Archive for April, 2010
April 27th, 2010
East Bay Entrepreneurs gather at Bootstrappers Breakfast® meetings to compare notes and share business issues. Monthly breakfast meetings are at Athens Burger Restaurant in Dublin, CA beginning May 27, 2010, at 7:30 a.m.
“We are excited to add a new breakfast that supports the East Bay’s strong entrepreneur culture,” said Sean Murphy, founder of the Bootstrappers Breakfast group. “Gone are the days when the East Bay was just a bedroom community, it continues to create promising innovative startups especially in life sciences and clean/green technologies.”
“We were delighted when Pete Tormey of Action Patents volunteered to moderate this new Bootstrappers Breakfast meeting in Dublin. Pete has co-founded two companies and has extensive experience in both engineering and marketing,” continued Sean Murphy.
Since its inception in 2005, the entrepreneur group has grown to a national organization of startup founders who “eat problems for breakfast”™. The breakfast meeting format allows each entrepreneur to make a brief introduction and to ask for suggestions for one or more challenges they currently have. This encourages attendees to consider new approaches offered from peers.
“Fabulous networking and learning opportunity! I walked away with 2 actionable ideas for increasing my visibility in the community. I’ll be back for more.” — San Diego attendee
“I found it helpful today to have to articulate the specific challenges I am facing in my business in front of a receptive and helpful group of other business people. I also met a couple of great contacts that I plan to keep in touch with.”– Silicon Valley attendee
“I found the people who joined the breakfast were all very smart, experienced and valuable. I will definitely join next time to meet more people.” — Silicon Valley attendee
One entrepreneur’s unusual response to a question about an exit strategy of business, “I am not concerned about an exit strategy. I am more concerned about building a successful business, and then opportunities open up.” — San Francisco attendee
April 22nd, 2010
The Department of Labor recently clarified their guidelines in “Wage and Hour Fact Sheet #71″ on the demarcation between employment and an unpaid internship. The fact sheet “provides general information to help determine whether interns must be paid the minimum wage and overtime under the Fair Labor Standards Act (FSLA) for the services that they provide to ‘for-profit’ private sector employers.”
The full text is here http://www.dol.gov/whd/regs/compliance/whdfs71.htm the heart of their test follows:
The Test For Unpaid Interns
There are some circumstances under which individuals who participate in “for-profit” private sector internships or training programs may do so without compensation. The Supreme Court has held that the term “suffer or permit to work” cannot be interpreted so as to make a person whose work serves only his or her own interest an employee of another who provides aid or instruction. This may apply to interns who receive training for their own educational benefit if the training meets certain criteria. The determination of whether an internship or training program meets this exclusion depends upon all of the facts and circumstances of each such program.
The following six criteria must be applied when making this determination:
- The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;
- The internship experience is for the benefit of the intern;
- The intern does not displace regular employees, but works under close supervision of existing staff;
- The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;
- The intern is not necessarily entitled to a job at the conclusion of the internship; and
- The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
If all of the factors listed above are met, an employment relationship does not exist under the FLSA, and the Act’s minimum wage and overtime provisions do not apply to the intern. This exclusion from the definition of employment is necessarily quite narrow because the FLSA’s definition of “employ” is very broad. Interns in the “for-profit” private sector who qualify as employees rather than trainees typically must be paid at least the minimum wage and overtime compensation for hours worked over forty in a workweek.
The FLSA makes a special exception under certain circumstances for individuals who volunteer to perform services for a state or local government agency and for individuals who volunteer for humanitarian purposes for private non-profit food banks. WHD also recognizes an exception for individuals who volunteer their time, freely and without anticipation of compensation for religious, charitable, civic, or humanitarian purposes to non-profit organizations. Unpaid internships in the public sector and for non-profit charitable organizations, where the intern volunteers without expectation of compensation, are generally permissible. WHD is reviewing the need for additional guidance on internships in the public and non-profit sectors.
April 15th, 2010
Kevin Spreng, one of the moderators for the Minneapolis Bootstrapper Breakfasts®, forwarded this article from VC Experts on “Sources of Capital – Bootstrapping Sources And Techniques from VC Experts.” The article outlines techniques in the following areas:
- Friends and Family Loans and Investments
- Alternate Revenue (e.g. Consulting Revenue)
- Customer Prepayments or Discounting Accounts Receivable
- Supplier/Vendor Financing and Extended Terms
- Customer and Supplier Barter Arrangements
- Revenue and Pricing (price increases can provide funds)
- Customer and Supplier/Vendor Investments
- Deferred Employee Compensation
- Outsourcing (e.g. payroll & benefits, manufacturing, distribution and selling)
- Working Capital Management-Inventory, Accounts Working Capital Management-Inventory, Accounts Receivable, and Accounts Payable
- Operating Profit
Although the authors’ sympathies seem to lie with professional investment as the best source of startup capital there are some good overview insights for bootstrappers:
“Bootstrapping is the term used for nontraditional funding of a company using a series of interim techniques and sources to move from one company stage to another…The technique is routinely used by start-up or early stage businesses that do not have institutional or professional investors, keeping in mind that the great majority of start-up and emerging growth companies do not obtain funding from institutional or professional investors.”
