Vote for the next Startup University topic

I have placed a poll to the left so you can vote for the next topic you would like to see for the Startup University workshop. I already have some ideas, but I wanted to get your input as well.

Problems with Paypal

We have had reports of problems paying for the workshop tonight using the Paypal button on this page. If you too have this problem, please email Kate at kate@vensightconsulting.com and she will email you an invoice from Paypal. Sorry for any inconvenience.

We have a winner!

And the winner of a spot at the Startup University workshop tomorrow is Jordan (jkb-21@hotmail.com). Congratulations, Jordan. Just a reminder to sign up for the workshop email bryce@vensightconsulting.com or pay through paypal at the right. See you there!

Startup University Giveaway!

In one week, on October 29, 2009, Startup University is putting on a workshop on how to start and build a business. For the details see below. Vensight is giving away THREE seats at the workshop and here is how you can enter to win:

1. Respond to this post with an email address.

2. For additional entries do as many of the follow as you wish. Each item is an additional entry and all you have to do is respond to this post saying which of the following you have done:

a. Become a follower of this blog. If you are already a follower, simply respond that you are a follower.

b. Become a fan of Vensight Consulting, PLLC on Facebook. If you are already a fan, just respond that you are a fan.

c. Invite five of your friends to become a fan of Vensight on Facebook.

d. Invite five of your friends via email to become a follower of this blog.

e. Invite five of your friends to attend the workshop either by email or Facebook.

That's a total of six potential entries!

All entries must be made by midnight on Tuesday, October 27, 2009. I will post the three winners on Wednesday and you can contact me for your ticket to the event. We look forward to seeing you there.

Startup University: Starting a Business 101

On October 29, 2009 I will be at the University of Utah putting on a workshop for those staring a business. If you are thinking of staring a business or have already made the plunge this is a great way to help you move your idea forward. Here are the details:

WHEN: October 29, 2009, 7-9:30 P.M. (registration at 6:45)

WHERE: BU C 208 in the business building of the UofU campus

HOW MUCH: $15 in advance, $20 at the door

To pay in advance just use the paypal button to the side. Seating is limited so RSVP today. And stay tuned for a chance to win free tuition. (If you want to RSVP without paying yet, just reply to this post.)

UVU Seminar

The seminar was a success! I taught two breakout sessions about the current venture capital climate as well as what to expect when approaching VCs. Also discussed in my classes was the art of "bootstrapping" and giving the investment pitch to potential investors.

Overall, the experience was good and I met some great people!

Bryce Hansen, CPA

Utah Valley University's "Where To Find Money in Recessionary Times" seminar

On Thursday, October 15, 2009, I am one of four guest speakers for the breakout sessions at Utah Valley University's "Where To Find Money in Recessionary Times." The seminar will be held on UVU's campus (Orem, Utah) in the Lakeview Room of the new library from 9:30 AM - 2:30 PM.

This is a great event for business owners and would-be business owners.

See you there!

Bryce

Saving and getting through economically tough times

In reading a number of different blogs and posts, I came across the following post. The subject is about saving money and living within your means (particularly for the younger generation). The author is Ben Stein of Who Blue Resources, Inc. Enjoy!

http://whoblue.com/index.php?option=com_content&task=view&id=24&Itemid=9
(if link does not work, copy and paste in your browser)

Bryce Hansen, CPA

Systemic Risk to Innovation in America: The Federal Government (PE Hub posting)

I read a post on PE Hub by Bob Ackerman of Allegis Capital. He has some interesting insights into the current Washington-heavy economic environment and how it relates to innovation. I highly recommend perusing the article. Click on the link to read it at:

http://www.pehub.com/46596/systemic-risk-to-innovation-in-america-the-federal-government/

Bryce Hansen, CPA

Getting Started as an Investor

Currently I am reading two books (recently finished a third), which I highly recommend for the student seeking a philosophy for investing. The old adage to find out who the best is in a particular field and then study him/her is, I believe, a great way to approach investing. This last year, I have started in earnest to study the best stock investor. Who else, but Warren Buffet. Now, I know there are a lot of Buffet-lovers out there. I don’t pretend to be the source on Buffet, but nonetheless, I find it interesting to read and study about him and his investment philosophy.

I figure that a good way to learn how to invest like Warren Buffet is to learn who influenced him and what he studied. So, who did influence him? Who did Warren pattern his skills and mindset from?

