Texas Entrepreneur Network Blog

What’s your timeline for raising funding?

2012-02-01T20:57:00.002-06:00

If you answered, “right away!” as many entrepreneurs do, you’re probably not being realistic.

In fact, the benchmark is that for every million dollars you are raising, it will take you one year.

But even if you’re fund raise isn’t that large, it can still take many months of planning and executing to raise funding from Angel Investors.

Here’s a rough outline of what you should be ready for when developing your plan:

Month 1—Check readiness. Assess your readiness for raising funding, and be honest. Ideally, you have a product and have sold some units. You should also have built core team. Communicate with your current team and investors you already have about raising funding. And don’t forget to check with your attorney about the legal aspect. You may have to consider modifying your legal entity to allow for outside investment.

Month 2—Prepare the company. Planning your fund raising strategy includes assembling your key documents including, the Executive Summary, Slide Deck, Financials, and Due Diligence documentation. Take steps to fill out your board of advisors and build a set of email updates for monthly transmission to the potential investors.

Month 3 to 5—Prepare the investors. Identify potential investors to put on your investor prospect list. Start with ten investors you already know and have made contact with and add ten new investors per month to your list. Setup meetings to introduce investors to your deal and tell them that you will start raising money in a few months. Ask permission to keep the investor on the list for updates you will be sending out.

Start sending monthly updates on your company’s progress using personalized emails – not ‘broadcast’ emails. Customize the mailings to build a personal relationship. And don’t send them your press releases. Demonstrate how you are actually achieving milestones.

Month 6 to 9—Pitch the investors. Follow up each potential investor and pitch the deal. Identify the lead Investor and close the first round with investor friendly terms. Offer an incentive to the lead investor for the additional risk he is taking by going first.

Month 10 to 11—Close the investors. Invite other investors to follow on. Keep the relationship with all investor prospects--some may join in a future round.

Month 12—Finish the round. Oh, but you’re not done at this point. Continue sending updates to investors AND the investors on your prospect list on a quarterly basis to prepare for the next round of funding.

Pitching to Angel Investors: Have a solid go-to-market strategy

2011-10-30T09:13:00.004-05:00

In your pitch presentation and business plan, it’s important to describe your sales and marketing strategy--or in other words, your go-to-market strategy.

In particular, what is your channel to the customer? Are you selling direct, indirect, through Original Equipment Manufacturers (OEMs) or channel partners? Are you franchising or granting licenses?

Entrepreneurs should also explain why that model was chosen over others and demonstrate how leads are generated and converted into buying customers.

Best regards,
Hall T.

Pitching to Angel Investors: Your Business Model and Financials

2011-10-26T06:29:00.003-05:00

The business model describes how much revenue you make from each customer, along with how much it cost to acquire, sell, and support that customer and the profit left over. The investor wants to see the business model to understand the level of profitability and the scalability of the business.

Financials
The financials reflect in numbers what the previous sections described in words. They must be consistent. If you are showing a revenue growth rate of 100% per year and your business model indicates you need a sales person per $1M of revenue, then these numbers should come up in the income statement.'

For companies already in operation, it’s useful to show the past year and the coming four years. In other words a five year window is used. In addition to the income statement, there also needs to be a cash flow statement and a sales forecast that breaks out ASP (Average Selling Price) and unit growth. Investors want to see gross margins and net income to understand the profitability of the business.

Funds Sought and Use of Funds
It’s important to state how much funding you are seeking in this round. If you’ve received a previous round of funding it’s helpful to show what you accomplished with that funding. Achieving milestones demonstrates your ability to execute which is one of the key questions the investor will be asking. Also, for the funds sought in this round show how those funds will be used.

Finally, discuss the exit strategy. How will the investor get their money back? Will it be a merger and acquisition (the most common form today), an IPO, or some other method. This is how the investor can calculate an expected rate of return.

Investors often look for market validation. List the customers you have closed to demonstrate that customers will buy your product/service. If you don’t have any customers, it’s advisable to get a few of them signed up before you go out for fund raising. It’s also important to list customers in the pipeline with forecasted sales expected from each. Showing your customer’s results from using your product/service in the form of an ROI or even hours or dollars saved goes a long way to proving the value of your product/service.

Best regards,
Hall T.

Pitching to Angel Investors: Competition & Competitive Advantage

2011-10-24T09:57:00.002-05:00

If you want an investor to stop listening to your pitch presentation or to stop
reading business plan, state how you don’t have any competition. You might be
surprised at how many entrepreneurs make this rookie mistake in their pitch
presentations--we hear it constantly, and it’s almost certain that you’ll lose
credibility instantly with investors.

I believe that entrepreneurs that say they have no competition are trying to convey a broad opportunity to exploit a market--the problem is that it has the opposite effect. The main reason is that the customer is solving the problem somehow now,even if indirectly in comparison to your solution. There’s always another company competing for the same dollar, and even worse, If the investor finds out about a competitor from someone other than the entrepreneur then it makes them look even more unprepared.

When researched thoroughly, the competitive analysis in your business plan
demonstrates to potential investors that you understand the strengths and weaknesses of your business. It also gives them a better picture into the market opportunity.

When doing research on the competition for you plan or pitch presentation, you should focus on answering the following questions:

1. Who is out there competing for the same dollars that you’re going after?
2. Are they directly or indirectly selling products, services, or substitutes that
compete?
3. What are their strengths and weaknesses in the market?
4. How are they currently positioned in the market.
5. What segments of the market do they operating in?
6. What is their go-to-market strategy and how does that differ from yours?
7. What threats do they pose that may impact your business?

In other words, perform a SWOT Analysis (Strengths, Weaknesses, Opportunities,
Threats) on each one of your competitors and compare them to your company.

When you go to present your findings in the business plan make sure you:

1. List the key competitors with their strengths/weaknesses in comparison with your
own.
2, Show specific competitive advantages of your solution.
3. Use numbers to make the comparison. The more numbers, the more solid your company
looks. Use numbers to show market share, your economic benefit, etc.

Pitching to Angel Investors: building a solid management team

2011-10-22T17:59:00.001-05:00

The key to the management team is experience in the area of the new business. First time CEOs need to have substantial operating experience. In addition to the CEO most startups have two other executives on board. Depending on the business, they could be financial, operational, manufacturing, scientific, technical, or other. Again, industry-specific expertise needs to be highlighted. Startups without a full management team could create an “Advisory Board” staffed with non-paid volunteers who provide advice. Typically, they have substantial industry experience and can augment the management team.

Pitching to Angel Investors: Defining the Target Market
In an earlier post, we talked about framing a compelling customer problem for a potential investor--but to truly get their attention, your target market must be sizable. In other words, there needs to be a lot of customers with that problem that are ready to pay for your solution!

I usually break the “target market” category into three pieces: Available, Serviceable and Beachhead.

The Available Market is typically anyone who could potentially purchase the company’s product or service. Look for numbers in the billions to truly be compelling.

The Serviceable Market is the sub-segment that would most likely be a strong candidate to purchase the company’s product or service. This number is usually in the millions of dollars.

And finally, there’s the Beachhead market, which is the first set of customers the company will pursue. The company should list beachhead customers that are in the pipeline which shows market validation.

Conveying these three items in your business plan and pitch presentation will show an investor that the market cap is sizable, that there are may companies willing to buy your product, and you have a solid go-to-market strategy.

Best Regards,
Hall T.

Pitching To Angel Investors: Focus on the core product or service

2011-10-19T06:56:00.001-05:00

Entrepreneurs are always excited about their marketplace solutions and want to talk about it to anyone that will listen. That enthusiasm is critical to start a business because that passion is the only thing that will truly carry them through the process (It’s certainly not the money--trust me!)

Sometimes, however, that enthusiasm causes entrepreneurs to lose focus about what they are conveying as part of their product offerings.

For example, you might have ancillary services or spinoff products that are part of the plan. But cluttering the business plan with numerous potential options for the company will appear diffuse and fragmented to an investor.

It’s better to focus on the core product or service. An investor looks for purpose and clarity of focus in start ups and even early stage companies

This also solves the problem for entrepreneurs who are concerned about protecting their intellectual property. You don’t have to describe the “secret sauce” behind their product--simply focus on the benefits the product or service offers.

At this early stage, there’s no need for a non-disclosure agreement, so put that away. Most investors won’t sign one at this stage anyway, and it will only turn them off. Only in later stages will the investor need to learn more about the IP, and they will be glad to sign it at the due diligence stage.

Best regards,
Hall T.

Pitching to Angel Investors: What problem do you solve?

2011-10-17T12:56:00.002-05:00

Pitching to Angel Investors: What problem do you solve?

When seeking funding from an angel investor or other sources of venture capital, the first element they’re going to look for in the executive summary of your business plan or your pitch presentation is the solution to a customer problem. In other words, what problem does your product or service solve for the customer that is unique?

To ensure that you’re going to get the attention of an investor, make sure you address the following in your plan and pitch presentation:

1. Be Specific and comprehensive at the same time. It’s important to give enough detail so the investor understands what you’re doing without giving too much information about the inner workings of the application or service offering. In some cases, it is helpful to express the company’s product/service in a few words such as “We make radiation-hardened memories.” This helps the investor in on understand the company’s offering.

2. Develop an actual elevator pitch. You’ve got one minute to convey how compelling your offering is to an investor. Go! Can you do it?

3. Your problem should be large and compelling - the problem you’re solving should be large and compelling enough that people not only want a solution, but need one and are willing to pay for it.

4. Use numbers to describe the problem. The numbers you present can the problem more compelling to an investor. For example, how many people suffer from a disease or condition that you potentially solve? How much money is wasted on inefficient solutions or methods?

5. Talk about the business solution and not the technology. This is one of the biggest mistakes that entrepreneurs make over and over in their pitch presentations and in their business plans. In short, investors care less about your technology and more about how you’re going to make money. Focusing on that is paramount to getting follow up meetings--you can focus on the technology at the due diligence stage.

6. Tell a story. Talking about the problem you solve in a story format that’s easy to understand can help you present your case in the most understandable fashion.

Best Regards,
Hall T.

Irene Mwathi Talks about Minority Startup

2011-09-27T11:40:00.006-05:00

Irene Mwathi Talks about Minority Startup

Where are you from originally?

I was born in Kenya. I came to the US, Washington DC for college and later moved to Austin in 2007.

What university did you go to?

University of Maryland for undergrad and Georgetown University for my MBA

What brought you to Austin?

I moved to Austin to expand my business in IT Consulting.

What is your group's mission?

Minority Start-Up mission is to develop minority entrepreneurs into successful enterprises by providing programs, advise, counseling and access to capital. Austin continues to be one of the most entrepreneurial cities in the country and M Start-Up seeks to help minority entrepreneurs tap into the various resources and opportunities with a focus on investment funding.

What need does it fulfill?

Minority Start-Up will bring both minority innovators/entrepreneurs and investors together. While minority owned businesses have grown at the a rate that surpasses the growth rate of all businesses combined by a rate of 6 to 1, and with revenues twice as high as the rest of the market place, minority entrepreneurs need to seek out investors and vice versa to sustain this level of growth. Today even with higher numbers of African American, Hispanic and Asian innovators, we don't see the level of investment funding as seen in the mainstream market place. M Start-Up aims to bridge this gap providing minority innovators access to investment capital and the Central Texas investment community new opportunities.

What exactly does it bring to startups?

Most start-ups are usually started with a passion to meet a specific need based on a vision/idea coupled with an ideal to make lots of money. However, innovators and especially minority innovators are not prepared to manage a business, build strategies for growth while avoiding risks and setting the path for investment funding. Most usually start looking for investment capital when all existing resources have been exhausted and with a limited or non-existent leadership team.

Minority Start-Up brings expertise, counseling and advice for every startup right from the start, to prepare them for sustainable success. We know where the resources are in our community, therefore we can create a critical path of success for minority entrepreneurs through coaching, helping them navigate the various service delivery organizations while holding them accountable and then presenting them to the financing mechanisms. The key element we seek to address is "What do entrepreneurs need during development to prepare for funding and what do they need to do post financing to reach milestones?"

What type of startup would benefit from your group?

African American, Hispanic, Native American, Asian American and Women Owned Businesses. We welcome any startup to reach out to us.

What was the most challenging aspect of starting up the initiative?

While there is a critical need for an organization that works with minority businesses and one that understands the challenges they face right here in Texas, the challenging aspect for us is convincing the startups that they need to start laying long term strategies right from the start consulting with people with the right expertise. The other challenge we face lies in getting funding and sponsorship to build the necessary programs that go beyond the basics of starting a business. Hiring senior management or qualified people is usually expensive for a startup, while consulting on an as needed basis cuts costs dramatically while providing much needed value. As an organization we hope to provide ongoing services at a lower rate and get ongoing support through various funding sources.

What advice do you have for entrepreneurs?

The current financial market makes it harder to get funding, but those who prepare and prove themselves will be better positioned to thrive and receive investment funding.

What Austin-based resource have you found to be the most helpful and why?

While we have worked with alternative funding sources throughout Austin to help entrepreneurs get funding, we find the Austin Entrepreneur Network a great resource for investment funding. They hold continuous funding forums and provide access to the Austin investment community where minority entrepreneurs can pitch ideas.

What about your upcoming conference?

Go Big or Stay Home - GO BOSH conference 2011, is an innovators, entrepreneurs and investors conference brought to you by Minority Start-Up Association of Texas, designed to facilitate knowledge sharing, relationship building and deal making amongst Central Texas Minority Businesses. The conference will be held on October 21st, 2011 at the Longhorn Stadium Event Center, Belmont Hall from 12.00pm - 9.00pm.

The conference is for anyone in need of inspiration, looking for tips for success or anyone who is wondering how to get an idea off the ground, develop it and commercialize it. Come network with other entrepreneurs and innovators and share your journey.

Thanks

Terry Hazell Talks about Entrepreneurs & Self Promotion

2011-09-25T15:07:00.005-05:00

Entrepreneurs & Self promotion: don’t oversell, but don’t undermine either--by Terry Chase Hazell

Self-promotion is an important part of entrepreneurship. The fact is, many early employees, partners, and funders join a company based on an assessment of the entrepreneur. And yet many entrepreneurs—especially women – hate to talk about their own accomplishments. This can be a big mistake. As you develop your company summary or pitch, you should also develop a personal pitch that balances between overselling yourself and undermining your accomplishments.

In Texas State’s RampCorp program, one of the 16 “ramps” participants study to grow their business includes Self-Promotion. Women develop a professional biographical sketch, or “bio.” For entrepreneurs, the bio may be more important than the resume, because it’s used in many contexts—business plan, website, speaking engagements, LinkedIn profile – and for those seeking funding, your bio is summarized in your pitch.

Where to start? At RampCorp we’ve developed a tip sheet for women entrepreneurs (men need this too) that walks you through how to prepare your biographical sketch. You can download it at this link. RampCorp Biographical Sketch Tips

The Ramps Biographical Sketch Tip Sheet is organized into 5 sections:

1. Tips list for developing your sketch
2. Lists of words to use and words to avoid
3. Example sentences from and links to leading women’s bios & fill in the blank sentences
4. Biographical sketch checklist
5. Form to complete your own sketch

In addition to preparing your bio using the tip sheet, I also recommend the following resources:

• Book: How to Say it for Women, by Phyllis Mindell
• Slideshare: Caroline Cummings: Authentic Self Promotion for Women
• Blog: Carol Goman

If you complete your bio and would like us to review it, send it to us at www.txstate.edu/rampcorp/contactus . We’ll comment on the first 5 bios posted!

About the Author: Terry Chase Hazell is Director of Texas State RampCorp, a program to help women entrepreneurs start their first scalable venture. She is a member of the national advisory board for Springboard Enterprises, which has helped women raise $5 Billion in capital. She serves as part of the 17 member state committee that makes funding recommendations on regional applicants to the Texas Emerging Technology Fund. She is a charter member of the White House initiative StartUp America Partnership’s women’s high-growth entrepreneurship committee. Her specific expertise is biologics manufacturing, and she has founded two biotechnology-related spin-out companies from the University of Maryland.

About RampCorp: Texas State RampCorp is an incubation and training program for women entrepreneurs launching their first scalable business. Women who are or who want to be entrepreneurs receive coaching from experienced investors, executives, inventors, and other women entrepreneurs who have built scalable

Poll on Challenges Facing Small Businesses

2011-09-19T19:29:00.004-05:00

The TxEN is interested in learning more about the challenges facing small businesses. We are working with the Financial Services Forum – a non-partisan financial and economic policy group representing the largest financial institutions operating in the United States to conduct a survey of small business owners.

We invite you to participate in this brief on-line survey. We hope you can take a moment to share your thoughts and opinions about the current business climate and obstacles and frustrations affecting companies like yours. Your feedback is very important to us.

This is NOT a sales solicitation, nor will it result in any attempt to sell you anything. This is a research project regarding business conditions and job creation, for which your cooperation is greatly appreciated.

Please note that any information shared will only be used for internal research purposes, and will be treated confidentially. Responses will be consolidated into an overall report, which will reflect categories of comments. The report will not identify the input of individual respondents.

The survey will close at 5 p.m. EST on Monday, September 26th.

To participate in the survey, please click on the link below or copy and paste it into your web browser:

http://masurveys.com/nrisurvey2

Please give us your input.

Best regards,
Hall T.

Terry Hazell Talks about RampCorp

2011-09-17T08:26:00.006-05:00

Terry Hazell Talks about RampCorp

What is RampCorp?

RampCorp is training, coaching and networking program specifically designed for women who are or who want to be entrepreneurs. Over a period of 25 weeks, meeting one night per week, participants will learn the aspects of launching and growing a business, receive many hours of one-on-one coaching and increase their network dramatically. About half will start a company or change their company’s business model. See can see the list of companies at this link. . We provide some free resources, too.

Who is involved?

Many participants say the coaching is their favorite part. Great coaches like Robin Curle, Laura Bosworth, Laura Kilcrease, Kathy Lindauer and Mary Haskett make the program. Robin Curle has led several companies to multi-million dollar revenues and has been named a “galaxy of entrepreneurship”.

Mary Haskett has run several companies ranging from a skydiving school to a missile launch training SaaS company and her current company is named Top 50 startups by Kauffman Foundation. Laura Bosworth has led product launches and $100 Million programs at large companies. Laura Kilcrease, Investor in Residence, knows how to position companies for funding. Kathy Lindauer, Lawyer in Residence, shares legal topics and weekly legal tips.

Also, members can continue for a second 25 week session. New members benefit from learning from returning “2nd year” women slightly ahead in their entrepreneurial efforts.

Applications are open until late October. You can apply here.

What is your favorite part?

When a woman joins without a business idea, finds an idea, launches and then one night announces a major milestone. A few weeks ago CEO of a newly formed El Paso venture announced she had made her first sale. To me it was the home team winning the super bowl!

What will you include in your upcoming blog series?

I’ll be sharing some of the RampCorp resources and tips on self-promotion, scalable business models, technology transfer and getting ready for due diligence.

Best regards,
Hall T.

Charles Doty of BlueShift talks about Entrepreneurs Transitioning

2011-09-10T19:23:00.003-05:00

“Real artists ship.” That statement is attributed to Steve Jobs circa 1983. The message, whether Steve really said it or not, still resonates at Apple.

A successful entrepreneur is first of all a competent risk taker and a visionary; someone who sees an opportunity that few if any others can see, and is willing to take on the task of developing that product or service and targeting it so that the market will embrace it. For now I will refer to that generic successful entrepreneur as Bob.

Bob started his company with a team of dedicated developers who believed in the company and themselves equally. Whatever the obstacles, they were committed to confronting and overcoming them. Work eighty hours a week – no problem. Solve a problem that has never been solved – they will do it. Find a way to do it twice as fast at half the price – you got it. People like this are required if a start-up is to have a chance of getting off the ground.

You know about the runway analogy. The capital investment is the runway and the company is the plane. The idea is that the company must build up enough speed to take off before they run out of runway. Once in the air they have to keep the engine running to stay aloft. Getting off the runway typically means producing revenue, and that means “shipping” i.e. delivering product. Producing revenue means continuing operations which, when successful, requires a markedly different management approach than start-up development.

This is a difficult transition for Bob. He has been a founder-driver of the company since its inception. He has made quick decisions that cut across organizational lines, and he has been the final arbiter in internal disputes. Up until the transition, he has been the one person that accounted for the company’s value: the investors and employees alike trusted him to drive the company to success. The risk is that Bob is unable to envision how the company will succeed after the transition, or he may fear failure because he does not feel that the company is ready. He may see runway extension, that is additional investment, as a recurring goal – in fact it may become his only goal. At some point, however, runway construction (additional investment) stops.

When it is time for the commercialization transition, it is probably time for Bob to bring some new people into the company. These new people will not necessarily be people who would have been valuable in the early stages, but they are likely to make the difference between success and failure during and after the transition. They will facilitate a competent organization that works with processes that drive continuous improvement as a way of achieving excellence. Bob’s role in the company should now change dramatically. The organization will change, and the tendency for Bob to make snap decisions and cut through organization lines to steer the company directly will become detrimental to success.

If Bob does not allow and enable the transition, what is probably the greatest achievement of his life may well end up in the weeds, much like an airplane that goes off the end of the runway before it achieves liftoff speed.

Charles Doty, of BlueShift Consulting

Austin Startup Week

2011-09-05T09:23:00.003-05:00

Austin Startup Week happens this week. Modeled after the Boulder Startup Week in Colorado, the event highlights the startup community with events, pitches, meetups and more. Organized by Jacqueline Hughes, the event showcases co-working spaces, successful startups, soon to be successful startups, and other facets of the Austin startup community. Check out the site here for more details: http://www.atxstartupweek.com/

Charles Doty of Blueshift Consulting talks about Succession Management

2011-08-30T12:57:00.002-05:00

Charles Doty of Blueshift Consulting talks about Succession Management

What can possibly happen? One of my business partners refers to the six D’s: death, disability, disagreement, divorce, disengagement, and disaccreditation.

When a key person in a small to mid-sized private company dies unexpectedly, his company may die with him. The value of the company is likely to decrease rapidly unless an effective Succession Management project is undertaken quickly.

Succession Management is a process developed to help companies get through the Succession Transition while maintaining the value of the business. A tremendous amount of value can be gained or lost during a Succession Transition, and many companies are underprepared to deal effectively with the crisis.

Each company is different, and often the problems are less related to the business itself and more to the relationships between individuals and groups who own the company, a roles and rules issue.

Assessment

The first priority for a Succession Manager is to understand the owners’ needs and objectives during the transition. The first phase of this effort may not take long, but the entire effort is an ongoing process that continues through the entire transition. Then the current status of the company should be determined with a report on financial status, business processes, personnel, and anything else that is important to understanding the value of the business.

Operations

It is vital to maintain the value of the company, continue to operate the business, and assure all involved that it will continue in the future. It may be that the end result will be replacing the missing person or sale of the business. Whatever the ultimate resolution, the future value of the company will be maximized by maintaining good relationships with personnel, supply chain partners, and customers.

Resolution

To see more about roles and rules and to find out how good outcomes are achieved, check our future posts.

Do Angel Investors Ever Have Down Rounds?

2011-08-20T10:35:00.001-05:00

I met a new investor contact last week who happened to be a venture capitalist. At the start of the discussion he posed the question -- Do angel investors ever have down rounds? A “down round” is an investment of capital at a value below the previous fund raise. In thinking back over the last five years, I had to admit I hadn’t seen a down round in that time. In fact, I haven’t heard of anyone even suggesting such a thing.

There are several reasons for this. Previous investors don’t want to see any dilution. Entrepreneurs don’t want to admit they didn’t hit their milestones. Valuations at this stage are based on negotiations more than facts.

He went on to say that as a VC he sees quite a few deals coming to him that have $3M to $5M in revenue but their valuation is at $60M. $60M? After numerous angel rounds --all at increasing valuations they pushed the valuation out of the stratosphere.

So what can the VC do with this deal? Nothing. There’s no way they can fund it at that valuation. The entrepreneur operated under the false assumption that eventually the company would catch up to that valuation. But sadly, no.

My question to entrepreneurs is, “Do you really know what the value of your company is?”
“Do you know what it would take to raise the value of your company?”

Best regards,
Hall T.

Derek Singleton of Software Advice Talks about Choosing Accounting Software

2011-07-24T17:24:00.006-05:00

Small businesses need to be vigilant in their accounting practices. A minor misstep can have major repercussions. Accounting software makes doing things like expense tracking, invoicing and billing, and maintaining a general ledger much more manageable. More importantly, most small business owners can manage their accounting needs with a simple software program.

However, choosing an accounting package for your business can be difficult. At Software Advice, I put together a list of my five favorite accounting solutions for small businesses: Sage Simply Accounting, NetSuite Financials, Sage Peachtree, CMS Professional 2011, and (naturally) QuickBooks.

One of the best ways to determine which system is right for your business is to look at a side-by-side table comparison. I built the one below to provide a snapshot of the functionality offered in each.

Beyond the functionality, each product has some features that makes the solution unique. Here's a quick rundown of three of the five systems included in the table.

QuickBooks
QuickBooks is Intuit's flagship product and is the most well-known small business accounting program out there. QuickBooks is available in five versions - Online, Pro, Mac, Premier, and Enterprise. The price tag will range from $12.95/mo. for Online to $600/user for the Enterprise version.

Sage Peachtree
Closely trailing QuickBooks is Peachtree. Over 3.2 million users in the US & Canada use this system. Like QuickBooks, Peachtree is offered in 5 versions - First, Pro, Complete, Premium, and Quantum. First and Pro support only one user and are good for mom and pop type operations. If you need more than that, look to other versions.

NetSuite
NetSuite is a web-based system that currently has 10,000 users. NetSuite packs in the most functionality of the five solutions. Because it's web-based, users can access it from anywhere that has an Internet connection which makes it cheap and easy to use.

So there's three of the five solutions featured in my guide to small business accounting software. To see more detailed reviews of CMS 2011 and Simply Accounting, visit my article at: Small Business Accounting Systems | 5 Affordable Solutions.

Are you Ready to Meet the Investor?

2011-07-08T07:12:00.001-05:00

Recently I was contacted by an entrepreneur who wanted to raise funding for his startup. It was a compelling deal in a growing market space but it was also a fairly complex one with a great number of moving parts. So I decided to send it to the investors. I asked for the usual docs and information. When only the business plan arrived I pressed the request for more information --letters of intent, employer identification numbers, articles of incorporation, financial statements, references, etc. As it turned out they hadn’t event filed for a company entity. The letters of intent were still being written. The reference request sent them scrambling to find. There were no detailed financial statements.

Without key documents in hand to validate the business, there was no reason to pursue investors beyond an initial contact. If the investors are interested they will move into due diligence and will want to see all the documents related to the business including patent filings, contracts, and financial statements.

As a company moves into fund raising mode, I recommend the entrepreneur compile key documents into one place so there’s no delay in the followup process by gathering documents. And if you say you have a contract, you better have something that in writing to show it.

Best regards,
Hall T.

Open Angel Group Model -- The Benefits

2011-06-24T07:59:00.003-05:00

I recently posted in the Austin Business Journal about the rise of the open angel group model. In our most recent Texas Entrepreneur Network Funding Forum in Austin on June 8th, I saw the benefits of such a model in action. From the event, five of the presenters received interest and three are in discussions to receive funding. The event brought over fifty people into the room --some were investors who expressed interest in the deals but most were entrepreneurs watching the pitches and listening to the panelists’ questions. This provides mentorship to those who are considering raising funding. In talking with several entrepreneurs afterwards some expressed interest in joining the next round (Sept, 2011) while others talked about the work they need to do in advance of pitching.

To be successful in the Funding Forum you need to have a:

--solid product with some differentiation
--clear and focused target market
--competent management team
--some proof that the product will sell

Also, investors interested in pursuing startup investing find the Funding Forum educational as one learns the most from listening to the questions the other investors ask.

Best regards,
Hall T.

Guest Blogger Brian Wulfe Talks about Top 5 Factors that Determine a Startup’s Internet Advertising Budget

2011-06-01T08:32:00.003-05:00

Guest Blogger Brian Wulfe Talks about Top 5 Factors that Determine a Startup’s Internet Advertising Budget

At Effective Spend we work with startups and established businesses alike to improve the effectiveness of their internet advertising campaigns. A common question that we get from clients is “How much should we be spending?” Answering this question for startups in particular can be fairly complex and varies depending on several factors. Below are the top 5 factors that we find most important in determining the optimal internet advertising budget for a startup.

