Stories from the front lines - University of Wyoming · 2020-04-10 · CoVergence, LLC | | 301-801-4706 Venturists Those of us who get personal, professional, community, ﬁnancial

CoVergence, LLC | www.covergence.co | 301-801-4706

Stories from the front lines www.covergence.co/uwtalk


Outcome�

q  That in spite of the challenges and pitfalls being a Venturist can provide unique business, career and life experiences#

q  That you get at least 1 key question answered#

2 Logic will get you from point A – B, imagination will take you everywhere! - Albert Einstein


Venturists�

Those of us who get personal, professional, community, financial fulfillment from the relentless pursuit of imagining something and then making it happen, and love the journey of learning#3

Venturists - Kind of like being a pro golfer


Write down your story�

§  Hungry – I was the 7th of 8 children – I was on my own and had to improvise#

§  Mentors – Vince Zummo’s candy store#

§  Risk taking – I jumped off 40’ cliff’s at 12 #

§  Curiosity – I love to read #

§  DNA – my father was a straight commission

salesman for 46 years – two grandfathers as Venturists#

§  My faith – has taught me so much about human

frailties and change, and gave me peace in the

midst of chaos#

§  Parents and grandparents – were all go-givers#

4

Zummo’s Candy Store Clerk

Falls @ Nayaug Park


Select Ventures�

5

Company Timeline The Computer Forum Apple PC Store ‘81-‐88

Rainbow Computer Corp So;ware: Commodore 64 ‘83-‐84

Touchstone ConsulCng Management consulCng ’92-‐’04

So; Bike Company So;ware: ProducCvity ‘95-‐98

CT&E Smart Conference Rooms ‘94-‐’00

Discovering Digits Math PublicaCon & Web ‘05-‐’07

Pliris Carpet cleaning ’06-‐09

Anerian InnovaCon ConsulCng ‘07-‐09

Language of Life Child advocacy ‘06-‐Present

Greener Community Real Estate ‘07-‐14

1901 Group IT Services ‘08-‐Present

Anthracite Warranty (IT Devices) ’11-‐?

CoVergence Social venture advisory ’08-‐Present

YViC Ministry New Venture

Win Loss Tie Ongoing


Examples�

6

Founded – 2009 Focus – IT managed services

•  Early to the federal market

•  ConCnually trying to find the

right staff / service mix

•  Shi;ing the message from

purely cost savings to greater

flexilibity

Founded – 1992 Focus – ConsulCng to the federal government •  Couldn’t break thru $5m

•  Lost 100% of our contract

work in Apr 2001

•  Restructured by June

•  Grew monthly run rate 30x in

three years

Founded – 2006 Focus – educaCng 3rd-‐5th graders: excel in arithmeCc •  Spent $400k of our own funds

•  Wasn’t an educator

•  Couldn’t find the buyer

•  Built a web-‐site and magazine

$$$

Touchstone DiscoveringDigits 1901Group

•  Constantly trying new things •  Cutting costs when we had to •  Finally finding the focus

•  Latched onto a trend “e-Gov”

•  Didn’t know the domain •  Tried both web and magazine •  Didn’t start small and iterate

•  Chose a smart partner •  Great starter contract •  Orchestrated a major pivot

•  Hired a great team


Setting expectations�

7

Everything He Does Fits

Not so much

q  Abandoned ideas I loved#

q  Worked with partners I didn’t always love#

q  Almost went bankrupt three times#

q  Pushed the boundaries with my family#

q  Lost 100% of our contracts at least twice#

q  It took me 22 years and 8 colleges to get

my first advanced degree#

#


QUESTIONS YOU ASKED�

§ How to get started?�

§ How to generate more revenue?��

§ How to attract talent and deal with people?��

§ How to cut costs��

§ How to raise funds?��

§ How to prepare to sell the company?��


How to get started�

Prepare!

§  Inventory your personal assets#

§  Have 10,000 hours under the hood#

§  Build a startup management team#

§  Try it for as long as you can without

quitting your current job #

§  Get a degree from M.S.U.#

§  LEARN THE NUMBERS!!!#

#

9

Steps!

Explore!

1.  Write down your story#

2.  Share your story with 100 people and write down EVERYTHING!#

Prototype!

1.  Build an example #

2.  Develop your what if scenario#

Launch!