The answer is from Warren’s own mouth. About 6-7 years ago, as part of a Weber State University business school trip, I attended an RC Willey open house in Las Vegas. Mr. Buffet attended, and as part of the open house festivities, he hosted a student question-answer session. He said then that there were really only two investment books an enterprising investor would need. Both the books (or rather, the authors) are what have influenced his way of thinking about investing over the last 50 years.

These two books and authors are The Intelligent Investor, by Benjamin Graham, and Common Stocks and Uncommon Profits, by Philip A. Fisher. Mr. Buffet said that Graham’s teachings make up about 85% of his own investing philosophy, with Fisher’s ideas rounding out the other 15%.

During the student question and answer session, Mr. Buffet also said that he had read Security Analysis numerous times in the 1950s. Security Analysis is a co-authored book by Benjamin Graham and David L. Dodd. It essentially is the textbook version of The Intelligent Investor.

I have added these three books to my personal investment book library. The Intelligent Investor, Security Analysis, and Common Stocks and Uncommon Profits are books that serve as a foundation that you can compare other investment ideas and books against. If you are interested in learning to invest, I recommend you start with these three books.

Bryce Hansen, CPA

Entrepreneurs Approaching Potential Investors - Part 2

Reasons an investor may not invest in your company.

If any particular investor does not invest in your company, even if your company truly is ready for funding and it is ready to explode with sizeable growth, there are a myriad of reasons you can be rejected. Listed are a handful:

The Investor:

• Perceives weak management. You may not have a sufficient team in place. Perhaps you (as the founder / CEO) are not ready to lead the company to a larger size. Perhaps you are better at the technology aspect and are better suited to be the lead engineer. Maybe you need to create an advisory board or add to the board strategic industry-experienced people.
  
• Believes your idea and company is not scalable and/or does not have a competitive, defensible position. Is the potential market large enough? What patents, trade secrets, etc., do you have?
  
• Is out of money to invest. A common phrase is “out of dry powder.” The fund is maxed-out on commitments and can not make any more commitments to promising companies such as yours. The investor may very well be in love with your idea.
  
• Already has an investment that is substantially similar to your company. In this case, you would rather not pitch the investor since you may give your competition insight into your company. Before an introduction is made on your behalf, be sure the targeted investor does not have an investment similar to your company.
  
• Has hit the commitment ceiling for the industry sector in which your company is classified. Even if the investor does not have a substantially similar company to yours, they still may have industry allocation issues. This is particularly true for diversified Funds that invest in multiple sectors.

Bryce Hansen, CPA

Entrepreneurs Approaching Potential Investors - Part 1

A month ago, I left the Utah Fund of Funds. Overall it was a great experience and compliments nicely my finance analyst and auditor experiences of the past. While at the Fund of Funds, I was heavily involved with entrepreneurs as well as with venture capitalists and other private equity groups. I sat in on or met with over 80 entrepreneurs to hear their pitches. I also met with over 80 private equity investment groups. I personally introduced 25 – 30 companies to potential investors. A few nuggets of wisdom I gained from my experience:

The Entrepreneur / Company should:

Have an executive summary. It needs to be short, concise, and effective. The shorter the better. Anything over a page long is too much. You need to grab the attention of the investor. They just don’t have time to read more than a page. Three-fourths of a page is even better.

Have a business plan. A finished and polished business plan in PDF form ready to distribute is important. From my experience, investors will ask for additional information if sufficient interest is gained from the executive summary. They will almost never read a business plan without first looking at the executive summary. And even then, they may skip the business plan and seek an in-person pitch.

Follow-up. If an email introduction or phone call introduction is made on your behalf from any source, give the investor a day or two to contact you. If they don’t contact you, then you need to follow-up yourself and make contact. Remember that any given investment group is screening hundreds or even thousands of deals each year. If they don’t follow-up, it may be due to them just not getting around to it. You should follow-up.

Know the investor has many options to choose from. You may have the coolest business idea and revenue model out there. Just remember, that every other entrepreneur thinks the same way about their own business as you do about yours. Also, many entrepreneurs pitch similar businesses and ideas without knowing that the investors have seen similar pitches already. I saw this scenario play out multiple times at the Utah Fund of Funds, when companies would pitch us. I also saw this same attitude manifest itself in many VCs who were pitching the Fund of Funds for money (The Utah Fund of Funds is an LP in 26 VC/PE funds). Some funds thought that their approach was unique and different without realizing that we had already seen many other funds with similar strategies.

Bryce Hansen, CPA