“From the perspective of the entrepreneur or businessperson, bootstrapping may be viewed as a resourceful or creative way to address the financial need of the business for an interim period using the cash flow of the business and minimizing the use of external capital until the cash flow of the business can support ongoing operations. Given that excess funds are rarely available in this situation, bootstrapping may have the benefit of instilling financial discipline in the company’s leadership team and processes as they focus on managing cash flow and all of the influencing factors; they grow accustomed to running a tight operation.”
“Most entrepreneurial ventures are bootstrapped to some extent. Sources of funding come from anywhere the entrepreneur can find it. Much of the funding is through the use of services of other companies who might have an interest in the product or service if fully developed or launched. Entrepreneurs are creative, and how they structure relationships with other companies and obtain services is as varied as their personalities. … A word of advice: Never lose control of the intellectual property or enter into a relationship that cannot be reshaped into an independent entity capable of demonstrating growth, creating future value, and being financed.”
April 14th, 2010
San Diego, CA, April 14, 2010 — Given San Diego’s strong commitment to entrepreneurship and new business development, the Bootstrappers Breakfast (www.bootstrappersbreakfast.com) meetings promise of serious early morning discussions among bootstrappers will have many local entrepreneurs feeling right at home. The focus of the monthly meeting is on technology businesses whose next stage of growth is based on internal cash flow and organic profits. Entrepreneurs who like to “eat problems for breakfast” bring business issues and challenges to discuss with peers.
Date: (4th Tuesday) Tuesday, April 27, 7:30 a.m.
Location: San Diego, CA
Cost: $10 in advanced, $20 at the door
For more information see www.bootstrappersbreakfast.com or contact events@skmurphy.com
At last month’s meeting, the roundtable topics included: time management, trying to drive sales and managing the project without having to step out of a sales role. It also included discussions about tips on building a customer base. Members are saying great things about us:
- “A great experience; I enjoyed the roundtable format to hear about and discuss real issues faced by lean startups in the area. Looking forward to the next one!”
- “The Bootstrappers breakfast allows you to get an outside perspective, feedback, and answers based on your own challenges at hand. The response, experiences, and helpfulness from the rest of the group is great.”
April 14th, 2010
I moderated last week’s meetup of Bootstrappers’ Breakfast at Bouding Bakery in Embarcadero 4, and once again we had a great meeting. Attendees brought a very diverse background. Software developers, social media gurus, marketing and business consultants, and lawyers all came armed with unique perspectives as attendees took turns introducing themselves, their businesses, and their bootstrapping issues.
The sales and marketing themes were prevalent this week. One entrepreneur had extensive experience selling software into businesses, but he thought his new venture would require selling directly to consumers, an activity he found a bit intimidating. After hearing about his software offering, many around the table thought partnering up with other, complimentary businesses that already had an existing customer base was a viable marketing and distribution channel. Much to this entrepreneur’s relief, his experience selling into businesses might still be of use.
Another entrepreneur had a product offering with a marketing play that sent all profits to micro-financing organizations around the world. The entrepreneur had a large database of buyers’ names and contact information within his targeted businesses. The marketing wonks around the table began developing all sorts of marketing campaigns around the product and the micro-financing angle, offering ways to simplify the message so that partnering businesses and the end consumer would not be confused and would ‘get it.’ In this particular case, the entrepreneur was wondering how to automate the sales process. He had his product, he knew the names of the potential buyers, and he knew their contact information. He was worried he might have to pick up the phone and call each person directly. After a few minutes of discussion, the group came to the conclusion that, while there are ways to automate your sales message (e.g., email marketing campaigns), there really is no substitute for the tried and true technique of picking up the phone and calling.
Another lesson shared by one of the attendees: Complex financial structures at an early stage have a tendency to scare away future sources of capital. This particular attendee was considering joining a company that was having a hard time raising money because its early money raising efforts were non-conventional. When you’re looking for help from friends and family, keep it simple!
An interesting moment in the meeting occurred when a successful serial entrepreneur explained his latest idea. He had gone the VC route before and was really turned off by the experience due to how much control and ownership he and the other founders lost. Another attendee asked him about his exit strategy. This entrepreneur’s response, “I am not concerned about an exit strategy. I am more concerned about building a successful business, and then opportunities open up.” A refreshing perspective in our IPO/M&A obsessed environment!