1.  Get a paying client#

2.  Refine the service or product#

3.  Go get another#

Stay Healthy


Approach to launch�

10

What if - If I created a monthly service to provide on-call sales and marketing advice to grow your business on a monthly basis: #

–  Monthly coaching - two hour, one on one coaching sessions regarding marketing, sales, finance and people challenges and opportunities #

–  On-demand access for quick questions#

–  Access to repository of articles and templates!

Would you consider this type of service for ~$300 per month?#

My story – I realize as a the descendant of givers that I was meant to help facilitate positive change in our community. At CoVergence I am going to fund my efforts to help youth groups, high school and college students become “changemankers” by providing high value advisory services to small to mid-sized companies, on a subscription basis.#

My business goal – I will be the best small to mid sized business resource, providing tremendous value at a very competitive rate and use the proceeds to fund my efforts in helping launch new social ventures. I will launch 100 programs in the next 10 years to impact thousands.#


Startup roadmap�

11

Explore Prototype Launch

Ask: If I had a service that provided x would it be of interest to you? I am thinking of charging y, for z value. What advice do you have?

Test: I have developed this new service that a few friends have used and love it, would you consider being an early customer (pioneer) in return for x

Invite: I have n customers who are paying y each month for z service, and they report _____ would you consider joining

Asking advice, identifying real candidates, workability, uniqueness

Some number of early customers, proof, momentum

Meaningful revenue and wins

Stage

Approach

Purpose

Scale

Listen continually & adjust Give until it hurts Recognize it takes time to build a reputation and following

Forecastable revenue, and manageable costs

Fist client Wealthy social investors Early work with no overhead

Profits Grants Partnerships

Funding Early clients “what if” Wealthy social investors Partners Events

Profits Grants Partnerships



§ How to get started?��

§ How to generate more revenue?�






Useful tools�

13

q  Listen to your clients early and often#

q  Take your product / service or story to unique places (e.g. if you have done startups on the east coast, go speak on the west coast)#

q  Price – always provide multiple options for pricing#

q  Promotion#–  hair cuts – offer annual subscription for 14 for mom and 12 for each child at a discount#

–  Get on every free business site: google, bing, aol, yahoo, …#

q  Package – the experience – why do you pay $4 for a cup of coffee at Starbucks#

q  Develop new ‘if statements’ every year#

q  Build your mafia offer#

q  Teach everyone your business model – make everyone a salesperson#


UW Incubator Authors / editors Feeder companies •  Accountants •  Bankers •  Other consulting firms •  IT Firms Visual artists

•  Acquiring clients: Speaking Writing, Teaching, Referrals

•  Assessments •  Modeling ��

(business, org, cost) •  Advising

Helping firms become change-makers in the community you serve Grow your business: understand the customer, understand the true pain points Manage your cash by modeling and tracking every dollar Invent a service that is so compelling 80% of your customers will buy

Direct one on one relationships College teaching

Anyone who wants to make a difference in the community Those considering startups Companies struggling with growth Problems with people and cash Companies wanting to create a new service

•  My time, subcontractors – 93% •  Education – 5% •  Authors / artists – 2%

•  Hourly advisory services – 85% •  Workshops – 15% •  Subscription services – 0% •  Publications – 0%

Industry research Business modeling materials Pool of advisors for subcontracting

14

The CoVergence Business canvas�

Monthly check-ins Go-giver attitude Useful / targeted insights Service guarantee – no value, no bill


15

Revenue generation continuum�

A2ract Capture Convert Execute Expand

Ac:vity

•  Conferences •  SEO •  Round tables •  Door openers •  Speaking

engagements

•  White papers •  PresentaCons •  Cost analysis •  CompeCCve

analysis •  PromoCons •  IncenCves

•  Proposal •  Pricing •  NegoCaCng

objecCves and goals

•  Delivering the service

•  ValidaCng the service quality

•  Obtaining referrals

Budget

Goals Qualified Leads Size of Pipeline Backlog Billings New requests Referrals

Metrics New / month Size and new addiCons per month

Value in $ of total backlog

Revenue per month

New requests Loss work


Mafia Offer�

“Mr. Customer, don’t give me orders. Your orders are based on your best guess of how many labels you think you might need. That’s because label printers put that price per quantity curve in front of you and force you to have to guess out six months. The forecast ends up being wrong, and how can it possibly be right? Instead, tell us every day how many labels you use and we can guarantee, on the one hand, that you won’t have to hold more than two weeks’ worth of labels. And you know how your marketing department was complaining that they can’t make the changes they want because you have six months worth of inventory? Well, now you will only have two weeks. At the same time, we will guarantee that we never stock you out. We will guarantee that you’ll never go to the shelf and not have the label you need. And if we ever do stock you out, we will pay you $500 per day per label. We offer all this at the same competitive price you pay today and of course you will have a lot less of your cash tied up.#

16

”Lang, Lisa (2010-04-30). Mafia Offers: Dealing with a Market Constraint (Chapter 22 of Theory of Constraints Handbook) (Kindle Locations 237-244). McGraw-Hill. Kindle Edition.





