11:25 AM
-OCTOBER 2002 E-NEWSLETTER
•MEI's NEXT MONTHLY MEETING: October 8, 2002
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•Annual Meeting Notice & Date Change
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•WELCOME NEW & RENEWING MEMBERS
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•PRESIDENT'S COLUMN
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•MEMBERSHIP APPLICATION - Individual and/or Secondary Members from the Same Company
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•COMMITTEE HIGHLIGHTS
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•FUTURE MEETINGS
Registration & Informal Networking
MPI has a strong and successful history of providing assistance to Minnesota
businesses. Created in 1984, MPI partners with federal and state agencies in
operating three business centers of excellence: a Procurement Technical
Assistance Center < http://www.mpi.org/ptac/index.htm> , the Technology
Innovation Center < http://www.mpi.org/randd/index.htm> , and a Business
Information Center < http://www.mpi.org/bic/index.htm> . MPI is a recognized
national leader and has assisted Minnesota businesses secure more than $480
million in government grants and contracts since 1984.
MEI Announcements & Table Networking Session
Steve Brewer, Eureka Marketing, Inc.
The Numbers Behind Networking: Results from Researching Twin Cities Business Groups
As MEI looks to the future, we want to make sure we meet the needs and expectations of our members. Steve
will share his insights and outline what successful organizations do to grow and develop their membership base.
Networking
Post Meeting:You are invited to join us for Late Night Networking at Patrick
McGovern‚s Pub & Restaurant at 225 W. 7th Street in St. Paul.
competing and winning government grants and contracts for research and development, and
through the sales of products and services to all sectors of government.
Technology Partnership program authorized by Congress and endorsed by the Governor of
Minnesota. In this capacity, she assists companies with business, marketing, and technical
assistance as it relates to the Small Business Innovation Research (SBIR) and Small Business
Technology Transfer (STTR) programs. She is also co-founder of the Minnesota Seed Capital
Network, an initiative that facilitates seed financing opportunities for small technology-based
businesses.
and was the Principal Investigator of an Office of Naval Research (ONR) contract for the first ever
SBIR Road Show in Minnesota. Ms. Dillon is a member of the following organizations: National
Contract Management Association; University of Minnesota and Minnesota High Tech
Association Committee; Society of Research Administrators; Association for the Advancement of
Science; National Defense Industrial Association; and the Naval Reserve Association.
career spans both operational and staff positions. She understands the complexities of
government research and development, and the demands of technology commercialization. Ms.
Dillon brings a wealth of experience and knowledge to the SBIR/STTR programs, and is keenly
aware of the needs of our nation and the capabilities needed by small businesses to effectively
compete in the SBIR/STTR programs. Ms. Dillon earned a B.S. and an M.B.A from Winona State
University.
Government Contracts.
Results from Researching Twin Cities Business Groups
To find some answers, Steve Brewer researched local networking groups for his Master's Thesis at St. Thomas.
He surveyed 17 area business groups in person, and he also reviewed the available literature on joining groups.
Entrepreneurs.
is the owner of Eureka Marketing Services in St. Louis Park. He has helped many small and
mid-sized companies to create and implement winning marketing strategies. Details are available at
www.eureka-marketing.com < http://www.eureka-marketing.com> .
during and after the monthly meetings.
quick start suggestions for beginning to emerging stage entrepreneurs!
Our keynote presentations offer real-world experiences by
entrepreneurs that have been successful. They share how they overcame
obstacles, and offer inspiration by sharing stories of their success.
We are developing a new interactive web site. In 2003,
members will be able to access information about each other's business on-line!
Join a committee, share your talents. Be an active participant as
we bring this association to the next level.
http://www.mn-entrepreneurs.org/join.htmfor a membership application form.
members from the same company at half price! So, the second, third, fourth persons, and so on, from
the same company and same location, can now join at half the price of the main member ($60 each). We will
no longer have 'global' corporate memberships, but rather each membership will be attributed to a particular
person.
Thomas Roman, ElectroSoft Engineering, Inc.
Chris Andryski, CPA, Minnesota Financial Solutions, LLC
to coincide with the
November 12thMeeting
Vote for your legislators on November 5th,
and your MEI Board Members on November 12th!
are expiring. We will also be finalizing the changes to the Bylaws at this time. This is
YOUR organization, please be sure to attend and VOTE!
WATCH YOUR EMAIL!
Members will receive a separate announcement within the next week, outlining the nominations, as well as the
Bylaws.
MEI - October 2002
flow, cash flow, cash flow.‰Charlie Slater, our September speaker, gave a good illustration of zero cash
resources when he said: „The lack of cash is like being in hell with fluorescent lights. It‚s like you cannot breathe.„
Charlie told us how it felt going to the mailbox to find a check for a few thousand. „It was like a breath of fresh air
entering my lungs albeit a short-lived moment‰ [until he could end the cash flow bleeding of his business].
