American Idol - Bootstrapping

Living the Dream  an investment opportunity . . . 

Living the Dream  an investment opportunity . . .  Investment Sought: $1,150,000  Timeframe: 12 months   Poten7al Return: 10X 

Living the Dream  an investment opportunity . . .  Salary for me: $120,000 / 12 months  Weight reduc7ons and ﬁtness program: $120,000 / 9 months 

Living the Dream  an investment opportunity . . .  Hair Transplant: $90,000 / 6 months  Cosme7c Surgery: $120,000 / 9 month  Wardrobe & Stylist: $400,000 / 1 month 

Living the Dream  an investment opportunity . . .  Voice Training: $100,000 / 12 months  Guitar Lessons: $100,000 / 12 months  Dance Lessons: $100,000 / 12 months 

Living the Dream  an investment opportunity . . .  Are you in?  You shouldn’t be… 

Your dreams and ideas  don’t own you… 

Thesis:  It is a great 7me to   start a business in Texas! 

But, you say…  •  There are few ac@ve VCs leD in Texas . . .  •  The angels are broke . . . 

It doesn’t maPer . . .  The VC model is dying (for now) AND VC money is usually bad for your business!  ‐  VC/Angel investment = lower chance of a 1‐5x return  ‐  VC/Angel investment = higher chance of complete failure  ‐  VC/Angel investment = slower exit (typically a decade)  …oh, did I men,on, you have a  50% chance of ge7ng ﬁred in the  ﬁrst year a<er a VC investment? 

What kind of business should you start?  –  What are you passionate about?  –  What experience do you have?  –  How much money do you have?  –  How much money can you raise?  –  How likely is your business to succeed?   Gates (so<ware), Dell (resale) and Cuban  (service) started businesses that  generated posi,ve cash from the start,  they did not need much (if any) outside  investment.  

Revolu7on Ropes  Sandy Stephens  ‐  BeSer ropes  ‐  $60MM market  ‐  Part‐@me un@l launch  ‐  Proﬁtable 

ShopSavvy  Rylan Barnes  ‐  BeSer shopping  ‐  $12B market  ‐  Part‐@me un@l launch  ‐  Growth Stage 

RP Valet  RP Payervand  ‐  BeSer parking  ‐  $7B market  ‐  Part‐@me un@l launch  ‐  VERY Proﬁtable 

Architel  ScoP Ryan  ‐  BeSer IT services  ‐  $3.2‐10B market  ‐  Part‐@me to launch  ‐  Proﬁtable 

Be Capital Efficient   •  Start a business you can build without outside capital.  •  Focus on services, soDware or technology.  •  Assume you will need to be profitable.  •  Start selling immediately.  •  Partner prolifically.  

Ques7ons? 

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American Idol - Bootstrapping

by Alexander Muse on Feb 26, 2010

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American Idol - Bootstrapping — Presentation Transcript