stories from the front lines - university of wyoming · 2020-04-10 · covergence, llc | |...
TRANSCRIPT
CoVergence, LLC | www.covergence.co | 301-801-4706
Stories from the front lines www.covergence.co/uwtalk
CoVergence, LLC | www.covergence.co | 301-801-4706
Outcome�
q That in spite of the challenges and pitfalls being a Venturist can provide unique business, career and life experiences#
q That you get at least 1 key question answered#
2 Logic will get you from point A – B, imagination will take you everywhere! - Albert Einstein
CoVergence, LLC | www.covergence.co | 301-801-4706
Venturists�
Those of us who get personal, professional, community, financial fulfillment from the relentless pursuit of imagining something and then making it happen, and love the journey of learning#3
Venturists - Kind of like being a pro golfer
CoVergence, LLC | www.covergence.co | 301-801-4706
Write down your story�
§ Hungry – I was the 7th of 8 children – I was on my own and had to improvise#
§ Mentors – Vince Zummo’s candy store#
§ Risk taking – I jumped off 40’ cliff’s at 12 #
§ Curiosity – I love to read #
§ DNA – my father was a straight commission
salesman for 46 years – two grandfathers as Venturists#
§ My faith – has taught me so much about human
frailties and change, and gave me peace in the
midst of chaos#
§ Parents and grandparents – were all go-givers#
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Zummo’s Candy Store Clerk
Falls @ Nayaug Park
CoVergence, LLC | www.covergence.co | 301-801-4706
Select Ventures�
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Company Timeline The Computer Forum Apple PC Store ‘81-‐88
Rainbow Computer Corp So;ware: Commodore 64 ‘83-‐84
Touchstone ConsulCng Management consulCng ’92-‐’04
So; Bike Company So;ware: ProducCvity ‘95-‐98
CT&E Smart Conference Rooms ‘94-‐’00
Discovering Digits Math PublicaCon & Web ‘05-‐’07
Pliris Carpet cleaning ’06-‐09
Anerian InnovaCon ConsulCng ‘07-‐09
Language of Life Child advocacy ‘06-‐Present
Greener Community Real Estate ‘07-‐14
1901 Group IT Services ‘08-‐Present
Anthracite Warranty (IT Devices) ’11-‐?
CoVergence Social venture advisory ’08-‐Present
YViC Ministry New Venture
Win Loss Tie Ongoing
CoVergence, LLC | www.covergence.co | 301-801-4706
Examples�
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Founded – 2009 Focus – IT managed services
• Early to the federal market
• ConCnually trying to find the
right staff / service mix
• Shi;ing the message from
purely cost savings to greater
flexilibity
Founded – 1992 Focus – ConsulCng to the federal government • Couldn’t break thru $5m
• Lost 100% of our contract
work in Apr 2001
• Restructured by June
• Grew monthly run rate 30x in
three years
Founded – 2006 Focus – educaCng 3rd-‐5th graders: excel in arithmeCc • Spent $400k of our own funds
• Wasn’t an educator
• Couldn’t find the buyer
• Built a web-‐site and magazine
$$$
Touchstone DiscoveringDigits 1901Group
• Constantly trying new things • Cutting costs when we had to • Finally finding the focus
• Latched onto a trend “e-Gov”
• Didn’t know the domain • Tried both web and magazine • Didn’t start small and iterate
• Chose a smart partner • Great starter contract • Orchestrated a major pivot
• Hired a great team
CoVergence, LLC | www.covergence.co | 301-801-4706
Setting expectations�
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Everything He Does Fits
Not so much
q Abandoned ideas I loved#
q Worked with partners I didn’t always love#
q Almost went bankrupt three times#
q Pushed the boundaries with my family#
q Lost 100% of our contracts at least twice#
q It took me 22 years and 8 colleges to get
my first advanced degree#
#
CoVergence, LLC | www.covergence.co | 301-801-4706
QUESTIONS YOU ASKED�
§ How to get started?�
§ How to generate more revenue?���
§ How to attract talent and deal with people?���
§ How to cut costs���
§ How to raise funds?���
§ How to prepare to sell the company?���
CoVergence, LLC | www.covergence.co | 301-801-4706
How to get started�
Prepare!
§ Inventory your personal assets#
§ Have 10,000 hours under the hood#
§ Build a startup management team#
§ Try it for as long as you can without
quitting your current job #
§ Get a degree from M.S.U.#
§ LEARN THE NUMBERS!!!#
#
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Steps!
Explore!
1. Write down your story#
2. Share your story with 100 people and write down EVERYTHING!#
Prototype!
1. Build an example #
2. Develop your what if scenario#
Launch!
1. Get a paying client#
2. Refine the service or product#
3. Go get another#
Stay Healthy
CoVergence, LLC | www.covergence.co | 301-801-4706
Approach to launch�
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What if - If I created a monthly service to provide on-call sales and marketing advice to grow your business on a monthly basis: #
– Monthly coaching - two hour, one on one coaching sessions regarding marketing, sales, finance and people challenges and opportunities #
– On-demand access for quick questions#
– Access to repository of articles and templates!