1. Business Plan:

Using revenues and profits to decide how much to spend on internet advertising is popular throughout many different business models. An established internet retailer might find that they can spend up to 10% of sales on advertising, above which ad spend starts eating into margins and below which the retailer starts to lose market share. Since sales can fluctuate during the initial stages of a startup’s business plan, tying advertising spend to a percentage of sales is difficult. Some startups, for example, might not plan on generating any sales or revenue during the first few phases of their business. In these cases it is beneficial to tie advertising budget to other important milestones within the business plan such as reaching a key number of subscribers or active users, as might be the case with some tech startups.
For example let’s say that your business model calls for generating at least 100K active users before you transition into the monetization phase. Once you are able to determine an active user’s acquisition cost per advertising channel, you can begin to get a rough idea of the total budget needed for that milestone. Additionally you should take into consideration that your acquisition cost for each additional subscriber or conversion will decrease over time as your advertising campaigns and website conversion processes become more efficient. We have seen many startups begin with an initial internet advertising budget that amounts to 25% - 30% of their total budget and as the marketing channels become more efficient and revenue rises we see their marketing budget as a percentage of total budget steadily decrease to 10around 10%.

2. Advertising Effectiveness:

Eventually the amount you spend on internet advertising should more than pay for itself. However, if you limit your budget with expectations that all ad dollars should bring in a profit, you might be slow to capture market share and see competitors react in a manner that prevents your startup’s growth and potential success. That is in no way to say that your budget should not be shaped by the effectiveness of your internet ad campaigns. In fact the allocation of your budget should entirely be shaped by its relative current and potential performance. There are many ways that you can measure the effectiveness of your internet advertising campaigns, but in all cases you should be concentrating on two things: the quality of visitors produced by your advertisements and how much those advertisements cost. By maximizing this quality-over-cost ratio and distributing budget accordingly, you will ensure that the effectiveness of your internet advertisements continues to improve over time. As your advertising ROI continues to increase, so should your budget.

3. Management Resources:

Having a qualified individual who is committed to managing and optimizing the online marketing program can make a large difference in determining the advertising budget. Some business plans go as far as to account for personnel, such as an advertising specialist, to be included in the marketing or advertising budget. Other startups chose to partner with a digital marketing agency or a more specialized search marketing agency, such as ours, Effective Spend . Although we do not find that there is a set minimum amount of ad spend at which a startup should start looking for an internal marketing specialist or agency, a good rule of thumb is for a startup to spend 18% to 20% of ad spend on resources (internal marketing specialist or marketing agency) to manage that ad spend. As the advertising budget increases and the growth rate of that budget starts to level off, a business can expect to spend less as a percentage of spend (14% to 15%) due to economies of scale. Generally we find that if a startup is planning on spending at least $2,000 per month, the additional savings or added revenue they will see with better campaign optimization justify the management expenses.

4. Consumer Purchase Behavior:

Despite the multitude of different advertising channels, companies still push more than 85% of their online marketing budget towards search engine advertising due to its efficient ability to match highly qualified consumers with the product or service for which they are in the market. Determining a startup’s internet advertising budget, therefore depends on its ability to advertise effectively through the search engines. Generally search engine advertising works best to convert searchers who already have an idea of what they want. Startup businesses that are able to determine when the searcher is in the market for their products or services by the keywords they use, stand the best chance at succeeding in search marketing. Conversely products or services that require a lot of education before the consumer understands the benefit are generally harder to advertise using paid search ads. Startup businesses, who have products and services with a simpler purchase cycle and who have a clear way to identify their target consumer, spend significantly more on internet advertising than those who do not. I have listed the following industries to give you an idea of the businesses that generally do well with search advertising: Retail, Education, Banking, Healthcare, Local Services, Software, and Travel. Conversely extremely high tech, Aerospace, and complex software businesses might not do as well due to the complex nature of their product offering.

5. Capacity:

Most startups have a point at which capacity constraints restrict their ability to increase sales. This issue is most obvious in the manufacturing industry, but is also seen in several other industries due to limited personnel, inventory, bandwidth, etc. Your internet advertising campaigns can serve to throttle sales velocity and help to prevent exceeding capacity. For example at Effective Spend we work with several day spas that deal with capacity issues on a regular basis. We have developed a tight communication process that allows us to incorporate information related to their projected capacity into the online marketing campaigns. When sales are within 80% or more of capacity for a particular service offering, we strategically reduce the marketing spend by 20 – 30% in that area, ensuring that they are not wasting ad spend on visitors who are not likely to convert. Alternatively we help to boost demand driven by the online campaigns when we see that there is a good deal of extra capacity.

Guest Blogger Samantha Snabes talks about the NASA Human Health and Performance Center (NHHPC)

2011-05-22T11:08:00.001-05:00

As a former life sciences entrepreneur, I can sympathize with the difficulty of collaborating with government agencies.

Recognizing the need for new initiatives and the opportunity gained from aligning diverse skill sets with experts residing within multiple disciplines, the Johnson Space Center Space Life Sciences Director, Dr. Jeffrey Davis founded the NASA Human Health and Performance Center (NHHPC). Established in October 2010, the NHHPC is a global convener of 85+ member organizations from government agencies, industry, academia, and non-profits that support the advancement of human health and performance innovations. In short, it is a virtual forum aimed at connecting organizations interested in collaborating and advancing human health and performance on Earth and in space.

The member driven organization provides resources and knowledge sharing to foster projects relating to the Center’s themes: Education and Inspiration, Habitability and Human Factors, Research and Technology, Innovation, Performance, and Health. There is no fee or document to sign—the only requirement to be a member is having an interest in advancing the goals of the NHHPC, and a willingness to share information and consider collaborative projects to achieve these goals. Members have the opportunity to share contact information, participate in bi-annual workshops, monthly telecoms, and collaborate on a soon-to-launch member-restricted Wiki. These platforms provide a unique opportunity to facilitate idea sharing amongst established industry leaders as well as startups and academics.

As entrepreneurs, and more importantly, collaborative solution seekers, I invite you to learn more about the Center and explore the presentations from the inaugural January Workshop focused on collaborative strategies and best practices at this link:

http://www.nasa.gov/offices/NHHPC/index.html.

What Classic Literature Tells us about Modern Innovation

2011-05-22T11:02:00.003-05:00

How to Create Products that Endure by Tyler Goodwin

Classic literature can tell us more about modern innovation than you might imagine. Seminal literary works, from Ovid’s Metamorphoses to Ginsberg’s Howl somehow manage to endure the test of time—a quality business leaders struggle to apply with predictability to new products in the marketplace. In this case, my goal is to understand the pattern of how literary innovations, in much the same way as product innovations, emerge from context, and how that concept can help you create strategic innovation opportunities with the endurance to stand the test of time.

To understand the historical pattern, we need not look further than the foreword of any perennial text. Successful literary innovators have one essential thing in common—the ability to capture the latent sentiment of their day, and thus free people to express themselves similarly within the new boundaries created. Followers subsequently echo these new sentiments and explore these new boundaries until others develop a latent desire to shift the conversation in a new direction. We have seen this with Howl, where Ginsberg captured and exploited society’s latent need for frank, even vile, self-expression. And, this effect is what seminal literary works have always achieved.

Further using both Howl and Metamorphoses as examples, let’s explore the product innovation implications that we can draw from this concept of capturing sentiment—specifically with regard to a company’s strategic position as an innovation leader or laggard. Click
Classic literature can tell us more about modern innovation than you might imagine. Seminal literary works, from Ovid’s Metamorphoses to Ginsberg’s Howl somehow manage to endure the test of time—a quality business leaders struggle to apply with predictability to new products in the marketplace. In this case, my goal is to understand the pattern of how literary innovations, in much the same way as product innovations, emerge from context, and how that concept can help you create strategic innovation opportunities with the endurance to stand the test of time.

To understand the historical pattern, we need not look further than the foreword of any perennial text. Successful literary innovators have one essential thing in common—the ability to capture the latent sentiment of their day, and thus free people to express themselves similarly within the new boundaries created. Followers subsequently echo these new sentiments and explore these new boundaries until others develop a latent desire to shift the conversation in a new direction. We have seen this with Howl, where Ginsberg captured and exploited society’s latent need for frank, even vile, self-expression. And, this effect is what seminal literary works have always achieved.

Further using both Howl and Metamorphoses as examples, let’s explore the product innovation implications that we can draw from this concept of capturing sentiment—specifically with regard to a company’s strategic position as an innovation leader or laggard. To read more go to this link:

http://tyleragoodwin.wordpress.com/2011/05/20/ovid-x-context-how-to-create-products-that-endure/

Guest blogger Liz Nutt writes about 10 Big Businesses That Started in a Garage

2011-05-07T11:11:00.004-05:00

Guest blogger Liz Nutt writes about 10 Big Businesses That Started in a Garage

Every big business had to start out somewhere, right? Some have come from more humble beginnings than others, launching with no more than some basic equipment, a couple employees, a garage space and a big idea. Whether you’re a business or finance student hoping to follow your own path to entrepreneurial success or already working in your own garage on the next big thing, these stories of companies that rose from obscurity to be multi-million (or billion) dollar industries can be a big inspiration. They may very well help you finally realize your dream of getting out of that garage and onto bigger and better things.

1.Apple: Today, consumers will wait in line for hours just to get their hands on some of Apple’s latest products, but once upon a time this electronics giant was a mere blip on the technology industry’s radar. Back in 1976, Steve Jobs, Steve Wozniack and Ronald Wayne started a business out of a garage in Cupertino, CA, putting together one of the first prototypes of their personal computers. Over the next decades, the company would introduce several more models, including their Macintosh line in 1984, arguably what turned them from a struggling startup into a fully fledged business. Today, the company manufactures much more than computers, has almost 50,000 employees and brings in revenues of over 14 billion each year.

2.Google: Google might be a household name today, but back in 1998 the search engine giant was just starting out. Their corporate headquarters? A Menlo Park, CA garage. For the next five months, Google’s staff of three would work out of this garage, perfecting their search algorithm, indexing web pages, and raiding the refrigerator of their friend’s attached home. By the next year the company had outgrown the garage and eventually moved into what is today known as the Googleplex. To celebrate their 8th birthday, Google purchased the garage and intends to preserve it as a lasting legacy to the humble beginnings of their business.

3.Mattel: Mattel wasn’t always the toy maker we know it as today. When the Handler’s got their start in the 1940’s in a Southern California garage, they were making picture frames, not toys. Ruth Handler began taking the scraps of wood from those frames and making doll furniture, a side business which proved quite successful. Because of this, the entrepreneurs decided to change their focus to toys instead. In 1959, they introduced the first Barbie, and afterwards became a household name. Today they’re home to big names in the toy business like Fisher Price, Hot Wheels, American Girl and a number of board games.

4.HP: Back in 1939, Bill Hewlett and Dave Packard decided to establish their own electronics manufacturing company. Based out their garage in Palo Alto, CA, with an initial investment of only $538, the two helped establish the technology hub that would become Silicon Valley. When they started out, they made everything from high-tech electronics to agricultural products but by the 60’s were homing in on the tech market exclusively. Today, the company is an electronics giant, with some of the highest quality personal computing products on the market. They have opted to preserve the garage where they got their start, making it into a museum.

5.Amazon: In 1994, Jeff Bezos laid the foundations for what would be the online retailing giant Amazon in his garage, hoping to follow in the footsteps of fellow garage entrepreneurs HP. With a strong foundation, the company grew very quickly, and before long was in need of a much bigger space to house their operations. Today, there are few people who haven’t shopped with the online retailer, buying everything from food to televisions to electronic media. This small business had become one of the leading retailers in the world, with billions of dollars in sales each year.

6.Disney: While he would go on to build an animation and entertainment empire, Walt Disney’s first studio was a tiny, one car garage in Hollywood. There he worked on a variety of animation products, setting up a makeshift studio in the space, while he waited to see if his Alice in Wonderland pilot would be picked up by any major distributors. It was, and the company quickly moved out of the garage into a proper studio. These days, Disney is an entertainment giant for kids and adults alike with movies, theme parks and products around the world. That tiny garage was almost torn down, but the dedication of a few interested citizens helped to save it and interested visitors can go there today to see where it all began.

7.Microsoft: In 1975, Bill Gates and Paul Allen founded Microsoft, with just a few resources and an available garage space. Unlike Apple who developed both software and hardware, Microsoft homed in on the software market. Working with IBM, the company licensed their first OS for a mere $80,000. Later, they would go on to develop more sophisticated operating systems that would evolve into those we know as Windows today. The business would grow to be one of the most profitable and powerful in the world, dominating the personal computing market.

8.MagLite: Anthony Maglica started his dream of owning a business by working long hours to earn the money it would take to put a down payment on his first lathe. Working in a Los Angeles garage, he began to design and build precision parts for industry, aerospace and the military. By 1974, he was incorporated as Mag Instrument and the company was gaining a reputation for the quality of their products. In 1979, MagLite released their first flashlight, the product they are best known for today. It would help them to become a household name and secure their place in the market.

9.Yankee Candle Company: Unable to afford a present for his mother, young Michael Kittredge created his first scented candle from some melted crayons in his garage. Neighbors saw the candles and began purchasing them from him, eventually motivating the high school student to found a business with two high school friends. Kittredge sold the company in 1999 after a cancer scare, but it has gone on to even greater success and is now sold at many major retailers and a number of its own standalone stores.

10.Harley Davidson: It makes complete sense that a company selling vehicles would get its start in a garage or outbuilding, because that’s where those products eventually end up. Harley Davidson did just that, starting out in 1901 with a small business that built engines for bicycles. Of course, it wasn’t long before they started developing the motorcycles for which they are known, and in 1903 they had already released their first racing bike, constructed in a small wooden shed. Buoyed by the popularity and speed of their motorcycles, the company expands, constantly rethinking the best ways to build a bike. Today, they’re still known for producing some of the biggest, best motorcycles on the market and have become a household name.

Guest Blogger Derek Hall Talks about Deal of the Day Marketing

2011-04-17T10:58:00.002-05:00

7 Things They Don’t Want You to Know About “Deal of the Day” Marketing

Businesses across the U.S. are rushing to jump on the emerging “Deal of the Day” bandwagon, driven at breakneck speed by companies like Groupon and LivingSocial, to name two of the bigger players. Undoubtedly, these arrangements drive short term spikes in business, but closer inspection reveals all is not what seems.

The crucial and often overlooked question for businesses looking to implement a “Deal of the Day” campaign for their organization is:

“Who wins at this coupon game…and at what cost?”

While working with small to medium sized businesses that are testing into this medium, I have observed several pitfalls and sand traps that can trip up even the savviest marketers.

The companies I work with bring in $500,000 to just under $10 million a year in revenue and are always looking to try new advertising ideas. Yet when it comes to social marketing, they have navigated into some unknown territory.

If your business is thinking of trying a Daily Deal concept, here are seven things you need to know before you do your deal:

1. You’re still paying for it. The average discount after a campaign (after adding in up-selling and cross-selling costs) is much larger than normal. It will lower your overall margins.

2. You don’t own the data. Daily deal companies typically keep the consumers’ data and don’t share it with the advertising businesses. Unless you have an efficient way to capture the consumer data when the certificate is used – you lose the chance to contact them in the future.

3. Think it will bring “loyal” customers? Forget it! Do your research. Recent studies conclude the national average for repeat customers from campaigns such as these is less than 20%.

4. Are you prepared for and avalanche of new customers? Expect an abnormal demand for your products and services in a short period of time. Unless the first impression is great, your business can develop a bad rap fast.

5. Keep caring for current customers. They could be casualties. They are the ones that have been loyal, and as they say, “Dance with the one that brung ya.” Unless they are receiving the same love and attention during this heightened demand – watch out!

6. Breakage – potential liability issues! “Breakage” is the term many use when a business can’t fulfill a promised coupon offer when a customer has paid for it in advance. Many government authorities are investigating complaints from consumers that can’t use the coupons. Businesses could end up holding the tab for all “unused” offers or have to put money into escrow.

7. Your company’s image and BRAND could be at risk! These campaigns can be very effective for new locations or brand new businesses with hardly any customers. BUT, if the business has an established brand – beware. Consumers are smart, and getting smarter about their choices, and they may sit on the sidelines until that ridiculously great teaser offer comes along again. These campaigns have also been used as “ATM Machines” for businesses that have struggled during the financial downturn, but in the long run overall profit margins can be severely compromised.

The top tier companies that promote these offers have a great business model and many investors can’t wait to become their shareholders. But in the long run do they have the “middleman” or their advertisers’ best interests at heart? Think hard before you Do a Deal.

Derek Hall is an entrepreneur and founder of DartzDeals based in Austin, TX. He also has over 21 years of experience in executive management in the technology industry. He has founded several very successful companies since 2005 to serve the advertising needs of local business owners. DartzDeals business model is based upon persistent advertising via smart phones, the web, personal branded apps and high end print for local businesses to use for client capture and retention. DartzDeals website is http://www.dartzdeals.com/.

IBM SmartCamp Calls for Entrepreneurs

2011-04-02T13:49:00.002-05:00

On behalf of IBM, I would like to introduce you to a new program by IBM to help your company continue to grow and accelerate. Here is your chance to partner with IBM and receive access to world-class advisors plus a direct route to seed and venture capital.

SmartCamp is an exclusive event aimed at identifying early stage entrepreneurs who are developing business ventures that align with the IBM Smarter Planet vision.

SmartCamp winners take part in a three-month mentorship with IBM. The winner will be invited to attend the SmartCamp World Finals. A finalist will be chosen to receive a personal mentoring engagement from Dr. Robert Metcalfe - ethernet inventor from the University of Texas at Austin.

If that sounds like what your start-up needs, then apply to participate in SmartCamp Austin on May 17 & 18, 2011.

To learn more and apply for SmartCamp go to IBM SmartCamp by April 15th. For questions, please contact Jonathan Libby at jlibby@us.ibm.com or 408-829-3923.

SmartCamp is a part of the IBM Global Entrepreneur initiative, which helps you build your business around the smarter planet market opportunity. By leveraging the benefits of IBM Global Entrepreneur, you can gain access to no-charge IBM software, technical enablement resources, mentoring, greater credibility, and validation of your solution.

Best regards,
Hall T.

Chris Cornutt Talks about the Lone Star PHP Conference

2011-03-30T10:52:00.004-05:00

Chris Cornutt Talks about the Lone Star PHP Conference

Where are you from originally?

Dallas, Tx

What university did you go to?

Abilene Christian University

What is your group’s mission?

The Lone Star PHP Conference seeks to bring some of the best PHP content and talent to the DFW area in a yearly event open to developers and non-developers alike.

What need does it fulfill?

The conference brings the format of the once-monthly DallasPHP meetings, a popular venue for learning and experiencing PHP, to a larger scale. Web professionals have to keep learning all the time to keep viable in their careers. Our event helps them by providing a wide range of sessions on topics ranging from the more technical to the “soft” topics.

What exactly does it bring to startups?

Like any other company, employees of startups have to keep broadening their horizons. This conference offers them an affordable way to do just that.

What type of startup would benefit from your group?

Any startup looking to learn more about not only the PHP language but about a wide range of surrounding technologies including web application deployment, Drupal, Windows Azure and unit testing your applications.

What was the most challenging aspect of starting up the initiative?

The planning has been the hardest part - going in I didn’t know quite what all was involved in setting up a conference, but I’ve found out quickly. I’ve been an attendee at several conferences and have friends that have helped to organize other, similar events and it’s been nice to have them to lean on. There’s so many small details you have to consider and it’s good to have a few people to ask questions when I need a few quick answers.

What advice do you have for entrepreneurs?

I keep coming back to it, but they shouldn’t forget to be constantly learning, whether it be a new technology or a concept that can help their product be the best it can be. If you’re not learning something new every day about the world you and your product exist in, you’re doing something wrong.

What Dallas-based resource have you found to be the most helpful and why?

The most helpful has been the DallasPHP user group. It’s where the event started from and it’s the group that’s providing a solid foundation for it. Quite a few of the speakers are former DallasPHP speakers (and some just may be future ones too).

The Fund Raising Funnel

2011-03-25T09:26:00.005-05:00

I spent the earlier part of this spring at the World’s Best Technologies Show in Arlington which highlights technologies from university and government labs moving through the commercialization process. In the session on raising funding the panel provided an interesting perspective on the “funnel” used to describe the fund raising process as follows:

1. Self –fund –80% of the companies do this and it will let you start a company that can grow at 20% a year max.

2. Friends and Family – another source the can generate funding from an emotional investment as well as a financial one.

3. Strategic Partners – sell your product in its early stages (even if it doesn’t fully work) and charge an NRE (non-recurring engineering) fee for it.

4. Angel Groups – there are 300+ of them throughout the USA.

5. Individual investors – sign up the potential investor as a mentor first and then move to the investment stage.

6. Grants – check out grants.gov which lists all the grants the US government has to offer.

7. Early Stage Venture Capital – There are 75 firms in the US operating today. You can find them on PWC Money Tree

8. License/Royalties—you can generate cash for your startup by licensing the use of it to someone in exchange for a royalty stream. It takes $9M of funded research to create 1 license which will last on average for five years and generate $375K of cash to the licensee.

As an angel investor, one of the first questions put to the entrepreneur is what other sources of funding have your tried and in the future what will you consider. If you haven't put your own money into it, it will be difficult to convince others. If you're building a life science or cleantech product requiring a great deal of capital, then government funding is a must.

Best regards,
Hall T.

Take the Investor on the Journey With You-- AV Hours, Feb 22

2011-02-21T09:14:00.001-06:00

I encourage startups to meet with investors well before they go out to raise funding to understand better the investors criteria and to build a relationship. Many investors want to see how well the entrepreneur executes on their plan so it's best to take the investor on the journey with you. By the time you go out to raise funding you should have 20 to 30 investors who you are keeping up to date on your progress.

One investor to consider is Austin Ventures. They have dedicated a portion of their fund to early stage, emerging technology companies. Last year they funded Spredfast.

The February 22nd "AV Entrepreneur Hours" event is coming up. To join you can email them at entrepreneurhours@austinventures.com, and give a brief description of your new project. Selected entrepreneurs will get a 20 minute time slot. By Friday the 18th, they will post or email the schedule for the meeting.

Best regards,
Hall T.

Bill Hulsey of Hulsey IP Law Talks about Patent Protection Internationally

2011-02-12T08:18:00.003-06:00

Bill Hulsey of Hulsey IP Law Talks about Patent Protection Internationally

Where are you from originally?

I am originally from Memphis, Tennessee.

What university did you go to?

I attended Rhodes College to receive a degree in theoretical mathematics. Then, I joined the U.S. Navy to train in its Navy’s Nuclear Propulsion Program and then serve as a submarine officer in the construction and deployment of Fast Attack nuclear submarines. I later obtained a masters degree in economics from the University of Virginia, in Charlottesville, Virginia, where I focused on the economic factors causing entrepreneurial companies to aggregate in places like Austin, Palo Alto, and the Boston Route 128 Corridor. Finally, I received a law degree from the Vanderbilt School of Law in Nashville, Tennessee with the intention to serve entrepreneurial businesses. These days I find myself at many universities teaching IP and entrepreneurial classes.

What brought you to Austin?

I was an associate at the Baker & Botts law firm and
wanted to come down to Austin to start that firm’s IP practice and to serve entrepreneurial companies in Austin. That was back in 1993. Since then, I have continued to work here, starting my own firm in late 2002.

What is your passion and strength?

My passion is to help companies succeed in an IP-intensive and competitive marketplace. I believe that I and the other IP professionals in our firm have a special focus and ability to serve entrepreneurial and emerging growth companies. Our strong technical capabilities—all of us are first electrical, nuclear, biomedical engineers or physicists—give us the ability to communicate at technologically deep levels with your clients. I have a very strong passion and strength, I believe, in helping young engineers and law school graduates become practicing and highly competent IP professionals. All of this is about growth and development.

What need does it fulfill?

Well, I would say that my passion and strength in focusing on growth and development allow me to take a long view in the service of our clients as we participate in the ups and downs of their entrepreneurial efforts. It also allows me to take a long view with young professionals and to be proud of their many achievements as they prosper and grow.

What exactly do you bring to startups?

Over twenty-five years of working with startup companies and over thirty years of working with some of the most technologically complex technologies of the day. I also bring a deep desire to see our clients achieve their market objectives. I also bring a team of young and aspiring professionals committed to seeing their clients well served.

What type of startup would benefit from your strengths?

A startup seeking to commercialize a technology in one of the fields of energy technologies and applications, bioscience and biotechnologies, electronics devices and systems, environmental technologies and processes, software/Internet technologies and processes, or aerospace technologies. These are IP-intensive companies, generally, and are a good fit for our law practice. Over the years we have been of significant service to companies in these fields to develop IP assets and navigate IP situations as they enter, grow and mature in these markets.

What was the most challenging aspect of starting up a business?

I think that from a legal services point of view, startup companies have a need to protect two things. They need to protect their IP, but they also very frequently or generally need to protect their checkbook. Protecting their IP generally calls for obtaining patent filing dates as early as possible and as inexpensively as possible. But, they should plan for IP expenses to grow as the company grows and becomes more successful. This growth, however, should track or match the revenue that the company generates from selling its products and services and licensing its technology. Keeping this relationship between IP investment and company revenue in “right relation” is an ongoing challenge, but well worth the effort.

What advice do you have for entrepreneurs?

Use the domestic and international IP systems. These systems and the laws that support them are established and operated for their benefit. The state and national governments know that entrepreneurs power our national economy. They have made sure that the IP systems serve their needs. Because of this, entrepreneurs need to know what is in place for them and how to avail themselves of these business tools. Also, check out the U.S. Patent & Trademark Office tutorials, as well as those of the World IP Organization and the European Patent Office. These are on the respective websites and can be of immense benefit to company business and technical leaders.

What Austin-based resource have you found to be the most helpful and why?

I think that two resources in Austin are most valuable for entrepreneurs. They are different, but very tightly connected.
One is our amazing University of Texas. There is not enough time to discuss all that UT does to support entrepreneurs and business here in Austin. But, the IC2 Institute, TechLabs, the MSTC Program, ATI, and all of the technical and professional schools support the local, state, and national economies. This resource in the heart of Austin is great treasure.

The other resource is our excellent Austin Chamber of Commerce. The work of Mike Rollins, Susan Davenport, and Erika Sumner, as well as a large number of other Chamber staff and volunteers, make economic development in Austin the envy of the nation. You know, Austin was named the second most innovative city in the U.S. last year and frequently wins many other such awards or recognitions.

The University of Texas and The Greater Austin Chamber of Commerce play important roles in our being so recognized.

Craig Berlin of the Texas Motion Picture Alliance Gives an Update on the Film Industry in Texas

2011-02-11T08:13:00.005-06:00

Craig Berlin of Texas Motion Picture Alliance Gives an Update on the Film Industry in Texas

The Texas Legislature convenes this year with a problem that is not unusual if you look around the country but it is unusual for Texas: a budget shortfall as high as $27 billion. Since Texas cannot deficit spend as the Federal government does, the winds of cutting spending are blowing through Austin with the same hurricane force we hear about Washington, D.C. With so much on the chopping block including every conceivable hurtful sacrifice from closing schools to cutting mental health programs to ending some kinds of aid to victims of child abuse, nothing is sacred. To almost anyone then, ending incentives for film, video and video game producers ought to be a no-brainer.

While conservative “fiscally responsible” think tanks certainly toot that horn and a number of other economic development funds are being targeted, since 2006 it has been the job of the Texas Motion Picture Alliance (http://www.txmpa.org) to educate and inform the public and the Legislature that decreasing funding for the Texas Moving Image Industry Incentive Program will have the opposite of its intended effect, costing the State hundreds of millions of dollars in business and tax revenue and sending jobs elsewhere.

Programs in other states are justifiably being cut not just due to the prevailing mentality but because overly generous and corrupt programs full of loopholes cost their states more money than they made. Seeing that, along with misinformation, has fueled a public and legislative appetite for cutting all programs back.

However, the facts have been largely overlooked or distorted and sometimes overshadowed by outright falsehoods. The truth is that Texas went from being the Third Coast to an afterthought when other states began offering incentives, and when places such as Louisiana went from $20 million in production in 2002 to $620 million four years later, the Texas production community knew something had to be done. The TXMPA was created in a near-panic to effect change and has worked closely with IATSE, the labor union for production crewpeople, to create a conservative but effective program which has brought in over $600 million in production spending since its inception and created thousands of jobs, resulting in tremendous trickle-down spending and tax revenue benefitting every man, woman and child in Texas. It is noteworthy as well that without the program, much of this business would have gone elsewhere. Prison Break, which stayed in Dallas for its third season (the second in Texas), did so primarily because of our new and improved incentive program.

The budget, economic development, incentives and the ancillary subjects are complicated but one thing is for certain: the Texas Moving Image Industry Incentive Program brought jobs and business BACK to Texas and prevented others from leaving – all with a closely scrutinized process that requires that producers come to Texas, spend money and provide documentation of that spending before they get one red cent back. If and when they are eligible they must do due diligence and their grants are structured in a way that benefits both the producers and the State. Our program was designed from the beginning to rely on Texas being a great place to produce on its own so we will never have to give away the farm. However, we do need the program to have adequate funding or once again, the industry will go elsewhere to work.

For more information on the importance of the program please visit our website at http://www.txmpa.org. If you would like to speak to a representative of the Board, please contact us or Hall Martin, who can put you in touch with someone. The TXMPA is a 100% volunteer non-profit organization and we are desperately in need of financial support to help preserve this program, which in turn generates hundreds of millions of dollars for Texas workers and other worthy government programs facing huge cuts. Please contact us to learn how you can help.