One last gem of wisdom from the group came out when an attendee was explaining his idea for a social media play for musicians. The idea seemed very broad and there were several musicians in the group who began discussing the various challenges of implementing the idea. The group recommended user testing and someone pointed out that user testing a broad idea may lead to an actual, discreet problem that no one has ever considered; your very broad problem that is hard to execute upon and solve becomes a definable problem that is easier to focus upon and build a business around.
I hope to see you at our next meetup!
Tim Kennedy blogs at http://www.timothyikennedy.com/blog
April 14th, 2010
Given San Diego’s strong commitment to entrepreneurship and new business development, the Bootstrappers Breakfast meetings’ promise of serious early morning discussions among bootstrappers will have many local entrepreneurs feeling right at home. The focus of the monthly meeting is on technology businesses whose next stage of growth is based on internal cash flow and organic profits. Entrepreneurs who like to “eat problems for breakfast” bring business issues and challenges to discuss with peers.
Date: (4th Tuesday) Tuesday, April 27, 7:30 a.m.
Location: San Diego, CA
Register: http://www.meetup.com/Bootstrappers-Breakfast-San-Diego
At last month’s meeting, the roundtable topics included: time management, trying to drive sales and managing the project without having to step out of a sales role. It also included discussions about tips on building a customer base. Members are saying great things about us:
- “A great experience; I enjoyed the roundtable format to hear about and discuss real issues faced by lean startups in the area. Looking forward to the next one!”
- “The Bootstrappers breakfast allows you to get an outside perspective, feedback, and answers based on your own challenges at hand. The response, experiences, and helpfulness from the rest of the group is great.”
April 8th, 2010
If you can’t find one at a neighborhood rummage sale in the or in the bargain bin at the Desk Depot you can order your very own Bootstrappers Breakfast® mug today from CafePress.
Order Today!
Cup is 3.75″ tall and 3″ in diameter with a large, easy-grip handle, it is dishwasher and microwave safe.
Five reasons to order yours today:
- No garage should be without one.
- You can have it any any color you like as long as you like white or have a vivid imagination, and let’s face it if you are bootstrapping you have to be blessed with a vivid imagination.
- Can be used for hot or cold beverages not only in the morning but all day and all night.
- If you are tired of eating your problems for breakfast we have documented cases of entrepreneurs drowning smaller problems in a cup full of cold coffee. Some have been able to dissolve medium size problems in a cup full of Everclear (caution: Everclear may remove decorative logo and/or witty tag line from outer surface of cup).
- It’s also possible to dip your problems in a cup full of cocoa to improve their flavor before eating.
April 5th, 2010
New York Entrepreneurs Week is April 12-16, it offers a diverse set of speakers on a full spectrum of topics of interest to entrepreneurs. Three in particular that may be of interest to Bootstrappers:
Monday April 12 11:15AM – 12:30PM “I Have No Money, Now What?”
Panelists will discuss creative approaches to sustainability and stability as well as how to develop, build and scale a breakthrough company with limited resources.
Moderator: Scott Shuster, Business journalist (BusinessWeek, ABC News); Partner, Stratostream Entertainment.
Panelists:
- Greg Alvo, Founder of OrderGroove
- Chris McCann, Founder of Startup Digest
- Danny Wen, Founder of Harvest
- Amanda Freeman, Co-Founder of Vital Juice
Monday 4:45PM – 6:00PM “Selling for Survival: Getting Sales ASAP”
One skill which entrepreneurs need is something they don’t teach in business school – selling. Panelists reveal why the ability to persuade people to believe in your company is a necessity.
Moderator: Divya Gugnani, CEO of Behind the Burner
Panelists:
- Jenny Fleiss, Co-Founder of Rent the Runway
- Tad Martin, Founder of Cross Commerce Media (CCM)
- Mike Rothman, Directors of Sales at Thrillist
- Ben Kartzman, CEO of Spongecell
Wednesday April 14 2:45PM – 4:00PM “The 20 Hour Workday: The Reality of Building a $1MM Company”
Understand the highs and lows of building a company from the ground up. Learn what it takes to survive in the hypercompetitive marketplace with key guidelines, tips and advice from those who’ve done it.
Moderator: Divya Gugnani, CEO of Behind the Burner
Panelists:
- Jason Olim, Co-Founder of CDNOW.com
- Will Corrente, Founder of Operation Entrepreneur
- Aaron Arnold, Founder of Music is My Business
- Nate Casey, Founder of Blazetrak
Bernardo Joselevich, publisher of Bernado’s List has offered a discount code of BL2010 that will give you 75% off registration fees. Bernardo’s List is a list of industry events that reaches investors, entrepreneurs and executives, chiefly in technology, the media, advertising, Wall Street and venture capital in New York City and 16 other cities in the U.S
