with the Whitman Schools’ Department of Entrepreneurship and Emerging Enterprises.

The team will travel to Austin, Tex., on May 5 to present their business plan in front of a panel of judges comprised of leaders from the business, nonprofit and government sectors. All three of the finalists will receive prizes; the overall winner receives $50,000 to launch their venture.

Congratulations Holly, Ryan and Tamara and good luck in Austin!