Wspe Seminar 4 A May 15, 2009 Eng Entrepreneurship

ENGINEERING ENTREPRENEURSHIP

WSPE Annual Meeting

May 15, 2009

ENTREPRENEURIAL BACKGROUND

• The Fire Emperor 1980 to 1984

• Anduk Industry Supply 1981 to 1985

• The Dim Sum Room 1982 to 1984

• Parker, Messana & Associates, Inc. 1991 to Date

• Charles B. Tibbitts & Associates Purchased 1996

• IndustryBid.com 1999 to 2001

• White Slug Enterprises 1988 to Date

• ParkerMessana, Inc. 2008 to Date

• E3 Energy Partners, LLC 2008 to Date

STARTING YOUR BUSINESS

• Corporate Structure

• Business Plan

• Financing

• Planning

• Financial Management

• Marketing

• Growth Plan

• Exit Plan

SELECTING A CORPORATE STRUCTURE

• Common Structures– Sole Proprietorships

– Partnerships

– Corporations

– S Corporations

– Limited Liability Company (LLC)

• What Level of Vulnerability/Liability?

• How Big Do You Want to Be?

• What Level of Structure/Complexity?

• Tax Implications?

• Do You Plan to Make a Profit?

FINANCING YOUR BUSINESS

• Personal

• Bank Loan

• SBA Loan Guarantee

• Private Equity

• Other

• Put Together a Realistic Pro Forma

• Be Conservative in Your Business Plan

Keep in Mind…• Your Projections of Profit are not as Good as You Think

• The Person with the Money Controls Your Business

FINANCIAL MANAGEMENT• Manage Your Cash Flow

• Monitor Your Financial Ratios

• Keep Current on Financial Statements

• Track Performance Metrics

MARKETING• Where do you fit in the market?

– General Services

– Specialty

– Boutique

• Know your competition

• What makes you unique?– Mission Statement

– Elevator Pitch

• Network – Network – Network

• Everybody in Your Organization is a Salesman

WHAT IS YOUR EXIT PLAN?• Sell

• Transition to Employees

• Transition to Family

• Go Public

• Split

• Go Out of Business

• Work ‘til You Drop

• You’ll Get This Business When You Pry It from My …

HOW TO SUCCEED• Have a Passion for Your Business

• Thoroughly Plan and Organize All Aspects

• Have a Tolerance for Risk

• Be Financially Conservative

• Learn From Your Failures

• Know Your Limitations – Have Partners / Staff that Compliment Your Weaknesses

• Be Flexible

PITFALLS

• Insufficient Planning

• Non-Viable Business Model

• Not Managing Cash Flow

• Not Having the Right Skill Mix

• In Business for the Wrong Reason

• Insufficient Marketing

• Poor Management

THANK YOU