Would you consider this type of service for ~$300 per month?#
My story – I realize as a the descendant of givers that I was meant to help facilitate positive change in our community. At CoVergence I am going to fund my efforts to help youth groups, high school and college students become “changemankers” by providing high value advisory services to small to mid-sized companies, on a subscription basis.#
My business goal – I will be the best small to mid sized business resource, providing tremendous value at a very competitive rate and use the proceeds to fund my efforts in helping launch new social ventures. I will launch 100 programs in the next 10 years to impact thousands.#
CoVergence, LLC | www.covergence.co | 301-801-4706
Startup roadmap�
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Explore Prototype Launch
Ask: If I had a service that provided x would it be of interest to you? I am thinking of charging y, for z value. What advice do you have?
Test: I have developed this new service that a few friends have used and love it, would you consider being an early customer (pioneer) in return for x
Invite: I have n customers who are paying y each month for z service, and they report _____ would you consider joining
Asking advice, identifying real candidates, workability, uniqueness
Some number of early customers, proof, momentum
Meaningful revenue and wins
Stage
Approach
Purpose
Scale
Listen continually & adjust Give until it hurts Recognize it takes time to build a reputation and following
Forecastable revenue, and manageable costs
Fist client Wealthy social investors Early work with no overhead
Profits Grants Partnerships
Funding Early clients “what if” Wealthy social investors Partners Events
Profits Grants Partnerships
CoVergence, LLC | www.covergence.co | 301-801-4706
QUESTIONS YOU ASKED�
§ How to get started?���
§ How to generate more revenue?�
§ How to attract talent and deal with people?���
§ How to cut costs���
§ How to raise funds?���
§ How to prepare to sell the company?���
CoVergence, LLC | www.covergence.co | 301-801-4706
Useful tools�
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q Listen to your clients early and often#
q Take your product / service or story to unique places (e.g. if you have done startups on the east coast, go speak on the west coast)#
q Price – always provide multiple options for pricing#
q Promotion#– hair cuts – offer annual subscription for 14 for mom and 12 for each child at a discount#
– Get on every free business site: google, bing, aol, yahoo, …#
q Package – the experience – why do you pay $4 for a cup of coffee at Starbucks#
q Develop new ‘if statements’ every year#
q Build your mafia offer#
q Teach everyone your business model – make everyone a salesperson#
CoVergence, LLC | www.covergence.co | 301-801-4706
UW Incubator Authors / editors Feeder companies • Accountants • Bankers • Other consulting firms • IT Firms Visual artists
• Acquiring clients: Speaking Writing, Teaching, Referrals
• Assessments • Modeling ���
(business, org, cost) • Advising
Helping firms become change-makers in the community you serve Grow your business: understand the customer, understand the true pain points Manage your cash by modeling and tracking every dollar Invent a service that is so compelling 80% of your customers will buy
Direct one on one relationships College teaching
Anyone who wants to make a difference in the community Those considering startups Companies struggling with growth Problems with people and cash Companies wanting to create a new service
• My time, subcontractors – 93% • Education – 5% • Authors / artists – 2%
• Hourly advisory services – 85% • Workshops – 15% • Subscription services – 0% • Publications – 0%
Industry research Business modeling materials Pool of advisors for subcontracting
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The CoVergence Business canvas�
Monthly check-ins Go-giver attitude Useful / targeted insights Service guarantee – no value, no bill
CoVergence, LLC | www.covergence.co | 301-801-4706
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Revenue generation continuum�
A2ract Capture Convert Execute Expand
Ac:vity
• Conferences • SEO • Round tables • Door openers • Speaking
engagements
• White papers • PresentaCons • Cost analysis • CompeCCve
analysis • PromoCons • IncenCves
• Proposal • Pricing • NegoCaCng
objecCves and goals
• Delivering the service
• ValidaCng the service quality
• Obtaining referrals
Budget
Goals Qualified Leads Size of Pipeline Backlog Billings New requests Referrals
Metrics New / month Size and new addiCons per month
Value in $ of total backlog
Revenue per month
New requests Loss work
CoVergence, LLC | www.covergence.co | 301-801-4706
Mafia Offer�
“Mr. Customer, don’t give me orders. Your orders are based on your best guess of how many labels you think you might need. That’s because label printers put that price per quantity curve in front of you and force you to have to guess out six months. The forecast ends up being wrong, and how can it possibly be right? Instead, tell us every day how many labels you use and we can guarantee, on the one hand, that you won’t have to hold more than two weeks’ worth of labels. And you know how your marketing department was complaining that they can’t make the changes they want because you have six months worth of inventory? Well, now you will only have two weeks. At the same time, we will guarantee that we never stock you out. We will guarantee that you’ll never go to the shelf and not have the label you need. And if we ever do stock you out, we will pay you $500 per day per label. We offer all this at the same competitive price you pay today and of course you will have a lot less of your cash tied up.#
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”Lang, Lisa (2010-04-30). Mafia Offers: Dealing with a Market Constraint (Chapter 22 of Theory of Constraints Handbook) (Kindle Locations 237-244). McGraw-Hill. Kindle Edition.