Craig Berlin is a graduate of the University of Texas at Austin with degrees in Plan II, the Liberal Arts Honors Program and Radio-TV-Film. He has operated audio-visual production and support company Take 5, Inc. dba/Pro-Tape since 1986 and is a founding Board Member and former treasurer of the TXMPA.

Bob Dipasquale of HumorQ Talks about His Startup

2011-02-10T18:30:00.002-06:00

Bob Dipasquale of HumorQ Talks about His Startup

Where are you from originally?

I was the youngest of six children in my family and I was born in Buffalo, New York in 1960. It was a bit of a bumpy start since my dad died when I was three of heart disease, and my mom died when I was 10 from cancer. Soon afterwards, my brothers and I went to live with my oldest sister in Vermont. I continued to start my own family there until November 2006 when we moved to Round Rock. I’m guessing that’s the longest, saddest, and most complicated answer you’ve ever gotten for that question.

What university did you go to?

I guess I want to add to the short list of successful people that didn’t go. I worked as a co-op for IBM when I was in high school, and soon after graduating I got a job in their manufacturing area. I taught myself some software skills, and now after 32 years with them, I’m working remote as an application developer and release engineer for their semiconductor plant in Burlington Vermont. I’ve learned a lot more than software of course by being an IBMer.

What brought you to Austin?

A good Google Earth shot right about now would tell that story best. Winter is long and brutal there and my wife and I really enjoy warm weather. The sister that acted as my guardian ended up here and her grown children and families are here too. Housing, college for my teenage girls, and opportunity are big additional reasons that made Austin a great choice.

What is the idea behind your startup?

I’ve always had a side of me that enjoys writing comedy. One of the ways I enjoy exercising those muscles is to participate in caption contests. I really started to get disappointed though at some of the winners and finalists being selected, so I put on my application developer hat and built one myself. It uses a selection method I call crowd-sifting where members judge other members, and the best rise to the top. As I developed it, I realized we can provide feedback for every captioner, and actually put a reasonable metric on how funny someone is. So HumorQ.com does just that.

What need does it fulfill?

A lot of people would say they don’t need to put a number on how funny they are. There’s still a lot of people that say they don’t need to put a number on how smart they are either. But, there’s a large population of people that are curious and want to know. If we can create a widely accepted humorq, we’ve established a valuable metric for many industries involving creativity and humor.

What exactly does your product do?

HumorQ measures two things for a member, the popularity of their captions, and their ability to recognize popular captions when they are judging the captions of others. It uses an algorithm that calculates and maintains a humorq for each member which is a number between 1 and 200. I’ve built it such that your humorq requires maintenance. Just because you we’re funny last year, doesn’t mean you’re funny now.

Who is it for?

It’s for creative directors, advertising executives, script writers, greeting card writers, singles, bored housewives, and everyone with a handheld device and five minutes for a creative exercise.

What was the most challenging aspect of starting up a business?

I would use the word ‘is’ rather than ‘was’. I’ve built a working prototype, and a very modest membership base, but I’m finding the most challenging part to be building a team.

What is the next step for you and your startup?

Building a team is the obvious next step, and as I mentioned a significant challenge. I think there are probably many readers that see the merit and potential of this idea. At the same time, they see the captain of the ship with no degree, no startup experience, and oh yeah … no money, and their better judgment sends them in another direction. I need to find equity partners that can fill those significant voids. I need person(s) that are smart enough to know that most ideas are dead without the right team, but that there are some ideas that quite frankly don’t deserve to be dead. I’m ready to give up all but control in exchange for a team of people that can put this together with me and bring the capital needed to get going. Meet with me, and I’ll show you my business plan and that I have what it takes to grow this idea with the right teammates and vendors. So visit the web site http://www.humorq.com , and contact me (Bob DiPasquale) by email bob@humorq.com.

What advice do you have for entrepreneurs?

Simply said. Don’t give up.

What Austin-based resource have you found to be the most helpful and why?

I took the Startup Business Class offered by the Austin Entrepreneur Network. It was extremely eye opening, and I made some significant contacts there. It taught me about the many facets and levels of startups, and exposed me to a group of people all nurturing ideas at different steps along the journey. I’m very grateful for what that experience extended to me.

Best regards,
Hall T.

Terry Chase Hazell Talks about RampCorp

2011-02-09T17:03:00.004-06:00

Terry Chase Hazell Talks about RampCorp

Where are you from originally?

I’m originally from Pottstown Pennsylvania, then home of Mrs. Smith’s pies. We used to throw plastic army men into the pumpkin trucks as they went under the climbing tree in the front of our house. I still look for those men in pumpkin pies. I moved to Maryland in High School and lived in Maryland until I moved to Georgetown Texas in 2008.

What university did you go to?

I went to the University of Maryland College Park (UMCP). I almost became a life-time Terp!

My internship in High School was with Martek Biosciences Corporation and they did work at the scale-up facility at UMCP. I went to UMCP as an undergrad, then managed their scale-up facility through graduate school, then started a spin-out company from UMCP, married a professor of UMCP (not one of mine!), moved my company into the incubator at UMCP, became a UMCP CCLS Board of visitor member, my kids went to the UMCP preschool, I spoke at commencement, I started a second company at UMCP….finally decided 20 years was enough and moved to Texas.

What brought you to Austin?

We wanted to relocate within Maryland, but I met some Texans at NIH and they told me of the “magical” entrepreneurial environment in Texas. I didn’t think “entrepreneurship” when I thought of Texas, so I visited to check it out. I loved Austin, but wanted to be a little bit out of town. My husband pointed at the map and said “check out this Georgetown”. I did and loved Georgetown’s mixture of small town feel but high-tech spirit. So we moved to Georgetown.

What is your group’s mission?

We aim to increase the number of women-led growth companies through-out Texas. Texas State RampCorp Austin provides training and coaching for women who are or who want to be running a scalable business.

What need does it fulfill?

Texas State RampCorp provides women with specialized coaching, and an access to network of men and women to learn knowledge and skills to more successfully scale their businesses. Also, we offer women the opportunity to gain support from other women building big businesses but starting small. Often women find themselves to be the only one in a group for scalable or technology entrepreneurship—we provide dozens of peers.

What exactly does it bring to startups?

Often our members have not started a business and they launch in the program. Start-ups that have already launched learn methods to lead, connect, fund and scale their business.

We teach 16 “Ramps” toward scaling your business. These Ramps include 8 knowledge and 8 skills that all entrepreneurs, especially women need to be successful. Check out our list of resources for one of our Ramps at http://www.mindmeister.com/74492521/the-ramps-scalable-business-model

We offer lots of one-on one coaching and access to our expanded networking. Check out the team of investors, inventors and entrepreneurs providing help… http://www.txstate.edu/rampcorp/team.html

We offer women “sponsorship”—meaning we get them connected with people and organizations they need to know and we advocate for them. Once such organization is Springboard Enterprises that has helped women raise $5 Billion.

See some of the quotes from women helped by our team…
http://www.txstate.edu/rampcorp/Team-info.html

What type of startup would benefit from your group?

We’re looking for startups led by a CEO with the determination to grow the company beyond her own labor, to serve a national or international market, to choose a scalable business model and to generate economic value for her and her company’s stakeholders.

What was the most challenging aspect of starting up the initiative?

The most challenging aspect of launching in Texas was finding a University brave enough to bet on training for women entrepreneurs to launch scalable and emerging technology ventures. It was also challenging to branch away from the ACTiVATE program. Although challenging, both items worked out great.
RampCorp is a program of Texas State University and I don’t think we could have found a better place to grow. Texas State funded the program and not only continues to support it, but has expanded all commercialization efforts. Texas State is agile, hungry for connection with companies and forward thinking. I may like the Bobcats better than my Terps now—but don’t tell.

I came to Texas with the idea to run the ACTiVATE program just like the University of Maryland Baltimore County program where I taught. I led the first expansion out of Maryland and used the name with permission from UMBC. I found we needed to make so many changes to fit Texas that what is now RampCorp didn’t fit the vision of the ACTiVATE program—so we branched away. ACTiVATE is a great program and continues in Texas and is now expanding in many other locations outside of Maryland.

What advice do you have for entrepreneurs?

For women, to realize that we do often think and learn differently and to seek entrepreneurship training and support to understand those differences, optimize differences that are strengths and improve where differences hurt competitiveness. At the same time, remember your network is your greatest asset and spend the time to build and maintain it.

What Austin-based resource have you found to be the most helpful and why?

Number 1 is certainly Texas State!

Coining Austin as the Human Capital is very apt. I found the people to be the best resource. Robin Curle, the “Galaxy of Entrepreneurship” has been a change agent, leading instructor and champion for our program. The Austin Chamber was immensely helpful and introduced me to resources, connected me and helped find a “home” for the training program. Terapio and Curt Bilby helped me get connected and provided some temporary employment as I transitioned. The entrepreneurship scene stewards group and Bijoy’s great map of entrepreneurship scene is a model for many cities. So I guess those Texans at NIH were right—“magical”.

Austin Venture's AV Hours -- A First Look

2011-02-08T10:00:00.003-06:00

Got Funded: A Rounds in Austin Start-ups!

2011-01-31T19:02:00.003-06:00

Texchange Austin will hold its next event on Tues, Feb 8, from 6 to 8pm at the AT&T Center

Austin's high-tech entrepreneur CEOs will share their stories about the journey of their start-ups from concept to funding. They will share the positives of their rides, the "avoid this" list and hints and tips to get a start-up from idea to funding. They will share how their journeys as first time leaders/founders of start-ups put them at an advantage or disadvantage in the current funding climate. The "repeat offenders" aka "serial entrepreneurs will share how this time was different than in the past. The CEOs on the panel and the discussion leaders have raised their first institutional round of capital for their companies from Austin to California and beyond in the past year.

The Moderator: Kip McClanahan, Partner, Silverton Partners

The Panelists are:

Brian Magierski, CEO & Founder, Appconomy

Rick Orr, CEO, TabbedOut

Larry Warnock, CEO, Gazzang

To register Click here.

Top Ten Trends 2011-- Cloud Computing

2011-01-21T07:56:00.001-06:00

For several years now, cloud computing has been coming such that there are over 50 Million servers installed today. The amount of digital information increased by 73 percent in 2008 to an estimated 487 billion gigabytes, today. In 2011, cloud computing will become mainstream and supplant the PC-centric model. Computing hardware you see in the office will start to disappear as functions shift to the cloud -- storage, backups, large memory models, and numerical processing, will lead the shift. Netbooks which topped the trends list last year are now being replaced by tablets.

Software applications such as Microsoft Word will move from your desktop to the cloud as well. You won’t need your own personal copy of Word -- just an instance of it for a project. In fact, most application development will shift from the PC to the cloud.

Online backup which is common today will continue to grow as desktop applications will follow.

I’ve developed a list of the Top Ten trends for 2011. Actually, it’s a list of ten areas with the major trends in each one. If you are considering a startup you may want to look at these trends as a source of direction. If you runa business you may find these trends a wake up call for what you should be doing to grow your business. I’ll be coming to a group near you soon.

Best regards,
Hall T

Liz Elam of Link Coworking Talks about Her CoWorking Space

2010-12-14T08:58:00.002-06:00

Liz Elam of Link Coworking Talks about Her CoWorking Space

Where are you from originally?

I graduated from Westwood High School right here in Austin, Texas. My childhood was spent in Virginia and Vermont, where my Dad was an IBM Executive.

What university did you go to?

I have a Bachelors of Science from Texas A&M. I majored in journalism and minored in marketing.

What brought you to Austin?

I moved back to Austin from Italy in 2008 to open a coworking business here in Austin.

What is your group’s mission?

Link Coworking’s mission is to build a community that brings people together who share the need for a place to conduct their business in an interactive space.

What need does it fulfill?

We have a huge workforce that is conducting business from their homes or coffee shops and they desperately need a professional space.

What exactly does it bring to startups?

Link brings a supportive community for collaborate and support for a startup buisness.

What type of startup would benefit from your group?

Anyone who needs a professional space to conduct their business, wants to work amongst other knowledge workers and/or hold a meeting could benefit from Link Coworking.

What was the most challenging aspect of starting up the initiative?

Finding the right physical space for the business was a real challenge. I was looking for a space that was:
1. Less than a mile off of Mopac
2. Plenty of parking
3. First floor
4. Covered outdoor seating
5. Walking distance to retail spaces and restaurants

It took me about a year to find the ideal space, but once I found it, I knew in my gut it was right.

What advice do you have for entrepreneurs?

Follow your gut. Period. End of story.

What Austin-based resource have you found to be the most helpful and why?

SCORE was critical to my success. I was immediately paired with a counselor who came from a similar industry. She was with me step by step through my business plan, and we even looked at lots and lots of possible locations until we found the one we both agreed was it. She listened, encouraged and celebrated my success and patiently helped me through the entire process.

The other resource I must mention is the Austin Cosmopolitan Rotary Club. ACRC is the younger hip version of your father’s Rotary club. My fellow Rotarians encouraged me, supported me and even built furniture with me. It is a great place to network and build business relationships. I even found my web designer and insurance agent through Rotary.

2010-12-01T06:53:00.003-06:00

Maggie Miller is the founder of discover hope fund, a non-profit organization providing micro loans and education to impoverished women in Peru. These loans can be as small as $150 but they enable women to feed their families, send their children to school, and improve the communities they live in. When an opportunity to travel to Peru came along in 2004 Maggie went knowing that she was looking for her next move, but not knowing what that would be. She found the answer, what would become discover hope fund, by simply asking the Peruvian women what they wanted for themselves and listening to their answers. Discover Hope funds holiday of hope benefit is taking place next Wednesday, December 8, at Mercury hall. You can get more details at Discover Hope .

I think that the work you’re doing with Discover Hope Fund is really pretty amazing stuff. Explain how the program works.

The mission statement has two program goals; one of those goals is microcredit for women who are living on less than $2 a day, and the other one is training which is access to knowledge and information for those women. So microcredit is not a new concept; I wish I would have invented it but I didn't. It's the idea of giving these small loans, or access to credit, to women (traditionally world wide) and ill talk about that in a second. To initiate or grow their small businesses. And worldwide 97% of the borrowers are women and the reason for that is women have the ultimate care for their children at the end of the day. They have the responsibility to feed them and clothe them and educate them. And women in developing world also wont traditionally have access to other means of credit. Their only access would traditionally be a loan shark that would charge them up to 50-70% a day at times. So that first goal is really giving access to credit. The loans do look like, as you said, $100$150 to initiate and grow a small business. To me that's like the fishing pole, that old saying that we all have heard many times that I love which is teach a person to fish instead of giving them a fish. So microcredit is the fishing pole, it’s a tool, it’s an amazing tool used world wide to help lift people out of the situation of poverty. But at Discover Hope we really feel that there is a part 2. And that's when you give a tool to somebody that they've never had in their hands before, that you have the ultimate responsibility to teach them to maximize the potential of that tool. If I gave you a fishing pole and you've never fished before, you've never seen this thing you would not know how to use it. So what we do is we ask the women in our microcredit program “what else do you want and need to maximize yourself as a women, as a mother as an entrepreneur”. And then the trick is to listen. To listen to what they want.

What do they want?

What they say they want has been things like literacy for themselves, health education for themselves and how to care for their families. Issues like respiratory illness and disease, gynecology, those types of issues.
But how do those types of education, how does that help them run their businesses?
So those are two of the top personal things they ask for, so still kind of going down the line of what they want. The other areas have more focus towards their business, which is business particular classes they ask for business and finance classes. Now remember literacy is also mathematical literacy. And if someone doesn't know how to compute a day’s work, that is about $5, $10, then they don't know if they've lost or gained at the end of the day. So business classes, finances classes, classes that has to do with their type of business in general, that looks like veterinary workshops on how to care for their animals, a lot of them work in agriculture and husbandry. Creating artisan works, jewelry, t-shirt stamping, weaving, crocheting. Whatever they ask for. Last year we did 72 types of artisan classes alone. So again, it’s really about listening to what they want. One last big area is culinary as well. We have a lot of women who do fresh food production on the streets. They want to learn how to add to their menu, or bake cakes for Quincineras, or whatever they need. So again the high level goals are microcredit, that access to credit, and training which is access to knowledge.

Is the training typical among other microloan organizations, because I mean, that's really an amazing piece?

I wouldn't say it’s typical. It does exist. There are some really great organizations; one of my favorites is Freedom From Hunger out of Davis California. They have a credit plus education model that I think they really well developed. There are other microcredit borrowing mechanisms that are really just about you paying into the loan or the loan money itself. At Discover Hope we kind of have the stance that that’s just really not enough. And I think some of that comes from the background of being in the field and watching microcredit in action for several years and working with different organizations and seeing that the biggest question is how paternalistic can you be about a microcredit loan. Do you give $100 and make sure they go to the store and buy the goods that they said they said they wanted to buy for their business. So I guess the trick is that if you give the credits, the education side to the credit, you've actually given them a path for how to best maximize that tool. When a woman leaves our classes and she’s learned to make a pair of earrings, and she sells it on the street for $2 ten minutes later she’s going to go buy more jewelry materials. When a woman bakes a cake in a culinary class and sells it to her neighbor for her daughter’s event, her quincinera, she’s going to go invest in more product.

Tell us about actually the loan payback rate. These are women who haven’t had access to money before and now they’re getting it.

Absolutely. Worldwide microcredit is very successful. The payback rate in the world is %97 98% success and these are entrepreneurs that don't have any collateral at all. Its not like you can go take their home from them or their car from them. Our payback rate at Discover Hope is 100% and were really proud of that. And what I think that that speaks to is the ownership and the accountability that people are willing to take on for themselves to make a sustainable change for their families. Its not just like hey give me some money and I’m going to take off with this money. Its I’m willing to pay back this money in 4-6 months which is a typical loan cycle. So they may take $150 $100 depending on the interview you've had with them and what they want to do with that money and their going to pay back over 4 to six months. Now the way that that works is in a mechanism called the village bank. It’s also known as community bank or community groups, communal banks. That is a group of 6-8 women or 6-25 women (it matters what origination your working with). Ours is 6-25 women that basically borrow together as a unit. So they have each other’s backs so to speak and this is called social collateral and this is used world wide in micro credit.

Right and another key thing, what you just said about here in the United States. Now they are trying microcredit models in the United States but one of the keys that makes it work internationally is communities are not mobile like they are in the United States. When your born in a community, unless you have kind of gotten a break, gotten an education and gotten out of our community, you’re going to remain in this community for your entire life. So, the trust, and what people think of you, and your home unit and your family unit is always in that community which makes that social collateral bond really strong. So that's another big point about it working internationally.

That is so interesting. Maggie I want to find out how you came to do this work. So you have a Bachelors degree from George Washington university, a master’s of communication from San Diego state, you graduated summa cum lade from both, and you had a full athletic scholarship for soccer. So how did you come to help poor women in Peru?

So the short answer is the still small voice, that's my short answer and I’ll tell you what that means. After my masters I started working in San Diego for an amazing non-profit and what I did there, the mission was stop children from killing children. And my job was to create peace education for kids that are from gang families. For anyone that can see me in this interview I definitely don't look like I have… You know I’m white, I have blue eyes, I grew up in the mid-west, and I didn't have trouble in my family. And so my job was how to relate to kids that were really having difficult times in their family. No matter how they looked it was just different experiences. And the thing I learned the most from these kids was ask them what they want. So they wrote this curriculum, which was eventually called Peace works, and it still exists to this day in the organization in San Diego. Shortly after that, one day in quietude of my home, I heard this internal call, and that call was go see con otros ojos.

And it was in Spanish?

It was half Spanish half English. Go see con otros ojos—go see with other eyes. And being in San Diego, which was a beautiful place to live, working for a wonderful origination, doing fine financially. I loved the beach, the people, the friendships. And hearing something that kind of shifted inside me and made me uncomfortable, lets just say I wasn't happy about it. So for the next three months, I just kept inquiring internally about that call. What does this really mean? What does this mean for me? And at the end of that kind of contemplation period, what it really meant for me was going outside the boundaries of the United States and seeing myself from another perspective. And so at that point I shared this with my coworkers and gave an 8 month notice, ended up giving away all my things I sold everything I had, gave most of it away, paid off my debts, had nothing at the end, and I mean I had my health and goodness so you know I didn't have nothing but I took off on March 4, 2004 to the mountains of Peru with about $7000 in investor money. It was an investment in the idea that I would create a project once I got there. And once I did get there, I spent about the first three months asking women, “what do you want.” and they all said the same thing they all said, “We want a hand up and not a hand out.” We don't want you to give us something that's going to go away tomorrow.
Were they happy to talk to you? I mean here you are you've described yourself; I mean blonde hair blue eyed white chick from America. Are they happy to talk to you?
Someone asked me that recently, and I think the trick is really being in their situation with them and taking interest in what they were doing and went to the places that were important to them. In the markets, in the fields…

Did you just walk up to them and say, “Hi”?

Well I think that the confidence came from them seeing that I wasn't going away. I wasn't a week visitor, I wasn't two days visiting, I wasn't a month visiting. After about 3 weeks they were like this chicks sticking around you know, lets see what she’s all about. I think it's a funny part of the story, but my real name is Madelyn. So obviously in a very catholic nation the name Madelyn is a very revered figure, Mary Madelyn. So it was kind of an open door as well. “Oh well what’s your name”, oh Magdalena “oh well wow, you must be an angel. What are you doing in town?” So it was almost a kind of a conversation starter. And just asking about their families. I just didn't immediately say what do you want. You now, what is your life like, tell me about your business tell me about your family and creating friendship and trust that way.

And so then, its one thing to hear theses stories, its thing to make that real.
Right. So at about 6 months into the project I wrote the investors and said look, what I would like to do is create a microcredit pilot project. I started studying along this time microcredit models, and what microcredit meant and how it worked and just kept in touch with these folks. And all of them said do it, go for it. So what I did was start doing the first generation of loans to women and really for the next year and a half I ran this pilot project called hope bank and hope bank was the predecessor to Discover Hope, the non-profit. Hope bank was really the experiment of how microcredit really works in the field, programmatically, what does it really look like. A lot of people hear of microcredit but how it unfolds in the field is another story. Brining the bank to the people, which is the point of microcredit, not making people come to a bank. Getting to a rural bank in the mountains of the Andes or wherever it is it's a whole operation in itself. People exchanging $20 and
50 cents.

50 cents?

Yeah well a payment sometimes can look like $1.50 or whatnot so it’s really an amazing process to watch. And I ended up stunning with FIMCA who is out of Washington DC. FIMCA is a very large non-profit and this non-profit brought me to Guatemala to study with them. And what I saw was the questions that I was seeing as a small guy, small organization, were the same with the large organization. They had the same kind of questions of how to do microcredit best. So after 2 years time of being there I knew I had to come back to the US and legitimize the structure as a non-profit. And I did that in 2006 and Discover Hope was born.
Maggie share with us some of the success stories that you've seen thanks to these microloans from Discover Hope Fund.

Okay with our interest with time I’m just going to share what my favorite success story is. We track the income the women make based on the trainings they take with us. So they’ve taken a cake training, therefore, they've started making cakes they didn't make before and they’re selling them now. you could use any product. So we track that total, we ask women to report those totals, and what that looks for us now, is nearly $10,000 plus in income for women.

You mean one woman is making $10,000?

No no 10,000 total dollars. So if you’re talking about, at this point, 175 women with active loan cycles right now. So when you’re talking about somebody that's making $2 a day, to me it's a great success to know that, on the income side, their lives are totally changing. Where one of our women, for example, made maybe $20 a month total, she’s making $20 a week right now.

She’s one of our women that came to our chocolate making class and created a chocolate business out of it. And she got really fancy about it. Like for the holidays, mothers day, fathers day, Christmas, she does coffee mugs. And through our computer class, she learned to do some electronic images on the coffee cups with messages that she got done at a local printing shop, and stuffed some with her homemade chocolates. So her business is a total success something she didn't do before.

So she has quadrupled her income! So how does that translate to her family in terms of what they could now do that they couldn't before?

Right. So, where money usually goes that you’ll traditionally see as microcredit starts boosting a family they'll do several things with it. The first thing they'll do with it is make sure that their kids get food. They'll start replacing things like instead of eating a piece of bread for breakfast and lunch, or bread for breakfast and lunch, they'll add in some protein there if they can. So it happens to work through how their kids are eating. The second area is school. It's a catholic nation where school is free, supposedly, but all kids have to go to school in a uniform and they have to get supplies and so those supplies and uniform may equate to $30 a year. And its sometimes just money that they cannot get together. They can’t get ahead that much. And so they'll put it right into that school pot right away along with the food. And the third thing is really house improvement. You’ll see, it's a poverty indicator; the first indicator of poverty is floor type. So a family with a dirt floor will often finish their floor into concrete. Or the adobe walls, they'll finish their walls with paint or concrete. So that home improvement is kind of another area you’ll see as well.

How do the husbands feel about the women being the one to provide these types of things for their families?

Right. So a lot of the women we work with are either widowed or single, or they have different fathers to their children. I think there are a lot of interesting dynamics that we don't have to talk about today, but with women being in a less powerful situation and not always choosing their mates, and when they want to mate with somebody and then having children, and having the responsibility of their children and then not always having a collaborative partner to raise those kids. So a lot of our women are in those situations. Now when they do have a family unit, and the husband or partner is involved, I think the most important thing that you can do is engage that male in a conversation. What we do is called the pre interview, before a woman ever gets money. That includes asking about her family situation, socioeconomic situation, the husband has to be involved in that interview.
So making sure it will be successful before you give the money?
Right. We do the interview with everybody to make sure what they really need and they've thought through what they really need. If they need $30 really for what they propose they don't need $100. The end goal is to do no harm. You want to help not harm. So if someone needs 30 don't give them 100. If their propensity to pay is for a $50 loan don't give them a $200 loan.

What if there was a husband that was hostile to the idea of this? Does that factor into whether or not they get the loan?

Yea. It would because you don't want to put a women into a dangerous situation without a doubt. We’ve had very little situations like this. So, you have the interview with this family. If the husband is drunk or violent or if there is an issue there we talk with the women further is this really the best thing for you to do. It seems like a dangerous situation. Sometimes they’ll get handy and they'll borrow through like a family member will take the loan under their name. The other way we really befriend the male side is we do a lot of work with community leaders and neighborhood leaders, and these leaders are all males in this culture. So when you have the trust of those leaders, information travels by what we call passé la vois (pass the voice). Its old school you know, its not texting messages like “Maggie’s a good person, meet with her.” Its people passing the information on that you’re a good person doing a good thing and you’re organization can be trusted. If that passa la vois happens and it’s positive for you, it’s usually a-ok. Now the last thing is that if you’re engaging a male in the discussion and it's a family business, and a lot of it happens in agriculture and husbandry, they’re raising animals as a family unit, they’re getting grains to sell in the market, or they’re making wood structures a lot of the stuff is happening in the family—they have a family store. And if you just have that conversation with the family it’s often seen that it could benefit the family business rather than be a detriment. It’s not a power struggle it’s meant to lift a family.

Maggie December 8 is your Holiday of Hope Benefit Gala. Tell us about it.

Okay so on December 8, this is our last event of the year. Holiday of Hope is in our third year. What it will look like is just an evening of fun. Well have some Latin jazz, some wonderful food and drink, and a silent and live auction with some wonderful things that the community has kind of contributed to our organization. And if anyone would like any more information about that they can go to our website which you said is www.discoverhopefund.org.

How much are you hoping to raise?

Our raise goal for that evening is $20,000.

What does $20,000 translate into in the way of loans?

So for us $20,000 would give us… We’d like to do at least 150 new loans next year, but were also taking care of the women that are still in our system. And so they’re in their second or third or fourth generation loans because you usually go 10 cycles with a women to get them some savings for their lives. So we have these 150 going and we want another 150 and then we want to do 375 trainings next year.
And you know longer term, maybe 3 years from now.

What are your goals for Discover Hope Fund?

So we have several high level goals. Longer term would be we have two sights waiting for us to come to them right now. One is in Peruvian Ecuadorian border, another area in Northern Andes that we have a local partner at that we need to raise the money ourselves to have these sites. So we want new sites. We’re also looking at Mexico for a site. And then another high-level goal is to package up the model of what we do a-z, how do you do the micro credit plus model anywhere in the world and to really make that an available published accessible piece for people.

So kind of like a franchise kind of thing. Like plug in and..

It won’t be us leading all those all over the world. It will be giving people the knowledge if they would like to assume that into their organization or build it themselves.

Is it a hot topic, meaning are there a lot of people looking to do this?

Oh I get probably 2-4 emails a month, hey I'm in this country, I'm working with this partner, how are you doing what you’re doing? So I think the question for us is how can we leave a legacy if were small and we’re roots and we cant go to all these places what is the legacy you can pass on and that's how you do it actually.

Bart Bohn of the ATI Talks about the Texas Wireless Summit

2010-10-27T18:19:00.001-05:00

Bart Bohn of the ATI Talks about the Texas Wireless Summit

Where are you from originally?