I have been there. I remember a time that a truck was pulling into the office parking lot to drop something off for
the company across the hallway. It was a tight spot and my Le Baron convertible was close by. I thought to
myself: „I should move the car.‰However, I was too late and by the time I got out the door, the truck driver had
dropped his dolly on my right front fender. It was $700 damage and the trucker‚s insurance promptly paid me.
What did I do with the $700?
cash and I needed more cash resources, so I used the funds for the business. I might add that if you are
personally concerned about the image you are projecting with your car, this particular cash flow tactic might not
work for you. However, if driving around with a fender dent does not bother you, this is cash tactic to consider.
You would be surprised at how many times my car was smacked over a period of several years.
figure out how it is that you will survive. When 9/11 happened, I was burning about $11K per month in negative
cash flow. I planned to offset the negative cash flow with investment capital [cash in]. It did not materialize.
After 9/11, investors disappeared en masse. In 1Q2002, I took action to minimize the negative cash flow so that
the business would be in a more tenable position. In short, so it could survive for another time in which to
monthly basis. However, astute cash managers know the cash they have on hand daily. CASH IN includes all
sources of revenue, interest, investments, etc. CASH OUT includes all expenses, debt service, etc. Your goal is
to have more cash coming in then is going out each month.
other cash flow events. You may offer 30-day credit terms on your sales. Your suppliers may require that you
pay up front. That gets you into a „negative‰ cash flow. As you employ more employees and grant various
levels of spending authority, the cumulative effect of their activities in a given month might also get you into a
negative cash flow.
quarters as I like to refer to the situation] ˜ it is the perfect time for family and friends to swoop down on you and
offer their advice. „Isn‚t it time you get a real job? After all, you have given it a good shot. No one will blame
you. It‚s just the times we are in.‰They might also now add: „After 9/11, who can blame you?‰
how much emotional pain and stress you can endure. You alone will have to decide what is next because only
you can see your entire business picture. You might see sales coming in a few days or investments in a few
weeks. Others, who are uninvolved, cannot see your total business picture. Whether or not you continue to
tough it out lies within yourself and it is the internal stuff that separates out the real entrepreneurs.
any more debt [because you read my last month‚s column?] and you now find yourself with virtually no cash. You
cannot claim to be penniless because you own a nice home and have a lot of equity in it even if you cannot
make the monthly payments or access the equity. However, to get the groceries, you find yourself going to a
store with a family member who buys your groceries on their credit card. Think it cannot happen? Guess again.
I know it does from my own personal experience.
understand that business grows incrementally and not in a smooth linear fashion. That means, even if you are
putting in 80-hour weeks, it does not mean you can afford to hire someone to take over 40 of them.
„Just hire a sales person‰. People who have never lived the entrepreneurial life espouse this type of cheap
advice. These are simplistic answers to tough cash flow issues. At the foundation of every one, the business
must be able to support the statement from a cash flow perspective. I.E. You can hire a sales person IF you can
at least pay their living expenses to get them going. I do not know of any sales people who can live off cash
vapors whilst your business demonstrates the success you feel will be achieved through their efforts.
arrives. The business slows down because of unexpected macro events. An engineer doing some equity work
informed me just today, why he retired [stopped]. First, 9/11 caused two of the six businesses that kept him
afloat to file for bankruptcy. In another, the owner died. The three remaining had no work and were having
trouble keeping their internal staffs going. The final cash flow blow came when his computer crashed destroying
all of his files. When you can relate to these types of unpredictable cash flow events, you will understand cash
flow issues.
not attend our meetings, you are losing out on valuable first hand experiences like Charlie Slater‚s discussion of
cash flow. Plan to attend on the second Tuesday!
Which committee will you join?
avenue to "Network" and make new contacts.
LEADERSHIP DEVELOPMENT - This committee is led by a Past President and monitors and implements
our nominations and elections process. Look for their involvement as we vote on the new volunteer
leadership to the Board of Directors in the next month. Bill Lehnertz, formerly a president of MEI, chairs
this committee.
STRUCTURAL SUPPORT & GUIDANCE - The bylaws committee seeks new leadership!We
are in the process of updating and revising our bylaws, as well as putting them on-line for
membership review. If you are up to the challenge of recognizing and supporting the structural
component of this organization, please contact Ed Palmer (ceo@solarattic.com ), Eric Strauss
(eric@entrepreneursforhire.com ) or Kathy Gatliff (kathy@mn-entrepreneurs.org).
