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An Entrepreneur’s Cheat Sheet for Starting Up*
September 2006
*
An Entrepreneur’s Cheat Sheet for Starting Up ....................................................................... 1
Business Plan Competitions ..................................................................................................... 2
Clinics .......................................................................................................................................... 2
Incubators ................................................................................................................................... 2
Funding sources ......................................................................................................................... 2
Fund Raising ............................................................................................................................... 3
Networking Opportunities.......................................................................................................... 4
Legal ............................................................................................................................................ 4
Press releases ............................................................................................................................ 5
Business Plans ........................................................................................................................... 5
Websites ...................................................................................................................................... 6
Free resources ............................................................................................................................ 6
People in the area entrepreneurs will want to know................................................................ 6
*
Prepared by Julian Awad for Prof. Diana L. Day as part of a class assignment.
Page 1 6/8/2010
An Entrepreneur’s Cheat Sheet for Starting Up
Business Plan Competitions
o Wharton - http://bpc.wharton.upenn.edu/index.html
o Drexel - http://www.lebow.drexel.edu/Centers/Baiada/BusinessPlan/index.php
o Temple - http://www.sbm.temple.edu/iei/competitions.html
o Rutgers - http://camden-sbc.rutgers.edu/cme/camden-business-builders.html
o Yale - http://www.ventures.yale.edu/aboutcompetition.asp Non-profits
o Miller - http://millerurbanentrepreneurs.com/Default.asp? Over 21 only
o Most universities also have a business plan competition, just search the site
o A long list http://www.smallbusinessnotes.com/planning/competitions.html
Clinics
o Go to all of the clinics offered by the competition. This is the main source of networking and free
resources. Most of the people running the clinics will help with the development of your plan or
answer questions that are specific to their expertise. Make sure to get business cards/contact
information of speakers!
o E.G. Wharton’s clinics…click on the seminar links and click the video links – most were filmed and
accessible to the public
http://bpc.wharton.upenn.edu/infocenter/pastworkshops.html
o Penn Legal Clinic provided by the law school for entrepreneurs:
http://www.law.upenn.edu/clinic/elc/
Incubators
o The National Business Incubation Association (NBIA) http://www.nbia.org/
All incubators in Pennsylvania
http://www.nbia.org/resource_center/links_to_member_incubators/select_links.php
All incubators in NJ
http://www.nbia.org/resource_center/links_to_member_incubators/select_links.php
The Science Center (Philadelphia) http://www.sciencecenter.org/
Burlington County College http://www.bcc.edu/pages/131.asp
Funding sources
o VCs
Angel organizations http://www.kauffman.org/entrepreneurship.cfm?topic=capital_markets
Ben Franklin Technology Partners http://www.benfranklin.org/
Eastern Technology Council
NJTC
Angels – Jumpstart NJ http://www.jumpstartnj.com/index.asp
NJEDA
Greater Philadelphia Venture Group
http://www.gpvg.com/index.cfm?fuseaction=Home.Main
Mid-Atlantic Angel Group ("the MAG Fund") http://www.magfund.com/
Angel Capital Association ACA
http://www.angelcapitalassociation.org/default.aspx listing of all PA (Mid-
Atlantic) Angels -
http://www.angelcapitalassociation.org/dir_directory/directory.aspx#3
Private Investors Forum (PIF) http://www.privateinvestorsforum.com/index.php
Confidential Page 2 6/8/2010
Created by Julian Awad for Diana Day
An Entrepreneur’s Cheat Sheet for Starting Up
Minority Angel Investment Network http://www.main-usa.com/
Complete list of Regional investors
http://www.mavc.org/index.cfm?fuseaction=AttList.ByIndustry
o SBA http://sba.gov/ http://sba.gov/financing/index.html
o SBIC http://www.sba.gov/INV/ PA - http://www.sba.gov/gopher/Local-Information/Small-Business-
Investment-Companies/sbicpa.txt (list of ten plus VC’s and their investment criteria)
o Radio
Venture Talk Radio http://www.cairnassociates.com/VTR.aspx
1. Dale Pfost http://www.cairnassociates.com/dale.aspx
2. Don Marvin http://www.cairnassociates.com/don.aspx
Fund Raising
o What to expect
Ten tips for raising venture capital – by Keith Cox kcox@icaxon.com General Manager, IC
