February 2002 Newsletter
PM on February 12, 2002. Wehrwein, who is currently working as an
independent financial consultant and freelance journalist, will discuss
what it takes to win as an emerging company.
during which he worked on more than 60 IPO’s with Drexel Burnham
Lambert in New York City and Wessels, Arnold & Henderson in
Minneapolis. He has also served as CFO for two public companies,
Instent Inc. and Digi International.
the technology,” says Wehrwein. “But as the months march on,
the entrepreneur must increasingly focus on winning – doing
what it takes to get their company across the finish line.”
6:30 p.m. Informal Networking
7:00 p.m. Sven Wehrwein
http://www.mn-entrepreneurs.organd click on “Map to Meetings.”
1. On-line: http://www.mn-entrepreneurs.org(click Registrations link)
2. Phone: 651-687-0272
3. E-mail: info@mn-entrepreneurs.org.
person for the pre-meeting seminar. MEI Members attend the
monthly meeting session at 7 PM at no charge.
pre-meeting seminar at no charge!
- 5:30 - 6:30 p.m.
Pre-Meeting Seminar - $15 per person
Joan Moser. Moser is president of Spoken Impact, a public speaking
training and consulting firm that specializes in working with CEO’s of
emerging companies on investor presentations. Moser’s topic is
“Send me a pitch I can hit home with – Writing Winning
Presentations”.
job. Many CEO’s confess to making hundreds of presentations before
they ever receive their first investment. This long and labor-intensive
process could be significantly shortened by developing a clear,
compelling and credible presentation that grabs investors.
clear and compelling early in your investment presentation: What do
you do? What is the Value Proposition? And why are you going to
win? Using examples and exercises the group will learn how to
develop a message that quickly explains what you do so that both
technical and non-technical audiences can understand, how to craft a
compelling value proposition and how to identify your key message.
The remainder of the session will focus on what you need to cover so
help make your point and the top 10 mistakes to avoid when
presenting to investors.
http://www.reachapex.comto provide one more benefit for members!
chance to win two free months of professional coaching, valued at
$790! For your chance to win, join MEI prior to the meeting, or if you
are already a member, simply pre-register to attend the meeting!
Drawings will take place after the presentations during networking
time.
Kick-the-Can Vs.
Beach-head Investors
I have often thought that I spend about
50% of my time raising money and 30% on
making the government happy. That
leaves only 20% to get things done in a 40-
hour week. Eight hours is not a lot of time so you can quickly surmise
that in order to get things done, I often work nights and weekends.
categories of investors. This isn’t the sources of capital list at the
bottom of the graph that I provided and wrote about in last month’s
column. The two categories of investors I’m talking about here are
identified as “Kick-The-Can” investors or “Beach-Head” investors.
You might recall playing kick-the-can as a kid. If you don’t, I may be
giving away my age. I can’t even remember the rules of the game.
the can stopped moving. Hence, I developed my “Kick-The-Can”
theory of business.
metaphor for constantly making the choice to breath life into my
business. Every time I do so, I am exercising my faith that I will
succeed despite almost impossible odds. Alternatively, if any of us
decides to stop doing so [really caring], our business will die.
Malcolm Forbes expressed it differently by once writing: “If you don’t
drive your business, you will be driven out of business.”It’s a great
thought and right in line with my kick-the-can theory.
The other half is represented by beach-head investors. The kick-the-
can investor is eager to play the small business game and at one
extreme will operate on pure faith [a high level of trust]. At the other
extreme, they will require a moderate level of documentation to
support your great business idea.
of documentation and will have a variety of logical explanations for
not taking any immediate investment action. The most hideous
reason cited by beach-heads for not investing is: “My $25k won’t
really help you out in the long haul. You really need $250k in the big
picture I see [beach-head’s opinion]. Come back when you get the
other $225k.”Pick your own set of numbers in this scenario, as it
really doesn’t matter.
investors. They are eager to invest when trust is present, are not
unreasonable in their documentation requests and won’t drive you
nuts by endless requests for some additional item. The best clue you
are dealing with a beach-head investor is that they will always ask for
something more that will cost you dearly to provide in either time or
other resources such as cash. I.E. Audited financials, pro forma
projections, offering memorandum, etc.