SPONSORSHIP & FINANCIAL SUPPORT ˆ We are looking for financial support in exchange
for recognition. If you would like to support any of our monthly activities, or provide a
donation towards purchase of supplies or equipment for the organization, please contact
Maria Kannankutty for further information at:mkannakutty@charter.net.
PROVIDING A TEMPLATE for YOUR BUSINESS DEVELOPMENT - Plans are underway to develop
an annual educational program for business start-ups. If you are interested in being a part of the Educational
Committee please contact Christy James at cj@vezone.com for further information. NOTE:Christy has
done an excellent job for us this past year! We'd like her to continue, however her job travel commitments
are increasing, and she will not be able to attend as frequently, though she'll still serve on the committee! If
you'd like to consider chairing this committee and serving on the board, please contact Ed Palmer:
ceo@solarattic.com.
FISCAL RESPONSIBILITY - The Finance Committee is working with the Development
Committee to make sure that our budget goals and expectations are met for the
year. They have also been asked to find a partner for credit card processing for
dues, sponsorships and registration fees. If you'd like to assist with this
committee, please contact Kathy. Chris Andryski has volunteered to assist us on
this committee, and graciously offered to volunteer as Chairman for the coming
year.
COMPLIANCE - The Legal Advisory Committee keeps a watchful eye on our
articles of incorporation for changes. If you'd like to assist with this committee,
please contact Roger Zahn at rzahn@e-lawfirm.com. In addition, we need to make
sure that a representative of this committee, if not the chairperson,is present at
every monthly meeting and every board of directors meeting.It would be helpful to
have at least one other lawyer serving on this committee.
NAME RECOGNITION - Eric Strauss has been working diligently at developing our name
recognition in the community through press releases, networking groups, and trade show
participation. In addition, Eric is in the process of supplying the infrastructure to upgrade our
website and automate our membership roster and on-line newsletter as well. If you have any
interest in supporting these activities and would like to serve on the committee, please
contacteric@entrepreneursforhire.com.
GROWTH and SYNERGY - The membership committee seeks your involvement!
Slava Thaler is working on this committee. If you are up to the challenge of
building our organization, please contact Slava or Ed Palmer (ceo@solarattic.com),
Eric Strauss (eric@entrepreneursforhire.com) or Kathy Gatliff
(kathy@mn-entrepreneurs.org).
INSPIRATION - Jim Poole has recently volunteered to chair this committee. He will be working closely
with the Christy James and the Education Committee to find inspirational speakers that will complement the
monthly educational programming. If you are "well-connected" or "in-the-know" and want to help
contact speakers for these programs, please contact Jim atjpoole@sotk.com.
RESOURCES - MEI's goal is to keep up with the changes in our age of electronic
commerce. This committee serves as a resource for the MEI organization, as well
as developing a resource pool for the individual members. We are in the process
of switching our web site to a new service provider. If you have talents in this
area and would like to share your skills and expertise, please contact Joe Betz
at joeb1993@aol.com.
That members pay the equivalent ofonly $10 per meeting? That's right! For $120 per
year, you have access to 12 months of programming - with two presentations at each evening event!
MEI Membership Campaign:Every new and renewing member will get 2 certificates to bring a
bringing in any new members! See Kathy at the registration desk to get your certificates!
Get a sneak preview....Tune to KCCO at 950 AM on the first & second Tuesdays of the month at 6:20 a.m.
at the Minnesota Business Academy Wabasha & Exchange Streets - Downtown St. Paul.
(Educational Seminars begin at 6 PM and the Keynote Presentation begins at 7:15 PM)
Small Business Assistance Office
MN Department of Trade & Economic Development
Charles will also discuss the many free booklets of resources that they have
available at DTED, including the Guide to Starting a Business in Minnesota.
Internal Revenue Service
Alan Gregerson
via:
and people.
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others)
networking at 5:30 PM, at the Minnesota Business Academy.
at 4:00 PM. Call 651-687-0272
for Board Meeting location. Board Meetings are open to MEI Members only.
copy this address and go to:
http://www.mn-entrepreneurs.org/reserve.htm
$25 at the door, cash or check ˆ or $20 if you register in advancevia the
web site or call Kathy to make your reservation: 651-687-0272.
to the meeting at MBA and information on parking, please copy this address and
go to:
http://www.mn-entrepreneurs.org/addr_map2.htm
Join us October 8th at MBA ˆWabasha & Exchange Streets in St. Paul(the old Science
Museum of Minnesota) Registration opens at 5:30 PM
list. To no longer receive our newsletters or other information, simply reply to this email with remove in the subject
area. We will promptly remove you from our email list. Thank you for supporting entrepreneurship in Minnesota.
the Science Museum of Minnesota) and learn more REAL LIFE ENTREPRENEURIAL EXPERIENCES from
someone in the know. Directions on our web site at http://www.mn-entrepreneurs.org.