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The GROCO Method for Transforming
                            From Employee to Entrepreneur
                                    January 9, 2009
                                   Alliance of CEO’s



Alan L. Olsen, CPA, MBA (Tax)
       Managing Partner
The Need for Balance:
A Personal Example




   #1             #2           #3



   Spiritual      Marriage &        Career
     Foundation    Family             Goals
The Law of Leverage



   You can only leverage three things in business:
      Time
      Money
     Technology
   The more you leverage, the quicker you build (or lose) wealth

  Remember: “It’s not about MAKING the money, it’s about
    KEEPING it.”
Recent Trends in the Economy



   Deleveraging of the financial markets
      Less money to put to work
   Baby Boomers and the declining population
      Less people to fill vital positions
   Technology as the NEW leverage
      Key to scalability and growth
Deleveraging



  Government Bailouts
    Freddie and Fannie, AIG
    Recent bailout plans/packages
  Credit Crunch and declining housing market
    Less credit flowing through the economy
  I-Banking shift to commercial
    Goldman Sachs, Morgan Stanley, Merrill Lynch
Declining Demographics



  By 2050, 60% of Europe’s workforce will be over 60
  Many key industries to suffer: health
   care, manufacturing, energy, and the public sector.
   E.g.:
    Only 198,000 students to fill the retirement of 2
      million Baby Boomer engineers
    300,000 out of 1.3 million new IT jobs will go
      unfilled
  “60% of all new jobs will require skills held by on
   20% of the current workforce.”
   Source: Deloitte
Declining Demographics, cont’d
Recent Trends in Venture Capital



      Clean Technology
        Solar Energy
        Wind Energy
      Semantic Technology and Web 2.0, 3.0
        “Star-Trek”-like, interactive web-use
      Genetic Engineering
        Re-engineering our world
Transformation from
Employee to Entrepreneur:10 Truths


     Stay Focused (Pareto Principle)
     It takes more than one person to grow a business
     Relationships are the key factor
     Be prepared to fail
     Developing trusts in relationships
     Define your market
     Define your expertise
     Character communicates potential
     Do you have the ability to inspire others?
     Are you operating on a rock-solid foundation?
Future Possibilities


                                                                PILOTLESS
  ABUNDANT       STAR TREK         BUILDINGS    5X IMPROVED
                                                              ELECTRIC CARS
 CHEAP WATER      HEALTH         THAT CONSUME    BATTERIES
                  DEVICES             LESS




                                                                GENETIC
 E-EDUCATION    ALL COMPUTING 3-D ON DEMAND      STORABLE
                                                                 DISEASE
    FOR THE    FROM THE CLOUD ENTERTAINMENT       INSTANT
                                                               PREDICTION
    MASSES                                      FRESH MEALS




  CURE FOR         5¢/KWH         100+MBPS TO     NEW LIFE      CURE FOR
CANCER, AIDS &  ELECTRICITY –      THE HOME        FORMS      HEART DISEASE
  MALARIA      W/O FOSSIL FUEL
When the bubble burst in 2001,
the last recession began…
Some Venture Capitalists Kept the
  Faith…Fueling More Global Innovation
Best Time to Invest in Venture
 Capitalists…Never!


         Valuations will never be this low
         again.
         Entrepreneurs can get amazing
         people for cheap.
         Less competition for new
         technologies.
         Governments need us now more
         than ever.
5-7 years from now:



       Large companies who have cut
       R&D will be looking for products
       and services to sell
       Liquidity pendulum will have
       swung back
       New boom, led by
       Cleantech, Web 2.0, and other
       emerging technologies
Great companies solve big problems,
  or create great opportunities


                              Solving
        Company
                              Transportation Problem
        Reva, Tesla
                              Energy Problem
        Enernoc, Solar City
                              Medical Problem
        AthenaHealth,
                              Media Control Problem
        Skype, Hotmail,
                              Education Problem
        Meebo
                              Financial Problem
        Graspr,
                              Ebay Problem
        Skygrid, YeePay,
                              Spam Problem
        Mchk
        Wigix

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World Demographic Trend

  • 1.
  • 2. The GROCO Method for Transforming From Employee to Entrepreneur January 9, 2009 Alliance of CEO’s Alan L. Olsen, CPA, MBA (Tax) Managing Partner
  • 3. The Need for Balance: A Personal Example #1 #2 #3 Spiritual Marriage & Career Foundation Family Goals
  • 4. The Law of Leverage  You can only leverage three things in business:  Time  Money Technology  The more you leverage, the quicker you build (or lose) wealth Remember: “It’s not about MAKING the money, it’s about KEEPING it.”
  • 5. Recent Trends in the Economy Deleveraging of the financial markets Less money to put to work Baby Boomers and the declining population Less people to fill vital positions Technology as the NEW leverage Key to scalability and growth
  • 6. Deleveraging Government Bailouts Freddie and Fannie, AIG Recent bailout plans/packages Credit Crunch and declining housing market Less credit flowing through the economy I-Banking shift to commercial Goldman Sachs, Morgan Stanley, Merrill Lynch
  • 7.
  • 8. Declining Demographics By 2050, 60% of Europe’s workforce will be over 60 Many key industries to suffer: health care, manufacturing, energy, and the public sector. E.g.: Only 198,000 students to fill the retirement of 2 million Baby Boomer engineers 300,000 out of 1.3 million new IT jobs will go unfilled “60% of all new jobs will require skills held by on 20% of the current workforce.”  Source: Deloitte
  • 10. Recent Trends in Venture Capital Clean Technology Solar Energy Wind Energy Semantic Technology and Web 2.0, 3.0 “Star-Trek”-like, interactive web-use Genetic Engineering Re-engineering our world
  • 11. Transformation from Employee to Entrepreneur:10 Truths  Stay Focused (Pareto Principle)  It takes more than one person to grow a business  Relationships are the key factor  Be prepared to fail  Developing trusts in relationships  Define your market  Define your expertise  Character communicates potential  Do you have the ability to inspire others?  Are you operating on a rock-solid foundation?
  • 12. Future Possibilities PILOTLESS ABUNDANT STAR TREK BUILDINGS 5X IMPROVED ELECTRIC CARS CHEAP WATER HEALTH THAT CONSUME BATTERIES DEVICES LESS GENETIC E-EDUCATION ALL COMPUTING 3-D ON DEMAND STORABLE DISEASE FOR THE FROM THE CLOUD ENTERTAINMENT INSTANT PREDICTION MASSES FRESH MEALS CURE FOR 5¢/KWH 100+MBPS TO NEW LIFE CURE FOR CANCER, AIDS & ELECTRICITY – THE HOME FORMS HEART DISEASE MALARIA W/O FOSSIL FUEL
  • 13. When the bubble burst in 2001, the last recession began…
  • 14. Some Venture Capitalists Kept the Faith…Fueling More Global Innovation
  • 15. Best Time to Invest in Venture Capitalists…Never! Valuations will never be this low again. Entrepreneurs can get amazing people for cheap. Less competition for new technologies. Governments need us now more than ever.
  • 16. 5-7 years from now: Large companies who have cut R&D will be looking for products and services to sell Liquidity pendulum will have swung back New boom, led by Cleantech, Web 2.0, and other emerging technologies
  • 17. Great companies solve big problems, or create great opportunities Solving Company Transportation Problem Reva, Tesla Energy Problem Enernoc, Solar City Medical Problem AthenaHealth, Media Control Problem Skype, Hotmail, Education Problem Meebo Financial Problem Graspr, Ebay Problem Skygrid, YeePay, Spam Problem Mchk Wigix