Grew up in Houston.

What university did you go to?

Went to college at Trinity University in San Antonio and to UT-McCombs for my MBA.

What brought you to Austin?

After college I spent six years in Houston in strategy consulting. Through that time I grew a passion for working with clients and found the startup and incubator space to be the most rewarding. Austin’s entrepreneurial community and the ATI in particular was a great place to launch a new phase in working with the high-tech startup ecosystem. My entry point was UT, where I got an MBA in finance and entrepreneurship.

What is the idea behind your group?

Texas Wireless Summit is an industry-focused conference to provide a platform for industry leaders to discuss emerging technologies and business models that give insight on the next three or more years of the wireless industry’s trajectory. ATI-Wireless and UT’s Wireless Networking and Communications Group will focus on technology and startups that will enable the continued innovation surge in the wireless industry.

What need does it fulfill?

On the Austin level it provides an event to bring together the wireless and mobile community. Additionally it provides a conduit for WNCG, ATI-Wireless and the startup community to interact and exchange ideas with the traditional leading wireless companies.

What exactly does your group do?

TWS is and industry conference that showcases the most compelling wireless technologies and research.

Who is it for?

Attendees are industry executives, investors, media, startups, technologists and the service companies critical to the industry.

What was the most challenging aspect of starting up the group?

I didn’t start it. The greatest challenge in keeping it going, as with any front-line technology sector, is continuing to provide cutting-edge content and discussion points.

What is the next step for you and your group?

TWS is only half-way to taking over the world, so that’s a good question. Our next step is to continue to reinforce our position as the go-to event for compelling wireless technology, innovation and discussion.

What advice do you have for entrepreneurs?

Something that will be on full display at this year’s TWS is the collision of the internet- and web-based startup culture with the traditional “heavy-iron” wireless industry culture. You’ll see keynotes and panels from the legacy players and a host of startups showcasing their web-based technologies that will highlight how the industry is enabling this collision and benefiting from it.
Depending on the specific nature of your technology and the way it needs to be commercialized, be aware of the dynamics of that collision. On the surface you have the apps space, which Google and Apple have created by collaborating with the traditional telecomm-infrastructure folks that provide the core communications platform and services. Either strata is navigable, but the path through each of them is different. As a wireless entrepreneur, you need to be aware of which level you’re on.

Tell me more about your upcoming event.

Early bird pricing ends Nov. 5, so sign up now.

What Austin-based resource have you found to be the most helpful and why?

The ATI-Wireless Incubator and UT’s WNCG are the premiere catalysts for wireless entrepreneurs in Central Texas.

Business Plans vs. Business Models

2010-10-20T06:55:00.002-05:00

In starting a new venture, most start by trying to write the business plan because everyone tells you how much you need one. So you sit down to write the business plan and you start through your checklist. Typically this is how it goes:

“Management team -- well so far, there’s only me, so I’ll just add two more positions to be determined later. Next, it’s Problem to be Solved. Well, that’s an interesting question. I’m solving so many problems, I’ll just say, we’re going to save the customer time, and make it easier for him to do his job. That should cover it. “

If the above description sounds familiar it should because most everyone starts by trying to write the business plan but there’s just not enough information to carry it through at the early stage. There are too many decisions still to be made. There’s too much information not yet accumulated.

Instead of working on the business plan from day one, work on the business model. Focus on how you are going to generate revenue and what will be your core costs. If you figure out this, then you have the key elements of a business plan. You can fill in the other pieces based on the business model. For example, the management team positions will become clear once you know the business model. The problem you are solving is much clearer and so it goes with the other elements of the plan.

Best regards,
Hall T.

5 Common Misconceptions About Starting Your Own Business

2010-10-15T17:09:00.002-05:00

Starting your own business is extremely appealing for a lot of reasons. Being your own boss, running things the way you want to, and doing something you love are key reasons why people seriously consider making the immense investment in time and money -- and taking on the significant risk of failure. This risk can be minimized if you actually know what you're getting yourself into. Here are 5 common misconceptions of starting your own business with a dose of reality to clear up any confusion.

1. If I have my own business I won't have to work as much. That is completely false, especially when getting your idea off the ground -- and turning it into profit. Expect longer hours, more tasks, and in all likelihood more headaches than when working under someone else. Even if you have staff, you still have to set them on the right course, deal with payroll, hiring and management, etc., etc.

2. I'll be able to set my own hours and create my own schedule. To some extent that is true, but a business' priorities lie with customers and clients. You, and your business, have to be there for them. And as head of a business, you have to be there for your employees as well, ready to assist at all times in any way necessary to keep your business running well. Running an online-based business allows some more flexibility, and to learn more check out these Great Resources for Online Entrepeneurs.

3. It will be easy to attract investors and customers to my business. Unfortunately, there's a lot of competition out there for peoples' dollars, whether those dollars be from investors or customers. You have to sell to both of these groups, and often, there is no such thing as an easy sell. Be prepared for some slow (and low on revenue) times and be prepared for lots of "no"s. To make yourself more attractive to investors and customers, just be prepared: have a polished, well-thought out plan to present to potential investors and have an equally thoughtful and high-quality product available for potential customers and clients.

4. The books will be easy. Taxes, payroll, and money management can be difficult. There are a lot of numbers to keep track of and (hopefully) a lot of money to be accounted for. Make it easier on yourself, if you have the resources, by getting an accountant and Human Resources personnel.

5. Business owners are rich and someday I will be too. It's a nice thought but the reality is that many business owners are just scraping by, hoping to keep their business and personal finances just barely in the black. Sacrifices will be necessary until the business becomes profitable, and unfortunately, many businesses never do. Starting your own business can be an incredibly rewarding and exciting venture, but it takes a lot of hard work and does not always lead to equal rewards.
---------------------------------------------------------------------------------------------------------------------
Joseph Gustav is a guest blogger for Pounding the Pavement, an up-and-coming outlet for career-oriented expression. An ambitious freelancer, Mr. Gustav also contributes articles about call center management careers for Guide to Career Education.

Josh Hare of Hops and Grain Talks About His MicroBrewery

2010-10-04T17:51:00.003-05:00

Josh Hare of Hops and Grain Talks About His MicroBrewery

Where are you from originally?

I’m originally from Abilene, TX. Lived there most of my life until graduating from college.

What university did you go to?

I went to Abilene Christian University. Graduated with a degree in Eduction and a minor in Environmental Science. I also spent 3 years in the ACU College of Business Administration.

What brought you to Austin?

I moved to Austin from Boulder, CO as an aspiring triathlete. I had a number of years experience in specialty retail and upon moving here, met with a local entrepreneur and opened a specialty running store in East Austin called Rogue Equipment. I served as the general manager of the store for two years before leaving to open a microbrewery.

What is the idea behind your startup?

The idea behind my startup is to provide handcrafted beer and dog treats to the people of the Hill Country making sustainable decisions both in terms of the environment and the business. All of our beers are packaged into aluminum cans, the most recyclable container on the planet. We handcraft our dog treats form the malted barley that has been used in the brewing process. Brewing has stripped the grain of it’s sugar but a significant portion of fiber and protein still remain.

What need does it fulfill?

There is an underserved craft beer market in Austin with absolutely no brewery packaging their product in cans. Many of the outdoor activities and festivals that take place in Austin prohibit glass. Craft beer in cans is seeing incredible sales growth and many attribute this to the ease and portability of aluminum cans.

What exactly does your product do?

My products provide a high-quality local option that saves energy and supports locally by allowing great margins for retail and restaurant establishments.

Who is it for?

The beer is for anyone of legal drinking age looking for a full flavored, handcrafted beer. The dog treats are for anyone looking for a healthy and local alternative to many of the sugar and preservative filled dog treats that are currently on the market.

What was the most challenging aspect of starting up a business?

The most challenging aspect of starting the business has been the fundraising. There have been many economic factors that have made it fairly challenging to find investors. Because we chose to avoid any debt financing and offered a fairly low entry investment option it has required a substantially larger amount of meetings and presentations that would have otherwise been required.

What is the next step for you and your startup?

The next step is to raise the remaining investment capital to cover operating expenses during the first year. The equipment has been purchased and the warehouse space has been secured. Both of these pieces will come to fruition in December and the brewery will begin operating in January of 2011.

What advice do you have for entrepreneurs?

My biggest piece of advice is to get to know the community that you plan to market to. Get to know your customers and find out what communities they are a part of. There is sure to be a common thread. Lastly, utilize social media to the utmost. It’s free and an incredibly effective way to create a personal connection with your customers.

What Austin-based resource have you found to be the most helpful and why?

I have found many of the local Austin websites and discussion forums to be very helpful in researching my target market. There are a number of magazines that cater to the active community and these have been very helpful in the start up phases.

Irene Mwathi of the NBMBAA Talks about their Upcoming Funding Forum

2010-09-22T06:44:00.003-05:00

Where are you from originally?

I was born and raised in Kenya until my teenage years. Thereafter we lived in Europe before I came to the United States for College.

What university did you go to?

I did my bachelors in James Clark School of Engineering – University of Maryland and McDonough School of Business – Georgetown University

What brought you to Austin?

I visited a friend of mine during her graduation and fell in love with the city. I later moved my consulting firm here and have loved it ever since.

What is the idea behind your group?

National Black MBA Association, Austin Chapter: http://www.austinblackmba.org/
The mission of Austin Chapter of the NBMBAA is to lead in the creation of educational opportunities and economic growth for African American Professionals in Central Texas. Our Chapter is comprised of a network of business professionals, business students, and entrepreneurs whose goal is to share knowledge, build business skills, and generate employment opportunities in management fields. The NBMBAA Austin Chapter was established in December 2006 and since then has continued to educate its members both on the professional and entrepreneurial pursuits.

What need does it fulfill?

The need for this event is to provide minority business owners who are set for their next challenge an avenue to take their businesses to the next level. By bringing VCs and AIs and minority innovators together we hope to enrich the community as well as educate our entrepreneurs.

What exactly does your group do?

In addition to providing professional, leadership and entrepreneurial development to our members we also have a leaders of Tomorrow (LOT) program, a high school mentoring program that has helped to expand the overall number of minority leaders in corporate America by providing mentor/leader relationships with business executives and high school students in the community. We also have the Rising Stars Collegiate Program launched on Oct. 13th, 2009 in partnership with Huston-Tillotson University. Local business professionals and leaders serve as volunteer mentors to students, one mentor per student. Events such as the upcoming event help us identify successful entrepreneurs who can mentor entrepreneurial innovators in our chapter.

Who is it for?

Anyone interested in the progress of minorities in Austin.

What was the most challenging aspect of starting up the group?

The most challenging aspect of starting a group is finding the resources to support the organization’s initiatives and also finding the right people who have enough time to volunteer and help execute the vision and initiatives of the organization.

What is the next step for you and your group?

Since we have only been existence for four years and the main focus has been getting started in the right direction, the next step is creating awareness about the organization in the Austin community and growing the chapter in membership and sponsorship. Building value for our members is our key focus 2011.

What advice do you have for entrepreneurs?

Austin has wonderful resource organizations to support your dreams. Joining such organizations as AEN, BootStrap Austin, Texas Venture Labs, Tech Ranch and leveraging RISE Alliance conferences, start-up conferences you are sure to network with like minds to take you to the next level.

Tell me more about your upcomingevent

This upcoming event program highlights different avenues for funding and sessions from some of Austin’s business leaders. We also plan to have a VC and AI funding symposium which will be the main feature after the luncheon, where at least 5 participants will get to pitch in front of an audience for funding between $150K – 5M. Keynotes include The path to entrepreneurship featuring Bijoy Goswami and luncheon keynote featuring Corey Bell on Serial Entrepreneur. The details are:

Event Location: AT & T Executive Center – UT,
Time: 8.00AM – 4.00PM
Date: November 12th, 2010

What Austin-based resource have you found to be the most helpful and why?

AEN and ABJ are the most helpful as they keep entrepreneurs connected and well informed on what is going on in the city. There’s never a shortage of business development ideas at their events and connecting with like minds helps keeps you innovative.

Aaron Lyons of McCombs School of Business Talks about Texas Startup Meetup

2010-09-18T17:45:00.004-05:00

Where are you from originally?

I’ve lived all over the country, but have called Austin home for the last 15 years.

What university did you go to?

I received my undergraduate degree from UT in 2005, and am currently in my second year of the full time MBA program at UT focusing on entrepreneurship.

What brought you to Austin?

I grew up in Austin but moved to Dallas to work after school. I moved back to Austin for school and to get back into the entrepreneurship scene.

What is your passion and strength?

Other than family and UT football, my biggest passion is entrepreneurship and taking things from an idea to reality. I think this passion, along with my creativity and the ability to understand and relate to the consumer, are the biggest strengths I bring to the table.

What need does it fulfill?

Anytime you’re starting a company or working for a start-up, you better have passion. Lack of resources forces you to be creative, and if you don’t understand the consumer there’s no way you’ll succeed.

What exactly do you bring to startups?

Because of my diverse experience and background, I have the ability to adapt, learn quickly, and wear multiple hats. In a startup environment you play different roles every day, so it’s important to be able to step outside of your comfort zone and take on whatever challenge may present itself.

What type of startup would benefit from your strengths?

Any company that is truly customer centric. It’s easy to say you’re customer centric, but I mean companies that revolve around and engage the customer in every aspect of the business.

What was the most challenging aspect of starting up a business?

Well since I’m going through the process now, I can tell you that investing the time and resources up front to validate the market opportunity is difficult and exhausting, but it’s something that must be done and is often overlooked.

What advice do you have for entrepreneurs?

Surround yourself with people who are smarter than you, don’t be afraid to share your ideas and goals, spend as much time as you can up front validating your market

What Austin-based resource have you found to be the most helpful and why?

There is no shortage of them, that’s for sure. AEN, ABJ, AAS are all fantastic at reporting the latest happenings in the Austin entrepreneurial community. Paying attention to the calendars and going to networking events like Start Up Meet Up (SUMU) is ultimately the most valuable thing you can do as an entrepreneur in Austin.

Shaun Tinoco a SATOP Technical Consultant Talks about NASA Support Startups

2010-09-16T20:58:00.002-05:00

Where are you from originally?

I grew up in Thousand Oaks in Southern California enjoying the great weather, beaches and mountains. The Dallas Cowboys used to hold their training camp in T.O., so I was always a fan and now I can watch them every weekend here in Texas. It’s still nice to visit my family out there, but it’s just not affordable anymore.

What university did you go to?

After being a Nuclear Plant Watch Officer in the Navy, I went to UC San Diego to get my BS Mechanical Engineering degree. I also attended the IC2 Institute here at UT-Austin in 2002 to obtain my MS in Technology Commercialization. This is the program that has led me down my present day path.

What brought you to Austin?

As I mentioned before, the affordability of California is difficult and the other side of my family, at the time, had family in Georgetown so we headed east. The timing was good and I landed a position at Applied Materials, but had to endure two separate layoffs in 1996 and again in 2001. So let’s say, I’m not looking to work there anymore.

What is your passion and strength?

Being in the Tech Commercialization field I thoroughly enjoy working with entrepreneurs, inventors and small businesses. These people have such great ideas, but unfortunately not always novel. I attempt to find another use or twist for their technology to keep the possibilities alive, but not at a financial or time cost. If it’s not good I recommend that they stop and move onto something else. I have covered many deserving technologies through IC2 and working at NASA Johnson Space Center’s Tech Transfer Office. By seeing so many it becomes easier to find ways to improve and implement them.

What need does it fulfill?

My desire helps to solve the need or “pain” that the people I work with have. Many are obviously engineers with tremendous intellect for solving technical issues, but don’t have the expertise to solve the business aspects to complete the technology’s lifecycle. I have been an engineer involved with design, quality, manufacturing, implementation, customer support and many other tasks, but now I am on the other side addressing market and risk analysis, partnerships, marketing and licensing.
I am able to understand my customers and then provide services to satisfy them.

What exactly do you bring to startups?

Presently I bring opportunity both through my expertise and with the Space Alliance Technology Outreach Program (SATOP).

Recently I was in Corpus Christi and spoke at the Coastal Bend Business Innovation Center promoting SATOP. There are a number of start-ups housed at their incubator and they were so excited learning about the 40 hours of FREE technical support from NASA that they could get by simply signing up. I had a waiting line after the presentation and signed up three companies that afternoon with three more now working a little more diligently to get their technology ready to be reviewed.

By sitting with them I was able to understand what they were working on, but also heard that they needed technical and business support. They weren’t sure what the next step best may be.

What type of startup would benefit from your strengths?

I’ll start with, definitely not a software or an IT company. I’m a hands-on person and have worked from the bottom of ships to the highs of NASA space technologies.
I enjoy learning about new technologies and how best to apply them. They can be in materials, systems, biotech, nanotech, energy, etc. It doesn’t really matter because I absorb it all and bring the best methods to the table.

Being at NASA has me constantly thinking of ways to use space technologies originally designed for the rigors of harsh environments and how to now implement them down here on Earth. Let’s say I want to bring technology to earth.

What was the most challenging aspect of starting up a business?

Getting paid. I have done plenty of pro bono work while starting up, but now it’s paying off. When you’re on your own you have to constantly be looking for the next customers to work with. Through the SATOP program I have been traveling and telling as many organizations and networking groups about it. This has been double good; small entities are getting free assistance to get them over a barrier and I get to network and develop relationships where I can continue with them during commercialization.

I look forward to talking with any of your entrepreneurial network members to determine what services I can provide for them.
What advice do you have for entrepreneurs?

Take advantage of real free opportunities and sign up for the SATOP program at www.spacetechsolutions.com. It’s funded by NASA with no cost to you. For once, a free government program that you can take from.

Network and get known. You never know when the next opportunity will happen.
What Austin-based resource have you found to be the most helpful and why?

My strongest relationship in Austin is with the IC2 Institute. Our alums are in so many different industries that there is always someone that can provide a quick answer.

Of course the Austin Entrepreneur Network and Austin Inventors & Entrepreneurs Association have been helpful in supporting my work with SATOP.
Thanks,
Shaun

Sales 101--The Three Basic Qualifiers

2010-09-15T07:41:00.001-05:00

In sales, there are three basic qualifiers that indicate you’re on the path to a successful sale.

The first is confirming the need for your product or service. They must have a real need in order to go through with purchasing the product.

The second is to ensure the person you are talking to can make the decision to buy. If they can’t make the decision then you have to start over again with someone else.

The third is determining if they have a budget for the product/service you have to offer. If they don’t have the funds available then you’ll be convincing someone to buy your product who has no ability to actually proceed.

Best regards,
Hall T.

Brandon Leblanc of Texas Evening Entrepreneurs Talks About His Group

2010-09-09T07:29:00.002-05:00

Where are you from originally?

I was born in New Orleans, but I spent the first few years of my life in the Middle East(Egypt, UAE). I moved the Dallas area in the 6th grade.

What university did you go to?

I went to the University of Texas, and I am back there now getting my MBA.

What brought you to Austin?

School, and then I just couldn’t find a compelling reason to leave.

What is your passion and strength?

Providing services or products that add value to people’s lives in forum that is an integral part of its community.

What need does it fulfill?

For me it fulfills the need to see the results of my work. To feel like I did something productive and beneficial at the end of the day.

What exactly do you bring to startups?

I’m still working on that. My natural bent is creative solutions to problems or identifying a void in a market. But I am building the skills to implement all the moving parts to an idea.

What type of startup would benefit from your strengths?

Those that need an outside perspective. Someone who can understand what they are trying to do, but may not be married to the way they are going about it.

What was the most challenging aspect of starting up a business?

I wish I had a good answer to this but I don’t.

What advice do you have for entrepreneurs?

Research. Everthing.

What Austin-based resource have you found to be the most helpful and why?

So far grad school, and taking the opportunity to work with startups through educational partnerships.

I am in the part time program, which means I am working full time while I go to school. In lieu of internships we have the opportunity to work on ENHANCE projects. These are actual projects for actual companies that the grad students work on and present findings to the company. Most of these are found through University staff and are from larger companies.

As a member and now President of the Texas Evening Entrepreneurs I have been involved in recruiting projects from small businesses in the Austin area. It allows us to work on something entrepreneurial, and provides small business owners a team of 3-5 intelligent people to work on an issue they are facing for free.

Our official website is being revamped but if there is any interest in this or the other opportunities we have for entrepreneurs through TEE please email me at Brandon.Leblanc@mba12.mccombs.utexas.edu or connect to our facebook group http://www.facebook.com/#!/group.php?gid=79967277818

Content-Based Marketing -- -5 Steps to Creating a Content-Based Marketing Campaign

2010-09-01T07:12:00.001-05:00

To gain attention in today’s business world you need to have something relevant, informative, and interesting to say. The days of banner ads are long gone. Content-based marketing will help you establish your name in the market. Here are the five steps to creating a content-based marketing campaign:

1. Know your audience--know their interests, care-abouts, problems, and issues.
2. Create a Mantra and a Message--boil your core message down to a few words
3. Create a list of topics --these topics address what you found in step 1. Focus on what your audience wants to read or know about.
4. Write about those topics in your blog -- you need to write consistently over time to establish a presence in the market.
5. Reformat the content for other purposes -- take the show on the road with presentations, articles, etc.

As you build out your content, you’ll also find you’re niche and your target audience will become more clearly defined.

Best regards,
Hall T.

Networking--Take Them With You on the Entrepreneurial Journey

2010-08-26T07:03:00.001-05:00

I see many companies go through the fund raising process. Without a doubt the ones with networking skills come out with checks more often than those without networking skills. Most investors are found through the networking process and even more importantly those relationships are nurtured through good networking practices. Entrepreneurs seeking funding need to apply their networking skills to the fund raising process just as they do to other areas of their business.

In fact, even before you go out to raise funding you should begin the networking process. When you identify an investor -- ask to put him on your list to keep him informed of your progress. As you make progress send out a short email (say once a month or quarter) with an update of accomplishments.

I advised a local gaming company to do that and when I received their first status report, I was blown away by the accomplishments they had achieved in the past few months including downloads, subscribers, product developments, awards, and more. Had they not sent me that report, I would never have suspected they had as much traction as they did. That’s the key to networking -- making contact and keeping those contacts with you on the journey.

Best regards,
Hall T.

Guest Blogger-- Kevin Ready 10 Seconds and Your Business is Toast!

2010-08-25T06:33:00.000-05:00

The Survival Tactic Every Company Needs

Would you keep live hand grenades in your desk drawer?

Not unless you are Blackwater International!

That being the case, why do so many companies keep comparably deadly problems in their metaphorical desk drawer for months or even years without dealing with them?
What are we talking about here?

We are talking about Single Points of Failure!

A single key employee that has unique knowledge required to do your business. What will you do if they move on, or (in business parlance) ‘get hit by a bus?’

A single advertising medium can be a big risk too. If you depend on being on the first page of Google for most of your business, you are going to have problems if or when you are no longer at the top of the search results. Do you drive most of your traffic from Google AdWords? What would happen if you could no longer advertise there?

An outsized large client – If your company depends disproportionately on one client like Wal-Mart, then you are clearly at risk.

A Single Sales Channel - I was a partner in a company that depended disproportionately on EBay for moving physical products from its warehouse into consumer's hands. This eventually got 'em in big trouble - as Ebay.com policies frequently changed, and their systems could be unstable.

A Single Financial Pathway- This is a huge one. If you are an online merchant, what will you do if your merchant account gets yanked out from under you? (This happened to us in 1999) Depend on PayPal? What would happen if they suddenly demand over $1 million in warm, fuzzy, escrow money to continue using them? (This happened to us in 2008).

What is the magic solution, the ‘bomb squad’ that will remove that live grenade out of your desk drawer?

One word: Diversification

Diversification is a buzzword in financial markets for a reason. It makes a critical difference when things don't go as planned...and things rarely go as planned. Look through your organization and play a game of "What IF?" and consider what would happen if any of the various cogs and wheels that make your company operate should break, disappear, or stop working. If your investigation hits on any points that make you feel uncomfortable, sick at your stomach or like you want to throw up on your desk -- you've hit gold!

I know what you are saying, I have heard it before. Hell, I have SAID it before: “We know about the dependency but we are too busy working on everything else to deal with it right now.” Having two businesses that took torpedoes to the engine room by the “leave it alone for the time being, too busy to fix it” mindset gives me the right – the privilege – to tell you this:

“You DO have time to fix your dependencies if you decide that it is important to do so.”

Hire more talent and train them to know what your key people know. (This can be TOUGH to do, but should be part of your plan -- even if it is a long term goal).
Build diversification into your marketing plan. Invest in alternative methods of reaching your customers like pay-per-click, traditional advertising (if appropriate), social media, etc. Hope for the best, but plan for the worst. It will mean more business in good times and better survivability in bad times.
Establish multiple payment methods for your transactions. (This too can be hard, but you will never regret finding a viable solution to this single point of failure.)
The Takeaway (and an excellent sound-bite): Fix single points of failure before they bite you in the ass! It is less a matter of “IF”, and really a matter of “WHEN” that bite will come.

Kevin Ready blogs on business and entrepreneurship at http://KevinReady.com
Photo Credit

Seed Stage Funding -- Over 200 Accelerator and Incubators in the US Today

2010-08-18T08:23:00.001-05:00

Angel groups fund deals that have a product in the market or going to market very soon--say the next three months. Often times, start ups approach me seeking seed stage funding. They have an idea or the beginnings of a product but they need funding to finish the prototype. I call this seed stage funding because they are still fleshing out the business model and product. Formal angel groups typically don’t invest in seed stage deals. They want deals that are further along with more of the risk taken off the table.

There are several sources of funding for seed stage deals. If the entrepreneur only needs $50K to $100K this is more easily raised from family and friends. Also, individual angels will sometimes invest in seed stage deals if they like the idea, the entrepreneur, or the target market.

There’s a host of accelerators and incubator programs which offer funding as well as training. Here’s a list of over 100 accelerator programs and a similar list for for business incubators. Given the lower cost of starting a business today (it’s about 1/10 what it was 10 years ago), these accelerator/incubator programs can be quite helpful.

Best regards,
Hall T.

Intellectual Property--The Four Elements of Intellectual Property

2010-08-13T08:16:00.001-05:00

Almost every entrepreneur has heard that it’s important to protect the idea and most have heard about patents. But in addition to patents there are other forms of protection that come under the name of Intellectual Property. They are

Trade Secrets--information about your product/service that is not publicly known
Trade Patents--protection based on legal means through the US patent office
Copyrights--set of exclusive rights granted to the author or creator of an original work
Trademarks-- a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services.

A robust intellectual property strategy for your business includes all of the above. Some recommend you start with trade secrets and only move to patents if necessary. Using copyrights and trademarks you can add additional layers of protection around your business.

For a software business many startups talk about their patents, but most angels know that patent protection is weak at best in the software world since there are many ways to work around a patent if someone wants to duplicate the idea. A better measure is to calculate the cost of duplicating the software including design, coding, build out, and most importantly data set build out.

Best regards,
Hall T.

Startup Weekend will be coming to Austin at CoSpace

2010-08-12T20:04:00.001-05:00

Startup Weekend will be coming to Austin at CoSpace (http://cospaceatx.com/) the weekend of September 10th-12th, 2010.

Startup Weekend (http://www.startupweekend.org) recruits a highly motivated group of developers, business managers, startup enthusiasts, marketing gurus, graphic artists and more to a 54 hour event that builds communities, companies and projects. It is an amazing opportunity to connect with other passionate and skilled individuals, and perhaps even find a co-founder or two to transform your idea into reality.

Featured in Forbes, TechCrunch, NY Times and more, Startup Weekend continues to make the buzz with success in more than 100 cities world-wide. Thanks to Joey Pomerenke (http://www.twitter.com/joeypomerenke) of Startup Weekend for bringing the event to Austin for the first time.

“Startup Weekend is a perfect opportunity for entrepreneurs and the local tech scene to network, but also meet potential co-founders and hopefully leave the weekend with a new startup. It is a must attend event if you want to network, find co-founders or just spend the weekend with some passionate and smart people. –Joey Pomerenke”

If you want to be a part of Startup Weekend Austin you should act fast and buy a ticket because participation is limited to the first 75 and tickets are selling fast! Tickets are $75 and include meals and beverages for the entire weekend.

To register now, click here: http://austin.startupweekend.org/tickets/

When: September 10th-12th, 2010
Where: CoSpace (http://cospaceatx.com/)

For more information visit http://austin.startupweekend.org/

Legal Structure—What does an Angel Investor Look for in a Startup’s Legal Structure?

2010-08-09T08:14:00.001-05:00

Most startups use an LLC structure when they form the business. This is okay for starting a company but when it comes time to raise funding, it needs to be converted to a C-Corp. In general, angel investors don’t like LLCs. Tax laws dictate that owners in an LLC must submit a K-1 tax form each year which is a hassle. The other drawback is that there’s typically not a proper board formed in an LLC so the oversight by investors is not as solid it needs to be from the investor’s point of view. S-Corps limit the number of investors and so doesn’t work well in an angel funded company.