Axon
1. Build a marketing plan – define your target investor
2. Expect to do 50-100 pitches
3. Introductions from a credible person are golden
4. Polite persistence – keep talking with any principle who will talk to you
5. Polish your presentation until you can deliver it effectively in 20 minutes – more
time for discussion
6. “For example . . .” – the 2 most powerful words in the English language
7. Have simple answers to four key investment screening questions:
1. Does it work?
2. If it works, who would use it (even if its free)?
3. If it works and people want it, will they pay enough to create a financially
viable enterprise?
4. If you have an answer for questions 1-3, what are you going to do about
competition?
8. Recognize that VCs will bring in an outside CEO most of the time
9. Negotiate hard, but don’t try to change common investment terms
10. Be mentally (and financially) prepared for the process to take a LONG, LONG time
Most VC’s and Investors will not be interested in a pre-revenue opportunity – prepare to get
creative in self-financing and finding money from friends and family
o Advice
Don’t take money from family unless they and you can afford to and plan to lose the money
– otherwise the holiday season may be awkward
Don’t take money from friends unless they don’t want the money back – otherwise you can
lose friendships easily
Remember over 50% of start-ups fail in the first two years
Don’t quit your job – unless you are individually wealth
Oh, did I mention? Don’t quit your job
Unless absolutely necessary, don’t quit your job
Find ways to get funded, profitable, or post-revenue before considering quitting your job
o Remember
Over 50% of the analysis and what most people look at first are the financials
1. Financials can show what caliber of a business team you are
2. Financials can show if you are realistic or not – Investors see financials everyday
3. Your assumptions in the financials are the foundation of your numbers
1. Be clear
2. Be comprehensive
Confidential Page 3 6/8/2010
Created by Julian Awad for Diana Day
An Entrepreneur’s Cheat Sheet for Starting Up
3. Have citations and references for your assumptions
Investors are interested in how you will spending their money – how responsible will you be
spending their money
1. How have you spent money so far?
2. Have you been frivolous?
3. Have you been able to bootstrap / make progress on little to no money so far?
4. Can you do the same with their money?
Investors will look at your personal investment into the business
1. Have you put in your own money?
2. Have you risked your own assets or time?
3. What skin in game do you have?
o A pitch is also an interview
Investors look at you and the management team as much as the business opportunity