§ How to attract talent and deal with people?�





Hire great talent�

18

q  Hire referrals from your best staff,

friends or colleagues#

q  Contact Ashoka about their talent acquisition program#

q  Use testing: aptitude, EQ and

Myers Briggs#

q  Do internships and coop programs#

q  Transition people out: high

performers, low cultural fit#

Cultural Fit

Per

form

ance






§ How to cut costs�




Preserve cash�

20

q  Reverse engineer your budget#

q  Track every penny#

q  Find an objective, disconnected advisor #

q  Evaluate all costs compared to competitors#

q  Facilities – sub-let your space#

q  Staff – hire fractional staff vs Part time#

q  Cut before you have to#


Reverse engineer your budget�

21

q  Set a financial goal for the year#

q  Develop a plan based on that forecast#

q  Allocate costs by category#

q  Track plan vs actual and gaps#

Plan Acutal Gap

Revenue 1,000,000$$ 975,000$$$$$$$ (25,000)$$$$$$

Consulting3labor 50% 500,000$$$$$ 525,000$$$$$$$ 25,000$$$$$$$$

Gross%profit 50% 500,000$$$$$ 450,000$$$$$$$ (50,000)$$$$$$

Available3for3overhead 400,00033333

Overhead $Bench$time 35.0% 140,000$$$$$ 115,000$$$$$$$ (25,000)$$$$$$Admin 25.0% 100,000$$$$$ 100,000$$$$$$$ 9$$$$$$$$$$$$$$Marketing 4.0% 16,000$$$$$$$$ 24,000$$$$$$$$$ 8,000$$$$$$$$$$Prof$services 6.0% 24,000$$$$$$$$ 24,000$$$$$$$$$ 9$$$$$$$$$$$$$$Rent 12.0% 48,000$$$$$$$$ 48,000$$$$$$$$$ 9$$$$$$$$$$$$$$Office$exp 4.0% 16,000$$$$$$$$ 16,000$$$$$$$$$ 9$$$$$$$$$$$$$$Technology 10.0% 40,000$$$$$$$$ 40,000$$$$$$$$$ 9$$$$$$$$$$$$$$T&E 4.0% 16,000$$$$$$$$ 30,000$$$$$$$$$ 14,000$$$$$$$$

100%

Subtotal3Overhead 400,000$$$$$ 397,000$$$$$$$ (3,000)$$$$$$$$$

Net3Income 100,00033333 53,000$$$$$$$$$ (47,000)$$$$$$

Margin 10% 5.4%


RESOURCES�


Resources�

23

q  Ashoka.org – social ventures#

q  Growthmatters – Bring product to DC market#

q  Hubshout – online marketing#

q  Vistage – executive cohorts#

q  Happylifebydesign – graphic artist#

q  Craigslist for independents#

q  Author / editor – Marissa Tejada#

q  www.Udemy.com#

What drives success - NY Times article http://nyti.ms/19UTOS6 www.covergence.co/perspectives HBR: •  3 Rules for success •  What really works (4 + 2) •  Venture Philanthropy

Books •  Change before you have to •  Go Givers •  Business model generation •  E-Myth •  Think and Grow Rich •  The experience economy


A few favorites�

§  Cystic Fibrosis FoundationVenture Philanthropy for drug therapy!

§  Horizon financial – setting up orphanages!

§  RenewStrategies

On the ground research for frontier investment!

§  Oxford house –

Transition housing for those in recovery!

24


Ruminations�•  Stay healthy!#

•  Listen to your clients and advisors#

•  Let others know what that you value them#

•  Don’t get buried by mistakes, learn from them#

•  Manage your career or someone else will#

•  Accept things as they are, not as you wish they were#

•  Be just as enthusiastic about others success as you are about your own#

•  Find your story and share it…however you choose#

•  Breeeeeeeth!#

25


THANK YOU!�

[email protected] @SteveLynott

Documents

Stories from the front lines - University of Wyoming · 2020-04-10 · CoVergence, LLC | | 301-801-4706 Venturists Those of us who get personal, professional, community, ﬁnancial