The next question is should it be a Texas-based C-Corp or a Delaware C-Corp? If you raise funding only in Texas then a Texas C-Corp is sufficient for most investors. If you plan to raise funding on the West Coast or East Coast, then a Delaware C-Corp is better. For those who are not familiar with company legal structures, Delaware provides the most advantageous legal environment for companies.

I’m not an attorney and so advise you to seek professional counsel on these matters.

Best regards,
Hall T.

Market Positioning-the Five Ps of Marketing but they Start with Positioning

2010-07-28T08:18:00.001-05:00

Understanding your position in the market goes a long ways to determining the rest of the marketing decisions you must make. The five Ps in marketing are

1. Positioning
2. Product
3. Place
4. Promotion
5. Price

If you’re going to be the low-cost provider in a niche market, then that will dictate the product must provide the basic value and not much more. Promotion will focus on low-cost and good-value functions. The price must be the lowest and the place will be those marketing channels that cost little or nothing. The place or channel to promote/sell the product must be trafficked by bargain hunters.

On the other hand if you’re going to pursue a product differentiation strategy and you want to position your product as a highly differentiated one, then the product must have additional features, the price can be set at the upper end of the range that customers will pay for it and the promotion will focus on the unique features offered. The place or channel must be trafficked by premium buyers.

By determining your position in the market, the other decisions become clearer.

Best regards,
Hall T.

The Business Model – The Nine Models for Making Money

2010-07-26T07:27:00.001-05:00

After you validate the market, the next step in the process of starting a company is to identify the business model. The business model in short answers the question: how do you make money? The following site outlines the nine business models:

Brokerage Model—bringing buyers/sellers together.

Advertising Model—promoting products/services to an audience

Infomediary Model—gathering information about an audience and monetizing it

Merchant Model—selling goods/service either wholesale or retail

Manufacturer (Direct) Model – selling goods/services directly to the user without an intermediary

Affiliate Model – providing purchase opportunities wherever people may be

Community Model – selling ancillary products/services in a community

Subscription Model – charging for ongoing usage of a product/service

Utility Model – charging based on how much of a product/service is used.

In today’s web-based world, it’s common to use two or more of these models in the same business. Before fund raising, it’s important to identify the business model. The business doesn’t have to generate a great deal of revenue but it needs to have a clearly defined business model that is scalable.

Best regards,
Hall T.

Market Validation—the Five Steps to Identifying Market Validation and the One Criteria that Counts

2010-07-21T07:26:00.000-05:00

Angel investors look for market validation in a startup before investing. Fundamentally, it means the entrepreneur has found a market with a need. Here are the five steps to validate a market segment and the one key criteria that provides the acid test indicating you have found one.

1. Identify the target market—write out a specific definition of your target market segment and how it fits in the overall market. Set up a list of objectives you want to learn from the research.

2. Build the Question Set—in a web/email survey ask no more than five questions. In an interview, ten questions form the basis of a good interview. Match each question to your objectives.

3. Test the question Set—send the question set to five friends and ask them to fill it out and then give you feedback on the wording. You can also check their responses to see if it addresses your question. Rollup the responses and see if the results answer your objectives.

4. Conduct the interviews/surveys – in an email survey you will receive most of the responses you’re going to get in about 2 to 3 days. After that the responses drop off dramatically. In the survey you may want to ask if you can contact them for further questioning. This may give you additional contacts to interviews.

5. Analyze the data—review the raw data yourself. It’s surprising how often the same set of data can generate completely different results from different reviewers.

While surveys and interviews can help validate the market, the one criteria that counts more than anything else is will the customer buy the product/service. Generating revenue even at a small scale says a great deal about your market’s need for the product. This is important because when angels review deals, one of the first questions that come up is “Do they have revenue?” If the answer is “yes” then you’re in the “to be considered” category.

Best regards,
Hall T.

Are you an Expert in Your Market?—Three Ways to Know Your Market Better

2010-07-16T07:08:00.000-05:00

One of the key criteria in funding startups is the entrepreneur’s knowledge of the target market and customer. Size of market, growth rates, and segmentation are key components the entrepreneur should know well. In this post we’ll look at three ways to know your market better.

The first place to look is on the web. The Virtualpet website offers a one-stop shop to find out more details about your market segment. You’ll need to first identify which industry(s) you’re in. From that you can find out several facts about your target market size.

The next step is to find out what trade associations and conferences are related to it. You can contact the trade association and find out more about the market. Usually, the director of the association has the key market information you’re seeking and will make that available to you in an email or phone call. Their job is to foster the growth of their industry segment by informing others about it.

The third step is to attend a trade conference. You’ll learn more from those on the exhibit hall floor than you can from articles or other means. It’s worth a day walking the show to get the details.

Finally, avoid market research reports. These reports cost anywhere from $2000 to $25000. Most of these are simply a compilation from a direct mail campaign that is far from comprehensive. While they can be helpful they certainly aren’t worth the money.

Best regards,
Hall T.

Josh Rabinowitz of Articulate Labs talks his Startup

2010-06-25T20:45:00.002-05:00

Josh Rabinowitz of Articulate Labs talks his Startup

Where are you from originally?

I'm originally from the Metro Detroit area – Farmington Hills. Go Hawks.

What university did you go to?

I'm a proud Spartan alum from Michigan State University. Like many other college graduates of my generation, though, I'm not doing anything related to my degree in Political Theory & Constitutional Democracy.

What brought you to Austin?

My partner and co-founder, Herbie Kirn, moved to Austin from the Detroit area when his first start-up needed to have access to silcon design engineers. The choices were Austin and San Jose, and Austin looked more enjoyable. I followed shortly thereafter and began working in the political realm, then later in non-profits.

What is the idea behind your startup?

The driving force behind Articulate Labs is to integrate tried-and-true solutions from a variety of engineering fields into health-focused medical devices and technology to fulfill unmet medical needs. Our first invention to go to market is StimBrace, an adaptive, motion-sensitive muscle stimulator that may reduce pain-induced muscle inhibition in osteoarthritic knees. Here, Herbie has taken the current functional electrical stimulator and added modern digital signal processing ability and adaptive real-time algorithms from engine control to create a self-customizing, effective knee care solution.

What need does it fulfill?

StimBrace handles an unmet need for practical, non-medicinal osteoarthritic knee treatment, a need that is going to grow as the number afflicted increases to approximately 35 million in 2030. This population needs something that can compliment and compensate for current treatment options that have limited duration, poor efficacy, and/or potential drawbacks. For instance, a StimBrace user could cut back on their use of certain anti-inflammatory medications, reducing both financial expense (~$275/yr.) and risk of side effects ranging from dizziness up to gastrointestinal bleeding. The latter point is a huge issue – in 2008, over 100,000 were hospitalized for anti-inflammatory-related internal bleeding, of which over 16,000 died.

We believe StimBrace may also help postpone knee replacements. Over 700,000 knee replacements occur each year, 90% of which were related to osteoarthritis. However, many who develop knee osteoarthritis are too young to have a knee replacement. Someone who has their knee replaced at 55 will likely need another replacement at 70, if not earlier. If you can put off a knee replacement, then you've sidestepped the risks inherent with surgery at an advanced age, saved over $20,000 in the surgery alone, and potentially skipped weeks of rehabilitation and inaction.

What exactly does your product do?

Herbie has been using muscle stimulation for osteoarthritic knee rehabilitation, a direct result of a motorcycle accident six years ago in which he lost his right foot. As it turns out, studies show that quadriceps strengthening is the best prognostic indicator for knee osteoarthritis – the stronger the quadriceps muscles are, the greater the load they can distribute away from the degraded weight-bearing surfaces of the knee. If you can reduce that pressure, you can reduce the painful mechanical grinding within an osteoarthritic knee.

However, current e-stim units are only designed for use in a clinical setting, not for use while ambulant. Using his background experience as a systems design engineer, Herbie created hardware and real-time operating software that can adapt to unique motions and activities of each user. To this, he added a simple single-button user interface which prompts StimBrace to remember painful conditions. Thereafter, when StimBrace's motion sensors detects these conditions, it contracts the patient's musclature to offload the joint. The patient, rather than a pre-programmed gait sequence, determines when StimBrace becomes active and what painful motions should be precluded in the future. Now we want to help the 13.5 million people with knee osteoarthritis in the country to enjoy similar benefits.

Who is it for?

Right now, we see this device benefiting people who need non-medicinal knee osteoarthritis relief and are too young to get a knee replacement. Specifically, we're looking at people aged 55+ who need knee pain relief to stay mentally, physically, and professionally active. We're still evaluating the market to determine whether direct end user sales or physicians' prescriptions would be more attractive.

It is going to take a couple years to handle everything related to FDA approval and insurance reimbursement, so we're also looking at different populations that we could assist in the meantime. One option includes muscle rehabilitation and retraining for high-level athletes. Consider someone like Lamar Odom, the Lakers' forward who suffered a torn meniscus during NBA playoffs. If we could help someone like him with pain relief, to speed rehab by even as much as a week, it could be worth hundreds of thousands to him and to the team. (Not that they needed the help this time around)

What was the most challenging aspect of starting up a business?

It's been difficult to change my work approach from focusing on short-term problems to planning ahead and prioritizing projects over the next 18 months. With every action, I need to ask myself how this leads toward our larger goals or if this just keeps me busy. Staying busy doesn't move you forward by default, and it can actually disguise critical tasks that you are ignoring.

It's also been surprisingly difficult to work from home offices and to turn places where I would relax into places where I put my nose to the grindstone. It's good now, but it took a long time for me to figure out how to carve out time and physical space for both actions.

What is the next step for you and your startup?

Biggest priorities for this summer include completing our medical advisory board and putting in a SBIR grant proposal with the National Institute of Health to support some physician-directed trials.

We also need to track down someone who would be willing to serve as our CEO or BizDev VP. We need someone more experienced with fundraising and marketing. We have an excellent base of market and technical research as well as a relatively developed product, but need to complete a team to really get this company off the ground.

What advice do you have for entrepreneurs?

Every person you meet does something better than you and is worth learning from. Even if you feel that someone's interests or skill-set are unrelated to your work, listen and understand anyways. You never know when what you learn becomes useful in another conversation, or when someone you speak with turns out to be someone who can help you down the line. You can't pull this off, though, if you're not genuine in your interest and if you're not humble enough to acknowledge the lesson's value.

What Austin-based resource have you found to be the most helpful and why?

The friendly and helpful nature of Austinites has been extremely beneficial to us. It's not a place where people look at you and say, “If you're not helping me right now, what good are you?” It's a place where we can ask questions, take people out for coffee, network, and generally gather the knowledge we need because people are forthcoming and willing to take that time. It's also a place where we can offer our help to others in turn with no reservations. . I love this town and hope that spirit never changes.

Richard McKinnon of Less Networks Talks about His Company

2010-06-23T09:00:00.002-05:00

Richard McKinnon of Less Networks Talks about His Company

Where are you from originally?

I was born in the Philippines and grew up in the Bay Area after brief stints in New Jersey and Phoenix.

What university did you go to?

I took a tour of colleges beginning by flunking out of the University of New Mexico because I was having just too much fun. Then, I tried my hand at aviation at Alameda Community College. When I realized that flying an airliner was more boring than glamorous, I dropped out of that too. I was 18 and in search of a life. Next, I remediated my bruised transcripts at Chabot Community College studying Criminal Justice. It seems I had a knack for law enforcement as I finished at the top of my class. I transferred to San Jose State University in Public Administration where I was exposed to Political Science, which I loved. It was there that I was introduced to the high-tech eco-system in Silicon Valley and became involved with an actual garage start-up that would eventually IPO.

What brought you to Austin?

After receiving my MA in Political Science, I came to UT for a PhD in Political Theory. Although I still love political theory, I didn't enjoy the PhD experience in UT's Government Department. After several years of trying to make it work, I eventually dropped out. It seems my academic career went full circle! The best thing about the horrible experience at UT is that it introduced me to a really great town filled with kind and interesting people. So, like so many others, I stayed. It was difficult at first to transition from academia back to the working world, but I eventually found my place in Austin's high-tech scene. It was around this time that that Silicon Valley company IPO'd and I gained the freedom to quit my job and start my own company.

What is the idea behind your startup?

We originally started as a free wi-fi company to help small, independent businesses compete with Tmobile's for-pay wi-fi in Starbucks. Nowadays, we help these businesses make sure that their customers are aware of and engaged with the business' Facebook, Twitter, and email marketing newsletter. It's pretty obvious when you think about it. Why put up a sign in your restaurant that says "Follow us on Facebook and Twitter" when you can automatically take your customers to those pages when they get on the WiFi system. We've evolved to the point that we don't even require WiFi for the solution. If a consumer wants to use their iPhone's 4G connection, then we can fall back to in-store signage that directs them to a web page and a chance to win free food for them and their Facebook friends in exchange for an email address. Just last week, Starbucks announced that their wifi is going to become free, so now our raison d ^ etre is gone. Good thing we've continued to evolve from "free wifi solutions" to "wifi-free solutions"!

What need does it fulfill?

We're focusing primarily on the food industry--cafe's, restaurants, and bars. These folks totally understand the value of word-of-marketing and many have begun playing with Facebook and Twitter. Some have gone so far as to develop a custom iPhone app. The problem is that all of these tools take time and money, yet they have no clear path to making sure that their customers even know that these investments exist!

Recently, I attended a social media summit in Hollywood and they had high-ranking marketing guys from Mazda and Kodak as keynote speakers talking about how they were able to persuade their organizations to invest in social media. They discussed the cultural change that was necessary as well as the resources needed. But you know, at the end of the day, these huge companies are still suffering from the same problem that my much smaller customers have--obscurity. I turned to my table mates at the summit and asked how many of them had ever been to either Kodak's or Mazda's Facebook page? No one. I also asked if they even knew they existed or ever thought to look. Again, no one.. So if a company with a Fortune 500 marketing budget is having trouble making people aware of and engaged with their social media investments, what's a small restaurant or coffee shop supposed to do? That's how Less Networks can help. Put simply, we put your Facebook page in front of your customers' face.

What exactly does your product do?

When we're integrated into a business's WiFi system, we automatically take people using the Internet right to the the business' marketing assets. We can do this because we control the router. Sometimes we take them to their Facebook page where they can click the button to become a Fan. Other times we take them to the business' Twitter profile where they can become a Follower. This is much more effective than putting up a sign that says "Follow us on Facebook" and hoping that the people will see it, remember it later, and then actually do it--assuming that they even know how to find the business on Facebook. In addition to increasing the visibility of social media assets, we also build-in automatic engagement by prompting the consumers to share their location and experience with their Facebook friends. If they do this, then their picture, the business' logo, promotional link, and text is posted on the consumer's wall for 130 Facebook friends to see. That something a simple sign can't do! Since we also have the email addresses of everyone using the WiFi system, we can help integrate the consumers into the business' opt-in email marketing program such as Fishbowl and Constant Contact. Finally, we make sure that the WiFi works so that the business doesn't need to worry about it.

All of this marketing activity depends on a working WiFi system, so reliable WiFi is a bedrock benefit that we provide. I mentioned earlier that we now have a "wifi-free solution" for smart phones. Unfortunately, this does depend on in-store signage, but you can't force someone to use wifi on their iPhone if they don't want to. As a result, we've had to come up with a user experience for 3G/4G consumers. Basically, they see a sign that says something like "Win a free burger for you and your friends at some easy URL.com" Then they go there on their smart phone and it prompts them for their email address and to click to see if they win. They're told instantly whether they're a winner and that the coupon was sent to their email address. The email they receive later also contains a link to share the contest with their Facebook friends. Of course, the hope is that the promotion will spread to the consumer's friends all the while collecting email addresses, raising the business visibility, providing entertainment, and awarding free hamburgers.

Who is it for?

We believe our solution is a good fit for any retail business trying to make their customers aware of their social media, but we're focusing on the Texas food industry until we have the resources to branch out systematically.

What was the most challenging aspect of starting up a business?

Starting up was easy, keeping it going is hard. I've learned that raw intelligence is not enough to succeed and an instinct for making money is crucial. I've noticed that some of my smartest friends have created the most convoluted companies and methods for earning a living. I suspect that's because more straight-forward approaches are boring or below them. It's almost like they're too smart to make money because the businesses are based on technologies they've created to amuse themselves. I've been guilty of that. Working with my restaurant industry customers, I've acquired a great deal of respect for the straight-forward "simple" business models that don't involve much high-tech or brainy convolution---you make a product or provide a service that people want and you sell it to them, then repeat.

I remember the first time I learned that Dairy Queen stores compete on how quickly they can make their first million in annual revenues and then go up the ladder from there. It was humbling. A million bucks is a million bucks and my fancy WiFi company was a long ways from there. Maybe I should be selling Blizzards instead. At the very least, I've finally learned to focus on the money and not the gee-whiz technology and coolness factor. The question I always ask myself now is, "Would a customer want to buy this?" as opposed to "Wouldn't it be cool if we made this?" I hope that this dose of pragmatism doesn't prevent me from inventing the next Twitter some day, because an idea like Twitter definitely wouldn't pass my new litmus test for a business. That's sad, I guess. Maybe after I get out of the trenches, I'll get all starry-eyed again.

What is the next step for you and your startup?

We're in the process beefing up our advisory board with telco and food industry execs to more effectively court multi-unit franchise and national retail customers as well as prepare ourselves for partnering, licensing, and acquisition opportunities with broadband infrastructure providers such as such as phone and cable companies. Already, we've had several exciting conversations along these lines, but who knows, maybe our exit will be to another kind of buyer like a Chinese social networking company or a newspaper company looking for a new way to distribute their content.

What advice do you have for entrepreneurs?

Specifically to Austin high-tech entrepreneurs, get on a plane and fly to SF/Silicon Valley every month. Sure, we live in a great city with a great quality of life, but we're working at a tremendous disadvantage. It's like being a "mid-major" college football team. Even if you've got a great product, you're playing in a weak conference. I hate to say it, but I've learned that it's true. In SF/Silicon Valley, Austin just doesn't even register in the high-tech scene. We're in the backwater out here. The only Austin company they can think of is Dell. Telling them you have a company in Austin does not impress them, it makes them question your credibility. That's pretty infuriating because so many bad business ideas get attention and funding out there simply because they're out there. So, take some of the money you're saving on rent and mortgage, and spend it on a $300 plane trip to the Bay Area every month and start networking over there. Don't even tell them you're from Austin. Say your development team is in Austin, if you have to. Create a virtual office over there and have a California business card. Think of it as a standard business expense for all Austin high-tech companies of any size. Our biggest biz dev lead for 2009 came out of this strategy and it would have never happened otherwise. Then, come home, put on your shorts and sandals, pop open a Shiner, have some chips and salsa and be grateful that you don't have to live in the Bay everyday. This is a great place to live in, but not build a high-tech company. That's not something that many people here want to hear and I'm a bigger booster than most.

There are a lot of things that would have to change like the whole attitude of the entire local investment community from angels to VCs. But even then, we're simply lacking the critical mass of nearly everybody you need to meet and partner with to succeed is over there. It's crucial to be a part of the conversation, so that someone who can make a difference becomes aware of you. It's very similar to LA and actors. Anyway, once you get over the sting of this reality, let me know and I'll help you meet and network with the Austin diaspora that regularly travels to CA. We trade Bay Area tips and advice, talk about Austin, and even share living and working spaces while we're out there. It makes traveling so much easier and more fun when you keep a foot in your home community.

What Austin-based resource have you found to be the most helpful and why?

I benefit greatly from the advice and mentoring from the Austin Technology Incubator as well as the email list from Bootstrap-Austin. But perhaps the most helpful resource is the collective experience and talent of my Austin-based team members. It's tempting to "ask the experts," and it's awfully easy to overlook the in-house expertise you already have. We've built an award-winning venture together and I'm looking forward to finally solving the puzzle for making money with free WiFi.

Best regards,
Hall T.

“Why (Not to) Join and Angel Group?”— a Frank Peters Interview

2010-06-19T16:50:00.000-05:00

Recently, I was invited to participate in an interview by Frank Peters who runs the Frank Peters Show along with Curtis Gunn, Chairman of Tucson's Desert Angels, and Bruce MacCormack, founder of the Bellingham Angels. Since Frank recently keynoted at the Texas Funding Symposium here in Austin, I gladly signed up.

The topic was why one should join an angel group but by the time we finished the interview, Frank retitled the show as to “Why Not to Join an Angel Group.”

The key benefits to join an angel group include:

--efficiency of dealflow,

--diverse options such as sidecar funds, co-investment with other groups, as well as direct investments into startups,

--mentoring and education,

--creating a portfolio of deals more quickly,

--negotiation leverage,

--safety in numbers,

--social benefits.

During the discussion, Bruce MacCormack brought up why one shouldn’t join an angel group which includes:

--if you’re looking for entertainment value only,

--if you think it’s going to be like the “Shark Tank”.

For those considering to join an angel group, I recommend you listen to the podcast as it may help you decide and if you want to know more, please contact me.

Best regards,
Hall T.

Mike Craig of 360Partners Talks about His View of Startups

2010-06-17T15:06:00.002-05:00

Mike Craig of 360Partners Talks about His View of Startups
Where are you from originally?

I’m originally from Denver, Colorado. I love the mountains and have had a hard time adjusting to the 100 steps required to climb “Mt. Bonnell.”

What university did you go to?

My undergraduate degree was from BYU. My senior year, the Princeton Review named our school the top “stone-cold sober school” in the nation. Conversely, that same year the Princeton Review named the University of Texas-Austin the “top party school.” Of course, seeking to balance my education, I had to do my graduate program at Texas.

What brought you to Austin?

I came to Austin for my graduate program. My masters program focused on consumer generated content & Facebook. After school, I was converted. This place is just too great to leave.

What is your passion and strength?

First class online marketing. I like helping businesses create online demand generation programs that are steps ahead of their competition.

What need does it fulfill?

Good question. I enjoy being on the cutting edge of learning and advancement.

What exactly do you bring to startups?

It’s been my opportunity to consult and work with many new startups. I leverage my experience in online marketing to help them determine the most efficient ways to acquire customers online.

What type of startup would benefit from your strengths?

While I enjoy e-commerce models, I’m most suited to help businesses with complex and long sales cycles.

What was the most challenging aspect of starting up a business?

Regarding my area of expertise, I’d suggest that most startups promote and market to their customers before they’ve mapped out their customers and the right sales process for them.

What advice do you have for entrepreneurs?

Surround yourself with the best people possible.

What Austin-based resource have you found to be the most helpful and why?

In my area of expertise, I’ve really enjoyed the Austin based SEO Meetup. They meet on a regular basis to learn and share the latest best practices for online marketing.

Amy Reynolds of Climb On Talks about her Startup

2010-05-24T15:04:00.001-05:00

Amy Reynolds of Climb On Talks about her Startup

Where are you from originally?

Both my sister and I were born in Houston, Texas

What university did you go to?

University of Houston, B.S. in Human Nutrition and Food Science

What brought you to Austin?

After college I joined the Peace Corps and then lived in Europe for a while. I came back to the States to reconnect with family, then moved to Boulder, CO where Climb On! was “born” from the combination of my aromatherapist sister and my need for rapid healing of my rock climbing hands. She then moved (from LA) back to Texas and I followed shortly thereafter. Always knowing that Climb On! could be a viable business as well as the best skin care product on the market. So things just happened serendipitiously so to speak, and finally we were able to get paid for fulltime work by Climb On! in the last couple of years!

What is the idea behind your startup?

Born from an organic need to heal my rock climbing skin! My boyfriend and I asked my sister jokingly one day if she could make something for us! And she did. The rest is history!

What need does it fulfill? Climb On!

fulfills a need for people who desire to use only clean skin care products as well as providing a super concentrated, fast acting intensive skin repair. Most skin care is synthetic based—rendering it toxic to the skin and body. Since there is virtually no regulation of cosmetic ingredients, many ingredients – even in baby products—are toxic and proven harmful. Because every ingredient is “active” our product provides results much more quickly and effectively.

What exactly does your product do?

Climb On! moisturizes, repairs and protects skin, esp. skin that is exposed to extreme conditions as well as chronic skin issues such as eczema and psoriasis. One woman even used it to heal her turtle’s shell rot! Climb On! also helps the skin organ be healthier since the skin isn’t having to detox synthetic chemicals.

Who is it for?

Anyone with skin! Most of our customers, though, have some kind of compromised skin issue—like rock climbers, gardeners, construction workers, etc.

What was the most challenging aspect of starting up a business?

Bootstrapping with hardly any money. Working other jobs to make ends meet until revenue started coming in. That’s just stressful when there is no other household income.

What is the next step for you and your startup?

More expansion and more fun! Our emphasis is on building our direct to consumer sales and fleshing out our overseas distribution.

What advice do you have for entrepreneurs?

Check your ego at the door! Be in service to your business and your community of customers. Personal connection and heartfelt passion go a long way! If people like you they will buy your product.

No matter what business you’re in, you’re still dealing with people and we all have the same needs for connection. Even techies!

Also, get connected with people who have already successfully done what you want to do and learn from them! It’s a no brainer!

What Austin-based resource have you found to be the most helpful and why?

Well, we consider Austin itself a resource because of the deep wealth of creative energy that pulses in this area. And the Austin Entrepreneur Network’s Start up Business Class was very helpful. Connecting with excellent professionals in all aspects of a start up is priceless.

Interview Questions for Entrepreneurs Amy Reynolds, VP and co-owner of Climb On! Products, Inc. (Polly Reynolds is the President and co-owner and creator of the recipes)

Vamsi Mohun of Entreave Talks about his Startup

2010-05-24T15:02:00.001-05:00

Vamsi Mohun of Entreave Talks about his Startup

Where are you from originally?

I am originally from Hyderabad which is in South India.

What university did you go to?

I got my MBA from the McCombs School of Business at The University of Texas at Austin. Previously, I got my MS in Electrical Engineering from Michigan Technological University and BS also in Electrical Engineering from Andhra University.

What brought you to Austin?

In the late 90’s, I was working at Sabre Travel Solutions in Dallas when I ran into folks from Momentum Software, a consulting company that was helping a lot of the dotcom startups in Austin. I figured that I wanted to be in the midst of the dotcom madness and hence joined Momentum when they made me an offer.

What is the idea behind your startup?

The idea behind Entreave is to use Social Network Proximity for matchmaking in the marketplace for professionals. Our platform bridges the gap between the consulting services ecosystem on one hand and the social network ecosystem on the other. Workforce and demographic trends suggest that professionals will be increasingly mobile, collaborative and independent (of employers) over the next decade. Entreave’s goal is to facilitate this changing workforce. Likewise, businesses have in the past, and will continue in the future, to have lean workforces and will engage outside experts for burst engagements.

What need does it fulfill?

From time to time, both businesses and individuals need temporary help from professionals. For instance, a business might need a marketing consultant or a SEO expert for a few days. Likewise, an individual might need a CPA or for a legal expert for a few hours. Our system reduces the costs of finding the “right” expert and it also eases the process of engaging with the expert.

What exactly does your product do?

Entreave offers an online marketplace for professional services. Users, businesses or individuals, can post their needs on Entreave as gigs. Professionals can sign up as experts by listing their skills and availability. Gig posters and experts can connect with each other by doing a manual lookup or alternately the platform will pro-actively do the matchmaking. Social proximity of experts to the gig posters is used as the basis for matchmaking, apart from other criteria. Once a Gig poster and an expert agree to engage, the system guides them throughout the engagement through a workflow that comprises of features such as online contracts, escrow payments and online collaboration.

Who is it for?

Our end users are businesses and individuals. We will reach our end users through existing web-based social networks and communities – our platform will enable these entities.

What was the most challenging aspect of starting up a business?

Finding customers that are actually willing to sign up is the most challenging aspect. There is a huge amount of inertia for customers to take the leap from simply talking about a problem to actually trusting a startup to help them find a solution. Assembling the team is almost as challenging.

What is the next step for you and your startup?

Our goal is to bring in about five customers within the next 6 weeks and use this as leverage to bring in the first round of funding.

What advice do you have for entrepreneurs?

Cash Flow is the most important part of the business. Cash has to be generated either from paying customers or from investors. My advice to entrepreneurs is to focus on the fastest path to get to cash on a sustainable basis. You don’t have a business unless you can a) convince customers to pay for your product or b) convince investors that there will be enough paying customers within a certain period of time and these revenues will be enough to justify an investment.

What Austin-based resource have you found to be the most helpful and why?

Generally, folks in the Austin community are willing to talk to you about your venture. If you reach out to them and tell them that their feedback might be valuable to your venture, they will give you an hour of their time. Also, they are willing to give you further references. The Austin community has the right mindset to enable entrepreneurs by spending time with them and by pushing them to be successful and this is very helpful. I recommend entrepreneurs reach out to and participate in organizations such as Austin Entrepreneur Network (AEN), The Indus Entrepreneur (TiE), Bootstrap Austin and various relevant forums at The University of Texas at Austin.

