Presentation at University of Rochester Marketing Majors

1. Hugh J. Rundle
hjr47@hotmail.com
The Path to Become a
Successful Entrepreneur
University of Rochester
March 29, 2016

2. HJR background
Xerox Corp
PriceWaterhouse Coopers
Founded 8 technology & service businesses
Sold 5 businesses
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3. Entrepreneur’s Plan for Success
• Skills Inventory
– Do you have the right personality?
• Understand Business
– Sales & Marketing
– How to make $
• Investment criteria
• Summary
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4. Small business experience
Who has owned or run a small business?
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5. Small business experience
Who has owned or run a small business?
You have if you’ve
• Owned a check book
• Great cash flow experience
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6. Who is an Entrepreneur
• Pursues a dream
• Creates value
• Makes life better
• Personal investment
– Time
– Money
– Other resources
• Has fun along the way
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7. Entrepreneurial assets
• Honesty … esp. with your self
• Biggest asset
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8. Entrepreneurial assets
• Honesty … esp. with your self
• Vision
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9. Entrepreneurial assets
• Honesty … esp. with your self
• Vision
• No fear of failure
– learn by it
– admit when you are wrong
– move on
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10. Entrepreneurial assets
• Honesty … esp. with your self
• Vision
• No fear of failure … learn by it … move on
• Be passionate about your beliefs
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11. Entrepreneurial assets
• Honesty … esp. with your self
• Vision
• No fear of failure … learn by it … move on
• Be passionate about your beliefs
• Overcome the unexpected
• Perseverance
• Eliminate negative influences
• OK to make mistakes
• Good communications skills … esp. listening
• Share the rewards with others
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12. Business startup basics
Get Agreements in writing early on
• Who does what w/ defined expectations
Definition of Friendship
• Changes as sales increase
“DON’T YOU TRUST ME”
• “In God We Trust,” all others have contracts
• Contracts are for successors
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13. Approaches to solutions
• Thinker or Doer
DON’T OVERTHINK THE SOLUTION
• You won’t get it right the first time
• Consumers don’t care about 100%
• Get it to market
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14. Develop focused Marketing strategy
Apple strategy:
–hardware options, OS & support
–Apple I
–Apple II
–MAC
–Lisa
– Understand how your market buys
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15. Business Development,
Marketing & Sales
• Business Development
– Develop sales infrastructure
• Marketing
– Develop the value proposition
• Sales
– Sell the value proposition
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16. Marketing value proposition
People buy on:
• value perception
• may or may not include facts
– How will it make my life better
– Why do I need it
– How have I lived without it
– Value to me in $
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17. The Customer experience
“The customer is always right”
Actually they are not
• But without them, you have no business
• Ensure they feel the value and are valued
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18. Product Success Cycle is Endless
Listen to
Customers
Develop
Product
Market, Sell &
Distribute
More Market
Research
Enhance
Product
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19. Path to profit & success
• REDUCE ALL CYCLE TIMES
– Sales
– Receivables
– Manufacturing & Distribution
– Investor ROI
– Time to make customer happy
• DEVELOP ANNUITY REVENUE
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20. Sourcing Cycle: US vs. Off-Shore
Which product has a lower total cost:
– Made Off-shore @ $2.75
– Made in Rochester, NY @ $3.25
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21. Sourcing Cycle: US vs. Off-Shore
What’s my landed cost
• Cost of product
• Freight to US port
• Fees
– Insurance
– Import duties & taxes
– Bank
– Brokerage
• Freight to distribution center
• Every product touch = increased costs
• Time = lost $
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22. What investors look for …
• Sales, sales & more sales …
• Concept: Validated or still an idea
• Scalable & Annuity opportunities
• Patents (US & PCT)
• Risk
• Competition
• High margins & Debt
• Inventor’s time & investment
• Management team & salaries
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23. Company Valuation
HIGHER if you have:
• Sales
• Patents & IP
• Experienced management team
• Lower risk
LOWER if you have:
• No sales or pattern of acceptance
• No IP or trade secrets
• Inexperienced management team
• Higher risk
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24. Summary for Success
• Sales, sales & more sales …
• Like a Golf swing: many paths to success
• Never fall in love with an asset
• Follow your dream
• Know your customers
• Know why they buy
• Get others to buy into your passion + share
Have fun
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25. Resources: Innovation Institute
http://www.wini2.com/
• Evaluates ideas for US $250 / $270 Int’l
–Good Go/No-Go evaluation report
– Founded by Sam Walton (Walmart)
– Formerly Wal-Mart Innovation Network
• Shark Tank
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26. Questions
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