CoVergence, LLC | www.covergence.co | 301-801-4706
QUESTIONS YOU ASKED�
§ How to get started?���
§ How to generate more revenue?���
§ How to attract talent and deal with people?�
§ How to cut costs���
§ How to raise funds?���
§ How to prepare to sell the company?���
CoVergence, LLC | www.covergence.co | 301-801-4706
Hire great talent�
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q Hire referrals from your best staff,
friends or colleagues#
q Contact Ashoka about their talent acquisition program#
q Use testing: aptitude, EQ and
Myers Briggs#
q Do internships and coop programs#
q Transition people out: high
performers, low cultural fit#
Cultural Fit
Per
form
ance
CoVergence, LLC | www.covergence.co | 301-801-4706
QUESTIONS YOU ASKED�
§ How to get started?���
§ How to generate more revenue?���
§ How to attract talent and deal with people?���
§ How to cut costs�
§ How to raise funds?���
§ How to prepare to sell the company?���
CoVergence, LLC | www.covergence.co | 301-801-4706
Preserve cash�
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q Reverse engineer your budget#
q Track every penny#
q Find an objective, disconnected advisor #
q Evaluate all costs compared to competitors#
q Facilities – sub-let your space#
q Staff – hire fractional staff vs Part time#
q Cut before you have to#
CoVergence, LLC | www.covergence.co | 301-801-4706
Reverse engineer your budget�
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q Set a financial goal for the year#
q Develop a plan based on that forecast#
q Allocate costs by category#
q Track plan vs actual and gaps#
Plan Acutal Gap
Revenue 1,000,000$$ 975,000$$$$$$$ (25,000)$$$$$$
Consulting3labor 50% 500,000$$$$$ 525,000$$$$$$$ 25,000$$$$$$$$
Gross%profit 50% 500,000$$$$$ 450,000$$$$$$$ (50,000)$$$$$$
Available3for3overhead 400,00033333
Overhead $Bench$time 35.0% 140,000$$$$$ 115,000$$$$$$$ (25,000)$$$$$$Admin 25.0% 100,000$$$$$ 100,000$$$$$$$ 9$$$$$$$$$$$$$$Marketing 4.0% 16,000$$$$$$$$ 24,000$$$$$$$$$ 8,000$$$$$$$$$$Prof$services 6.0% 24,000$$$$$$$$ 24,000$$$$$$$$$ 9$$$$$$$$$$$$$$Rent 12.0% 48,000$$$$$$$$ 48,000$$$$$$$$$ 9$$$$$$$$$$$$$$Office$exp 4.0% 16,000$$$$$$$$ 16,000$$$$$$$$$ 9$$$$$$$$$$$$$$Technology 10.0% 40,000$$$$$$$$ 40,000$$$$$$$$$ 9$$$$$$$$$$$$$$T&E 4.0% 16,000$$$$$$$$ 30,000$$$$$$$$$ 14,000$$$$$$$$
100%
Subtotal3Overhead 400,000$$$$$ 397,000$$$$$$$ (3,000)$$$$$$$$$
Net3Income 100,00033333 53,000$$$$$$$$$ (47,000)$$$$$$
Margin 10% 5.4%
CoVergence, LLC | www.covergence.co | 301-801-4706
RESOURCES�
CoVergence, LLC | www.covergence.co | 301-801-4706
Resources�
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q Ashoka.org – social ventures#
q Growthmatters – Bring product to DC market#
q Hubshout – online marketing#
q Vistage – executive cohorts#
q Happylifebydesign – graphic artist#
q Craigslist for independents#
q Author / editor – Marissa Tejada#
q www.Udemy.com#
What drives success - NY Times article http://nyti.ms/19UTOS6 www.covergence.co/perspectives HBR: • 3 Rules for success • What really works (4 + 2) • Venture Philanthropy
Books • Change before you have to • Go Givers • Business model generation • E-Myth • Think and Grow Rich • The experience economy
CoVergence, LLC | www.covergence.co | 301-801-4706
A few favorites�
§ Cystic Fibrosis FoundationVenture Philanthropy for drug therapy!
§ Horizon financial – setting up orphanages!
§ RenewStrategies
On the ground research for frontier investment!
§ Oxford house –
Transition housing for those in recovery!
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CoVergence, LLC | www.covergence.co | 301-801-4706
Ruminations�• Stay healthy!#
• Listen to your clients and advisors#
• Let others know what that you value them#
• Don’t get buried by mistakes, learn from them#
• Manage your career or someone else will#
• Accept things as they are, not as you wish they were#
• Be just as enthusiastic about others success as you are about your own#
• Find your story and share it…however you choose#
• Breeeeeeeth!#
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