Robert Larkin of the Daily Juice Talks about His Startup

2010-05-24T14:59:00.003-05:00

Robert Larkin of the Daily Juice Talks about His Startup

Where are you from originally?

I was raised between Steamboat , Colorado and Newport, Rhode Island. I consider both the ocean and mountains home. In Steamboat I was training to be an Olympic ski racer before I decided to spend my last two years of high school back on the east coast to receive a world-class education from St. George’s School.

What university did you go to?

I attended the University of Colorado at Boulder. I chose CU Boulder both for it’s engineering program and the accessibility to the outdoors.

What brought you to Austin?

I came to Austin in 2006 for the Acton MBA in Entrepreneurship. I had no plans to stay longer than the 10 months it took to complete the program, however, the people I met over those 10 months are the reason I am still here. Austin is a city with natural beauty, full of driven entrepreneurs, and is a melting pot of culture, business, community, and ideology.

What is the idea behind your startup?

I have a passion for endurance sports. I would have never guessed that Austin, Texas, is where I would be introduced to the benefits of practicing Yoga and eating vegan and raw foods. I began to experience new levels of physical and mental performance resulting from both my Ashtanga Yoga practice and vegan diet. I realized that something as simple as eating a primarily plant based diet could increase your energy, physical appearance, and overall wellbeing. Most of what I had learned was from conversations with and books that were recommended to me from the folks at Daily Juice.

In 2008 a long time friend of mine who introduced me to Acton, raw foods, and Austin proposed that we launch a company focused on local food infrastructure. As we dug into our analysis of what opportunities existed we decided we would start in the middle of the system, between the growers and the customers. At this time we were approached by Daily Juice to help in the expansion of the company, a few months later we had become partners with the founders of Daily Juice bringing capital to open a new location, build a commercial kitchen, and begin developing a product line that would provide people with nutritionally powerful foods that are delicious.

This product line is now the Rhythm Superfoods brand.
The basic idea behind Rhythm Superfoods is that people do not have to sacrifice taste for nutrition. We make foods that are of both the highest nutritional value and have exceptional taste.

What need does it fulfill?

People love to eat. It is a central part of everyone’s social life. We provide a rare opportunity to enjoy great tasting food that you don’t have to feel guilty about eating.

What exactly does your product do?

Our product delivers phenomenal taste and nutrition that is un-matched by any other snack food.

Who is it for?

Our products are for any person who enjoys great tasting snacks that are full of nutrients.

What was the most challenging aspect of starting up a business?

Prioritization. There are many things that must be attended to everyday, they are all urgent, they are all important, and just when you think you have it all under control you something else gets thrown at you.

What is the next step for you and your startup?

We are raising money to grow into serving a national customer base. To do this we will need capital to increase the throughput of both our production and sales operations.

What advice do you have for entrepreneurs?

Get the right people on your team. We have been fortunate to have attracted the best of the best to join with us to execute on the opportunity we identified. Without the help of some seasoned people who share our vision we would be on a much different and definitely more difficult path.

What Austin-based resource have you found to be the most helpful and why?

I am lucky to have the Acton alumni, faculty and staff as friends and resources. Outside of Acton the resource I have found most useful has been the RISE events. At RISE I have been able to connect with many other entrepreneurs and learn about what other people have learned along their entrepreneurial journey.

Nathan Smith of ETA Computing Talks about His Startup

2010-05-23T13:10:00.002-05:00

Nathan Smith of ETA Computing Talks about His Startup

Where are you from originally?

I am originally from Minneapolis, Minnesota and moved to Austin back in 2005.

What university did you go to?

I have a Computer Science degree from Brown College in Mendota Heights, MN and a Business Management degree from Northwestern College in Roseville, MN.

What brought you to Austin?

I moved south to get away from the cold temperatures in MN.

What is the idea behind your startup?

We want to help small businesses get more from their IT investment. By providing our services and experience with flat-rate a pricing model we are positioned to help these businesses really do more with less.

What need does it fulfill?

Many small companies today need help with creating a unified branding image, operational costs, and they need assistance with reducing capital costs around purchasing equipment and software. We want to help these companies by being their virtual Chief Technology Officer for their business.

What exactly does your product do?

We manage every aspect of a company’s Technology infrastructure from their phone system, web domain image, and IT support all the way through to auditing their phone and ISP bills to make sure they are getting the best services for their dollar.

Who is it for?

This service is really for any company that wants to cut down on the expense with supporting their network and save money with their operational costs. Currently most of our customers are in the 10- 150 seat range and this is where we really get to shine with helping to reduce costs. We also have a few customers that are 1-man shops with their website and email imaging to leverage a unified branding process they use to grow their business.

What was the most challenging aspect of starting up a business?

For us the most challenging part of starting the company has really been on the Sales and Marketing side of things. Both owners here have an extensive IT support background so we have gone through many of the tougher steps in getting the business going when it comes to these areas. With all that we have gone through we believe we have identified a few different avenues that businesses can use to grow their business without breaking the bank and wasting a lot of time and money.

What is the next step for you and your startup?

Our next phase for us is actually in hiring qualified Sales Personnel and continuing to work on growing the business. We have spent the time to get all our processes in place to make sure we can take care of our customers and now are looking to grow and gain market share.

What advice do you have for entrepreneurs?

New entrepreneurs need to make sure they really know what it is you want to do and make sure you research how best to reach people when starting your business. The better an idea you have in what you want to do and how to reach people will be a great asset in creating the marketing pieces you need to actually get people attention and interest in what you do.

What Austin-based resource have you found to be the most helpful and why?

I would have to say that the best Austin based resources we have found are the Central Texas Angel Network and local networking groups. The reason I say Central Texas Angel Network is because Hall really knows quality people that can help you in the areas you need help with, and the local networking groups such as Your Local City and NetworkingAustin are great for meeting potential clients and building relationships that really helps to grow your business through referrals.

Scott Collins Talks about His Startup

2010-05-13T06:36:00.000-05:00

Scott Collins Talks about His Startup

Where are you from originally?

I was born and raised in Houston, TX.

What university did you go to?

I received my undergraduate degree from the University of Texas at Austin. Later, I earned my masters and PhD in Biomedical Engineering at UT-Austin through labs at the Texas Medical Center in Houston.

What brought you to Austin?

School

What is the idea behind your startup?

When traveling to Haiti in 2003, I noticed that donated medical equipment was poorly utilized. To one degree or another, this was true for all of the hospitals I visited. This remained the case on a later visit and continues to this day. These problems can be largely solved by coordinating and intelligently deploying medical equipment and volunteers based on the unique realities encountered in developing countries. Doing this, however, is no small task and beyond the capabilities of most groups and teams who are currently involved. We will bring this knowledge to all groups and foster a collaborative effort between the many groups based on their overlapping visions.

What need does it fulfill?

Hundreds if not thousands of groups, individuals, and companies volunteer their time, efforts, and capital in order to provide medical care to all reaches of the world. Helping locally is hard enough for many, but helping internationally brings up a set of barriers most of us are unaccustomed to. Great efforts and resources are donated with the best of intentions, but results are often disappointing. This is unnecessary and our system helps bridge the gap in expertise and logistics necessary to value people’s time and commitment, resulting in enhanced efforts and donations. Our goal is to help those who are able to save more lives and provide better medical care.

What exactly does your product do?

Our product can be described within two primary contexts. In the first, it is a souped-up Craig’s List like system designed around the medical equipment donations. Not only does it facilitate the initial match between those with equipment and those who need it, but it also handles other tasks at the recepients’ end that could otherwise limit its usefulness. The second context is a community-based portal centered around medical care in the poorer areas of the world. Thousands of individuals and teams provide service—often on their own dime. Many if not most deployments don’t utilize their time and efforts effectively due to unknown yet largely preventable reasons. This portal will help medical, engineering, and other teams avoid these problems and help assure donations of time and capital are used effectually. It will help in planning deployments as well as track long-term results of the same.

Who is it for?

The primary benefactors are the patients in underserved areas. They will benefit from increased healthcare by those using the system including: hospitals, clinics, medical groups, volunteer groups, donors, engineers, the international press, and other entities. The system helps assure everyone’s time and capital are utilized more effectively.

What was the most challenging aspect of starting up a business?

Starting a business in and by itself is easy. The challenge often centers around finding the right team based on the company’s mission/vision, verifying the initial market, assuring sustainability of the company, and funding initial deployment.
What is the next step for you and your startup? Monetization of the product. Social capital is exchanged throughout the system. Creating revenue from this worldwide venture is less understood, but should be solvable. Sustainability for this project is important.

What advice do you have for entrepreneurs?

Embark on ventures you have a true passion for. Find people who compliment your abilities and share the vision. Know what success is then just do it.

What Austin-based resource have you found to be the most helpful and why?

I started my first company quite some time ago. At that time, the entrepreneurial community was not easy to tap into. This has definitely changed. Resources I have found most useful include the community of entrepreneurs that exist here in Central Texas. Since beginning this venture early this year I have met several collaborators through RISE Austin, the Tech Ranch, various technology and entrepreneur meet-up groups such as Austin Tech Happy Hour, and various tweetups, the Austin Entrepreneur Network, etc.

Lemonade Day -- Entrepreneurship for All

2010-05-03T10:48:00.002-05:00

Lemonade Day comes every year in May and did so this past weekend on May 2. For those who don't know, Lemonade Day" happens across the country with kids setting up lemonade stands to sell lemonade and learn entrepreneurship in the process. Over 10,000 stands were put up in Austin last weekend, with sponsorship coming from big names such as HEB, Trilogy and Imperial Sugar.

Essentially, the young entrepreneur must focus on creating the product (lemonade), marketing it, and keeping track of the costs and profits. If you missed it, your kids can get ready for next year or even run their own lemonade day as the summer is quickly approaching and you'll have quite a market for your product. Check out this video to learn more.

Status on the Proposed Dodd Legislation

2010-04-25T15:36:00.002-05:00

Last week at the Texas Funding Symposium on April 21st we had a briefing from DLA Piper on the status of the Chris Dodd bill. For those who haven't heard, the Dodd bill proposes raising the requirements for who is considered an accredited investor and requires startups seeking funding to apply with the SEC first. These two among other provisions would make it much more difficult to fund startups for both the investor and the startup.

The primary group advocating on behalf of the angel investor is the Angel Capital Association. Through coordinated letter writing campaigns and targeted communications to Senators, the ACA leads the effort in getting the word on this proposed bill and having it modified.

To this end, some progress has been made. Liddy Carter of the ACA has made contact through the Connecticut Technology Council and has received some indication that the language in the bill will be modified. In this post it appears the Dodd team is listening to the angels and may side with them in the end.

Best regards,
Hall T.

Texas Funding Symposium -- a Great Lineup of Startups

2010-04-15T06:32:00.002-05:00

The Texas Funding Symposium is just around the corner -- April 21st. This year we're introducing the Startup Pavillon in which startups seeking funding will have a place to demo their products and meet with investors. The list of those who are exhibiting are sometimes familiar and often times new. Here's a list:

Waldo Networks
Stella Arrays
MedStar
Onit Technology
Entreave
MyTableNow
Nanolite Systems
Boomerang
Webizcard
Eureka Environmental
Innovate Wireless Health
Angel Tree consulting
Midnight Studios
Green Star Lighting

Several in this group will also have the opportunity to give their Fastpitch.

Also, we added a special briefing by DLA Piper on the the proposed Dodd legislation that, if passed, would dramatically change the landscape for angel investing and startup funding. Under the proposed legislation, the definition of an 'accredited investor' would be raised eliminating about two-thirds of existing investors.

Please join us to see these new startups and learn more about the investing scene here in Austin.

Best regards,
Hall T.

Chris Dodd Bill Proposes Major Change to Angel Investing

2010-04-06T20:50:00.000-05:00

Entrepreneurs come to me on a daily basis seeking funding for their startup and Angel investing plays a critical role for many of these startup companies. The requirements for Angel investing hasn’t changed much since the late 1960s, but the legislation that Chris Dodd has proposed in the US Senate goes way too far.

The driving force behind the proposed changes is the fallout from the Madoff debacle, but the proposed change would greatly impact Angel Investing by changing the requirements of who can invest in startups and how startups can go about raising funding. Based on a survey by Rob Wiltbank of the Venture Research Center of New Hampshire, the ramifications of such legislation could reduce the number of Angel investors nationwide by two-thirds.

To see the proposed bill, click here.

To say that this bill is scary is an understatement. It recommends increasing the thresholds for accredited investors and also puts in a complex process for companies seeking funding which would also make it difficult to syndicate deals across state lines. Other complications include 120 day waiting periods for review of filings.

During the upcoming Texas Funding Symposium (www.fundingsymposium.com) in Austin on April 21st, we’re going to hold a special breakout session for angel investors and other interested parties to learn more about the proposed changes and what can be done to have the voice of the investor heard. Please join us to learn more about it.

Best regards,
Hall T.

Elizabeth Quintanilla Talks about Her Startup

2010-04-05T17:36:00.002-05:00

Elizabeth Quintanilla Talks about Her Startup

Where are you from originally?

I was born in Montreal, Canada but grew up in Corpus Christi, TX

What university did you go to?

All 4 of my degrees are from UT-Austin

What brought you to Austin?

Aerospace Engineering at UT-Austin

What is the idea behind your startup?

Not all businesses have a dedicated marketing resource; I found that a lot of business owners need sound advice on their marketing strategy both online and offline.

What need does it fulfill?

As a business detective, I help understand why those businesses are not reaching their target customers and design marketing strategies to reach them. In addition, I also roll up my sleaves and get my hands dirty with tactical implementation. These business owners also appreciate my operations and technology background which compliments my MBA education.

What exactly does your product do?

I am an on call resource for businesses to identify their marketing and product management needs.

Who is it for?

I offer services for other businesses and focus on tech startups or primary vendors for government contracts

What was the most challenging aspect of starting up a business?

Defining what is my service offering – I am not a “social media expert” but rather a sound business consultant who loves marketing and product management. I specialize in understanding what and why customers are saying about products and businesses.

What is the next step for you and your startup?

Growth and scale – I would enjoy having more business detectives as part of my team.

What advice do you have for entrepreneurs?

If you truly want to be an entrepreneur, stick with it. This is not an easy path but highly rewarding. Also, I would recommend surrounding yourself with some solid mentors to bounce ideas from and help you succeed.

What Austin-based resource have you found to be the most helpful and why?

Actually, there have been 2 important resources for me: Greater Austin Hispanic Chamber of Commerce (GAHCC) and the ProductCamp line of events. GAHCC is a solid organization that truly believes in their mission and helps its members. By becoming their social media ambassador, I was given an opportunity to take a leadership role in their organization and get a better understanding of Austin Business Culture as a whole and not just the high tech scene. ProductCamp is a unique organization seeking to improve the skill sets of Product Marketing and Management by creating a series of events where we can all learn from each other. This is important because we don’t get a lot of opportunities to continue to grow and develop our skill sets.

Andrew Bushnell of Cospace Talks about Coworking in Austin

2010-03-31T06:39:00.002-05:00

Andrew Bushnell of Cospace Talks about Coworking in Austin

Where are you from originally?

I grew up in Salt Lake City, Utah

What university did you go to?

I attended the University of Utah. I earned a B.S. In Finance in 2003

What brought you to Austin?

A combination of factors. I like that Austin is a small city. The talent that is in the city is also amazing, both in the tech and business areas. I love the entrepreneurial spirit that everyone has here. The lack of snow in the winter is also a huge plus for me, coming from Salt Lake.

What is the idea behind your startup?

Our idea was to take coworking, and expand on the idea. Coworking has become an acceptable form of working in the last couple of years, and we saw the benefits of it immediately. What we aim to do is make Cospace the intersection of people, space and resources. A person can come here and have the space they need to work effectively. That person will also have access to the resources he or she needs to grow as a professional, either through training classes, workshops, or, the most important part, the people around them.

What need does it fulfill?

We fill many needs. The most obvious is the need for space to work. We have a place that you can come to and know you will be able to get work done, and have the standard office resources you need to get that work done. If you need to meet with a client that day, we have space for that. You don't have to worry about who is around you, listening to your conversation, because we have private meeting rooms.

We also fill the need for interaction. Too many times I've heard people say they thought working at home or on their own would be wonderful. They can set their own hours, not have to commute, etc. But what a lot of people find out is they miss their coworkers. Just basic interactions with other people can make a huge difference in your day. So that is definitely provided.

We also aim to create an environment where the people working around you are always improving, always striving to be better. That can have a great effect on the other people in the space. We are lucky to have a few people like that as members of Cospace right now. You can just feel that they have a certain 'buzz' around them, and they do push, in positive ways. Usually it's because they have experience in an area, and want to help you to make the right decisions.
What exactly does your product do?

Cospace provides the physical presence that combines people, space and resources.

Who is it for?

Cospace can work for anyone who needs a space to do their business. Cospace works best for people who are looking to further their business or entrepreneurial skills. The intangible benefits a person can get from Cospace are much, much greater than what the actual physical space you get from being a member.
What was the most challenging aspect of starting up a business?

Wow. How do I pick the most challenging aspect? I would say it is believing in your idea. Believing that your idea will work to the point that you are willing to work all day, everyday on it, without compensation. Channelling all of that work is equally as challenging. Since you are starting something new, you can do whatever you want. That makes it very difficult to know which direction to focus all of your efforts.

What is the next step for you and your startup?

Our next step is to start rolling out the resources phase of Cospace. The space is open now, and people are starting to join. We have room for more people though.

We are currently collecting data from the community about the areas of business where they have questions. We want to make sure we are giving them the advice that they really want. We are also in the process of meeting with subject matter experts in the community. These will be the experts we turn to in these fields to provide the resources for our community.
What advice do you have for entrepreneurs?

Don't be afraid to try new things. If you really want to be an entrepreneur, nearly everything you do will be new to you. So don't worry about being bad at something. It's okay to make mistakes. You learn so much more from mistakes anyway.

What Austin-based resource have you found to be the most helpful and why?

The people of Austin. In the six or so months that I have been working on Cospace, I have met so many smart, helpful people. Every time I have a question about something, I seem to find a person who knows the answer, or who is willing to point me in the right direction.

Capital Factory Seeking New Applications

2010-03-22T10:59:00.000-05:00

Entrepreneurs continually come to me seeking seed stage funding but most angel and venture capital groups require at least a prototype and some revenue just to prove out the business model. For those seeking seed stage funding there’s a new category of incubator/accelerator/startup assistance. Here in Austin, the Capital Factory fills that area with their four month long program in which they take in 5 startups and mentor them into fundable deals.

I recently asked Josh Baer what will be new this year. He indicated that they have three new mentors to add to the roster. The new mentors include the following:

Rony Kahan co-founded Indeed.com in 2004 and has grown it into the leading global search engine for jobs with over 25 million monthly unique visitors. Prior to Indeed, Rony co-founded jobsinthemoney.com, the leading job site for financial professionals in 1998 and sold it to Financial News in 2003.

Samy Aboel-Nil was most recently the technical co-founder of MessageOne, responsible for product definition, product strategy, business development for key channel partners, and sales engineering. MessageOne managed well over a million corporate mailboxes before being acquired by Dell Computer in 2008.

Kenny Van Zant is a technology entrepreneur, executive, advisor and board member, with over 20 years of experience with both private and public companies in the Austin area. Mr. Van Zant has been the Senior Vice President and Chief Product Strategist for SolarWinds (NYSE: SWI) since 2006, where he is responsible for the company’s product, market and technology strategy.

If you are seeking seed funding I recommend you investigate the Capital Factory. The Capital Factory is looking for passionate technology entrepreneurs that we can accelerate towards success. You can just have an idea on a napkin or you could have a working product with your first paying customers. Our mentors have started from scratch and found their market fit and they have also scaled their businesses and even taken a few public. Only a few days left to apply. You can apply here.

Bob Barker Talks about His CEO Coaching Business

2010-03-15T19:49:00.003-05:00

Bob Barker Talks about His CEO Coaching Business

Where are you from originally?

Born and raised in Corpus Christi (graduated from Calallen High School)

What university did you go to?
BA with Honors, UT Austin; attended one year of Ph.D. program at Princeton before leaving to pursue a career in software

What brought you to Austin?

The first time was attending UT Austin and graduating BA with Honors (psychology major, math minor); moved to New Jersey and attended grad school at Princeton, then moved back to Austin; recruited to Richardson in 1987; recruited to Michigan in 2003; recruited to Austin in 2006

What is your passion and strength?

Developing a clear vision for growth and supporting it with productive partnerships

What need does it fulfill?

Working with the CEO to clearly define an exit strategy, together we craft a vision for growth aligned with the requirements of potential acquirers. Working with the management team, we produce and implement action plans for partnerships, acquisitions, and strategic products that accelerate the company's move toward an exit.

What exactly do you bring to startups?

Senior management experience at several startups and several major companies in product strategy, strategic partnering, marketing, and business development

What type of startup would benefit from your strengths?

High tech, searching for the right growth strategy, needing to partner with high profile companies for marketing clout, access to customer base, bigger combined solution, etc.

What was the most challenging aspect of starting up a business?

The toughest part for most tech companies is finding a repeatable sales model, i.e. defining a narrative that resonates with and produces value for a clearly identifiable group of prospective customers. Once that’s done, you can focus all your energies there.

What advice do you have for entrepreneurs?

Focus on the business value you provide rather than the technology. Of course, starting off as a “tech head” I definitely place a high value on great technology, but you dramatically increase your chances of future misery and low ROI by pursing an “if I build it, they will come” strategy. Find the pain and gain a deep understanding of it as early as possible, then let addressing it drive product and services development.

What Austin-based resource have you found to be the most helpful and why?

Austin is blessed with a multitude of great resources for entrepreneurs and some really knowledgeable people who want to help you get started. Choosing the right ones to work with is highly dependent on the stage and type of your venture.
Just to mention a few: Austin Technology Council, ATI, Austin Entrepreneurs Network (of course!), TechBA, TechRanch, Texas Venture Labs, Vistage… the list is long!

Mark Ligeza of Secret Weapon Systems Talks about His Startup

2010-03-12T06:52:00.002-06:00

Mark Ligeza of Secret Weapon Systems Talks about His Startup

Where are you from originally?

I was born in Austin, but spent my formative years in suburban Houston.

What university did you go to?

University of Texas

What brought you to Austin?

School and family

What is the idea behind your startup?

The general impetus for forming our business was to create new enabling products that would dramatically reduce the cost of PC ownership for organizations. Our first offering - the ImageMagic product line - dramatically simplifies the creation, management, and deployment of Windows Standard Operating Environments (SOE).

What need does it fulfill?

In 2008, Forrester Research published a study that identified the significant cost organizations incur in managing and maintaining SOE images. Our vision is to enable organizations to reduce those costs.

What exactly does your product do?

ImageMagic provides a single interface where a deployment of any Windows operating system is completely designed, created, and maintained. Quite simply, ImageMagic dramatically reduces the time and cost associated with deploying PCs across an organization.

Who is it for?

ImageMagic comes in two varieties. ImageMagic Pro is a tool for Systems Administrators, Systems Integrators and IT consultants. ImageMagic Enterprise is a system for businesses with 1,000 or more PCs.

What was the most challenging aspect of starting up a business?

In addition to the associated technical challenge to develop high quality products, establishing credibility and market differentiation is key.

What is the next step for you and your startup?

Expanding our customer base.

What advice do you have for entrepreneurs?

Take any estimate you have going in and double it.

What Austin-based resource have you found to be the most helpful and why?

We recently engaged PetersGroup Public Relations and they’ve been instrumental in helping us differentiate and develop a go-to-market strategy.

Best regards,
Hall T.

Creg Parks Talks about His Startup

2010-02-19T09:39:00.001-06:00

Creg Parks Talks about His Startup

Where are you from originally?

Dallas, Texas

What university did you go to?

UT-Arlington

What brought you to Austin?

Business, the culture, and geography

What is the idea behind your startup?

AMH was created in June 2008 and is a healthcare management and consulting company that specializes in the planning, development, implementation, and operations of various healthcare delivery systems, managed care networks and our new Healthcare Information Solutions. Our company goal is to improve the healthcare delivery system.

What need does it fulfill?

Over the past two decades we have developed and negotiated provider fee schedules for payers and providers. This process is very time consuming and it is difficult to conduct this analysis. Our market research indicates that 9 out of 10 healthcare providers do not perform any type of predictive modeling or fee schedule analysis because they do not have the time, expertise, or tools to do so. Furthermore, 95% of these target customers have indicated they are interested once we introduce the process and the PMT solution to them. The PMT process takes a few seconds compared to the manual process, which can be about 2-20 hours. One of many success stories from our current PMT customers provided the information for the client that the new rates proposed by a Payer would have decreased their annual revenues by $250,000 annually, therefore the customer did not agree to the proposed terms. Without the PMT analysis, the client would not have known this financial impact to their business.

What exactly does your product do?

We offer a new financial analysis software and service called the Predictive Modeling Tool or “PMT”. PMT analyzes historical medical claims data based on current or past payment rates providing our clients the total projected financial impact of the new rates. Our target customers are healthcare providers, payers, health systems, self-insured employers, and governmental entities. The PMT solutions change the current complex healthcare payment system and fee schedule analysis process into an affordable, easy to use solution.

Who is it for?

Our target market: healthcare providers, payers, employers, governmental entities, and future products for the healthcare patient community.

What was the most challenging aspect of starting up a business?

Market penetration, company and product branding and positioning.

What is the next step for you and your startup?

Go to market, secure funding, product development of additional modules.

What advice do you have for entrepreneurs?

Prepare, be persistent, never give up, network, secure appropriate funding, create a smart advisory board and experience strategic alliances.

What Austin-based resource have you found to be the most helpful and why?

Austin Entrepreneur Network-great capital resources, networking and business education. Also the Small Business Development Center is a good resource of information

Joe Zente of TAB Austin Talks about His Group

2010-02-06T12:25:00.002-06:00

Joe Zente of TAB Austin Talks about His Group

Where are you from originally?

I grew up in New Jersey, a short walk to the train station -- just 20 minutes from NYC. I lived in Baton Rouge for 4 years before moving to Austin in 1986.

What university did you go to?

I have a BS in Chemical Engineering from New Jersey Institute of Technology. I played two varsity sports at NJIT—baseball and basketball.

What brought you to Austin?

I traveled extensively with my first job out of college. I decided to move to Austin because I thought it would be a great place to raise my family. It had everything I was looking for—a vibrant business climate, fantastic weather, friendly people, awesome culture, sports, music, etc, etc.

What is your passion and strength?

Helping responsible people achieve their dreams. My company, Z3 Performance Development, Inc., has a simple principle that embodies our thinking—Freedom Through Results, Results Through Responsibility©

What need does it fulfill?

I run two companies. Z3 Performance Development and The Alternative Board (aka: TAB-Austin)

Z3 is a 12 year old Sales Development firm that helps CEOs of private companies build World Class Sales Organizations.

The Alternative Board® is a 20 year old international company that helps business owners Change Perspective, Improve Business and Enjoy Life. TAB’s proprietary process includes CEO peer advisory boards, leadership coaching, strategic planning, operational & financial assessment tools, business education and much more.
Our strength is in our amazing people and clients. Z3 and TAB have worked with many of the most successful private businesses in the Austin-metro area. We have assisted many CEOs through their entire business evolution—from concept to plan to growth to maturity to exit. How rewarding is that? I have the best job in the world.

What exactly do you bring to startups?

TAB provides a startup with all of the tools, guidance and resources necessary to build a sturdy foundation for effective, consistent, sustained growth in profit and valuation.

Z3 provide everything necessary to rapidly grow revenues and build a World Class Sales effort—scalable, visible, and predictable.

What type of startup would benefit from your strengths?

Any business with a CEO who is truly committed to improving their business or life.

What was the most challenging aspect of starting up a business?

I’ve run six successful businesses, started four and sold two. But I have a curse--I see opportunity EVERYWHERE. So the most challenging thing for me is usually deciding what to STOP doing so I don’t spread our resources too thin.

What advice do you have for entrepreneurs?

1. Don’t re-invent the wheel or try to go it alone. Learn from people who have been there before.
2. Don’t accept mediocrity in your Sales Force. Sales Management in most private companies is horrible. It doesn’t have to be.

What Austin-based resource have you found to be the most helpful and why?

The Alternative Board®. I was fortunate to discover TAB 10 years ago. It has changed my life.

I have since watched the profound effect it has had on thousands of businesses. It has had a 7+ figure effect on the bank accounts of many entrepreneurs who have been insightful enough to join.

Investigate The Alternative Board® to see if you qualify for membership. TAB is not for everyone, but if there is a fit and you commit to the TAB process, it will have a profound effect on your life. It is the best kept secret in Austin…

Yash Sabharwal Talks about His Startup Experience

2010-01-18T10:13:00.001-06:00

Where are you from originally?

I am originally from Rochester, NY. I was born there and lived there through my undergraduate years. I spent a few years when I was a kid in Queens, NY.

What university did you go to?

I went to the University of Rochester and studied Optics at the Institute of Optics. I received my B.S. in optics in 1992. I went on to the University of Arizona afterward to get my Ph.D. in Optical Sciences. I finished in 1998 specializing in optical system design, fiber optics, and image processing with an emphasis on medical and biological imaging applications.