1. If investors don’t trust you or have confidence in you they won’t give you their
money
2. If your management team doesn’t have experience, investors know they are paying
for you to learn with their money and will not be very interested
1. subsidize with a very strong board or directors or advisors
3. Make sure you resume is up to date
Most people deal with people they KNOW, LIKE, and/or TRUST
1. Are you connected? Do you know someone they know?
2. Why should they trust you?
Networking Opportunities
o Conferences
Mid-Atlantic Venture Conference (MAVC) http://www.mavc.org/
Angel Venture Fair http://www.angelventurefair.com/
Main-usa.com’s event listing (year view)
http://calendar.activedatax.com/MAIN/EventList.aspx?fromdate=9/1/2006&todate=9/30/200
6&display=Month&view=DateTime&type=public
o Trade shows
o Entrepreneurs – best source for the inside information as they are in the trenches doing the same
as you. Fellow entrepreneurs are your best assets
Legal
o Free Legal sources
Penn Legal Clinic provided by the law school for entrepreneurs. Go to:
http://www.law.upenn.edu/clinic/elc/
For free legal assistance, a good resource in Philadelphia is the Philadelphia LawWorks
organization (http://www.philadelphialawworks.org/) which provides free legal advice to
small businesses. The application for assistance is here:
http://www.philadelphialawworks.org/apply.html)
o Firms
Morgan, Lewis & Bockius LLP
Pepper Hamilton LLP
Drinker, Biddle & Reath, LLP
Wolf, Block, Schorr and Solis-Cohen LLP
Drinker, Biddle & Reath, LLP
Saul Ewing LLP
Full list with contact names at http://www.mavc.org/index.cfm?fuseaction=AttList.ByIndustry
o How to use legal firms
Assistance Starting
Confidential Page 4 6/8/2010
Created by Julian Awad for Diana Day
An Entrepreneur’s Cheat Sheet for Starting Up
1. Some of these organizations will provide a “scholarship” or a “student load” to a
new startup company. The difference being whether the time is tracked and listed
as a future debt to be collected from the company if and when it’s funded OR if the
startup assistance is FREE. This is a way for the legal firm to establish a
relationship with the company early. Be sure to discuss what activities are billable,
when you will be invoiced/need to pay and who will be liable for the fees if the
company is never funded.
Subject Areas – full service law firms
1. Corporate documentation – incorporation, operating agreements, investor
documentation, partnership and employee documents etc.
2. Patent searches and Freedom to Operate analysis
3. Trademarks and Copyrights
4. Electronic commerce – review of T&C, privacy, and agreements
5. Contracts
Funding
1. Most law firms are not only connected to VC’s but know wealthy individuals/angel
investors. It’s in their interest to help you get funded so they can get some fees out
of you!
2. Most firms won’t invest in you if they don’t believe in your company. Getting their
buy in should not be looked at as a one time event. Making contact and having
ongoing meetings to show progress and commitment demonstrate “entrepreneurial
endurance” and garner confidence from others to invest in you.
o IP
Make sure if you are working that your employer doesn’t have the right to any IP you create
or license while working for them
Having exclusive / proprietary technology is the cornerstone to most barriers to entry for
your competitors – it is also a key issue investors will look for
Press releases
Primezone http://www.primezone.com/newsroom/news.html?d=103991
Business Plans
o Seminar topics good for preparation
Differences between employees and entrepreneurs
The mindset of an entrepreneur
Business plan overview
Business plan financials
Legal issues
Financing and VC’s
1. include timelines for raising capital
Valuation
When to quit your job
Challenges most entrepreneurs and startups face
o Good Speakers
Entrepreneurs that have failed at least once
Entrepreneurs that have succeeded at lease once
Directors of Incubators
Local SBA representative
Lawyer who works with startups
VC or angel group member
Members from startup support organizations e.g. MAVC.org or GPVG.com
Tech transfer organizations
Confidential Page 5 6/8/2010
Created by Julian Awad for Diana Day
An Entrepreneur’s Cheat Sheet for Starting Up
o Websites
http://www.entrepreneur.com/howto/bizplan
http://www.entrepreneur.com/article/0,4621,287355-7,00.html
Websites
o www.Growthink.com
o www.refresher.com
o http://www.refresher.com/ceo.html
o www.SBA.gov
o http://www.kauffman.org/
Free resources
o http://www.freeconferencecall.com/index.asp
People in the area entrepreneurs will want to know
o http://www.mavc.org/index.cfm?fuseaction=AttList.Main
All the players in Philly are listed here
o Steve Goodman – Attorney
http://www.morganlewis.com/index.cfm/bnodeID/79865da4-b1ca-48e1-b4a4-
ad19e3d4a17f/personID/256165c1-d746-4cf2-9ae8-
e81c246d374d/fuseaction/people.viewBio
o Jeffrey Bodle – Attorney
http://www.morganlewis.com/index.cfm/bnodeID/79865da4-b1ca-48e1-b4a4-
ad19e3d4a17f/personID/11f98605-7527-471b-ac81-
75cf8f76e2a8/fuseaction/people.viewBio
Confidential Page 6 6/8/2010
Created by Julian Awad for Diana Day
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