action or inaction. The matrix below sums up these investors in my
they are giving you the runaround, see which group they are in for a
better perspective on what you are up against. Are they chasing you
or are you chasing them? It matters.
invest, it is time to walk away from them [my criteria]. They are
wasting your time and do not have the courage to tell you up front
they really won’t invest in your great idea. You should be in the green
zone for REAL investors unless you have deep pockets and a battery
of advisors (red zone demands).
of the beach-head investor. That is, having all the resources on hand
to get to the next business level. I.E. Having all the resources to take
the beach; to use a military metaphor. You raise X dollars and take
the beach. Then, you raise Y dollars and take the hill. Then, Z
wind up waiting a very long time before actually getting anything
done. It just one of your tough decisions to make.
[can] forward. I keep laying one brick at a time like a mason. Every
brick I lay down makes the business structure more solid. The big
question I ask is not how to get X, Y or Z funds [bank loan, etc.]. It is:
“What can I do with my existing resources?”It is a different question
and it requires more patience.
name. Looking forward from that date I note that I have managed to
obtain four U.S. Patents; two foreign patents; products in 34 states
that have proven the technology I have developed; and, a host of
other solid entrepreneurial achievements. Had I depended upon
beach-head investors, virtually none of this would have been
accomplished. That is something to think about as you deal with
investors. This investor matrix will help you identify which type of
investor you are actually dealing with and how best to proceed.
new product development matrix. It was one of the most useful
technology presentations I have seen. Andy’s new product
development model was another useful entrepreneurial tool.
struggle. Mark your calendar and don’t miss more “inside”
information from people in the know. Stacking your entrepreneurial
toolbox is what The Minnesota Entrepreneurs is all about. Don’t miss
our February double-header!
The Minnesota Entrepreneurs, Inc.
Winning Investment Presentations: “Send Me a Pitch I Can Hit Home
With,” presented by Joan Moser, CEO, Spoken Impact
Featured Speaker: “It’s All About Winning” -Sven Wehrwein, Financial
Consultant and Columnist for Twin Cities Business Monthly.
Restaurant at 225 W. 7th Street in St. Paul (7 blocks from MBA)
Restaurant, Doubletree Park Place Hotel in St. Louis Park. Call Bill
Lehnertz at 952-948-1105.
Library is launching a new online search capability & has a wealth of
information that the entrepreneur can utilize to grow their business.
Media Company. Ernst & Young’s Entrepreneur of the Year (Upper
Midwest Region) for 2001.
operation following this simple practice: keep trying different angles
until one works. Join us as Jim shares his “lessons learned the hard
way.”
Technology Services Firm in a Recessionary Market."
father Henry's restaurant chain, from the brink of collapse into a fast-
growing franchiser and service provider to independent restaurants.
The company now has a healthy cash flow. Learn how David Kristal
came up with this winning strategy.
Business Academy located at Wabasha & Exchange Streets in
Downtown St. Paul. Meeting dates are as follows for 2002.
February 12, 2002
March 12, 2002
April 9, 2002
May 14, 2002
June 11, 2002
August 13, 2002
September 10, 2002
October 8, 2002
November 12, 2002
December 10, 2002
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Members may attend the Monthly Meetings at no charge. This
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Why register in advance?
Pre-registering assures that we will have adequate seating and
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plan to attend, we can make plans in advance for pizza delivery or
other between-session munchies!
What is the benefit of joining vs. just attending as a non-member?
Save money, be included in our regular mailings, be able to vote
and participate in committees, and receive other membership
benefits.! Join now for only $79 for 2002, and attend the monthly
meetings at no charge— a savings of $100! You then pay only $15
for any “Pre-Meeting Seminars” you attend.Q:What about Corporate
Memberships?
$178.00 allows up to four company members to attend Minnesota
Entrepreneurs, Inc. monthly meetings (any programs beginning at 7
PM) at no charge. You then pay only $15 per person for any “Pre-
Meeting Seminars” you attend.