What brought you to Austin?

My decision to come to Austin was based on a number of personal and professional considerations. After graduate school, I started a company with two other students at the University of Arizona. In 2005, we were acquired by Roper Industries and at the end of 2005, I moved on to another medical imaging startup based in Silicon Valley. At the end of 2007, I decided to take some time off to re-energize. During this time, I met my fiancee who is from Austin. I think this was a sign, because I had been thinking about moving to Austin to explore new entrepreneurial possibilities here. We just moved here at the end of 2009 and I am starting to look for an opportunity with a local startup.

What is the idea behind your startup?

The idea behind this first startup was the development of spectral imaging systems for biological, medical and industrial imaging applications. Our products were intended to provide lower cost, more flexible solutions for customers who needed to analyze the spectral content of images for diagnostic or inspection tasks. We were very good at taking the idea of the spectrometer, combining it with an imaging system, and packaging it in a way that reduced the cost of access to the technology without sacrificing performance.

What need does it fulfill?

The products that we developed addressed the need for acquisition of images in different spectral bands simultaneously. Prior to the development of our product, most customers were forced to take images sequentially using a filter wheel or some other product that changed the spectral bands sequentially. However, for any real-time imaging applications where changes are occurring rapidly, a sequential imaging system is useless. With the advent of our spectral imaging products, the capability to simultaneously acquire two or four spectral images on a single digital camera was readily available as a standardized product line.

What exactly does your product do?

The product was a lens and filter system that attached to the front of a high-end digital (CCD-based) camera. For the two-band system, the product would optically divide the sensor of the camera into two sensors. So, an identical image is formed on each half of the sensor. For example, if the system was looking at someone's face, the sensor would show two faces, one on each half of the sensor. By creating two separate imaging channels, each channel can be individually filtered however the user desires. A similar product created four different imaging channels, one in each quadrant of the sensor. We also developed a software package with application-specific image processing algorithms that customers could use to process the acquired images.

Who is it for?

These products had applications in a number of areas. Our most significant market was in the biological imaging arena specifically for microscopy applications. University professors and research scientists used these products in the study of cell structure and function.

What was the most challenging aspect of starting up a business?

There are two aspects that I personally found most challenging. First, and this is not unique to us, there was the issue of cash flow. Cash flow management is very challenging during the initial years as you are trying to grow the company. I think we were very creative in how we financed the company in the beginning without having to get funding from VCs. The second challenge started once we entered the growth phase. When the growth really kicks in, it comes at you fast and finding the personnel to staff the growth was also very challenging. But, I think this challenge was a function of where we were located and the lack of a large pool of young talent.

What is the next step for you and your startup?

This startup is no longer an independent company. We were acquired a few years ago. So, I am looking for another startup to get involved with. Maybe it will be an existing startup or a new one.

What advice do you have for entrepreneurs?

I think that many entrepreneurs, especially tech entrepreneurs, get too caught up in the technology or product they have developed. It is really important to remember that the most important component of your business is the market you are trying to address, not your product. Without a market, your product or technology doesn't have any value. So, the first piece of advice would be to stay focused on your market.

The second piece of advice is to understand your competition very well. I have heard many entrepreneurs say that their technology is so great, they have no competition. I once heard an investor fire back that if you have no competition, then you have no market!

The last piece of advice is that perseverance is a critical factor. Starting and building a company is the hardest thing I have ever done. There were so many times when I was ready to give up because there was no money or too much stress or I was working 100 hour weeks. I just had to put my head down and keep working through all of these obstacles. It takes a lot out of you. But, it can be extremely rewarding also.

What Austin-based resource have you found to be the most helpful and why?

I am very new to Austin. So, I haven't had a chance to really explore the different resources based here. However, the one thing I have already noticed is that people in Austin are extremely friendly and approachable. This makes it very easy to network with other entrepreneurs to share ideas and uncover interesting opportunities.

Julie Niehoff of Constant Contact Talks about Her Business

2010-01-15T11:55:00.001-06:00

Julie Niehoff of Constant Contact Talks about Her Business

Where are you from originally?
I am originally from Dallas, Texas.

What university did you go to?
UT Austin …hook ‘em

What brought you to Austin?
I have wanted to return since college and the city works well as a “hub” for my activities around this region of the country so I jumped at the chance to relocate.

What is your group’s mission?
Constant Contact is focused on helping small businesses and nonprofits grow by providing easy-to-use, affordable tools that help to level the playing field and allow these folks to compete across the board. Our products include email marketing, online survey and most recently event marketing tools. My role, specifically, is about education and networking. I do a lot of public speaking on technology marketing for small business and nonprofits and I facilitate workshops/seminars to that end around Texas.

What need does it fulfill?
Our products make it easy and affordable for our customers to stay in front of their customers or members, to put out professional, effective communications. We help them set the rhythm of their business relationships. For my part, I get to be a bridge between the technology that makes it all possible and the regular, normal people who don’t necessarily know the technology but clearly understand what it might be able to do for them – I get to watch that light bulb go on several times a week by teaching classes and speaking to conference groups – I consider myself very lucky to get to be a part of that process.

What exactly does it bring to startups?
The average return on email marketing is $87 per dollar spent. Our customers can use our tools for very little money – starts at $15/month. It’s hard to find any other marketing/communications avenue with a similar rate of return that you can jump into with so little capital. Our customers are sending email campaigns that look professional. They use our tools to set themselves up as the “go to” resource in their field and they can track what happens with those emails – who opened it, who clicked on what and when. This is not data you get from other types of marketing without spending a great deal more than $15. And we help them learn how to do it well with personal coaching and both live/online training as well. It’s a complete package.

What type of startup would benefit from your group?
I cannot think of a startup that would not benefit from use of our tools. Our tools adapt to the needs of the user – want to do a newsletter every month? You can. Want to survey your customers so that you can build your offering around their responses? You can. Thinking of a special offer or promotion? Trying to get the word out about your new business? Need to plan a board meeting and get everyone on the same page with the event info and let them register online. We make all of it easy. And affordable.

What advice do you have for entrepreneurs?
Test. Test. Test. I teach this in all of my classes. When you try something new – in terms of marketing. rather than using your entire contact list as a guinea pig trial, why not split your list into several groups and try the new idea on ten or twenty percent first. Then you know whether you want to go forward with the rest of the group and you eliminate the potential for mass second-thought.

What Austin-based resource have you found to be the most helpful and why?
Other than AEN? Right now, I am definitely in a honeymoon stage with the Austin Chamber. As a new member, I am very involved and am so pleased to see how focused they are on small business. I’m also very impressed by the City of Austin Small Business Development Program – this is an impressive group, dedicated to the needs and promotion of small business across the city. For the nonprofit sector, I’ve become very involved with Texas Association of Nonprofits and with NonprofitAustin.org – both of these groups are key influencers with so much to offer folks seeking help and insight with their organizations. Hard to choose just one resource in such a great city!

James Caras of Sapling Learning Talks about His Startup

2010-01-04T18:00:00.003-06:00

James Caras of Sapling Learning Talks about His Startup

Where are you from originally?

I am originally from the central coast of Californina, growing up in Morro Bay and San Luis Obispo. Growing up, it was a small town surrounded by orange groves and cattle. Today, it is wine country, with grape vines all over the hillsides.

What university did you go to?

I only applied to one school for my undergraduate degree: the University of California at Santa Barbara. Why?: excellent academics, a good Water Polo team, and surrounded by beaches on 3 sides brought me there. Received my Ph.D. in biochemistry from the University of Texas at Austin. While at UT, I designing drugs and vaccines for HIV/AIDS as well as developed instructional technologies for the chemistry department and many of the major textbook publishers.

What brought you to Austin?

Graduate school. I thought I would get my Ph.D. then head back to California. Austin has a way of captivating transplants and retaining them. Austin’s people, technology base, and entrepreneurial spirit have kept me here for the last 17 years.

What is the idea behind your startup?

Transforming education through technology.

What need does it fulfill?

Everyone knows that educational materials are rapidly moving online – as see with the rapid explosion of eBooks, assessment, learning management, and virtual schools. A large part of this shift is the rapid rise in the costs of educational materials and tuition. However, this shift to digital learning has educators worried about losing their influence on students. Nationally, there is a strong push to facilitating excellence in science, technology, engineering, and mathematics (STEM), as this is critical to U.S. global competitiveness.

Sapling Learning provides the technologies to deliver effective online learning experiences relevant to the STEM disciplines. Our technology also gives instructors total control over the instructional content within their courses. Our solutions drives down the cost of education to the student and the cost of providing effective instruction to the institution.

What exactly does your product do?

We provide a software-as-a-service online homework platform that integrates science, math, and engineering problem solving and instruction with eBooks and instructional media. Instructors adopt it for their courses, and students pay for a subscription to the service.

Who is it for?

Today, we mainly serve college students and instructors. A few university departments are working with us to deliver their own digital content to replace textbooks. We are also working with a handful of authors looking to publish eBooks integrated with our learning software.

In addition, we are currently piloting with a number of high schools nationwide.
What was the most challenging aspect of starting up a business?
I started this business originally as a media company. Sapling Learning’s greatest challenge has been shifting our business model from a media development business to a software-as-a-service company that competes with many our former customers.

What is the next step for you and your startup?

Bringing in equity capital to fund an expansion of our sales and marketing efforts as well as roll out new products that serve new disciplines.

What advice do you have for entrepreneurs?

Make decisions that are right for the long-term success of your company, gauged against your long-term goals. Decisions meant to alleviate short-term business concerns often cost you greatly down the road and certainly distract you from your goals.

What Austin-based resource have you found to be the most helpful and why?

The Austin business community offers big-city opportunities and mentoring while still feeling like a small, tightly knit group. Organizations such as ATC, TiE Austin, Tech Ranch, and the Austin Entrepreneur Network offer events that will help new entrepreneurs gain valuable advice and information and do considerable networking.

Jeffrey Fry Talks about His Startup Experience

2009-12-14T01:25:00.000-06:00

Jeffrey Fry of Manegain Talks about His Startup Experience

Where are you from originally?

Alexandria Virginia, but was born in San Juan, PR. Grew up pretty much up
and down the East Coast from VA to MA. Moved to Midland, Texas in 81 from
CT, then to Maine, then Massachusetts, then Florida, then California, then
back to Austin, Texas in 96.

What university did you go to?

Lafayette College in Easton PA, got my BSEE. Also, St. Edwards in their MBA
program but did not finish.

What brought you to Austin?

I was working for Philips in Sunnyvale and hired away by AMD to help with
their embedded processor strategy

What is the idea behind your startup?

To help people regain their confidence by naturally regrowing their hair.

What need does it fulfill?

Offers an all natural, non-toxic, drug free treatment for baldness and
thinning hair.

What exactly does your product do?

Restores scalp to a condition when hair grew naturally

Who is it for?

Men and women who are experiencing hair loss. Free placements of units in
high end hair salons, and day/med spas

What was the most challenging aspect of starting up a business?

Funding and making sure you can make a profit. Oh yeah, having great
teammates!

What is the next step for you and your startup?

Securing the next round of funding and expanding to 150 locations in 6
months

What advice do you have for entrepreneurs?

Watch out for wedgies: those people who want to take a piece of your company
and NOT offer any substantial help in moving you to a profitable endeavor.
Also, NEVER pay for someone to find money for you!

What Austin-based resource have you found to be the most helpful and why?

Bootstrap Austin, Tech Ranch, Door64, Austin Top Guns. Great resources for
networking and meeting people for ideas and help. Also, the Hills Fitness
has incredibly been a great place to meet talented people.

AEN—Our First Year in Review

2009-12-13T17:03:00.001-06:00

As we come to the end of the first year for the Austin Entrepreneur Network, we look back. We launched at the beginning of the year to bring networking, mentoring, and funding to startups in Austin. I’m proud to say we made great strides in all three areas.

We launched our new website in June, 2009, and recently went through another update this month. The website hosts over 30 blogs from experts in Austin. Entrepreneurs can benefit from the knowledge of experts in the area of finance, web, sales, marketing and more. The AEN Resource page has a list of over 130 groups in Austin related to entrepreneurship.

AEN also launched the First Look Forum which seeks to generate mentorship for startups. In a First Look Forum, ten entrepreneurs give their Fastpitch followed by ten mentors also giving a Fastpitch. We then go through a 5-minute “speed date” between each mentor and each entrepreneur. On average, each entrepreneur finds three mentors to followup with.

In the area of mentoring, AEN kicked off a Shortcourse series on social media and web with over 160 attendees in the Fall series. We also ran three Startup Business Classes providing mentorship to over 40 companies.

For funding, AEN ran the Central Texas Funding Forum 2009 in May with David Rose of the New York Angels providing the keynote address. With over 140 in attendance the event hosted 20+ breakout sessions providing mentorship as well as 15 entrepreneurs giving their Fastpitch to potential investors. The Baylor Angel Network launched bringing more investors to the Austin entrepreneur community.

Finally, AEN launched the Austin Fastpitch Show highlighting 6 entrepreneurs giving their Fastpitch on video which will soon launch on the AEN site. This gives more exposure to Austin entrepreneurs through the web to find networking, mentorship and funding.

We want to say thanks to the many bloggers, investors, providers, and entrepreneurs who participated in the first year of AEN and look forward to serving the Austin community for years to come.

Best regards,
Hall T.

Eve Richter the Emerging Technologies Coordinator of Austin talks about her View of Startups

2009-12-09T16:56:00.001-06:00

Where are you from originally?
This is always a fun one. Born in NY, then NJ, RI, MA (Boston), Los Angeles (graduated from Santa Monica High School), then Sacramento for almost 20 years. So I’m both a Yankee AND a Californian. So much beloved here in Texas, without a doubt. I’m a Red Sox Fan by heritage, and Celtics fan by acclimatization. And, of course, I bleed burnt orange.

What university did you go to?

I got my B.S. (Business with Minors in Gov’t and Public Policy) and MBA from California State University, Sacramento. I got my Master’s in Public Affairs from the LBJ School here at UT.

What brought you to Austin?

I came for the LBJ School. I stayed for the community (and a great job). I really love it here. I can get good food, good fun, good weather, great people, and I can afford to live in a neighborhood and house I want to live in. Who can ask for anything more? (OK, a couple of professional sports teams would be nice, but I’ll deal.)

What is your passion and strength?

From a business perspective, I love to see companies make it past the 2-guys-in-a-garage stage, and make it to successful launch. I get a real thrill from that. My core strength is probably marketing, but I’m also good at seeing the big picture, identifying gaps and next steps. I’m not bad at finance either. I also am a crazy networker. I really do tend to know almost everyone. So getting the right people in the room together is another strength of mine. I am the queen of the “mutual introduction.”

What need does it fulfill?

I like being a part of something successful. I like having had a role. So if I can provide some assistance that helps get a company to that next stage, I guess I get to feel like I’ve accomplished something. For companies, I’m kind of a link between the government and the community and the professional services and the resources and . . . so on.

What exactly do you bring to startups?

I call myself a combination between business consultant, sales & marketer, and matchmaker. I get the right people in the room together, make appropriate introductions, and bring my experience and background to bear in helping companies steer from where they are to where they need to go.

What type of startup would benefit from your strengths?

I work primarily with technology startups, from someone with just an idea to a post-launch company looking to grow. My areas include clean energy, digital media, wireless communications, biotechnology, nanotechnology, other early stage technology commercialization, and . . . well, almost anything with a website. I do tech. Lately I’ve branched out into some lesser known areas like food service and other randomly strange companies – just because I was there and couldn’t help myself – but my real expertise is in the tech fields.

What was the most challenging aspect of starting up a business?

I think making that leap from an employee to a business owner. It’s terrifying. I get the question a lot – “when should I quit my job?” My usual answer is “that’s between you, your bank account, and your spouse.” I know how scary it is, I’ve done it. It’s risky, but it’s necessary to reach that rewarding stage (and it is there, if not every time). You have to have the stomach for entrepreneurship, and it’s not for everyone. But it’s addicting. Of course, in the current economy, you could also say getting funding is the most challenging. But really, I think in most cases when the money needs to be there, it can be found, even if it’s not easy. For a first-time startup, I think it’s that first leap of faith into running your own business full-time.

What advice do you have for entrepreneurs?

DO YOUR HOMEWORK. Get all the help available to you from so many quarters – take the classes, meet others who’ve done it already, network network network. It’s not a waste of time if you can get advice and maybe partnerships that can help you. Do the necessary research (market research, competitive research, product research, all of it). Know what you’re getting into and what you’ll need. Have a plan and stick to it until it no longer makes sense, and then make another plan. Don’t wait for perfection, it never comes. You need to make it and sell it. Having the greatest product in the world doesn’t matter if you can’t sell it. Oh – and remember to have fun! This is your business; make the environment you want to be in. If running your own company is worse than being an employee, you’re doing something wrong. Don’t get me wrong – you’ll work your butt off, you won’t have any time off, you’ll spend all of your money. But at least have fun doing it.

What Austin-based resource have you found to be the most helpful and why?

Me, of course, ha ha. No, seriously, I don’t think I can pick just one. It really depends on the situation. We are so fortunate here in Austin to have not just government-provided assistance, but also community-based assistance. I hesitate to mention any for the fear of forgetting some, but the Austin Technology Incubator, Tech Ranch, Capital Factory, Central Texas Angel Network, Austin Entrepreneurs Network, Door 64, Bootstrap Austin, Austin Startup, Business District, and so on – these are places to get information, assistance, money, startup support, information, etc. (Apologies in advance if I left you out, please know it was unintentional.) If you really want to know what’s out there for YOU, look me up and I’ll point you in the right direction. Early stage folks need different resources than revenue positive folks looking to grow.

Arjaree Keeratiprapa Talks about the TYE Group in Austin

2009-11-17T07:36:00.000-06:00

Arjaree Keeratiprapa Talks about the TYE Group in Austin

Where are you from originally?

I’m originally from Thailand, but have spent my life living between Bangkok and the US.

What university did you go to?

I went to college in Thailand, and just completed my MBA at Penn State.

What brought you to Austin?

My fiancé and the warm weather brought me here to Austin.

What is your passion and strength?

My passion is learning about what drives behavior in end users, whether it is the consumer or the business user of a product. My strength is being able to understand that end user insight and apply it to product development and marketing efforts.

What need does it fulfill?

In order for any product or company to connect and engage with their end user, they first need to understand their needs.

What exactly do you bring to startups?

I bring my curiosity and end user insight to the table. Whether a startup is trying to develop a new product or launch their product into the market, it is critical that they have a deep understanding of what their end users want and expect from the product in order to succeed. I can help startups bring value to their end users.

What type of startup would benefit from your strengths?

Startups in their early stages that are still trying to define who they are and what value they offer. It is critical that startups have a clearly defined identity of themselves from the start in order for their end users to believe in them.
What was the most challenging aspect of starting up a business?
The planning process is probably the most challenging aspect because often times it is overlooked. Startups that spend time in the planning process thinking through their business model will tend to have fewer problems or will be better able to handle them when they arise.

What advice do you have for entrepreneurs?

Don’t wait for the perfect time to start something because there will never be one.

What Austin-based resource have you found to be the most helpful and why?

TiE Austin has been instrumental in connecting me with many accomplished entrepreneurs in town, who in turn have been able to provide me with sound advice, as well as inspiration, for my endeavors. Through TiE Austin, I am now involved in launching their new initiative, TiE Young Entrepreneurs (TYE), which enables me to give back to the organization and help students who are interested in the entrepreneurial field.

The Importance of Innovation in Achieving Success

2009-11-09T06:48:00.001-06:00

Guest Blogger

This guest article was written by Adrienne Carlson, who regularly writes on the topic of online executive mba programs. Adrienne welcomes your comments and questions at her email address: adrienne.carlson1@gmail.com. Her website is here.

Every entrepreneur dreams of stupendous success; they want not just the money, but also the fame. And success comes not just with luck alone, but with a combination of dedication, hard work, commitment, and of course, innovation. In fact, the ability to innovate determines how long a company is able to sustain its dominance in the industry, because without innovation, any business is bound to stagnate and eventually die out. In what can only be seen as an ironic twist, change is the only thing that is constant in life, so any business must be willing to change according to the environment it operates in.

Innovation can be defined in different terms, each of which is a little different from the other and all of which contribute to the long term success of any business. In short, innovation must be a combination of the below aspects:

• Adaptation: Ideas are a dime a dozen, so anyone can come up with them. But the ones that do succeed are far and few between. For every success story, there are a thousand failures that take place silently. And what differentiates the successes from the failures is the ability to adapt. Today, there is more emphasis on personal health and going green. So if a product or service is adapted or changed to become or eve be perceived healthier or friendlier to the environment, it is bound to taste success.

• Flexibility: Products and services that are a success are often a far cry from what they were on the design board. This is because they have undergone numerous changes according to consumer demand and market research. They are flexible enough to be changed according to the changing trends. And this is why they succeed where thousands of others fail.

• Resourcefulness: Entrepreneurs who cash in on opportunities are innovative as well; the opportunity may be short lived and temporary, but they’re able to strike when the iron is hot because they have sensed it ahead of the competition. They have their pulse on the market and know when it is the right time to make a move.

Innovation is the lifeblood of any business, more so in times when the economy is down and it’s harder to make profits or even break even. So when companies fail to improvise and innovate accordingly, they find themselves slowly falling behind the competition, and finally being pushed out of the race altogether.

UT's Idea 2 Product Competition Highlights Fifteen New Startups

2009-11-02T01:24:00.000-06:00

One of my favorite entrepreneur events of the year is the Idea 2 Product Competition held at UT. The I2P® Global Competition is an early-stage technology commercialization plan competition hosted by the Murchison Chair of Free Enterprise at The University of Texas at Austin. The I2P® competition focuses on the education and creation of the next generation of technology entrepreneurs. Teams benefit from valuable feedback from the entrepreneurs, venture capitalists, engineers, and intellectual property attorneys on the judging panels. Previous teams have produced work that has increased research funding, licensing of technology, and creation of new ventures. The competition has also served as a commercialization forum for faculty and members of the community. Faculty have been able to consider societal needs of technology and members of the community have been given an early preview of cutting-edge technology.

Fifteen invited university teams, representing four continents and eight countries, will descend upon Austin on October 30-31st for the 7th Annual Idea to Product Global Competition. The teams will present their breakthrough technology commercialization plans and compete for over $52,500 in cash prizes that may be used to advance their innovations, as well as a chance to enter the Global MOOTCORP® competition. Each year, the competition draws a large audience from Austin’s technology and entrepreneurial community. The event is in the AT&T Conference Center.

The competition will debut three themed championship tracks and a technology showcase where you can see the teams’ innovative technologies. Which technologies will become the next cure for cancer? Which technologies have a potential to revolutionize the battery technology? What technology will answer the world’s changing energy demands? What technology will drastically improve quality of life for less-privileged communities around the world?

The event is free and open to public.

What? 7th Annual Idea to Product® Global Competition

Where? AT&T Executive Education and Conference Center

When? Friday, October 30th
9:00am-12:00pm Feedback Rounds (Classrooms 201, 202, 203)

Saturday, October 31st
9:00am-12:00pm Ted Roden Championship Rounds (201, 202, 203)
1:15pm-2:30pm Technology Showcase (Covered Courtyard)
2:30pm-3:00pm Ted Roden Awards Ceremony (Amphitheater 204)

Why? To see the next generation of technology innovations

Who? Free and open to public.

The Idea to Product® Global Competition is sponsored by the Cockrell School of Engineering, the College of Natural Sciences, several engineering departments, along with student organizations. Supporters of the event include the National Science Foundation, NCIIA, MOOT CORP, the Austin Technology Incubator, the Office of Technology Commercialization, Fish & Richardson, P.C., and the Herb Kelleher Center for Entrepreneurship.

Kevin Castello of the Baylor Angel Network Talks about Starting an Angel Group

2009-10-26T01:22:00.000-05:00

Where are you from originally?

I have lived in Texas most of my life and in the Austin area since 1984.

What university did you go to?

My bachelor’s is from Austin Graduate School of Theology and I complete my MBA at Baylor in December.

What brought you to Austin?

I moved here with my parents in high school.

What is the idea behind your group?

Baylor Angel Network (BAN) is a university sponsored organization that provides the vehicle for Baylor Angels to be exposed to deal flow opportunities. BAN provides a synergistic link between successful alumni and current students who serve as interns. The internship program allows students to see business plans, screening processes, entrepreneurial presentations, due diligence, and fundings. In addition to the education value, each BAN member contributes a portion of their returns to the Hankamer School of Business.

What need does it fulfill?

BAN provides a mentoring relationship for students with successful alumni in the private equity investment arena. It also provides a process vehicle for a number of angels to evaluate projects together and then make individual investing decisions. This aggregation of experience and differing industry expertise allows the angels to better vet each opportunity and evaluate potential risk. BAN also provides a great potential funding source for entrepreneurs in an entrepreneur friendly setting.

What exactly does BAN do?

BAN connects entrepreneurs with angels while mentoring students.

Who is it for?

BAN serves the angels, entrepreneurs, students, and Baylor University Hankamer School of Business.

What was the most challenging aspect of starting up a group?
Understanding the paradox between simple and complex is the greatest challenge. The idea, business plan, and strategy need to be easy to understand while the information necessary to communicate, value, and fund the opportunity can be quite complex.

What is the next step for you and your group?

BAN is currently doing due diligence on two deals for potential funding this fall. We are also beginning the early review stages for deals that will be looked at in the spring of 2010.

What advice do you have for entrepreneurs?

BAN is an entrepreneurial friendly environment in which to get your plan reviewed. If you have a great plan then contact us to start the process.

What Austin-based resource have you found to be the most helpful and why?

We have a great working relationship with the Central Texas Angel Network (CTAN) and are currently working on a syndication deal with them.

Best regards,
Hall T.

Dave Bartelli Talks about Central Texas IT Play Day

2009-10-19T05:04:00.000-05:00

Tell me a little about the event you're hosting.

The event is called the "Central Texas IT Play Day." It is a fun, Texas-themed technology trade show for the business community to learn about current technology trends and solutions directly from the big vendors, such as Cisco, Citrix, VMware and HP. We'll have free Texas BBQ and live music from Austin artist Matt the Musician.

When and where is it?

The show is Thursday, October 15th at the Phillips Event Center in northeast Austin. People can drop by any time from 10am to 3pm. The agenda, map and other details are online at www.texasitplayday.com

Who is the target audience?

The event is designed for business people who make technology decisions - business owners, managers, and IT directors. Although exhibitors will have hands-on demos of their solutions, the event is not meant to be a technical training event. Instead, it is meant to help businesses understand some of the trends and solutions that might make their lives easier.

Why would a business owner want to attend a technology trade show?

With technology changing so fast, it is hard to keep up with what is truly useful, let alone what it all means. People hear about virtualization, cloud computing and managed services all the time, but not everyone knows what they are or in which scenarios they are best used. This event provides an opportunity to become more familiar with current technology options, which will help in making business plans and decisions.

What does the event cost?

The event is free, although pre-registration is required. Registration and details are at www.texasitplayday.com

Who will be exhibiting?

HP, Citrix, VMware, Cisco, Grande Communications, Zultys, TW Telecom, TBC International, Bandspeed, Fortinet, Cymphonix, Buffalo Technology, Microsoft and White Glove Technologies.

You'll have the chance to see Windows 7, the latest Microsoft operating system, live before it is officially released to stores on October 22nd.

UT's Idea 2 Product Compeititon

2009-10-12T13:23:00.000-05:00

Fifteen invited university teams, representing four continents and eight countries, will descend upon Austin on October 30-31st for the 7th Annual Idea to Product Global Competition. The teams will present their breakthrough technology commercialization plans and compete for over $52,500 in cash prizes that may be used to advance their innovations, as well as a chance to enter the Global MOOTCORP® competition. Each year, the competition draws a large audience from Austin’s technology and entrepreneurial community. The even is in the AT&T Conference Center.

The competition will debut three themed championship tracks and a technology showcase where you can see the teams’ innovative technologies. Which technologies will become the next cure for cancer? Which technologies have a potential to revolutionize the battery technology? What technology will answer the world’s changing energy demands? What technology will drastically improve quality of life for less-privileged communities around the world?

Come to I2P® Global and see. The event is free and open to public.

What? 7th Annual Idea to Product® Global Competition

Where? AT&T Executive Education and Conference Center

When? Friday, October 30th
9:00am-12:00pm Feedback Rounds (Classrooms 201, 202, 203)

Saturday, October 31st
9:00am-12:00pm Ted Roden Championship Rounds (201, 202, 203)
1:15pm-2:30pm Technology Showcase (Covered Courtyard)
2:30pm-3:00pm Ted Roden Awards Ceremony (Amphitheater 204)

Why? To see the next generation of technology innovations

Who? Free and open to public.

About the Idea to Product® Competition

The I2P® Global Competition is an early-stage technology commercialization plan competition hosted by the Murchison Chair of Free Enterprise at The University of Texas at Austin. The I2P® competition focuses on the education and creation of the next generation of technology entrepreneurs. Teams benefit from valuable feedback from the entrepreneurs, venture capitalists, engineers, and intellectual property attorneys on the judging panels. Previous teams have produced work that has increased research funding, licensing of technology, and creation of new ventures. The competition has also served as a commercialization forum for faculty and members of the community. Faculty have been able to consider societal needs of technology and members of the community have been given an early preview of cutting-edge technology.

The Idea to Product® Global Competition is sponsored by the Cockrell School of Engineering, the College of Natural Sciences, several engineering departments, along with student organizations. Supporters of the event include the National Science Foundation, NCIIA, MOOT CORP, the Austin Technology Incubator, the Office of Technology Commercialization, Fish & Richardson, P.C., and the Herb Kelleher Center for Entrepreneurship.

For more information about the I2P® Global Competition, the I2P® Program, and to see a live webcast of the competition, visit http://www.ideatoproduct.org/.

Wendy Covey of Trew Marketing Talks About Her Startup

2009-10-06T02:44:00.000-05:00

Wendy Covey of Trew Marketing Talks About Her Startup

Where are you from originally?

I am a native Texan, and have lived in many of the major cities in Texas. This illustrious list includes Houston, Dallas, Austin, College Station, and Dripping Springs. Ok, so a few are not in the majors quite yet.

What university did you go to?

Texas A&M University

What brought you to Austin?

Austin’s casual environment, natural beauty, and smaller-town feel were my initial attraction, not to mention good tex-mex. I was excited about the growing opportunities in the technology and entrepreneurial sector and where that might lead my career growth.

What is your passion and strength?

I have a deep appreciation for engineers and scientists and the creative innovations they develop that not only impact our lives but drive much of our economy. . My passion is to help them spread the word about their products and services in a clear and simple way.

What need does it fulfill?

My energy, resourcefulness, strong communication skills, and deep tech marketing experience make me a strong partner to the technical business executive or technical sales manager who often has completely different strengths. With a long history in event marketing – from traditional trade shows and conferences to webcasts– as well as a background in software services business leadership, I am able to work with them on a wide variety of critical marketing areas.

What exactly do you bring to startups?

I am co-founder of TREW Marketing. With our team of professionals, we offer comprehensive marketing services. For start-ups, we are often engaged as a Virtual Marketing Manager or for a specific need, such as message development, creative, website development, or media relations.

What type of startup would benefit from your strengths?

B2B technology companies, particularly those targeting technical audiences such as engineers and scientists, are the best fit for TREW Marketing. We also do much work in education.

What was the most challenging aspect of starting up a business?

My top two:
1. Determining a scalable pricing model
2. Figuring how to staff the business through the peaks and valleys of growth

What advice do you have for entrepreneurs?

Interview ten business owners. This was the best thing we did during our ideation phase. Some were in the same industry, and some were totally different, but all of the interviews helped us to gain clarity in how we wanted to operate, and avoid some of the trouble spots that others have gone through before us.

What Austin-based resource have you found to be the most helpful and why?

Leadership Austin – Through my business partner’s participation and board position, we’ve greatly expanded our network of diverse leaders in Austin.
AEN – This organization provides us with a broad view of the entrepreneurial community, including organizations and events. I enjoy expanding my horizons through the crazy blog posts too.

BIG Austin – Being a minority-owned business, we were able to use the resources of this nonprofit for our initial basic business questions. The staff was friendly, patient, and we saved ourselves the additional costs on attorney fees, which is always nice on a start-up budget.

RISE Austin – This incredibly helpful conference featured a broad range of interesting topics for entrepreneurs with quality, knowledgeable speakers. The event was an impressive feat for a free event, no doubt. I am very much looking forward to the next one.

--
Please note: Wendy Covey will be giving a Shortcourse. Please check out the schedule here.

Best regards,
Hall T.

Clare Nelson of Quaresso Talks about Her Startup Experience

2009-09-28T09:01:00.000-05:00

Clare Nelson of Quaresso Talks about Her Startup Experience

Where are you from originally?

I was born in Palo Alto, but have lived all over the US and Europe. Grew up learning how to surf, went to high school in New Jersey.

What university did you go to?

The school of hard knocks, I can pick up technology quickly, but learn life lessons slowly.
I got my undergrad degree in Math at Tufts University, and then did MBA studies at California State Lutheran University in Santa Barbara, and Regis University in Colorado.
However, I got my best education growing up with two brothers.

What brought you to Austin?

14 years ago, my husband was recruited by IBM/Tivoli. The first week, I saw a scorpion in the living room and was read to move. I never thought I’d end up falling in love with Austin.

What is your passion and strength?

Business development of any flavor. Quick time to revenue for a startup or large corporation – opening new markets, creating a pipeline, securing OEM deals, product positioning and competitive analysis.

What need does it fulfill?

It fulfills the need to accelerate time to revenue, which is a balance between targeting anyone who will listen, and targeting the optimal subset of customers. For startups, many early customers are not optimal because they:
- Want product modifications or support on another platform, and you are not ready for this, and do not even have the budget or headcount to support it
- Are too small, or not worth the effort to get up and running – it may be the case it takes just as long to get a large customer up and running
- Won’t serve as a stellar reference account, let alone agree to a press release
- Are outside your market validation set of target market early adopters, their pain is not substantial and pressing
- Don’t have support from the CEO on down to user your product, test it and adopt it
- Have insufficient cash flow, and may not be able to pay you on time, if at all
- Do not have the right people assigned to test drive your product and provide valuable feedback
- Are difficult to work with

What exactly do you bring to startups?

30+ years of WW experience in high tech – I’ve made enough mistakes to recognize them elsewhere.
I’ve worked as an employee at four different startups: ACC, CMC, Dazel and SAP spinoff, TeaLeaf Technology, as well as large companies: DEC, EMC, Dell. I know how startups work, and what large corporations demand for product requirements. I spent the first 8 years of my career in the pits with the bits as a software engineer, then progressed through product management and various executive positions. I bridge technology and the market.
I’ve mentored or consulted for social network aggregators, security, storage and software companies.

What type of startup would benefit from your strengths?

High tech, with a software or Web 2.0 dimension. Also biotech, I consulted for Cell Marque, a manufacturer of reagents for immunohistochemistry, specifically cancer detection.

What was the most challenging aspect of starting up a business?

Eight years ago, I started ClearMark Consulting. The isolation and having to do everything myself was daunting in the beginning. One day I did everything from fish through a user manual to figure out a fax machine error code, to close a large deal with a Fortune 1000 client. Here are some things I would not repeat:
+ Underestimated the expense and struggle to stay cash-flow positive, underestimated the expense of simple things like accessing Gartner or IDC reports. Learned very quickly to get my large clients to give me access.
+ Spent way too much time on a Web site, did not use it, and still to this day get referrals from colleagues and word of mouth. All I really need is LinkedIn and my iPhone.
+ Spent too much time on early PowerPoint decks, I am a Tufte (the communications expert, not to be confused with my alma mater, Tufts) fan, I hope to do away with PowerPoint in the future
+ Underestimated the degree of flexibility for negotiating compensation. I have been paid in laptops, equity, deferred cash, etc. Each deal had a different structure.
+ Underestimated the power of outsourcing, even though it is just me, hiring some temps or using outsourcing services made life much easier.
+ Underestimated the value of telling a client exactly what I thought. Turns out this is often what secures repeat business. To this day, clients from the past call me to ask for my un-varnished, frank opinion.

What advice do you have for entrepreneurs?

+ Verify market demand, find the pain, identify the problem you are solving. The old “build it and they will come” model only works in Hollywood.
+ Spend more time with customers than your colleagues.

What Austin-based resource have you found to be the most helpful and why?

+ Yoga studios – it’s how I keep sane and healthy
+ Previous colleagues and friends. They have the battle scars and know what can go wrong, and how to avoid it. They have vision and enthusiasm, we share a passion for all things high tech.

Best regards,
Hall T.

Imagine H2O Seeking Innovative Business Plans

2009-09-21T01:22:00.000-05:00

Imagine H2O is a non-profit organization that aims to support and advance water technologies. Its inaugural business plan competition focuses on water efficiency and is awarding $70k in cash and in-kind services. It starts on Wednesday, Sept. 1 and ends on Nov. 16. The direct link to the competition is here: http://www.imagineh2o.org.

WANTED: INNOVATIVE SOLUTIONS TO WORLD’S WATER CRISIS

REWARD: $70,000

Business plan challenge opens September 1, 2009
The inaugural Imagine H2O Prize competition is now open for submissions. The competition offers prizes of $70,000 in cash and in-kind services, which will be awarded to the business plans which promise the greatest breakthroughs in the efficient use and supply of water.

The Imagine H2O Prize is designed to encourage the competitive and ambitious spirits of entrepreneurs, investors, experts, inventors and academics around the world to focus on water issues. This inaugural business plan challenge focuses on solutions to improve water efficiency in agriculture, commercial, industrial or residential applications, such as water demand reduction, improved water use, water recycling and/or reuse.

Entries will be accepted from around the world beginning September 1 through November 16, 2009. Winners will be announced at a showcase event in early 2010. Future competitions will have different prize topics addressing other critical water challenges. For more details and to participate, go to: www.imagineh2o.org.

Best regards,
Hall T.

John McElhenney Talks about Social Media

2009-09-16T10:55:00.001-05:00

John McElhenney Talks about Social Media and his Web Site Fluent Search

Where are you from originally?

Austin, Texas - "native"

What university did you go to?

UT

What brought you to Austin?

Mom and Dad.

What is your passion and strength?

I enjoy rallying teams and seeing new ideas built to completion. New technologies and social media sites have to enhance our abilities to do our jobs rather than waste time. Figuring out how to engage and not get lost is a plan I am constantly building and refining.

What need does it fulfill?

Establishing a social media plan for business development and growth. Using ideas learned within big companies can help smaller companies level the playing field. It's all about responding to the needs of your customers.

What exactly do you bring to startups?

With a passion to communicate and a deep understanding of technology and social media networks, I work with companies wanting to set up and work the web for customer engagement and lead generation.

What was the most challenging aspect of starting up a business?

Continuing to focus on what drives revenue. It is easy to get distracted by all of the opportunities to get involved, but staying focused on your long term objectives is critical to not being sidetracked by all the shiny objects that can be labeled social media.

What advice do you have for entrepreneurs?

Going out into social media with no plan CAN hurt your business. The goal of any social media system is to be responsive and flexible in communicating with customers, potential customers, media and vendors.

What Austin-based resource have you found to be the most helpful and why?

The SXSW community has proven to be a strong and durable resource for me. Participating and speaking at SXSW brought a group of people into my life that have continued to inspire and encourage me.

Please Note: If you would like to see John McElhenney's presentation on social media topics please go to AEN Courses.

Gerry Cullen of PR Engines Talks about His Startup

2009-08-31T06:43:00.000-05:00

Gerry Cullen of PR Engines Talks about His Startup

Where are you from originally? Buffalo, New York

What university did you go to?
Colorado State University, BS Physics and Math, and University of Colorado, Electrical Engineering

What brought you to Austin?
I joined an Austin-based commercial lighting control manufacturer, MyTech, which was losing money and had a tired product line. After three years we had redesigned the product line, tripled revenue and achieved profitability. We sold the company to Hubbell Electric. I decided I liked Austin enough to stay here.

What is the idea behind your startup?
Many companies generate sales from search engine results. Our goal was to make an inexpensive, easy to implement software product that demonstrably improved page rank on search engines.

What need does it fulfill?
Users get two benefits: a higher search engine ranking, and a more interesting website. Tests have shown that the typical page ranking in Google improves by at least twelve which means a full page improvement in search engine placement.
What exactly does your product do?

The NewsBox makes a scrolling box of news story titles appear on a web page. The news stories are all keyword related to the customer's business. The news stories are hand-picked by company-knowledgeable editors. This creates changing content which is one of the four main ways to attract search engines.

Who is it for?
Primarily for companies who attract customers through web searches.
What was the most challenging aspect of starting up a business?
Making sure the product could be sold before investing in software development. We learned a lot about competition while making test sales calls. We made a dozen sales calls before developing any software.

What is the next step for you and your startup?
We are now in the process of making 100+ sales calls to make sure we can sell the product as it exists today, that is, without further software enhancements. Our first market will be small law practices.

What advice do you have for entrepreneurs?
Make sure you can sell the product before making the product. Get prospects to promise to buy one at a deeply reduced price before ever starting work. Most folks will tell you that your idea is wonderful but few will actually write a speculative purchase order.

What Austin-based resource have you found to be the most helpful and why? I have not used any resource so far. The Austin Entrepreneur Network looks like a great asset.

Best regards,
Hall T.

First Look Forum -- Mentorship for Startups

2009-08-27T10:07:00.000-05:00

I often see startups seeking funding prematurely. They lack market validation, product validation, and/or a solid management team. Many times these startups engage investors only to find out that their business has too many holes to fund at this time. To solve this problem, the Austin Entrepreneur Network created the AEN First Look Forum which is an event that gives entrepreneurs the opportunity to give their fastpitch to a group of mentors and then meet those mentors in a one-on-one "speed dating" exercise to gain feedback on their business and potentially line up a mentor.

AEN ran its initial First Look Forum last Wednesday with several startups from the Austin on Rails group. We lined up the entrepreneurs in a row and gave each one sixty seconds to pitch their company. We then lined up the thirteen mentors and had each one give a sixty-second pitch on their background and experiences. Afterwards we assigned each entrepreneur to a table and had the mentors rotate through to meet each entrepreneur.

Five minutes doesn't sound like much time and it isn't. It's just enough time to decide if there's a reason to followup afterwards for a coffee and explore the potential of bringing the mentor on-board as an advisor or to gain general coaching.
The short time frame means there's little time for pleasantries (how are you doing today?, etc).

In talking with the entrepreneurs afterwards the key lesson learned is that the entrepreneur needs to know in advance what help is needed and to ask questions in that direction. Tangential questions can quickly burn up your five minute window so you need to say on topic.

To join the program, each entrepreneur filled out a one-page application. In some cases, the entrepreneur left key information blank such as revenues. I encouraged each one to not leave blanks on the form and if the information is confidential to indicate so. A blank indicates to the reader that the startup doesn't have anything in that category.

If you're an entrepreneur or a mentor, we welcome your application to join us in a future First Look Forum. Please email me at director (AT) austinentrepreneurnetwork (DOT) org and I'll send you the application form.

Best regards,
Hall T.

Rick Winters Talks about His Startup and Business Experience

2009-08-12T09:40:00.000-05:00

Where are you from originally?

I was born in NE Kansas. I was a Farm boy before I moved to San Antonio when I started high school.

What university did you go to?

I went to UT where I received a BS-ASE and MBA.

What brought you to Austin?

UT and the Austin environment/lifestyle brought me here.

What is your passion and strength?

The challenge of taking a company from an idea to a viable commercial company and all of the stages, steps and resistances encountered along the way. I am a generalist by nature with a strong curiosity to learn new things and apply that broad knowledge and experience to solving the problems of growth and change. My specific skills are in finance/accounting, management information systems and manufacturing operations/ lean manufacturing.

What need does it fulfill?

I find statisfaction in achievement and the pride of being associated with an exciting product or service.

What exactly do you bring to startups?

Broad experience in multiple industries. In both high growth as well as turnaround/change environments. My total systems orientation lets me see the big picture of a company’s markets, management, operations and financial stability and put strategies and tactics in place to address the issues.

What type of startup would benefit from your strengths?

Ones that complement or relate to real estate, manufacturing (electronic and aerospace), and oil & gas.

What was the most challenging aspect of starting up a business?

Clearly and succinctly identifying the value proposition and getting a team identified and committed that has the demonstrated skills and expertise to help ensure success. With those elements in place it is easier to get and receive help and to show investors your path to success.

What advice do you have for entrepreneurs?

Don’t give up, keep refining and honing your idea, build your team, get all the help you can from as many sources as you can. There are many groups in Austin and on the internet to research.

What Austin-based resource have you found to be the most helpful and why?

I don’t have one best. There are many networking and entrepreneurial organizations in Austin. There is one for almost any type of company and stage of development from idea to seed round funding to B round, etc. The more networking one does the better the focus becomes on what groups or individuals can be most beneficial to their specific needs.

Best regards,
Hall T.

JC Otero and Team Talk about the Austin Social Innovation Hub

2009-08-10T13:36:00.000-05:00

JC Otero and Team Talk about the Austin Social Innovation Hub

Where are you from originally?

JC: San Antonio, Texas
Matt: Albuquerque, New Mexico
Martin: New Braunfels, Texas
James: Houston, Texas

What university did you go to?

JC: I graduated from St. Edwards University with a double major in Business
Administration and Management.

Matt: I have a B.S. in Psychology from the University of Texas at Austin, a M.A. in Psychology from the University of Pennsylvania, and a M.S. in Computer Information Systems from St. Edward's University.

Martin: First part Blinn Junior College in Bryan, then Concordia University
in Austin. Majored in management and human resources with many classes in
entrepreneurship and social work.

James: I was a triple major/quadruple minor at the University of Texas at
Austin. Hook 'em!

What brought you to Austin?

JC: I feel that destiny brought me here--perhaps with a little push from my
parents who commanded me to attend college in any city except for San
Antonio--and now that I'm here I can't see myself leaving anytime soon.

Matt: I came to Austin in 1998 to attend the University of Texas. I
originally majored in Electrical Engineering but after taking a year off and
some soul searching, I decided that I was more interested in studying human
cognition. After a brief stint in Philadelphia to get my Masters degree in
Psychology, I had trouble finding a job and decided to get back into
computer programming. A friend of mine encouraged me to apply to work at an
Austin start-up as a computer programmer...and I have been here ever since.

Martin: I was recruited to help with a national non-profit that catalyzes
college students to create social change. They had a presence here.

James: The University of Texas initially pulled me in; the eccentricity and
vibrancy kept me here.

What is the idea behind your startup?

Catalyzing the entrepreneurial community to develop innovative solutions
for social challenges is at the heart of what we do. We believe that anyone
can be a change agent--sometimes they just need a little help.

What need does it fulfill?

There are many people in Austin who have innovative solutions to the problems that plague our society. But what's lacking is a structured ecosystem that enables these great ideas to become real solutions. The Austin Social Innovation Hub is stimulating this ecosystem by making resources available to social innovators, providing the network that enables them to connect, educating the public and new social innovators, and doing the research and advocacy to support social innovation in Austin and beyond.

What exactly does your product do?*

Our purpose is to catalyze innovative solutions to social problems.

We have four offerings:

- *Incubation*: launch and accelerate innovative social enterprises from
idea to cash flow
- *Networking*: facilitate collaboration between social innovators and
social enterprises in Austin both online and face-to-face settings
- *Education*: educate individuals and enterprises on how to create
social impact
- *Research*: research and advocate for social innovation in Austin and
beyond

Specifically, we're creating physical hub for social innovation that serves as a co working and incubation space and a website that enhances collaboration among Austin’s key stakeholders and concentrates resources on promising social innovators and enterprises.

Who is it for?

Anyone interested in creating social impact.

The hub is meant to be highly inclusive; individuals of all backgrounds and
enterprises at all stages of development are invited to join the community. Our members and partners have diverse interests: creative capitalism, social
entrepreneurship, social business, corporate social responsibility, blended
value enterprise, double and triple bottom line accounting, microfinance, and sustainability, among others. But their unifying characteristic is their passion for social innovation, which has several definitions, but one is "an initiative, product or process which profoundly changes the basic routines, resource and authority flows or beliefs of any social system. Successful social innovations are therefore disruptive and have durability, impact and scale." [Frances Westley, University of Waterloo]

What was the most challenging aspect of starting up a business?

Everyone has great ideas but not everyone wants to do the work to make it a
reality. For us the most challenging aspect of getting starting has been
getting a committed team to work for sweat equity to actualize our long-term
vision. Considering that everyone involved is still working full-time jobs
or in other revenue generating ventures, it's been difficult to coordinate
schedules and hit some set goals. Fortunately, we're all bootstrappers and
we're comfortable making magic happen with the resources we do have.

What is the next step for you and your startup?

The next step is to solidify our business and organization model and begin
testing it in Austin. To do that, we need to continue to build our team and
secure initial funding. We expect to launch the incubator component in 2010.

What advice do you have for entrepreneurs?

Have faith in yourself, your skills, your strengths, and the possibilities
around you. If you are passionate about something stop talking about it and
do it! Beware of what the naysayers say; if you believe in it, then go for
it and don't give up. And, most importantly, don't underestimate the
willingness of others in your reach to help you with accomplishing your
goals.

What Austin-based resource have you found to be the most helpful and why?

The Austin entrepreneurial community as a whole has been absolutely amazing.
Their willingness to brainstorm with us, review our developing model, and
provide psychological support has been instrumental in moving us forward.
It's incredible what you can accomplish when you align with a group of
dedicated individuals towards a shared, powerful goal. And what better place
to be for socially-minded innovation and entrepreneurship than in Austin,
Texas!

Best regards,
Hall T.

Steve Barcik of FireFly LED Lighting Talks about His Startup

2009-08-05T07:47:00.000-05:00

Steve Barcik of FireFly LED Lighting Talks about His Startup

Where are you from originally?

As a kid we moved all over the US, Canada, and even lived in Wales, in the UK. We moved three times while I was in the 8th grade, making me the new kid. This experience gave me three things; a desire put down roots, I have been in Austin since 1987, second, a true desire for new things and meeting new people, and finally the importance of friends and those relationships. My Family is from Virginia.

What brought you to Austin?

The tech environment and Texas Instruments. I was in Houston working in the Chemical Industry and wanted to do more engineering and be in a great town. TI hired me and some of my first projects there were in lighting and electrical power. TI was an amazing learning experience. I still maintain those friends from back then, what a great time.

What university did you go to?

Virginia Military Institute. I received my BSME there, and learned a lot about managing myself and others. VMI was a great experience and I credit the environment, professors, and my classmates with giving me an experience so unique and powerful.

What is the idea behind your startup?

The idea is implement a bunch of amazing ideas I and my partner have to deploy great LED technology to provide lighting for commercial, institutional and residential buildings. LED lighting uses 86% less energy and generates 86% less heat than incandescent lighting. A triple point of technology, awareness and need is occurring, and we have the ideas and the team to ride that wave. We are focused on ROI for the commercial, retail, and architectural segments. ROI is the home run for lighting now, as energy savings are so important.

Tell me more about your startup concept?

To make a difference for the environment and to impact the costs of doing business for companies and people using our products. Our start up uses a lean model, and applies resources directly to the problems, removing constraints others have placed on the problem or solution. Through clean sheet design, sub-contracting and utilizing the resources available in the USA, we are building a competitive and successful lighting company.

What exactly does your product do?

Our product directly replaces light bulbs and other lighting sources. The bulbs output the same or greater amounts of light and create the same look and feel. The bulbs last up to 25 times longer than incandescent and 2 to 5X longer than compact florescent bulbs. They are also resistant to vibration, cold, and are instant start. Our product also eliminates the mercury hazards of compact florescent bulbs.

Who is it for?

Anyone anywhere who uses any type of lighting. Imagine reducing the electrical lighting bill for your company or home by 86%, or your total electrical bill by 34% and getting a ROI in 4 months in some cases. It is also for the planet and our future, reducing energy usage is as equally important as creating green energy sources.

What was the most challenging aspect of starting up a business?

Selecting the next idea to pursue, we have several other ideas lined up, and this one is so right, putting other ideas and opportunities aside for now was the most difficult part.

What is the next step for you and your startup?

We are launching our first products, so to successfully complete engineering and move to the next design gate, with ease and grace. And of course to raise funds and partner with great investors who see the vision and goal.

What advice do you have for entrepreneurs?

Have a great time.
Choose quickly and move with purpose.
Grow yourself, in every way possible, mentally, spiritually, physically, emotionally, and relationally.

Best regards,
Hall T.

Steven Dipasquale of Comerica Talks about Financing Startups

2009-08-03T07:45:00.000-05:00

Steven Dipasquale of Comerica Talks about Financing Startups

Where are you from originally?

Houston

What university did you go to?

Texas A&M University. BBA in Finance.

What brought you to Austin?

I spent about 10 years in Atlanta and decided it was time to get back to Texas.
Austin of course was our first choice given the quality of life.

What is your passion and strength?

Not to sound contrived, but helping people - helping entrepreneurs succeed who are changing the way we live our lives.

What need does it fulfill?

Assisting entrepreneurs with big ideas as an advisor is very rewarding in itself.

What exactly do you bring to startups?

Finance background working with early stage and late stage tech and life science companies. Understand the various types of debt financing available throughout a company’s life cycle and thorough understanding of venture capital and private equity. Experience includes identifying new business opportunities, due diligence, market research, analytical capabilities and financial analysis, and contacts in the private equity and venture capital communities.

What type of startup would benefit from your strengths?

I believe I could add value across various industries and stages. My background working with startups has been broad.

What was the most challenging aspect of starting up a business?

My only direct experience has been working to grow tech practices at various institutions. I believe the biggest challenge is reminding the market that there are actually commercial banks that focus on working with early stage companies. Hiring the right team to deliver the message is key. (I don’t think you want to hear about my childhood lawn business or paper route…)

What advice do you have for entrepreneurs?

Like the question above, follow your passion enthusiastically.

What Austin-based resource have you found to be the most helpful and why?

ATI--the resources, events, etc.

Best regards,
Hall T.

The “Meet the Lender” Fair is Coming Next Week

2009-07-31T10:31:00.000-05:00

The Small Business Development Program is quite active in Austin. They are hosting its annual "Meet the Lender" Business Loan Information Fair on August 6th, 2009. Meet the Lender is a free event and introduces business owners to business lenders face to face in an informal setting where they can gather information on lending programs.

This year's Meet the Lender event takes place at Palmer Events Center on
Aug. 6th from 3 to 7 p.m. and will feature more than 40 community lenders,
area banks, factoring firms and government loan programs including Greater
Texas Federal Credit Union, Business Community Lenders of Texas, and
OMNIBANK. They also offer their BizAid class at 3:30pm and 5:15pm.

I walked the show last year and found several city-sponsored programs available that I wasn’t aware of before. The SBA loan process has changed dramatically over the past year due to the economy and stimulus funding. In some cases the fees are reduced or waived altogether. If you are raising funding, you may want to check out this event.

Best regards,
Hall T.

Roy and Bertrand Sosa Talk about RISE Austin

2009-07-20T06:24:00.000-05:00

Roy and Bertrand Sosa Talk about RISE Austin

Where are you from originally?

Roy and I are originally from Mexico. Austin became our home in 1986.

What university did you go to?

We both attended the University of Texas at Austin.

What brought you to Austin?

We moved to Austin with our mother who wanted to pursue a career as a doctor in the US.

What is the idea behind your group?

In 2006, my brother and I were approached by the Kauffman Foundation to lead an initiative for Austin as part of their founding of "Entrepreneurship Week USA." Our concept was to create a not-for-profit conference for and by entrepreneurs that would truly embody and celebrate Austin's entrepreneurial spirit. We modeled RISE on a format similar to SXSW in which multiple events would be held simultaneously at venues around Austin. In its third year, RISE - a Relationship & Information Series for Entrepreneurs - is an annual conference series dedicated to providing a free forum for entrepreneurs to connect and exchange ideas that inspire the entrepreneurial spirit.

What exactly does your group do?

For, by and about entrepreneurs, RISE takes place in concurrent sessions hosted by local entrepreneurs in venues around Greater Austin. Sessions are limited to 25 participants and there is no cost to host or attend sessions. RISE sessions are
independently organized and peer-led and represent a range of topics of interest to entrepreneurs of all sizes in all industries. In 2009, RISE offered related sessions organized into series including the Social Entrepreneurship series, the Hispanic Entrepreneurs series and the Austin Women Entrepreneurs series. Past RISE hosts include Roy Spence (GSD&M), John Mackey (Whole Foods Market), Jimmy Treybig (NEA), Philip Berber (A Glimmer of Hope Foundation), Clayton Christopher (Sweet Leaf Tea), Elizabeth Avellan (Troublemaker Studios), Jack McDonald (Perficient), and Ellen Wood (vCFO).

Who is it for?

Created and produced for entrepreneurs by entrepreneurs, the event attracts a
growing number of aspiring, new and established entrepreneurs in all industries each year. Over the past three years, RISE attendance has doubled annually and in 2009, we had over 1700 people join us for RISE sessions.

What is the next step for you and your group?

As the demand for RISE increases, we have been transforming from a single event into a year-round organization. In 2010, RISE anticipates offering quarterly networking and educational forums in addition to our annual March conference.

What advice do you have for entrepreneurs?

One of the keys to success in business is to find a partner. We're fortunate to be
brothers, but the key is to partner with someone who complements your strengths and weaknesses and to build a partnership based on trust and commitment. Just like dieting, climbing a mountain or achieving any goal, it's so much easier to sustain the momentum when you have a partner to support you. We would change our line of business before we changed partners.

Best regards,
Hall T.