Joan herbigpresentation07.01.10


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Joan herbigpresentation07.01.10

  1. 1. Lessons Learned in Start-up Land<br />Presentation for the TAG/ATDC Entrepreneurs<br />July 1, 2010<br />Joan Herbig<br />CEO, ControlScan<br /><br />
  2. 2. Agenda<br /><ul><li>Overview of Experiences
  3. 3. What I’ve Learned
  4. 4. Any Questions?</li></ul>2<br />
  5. 5. Personal Background<br />Serial entrepreneur with > 23 years of experience in technology <br />B.A. in French and Masters in Computer Science<br />Serves on the Board of the Technology Association of Georgia (TAG)<br />Married for a long time (to a very patient man) with 2 children<br />Interests include traveling with family, cooking, hiking, and (someday I hope) wine collecting<br />3<br />
  6. 6. Professional History<br />Digital Communications Associates (1987-1994)<br />Leader in PC to mainframe connectivity solutions (IRMA)<br />Began career in customer support, moved into marketing, product management, international marketing and product line management<br />DCA was acquired by Attachmate in 1994<br />“CULTURE”<br />XcelleNet (1995-2004)<br />Leader in mobile systems management<br />International Product Manager, then Vice President of Marketing, then President, then CEO<br />Company was sold to Sybase in 2004<br />“CHANGE”<br />Cambia Security (2005-2007)<br />Security change management solutions<br />Sold to nCircle in 2007<br />“MARKET”<br />ControlScan (2007-present)<br />PCI Compliance Solutions for small merchants<br />“BUSINESS MODEL”<br />4<br />
  7. 7. Current Startup - ControlScan<br /><ul><li>ControlScan provides Payment Card Industry (“PCI”) security compliance solutions focused exclusively on the small- and medium-sized merchant market (“Level 4”)
  8. 8. Founded in 2005
  9. 9. Headquartered in Atlanta, GA; 44 employees
  10. 10. Sell solutions to merchant banks and ISOs (“Acquirers”) to service their Level 4 merchant portfolios
  11. 11. Level 4 merchants are those doing fewer than 1MM card brand transactions
  12. 12. Customer base of nearly 80 Acquirers representing >350,000 merchants (>80,000 currently enrolled)
  13. 13. Subscription-based model generates recurring revenue
  14. 14. PCI Council Approved Scanning Vendor (“ASV”)
  15. 15. Funded by Total Technology Ventures (“TTV”) in 2007; Harbert Venture Partners and Croft & Bender in 2010</li></ul>5<br />
  16. 16. ControlScan Transition<br />Arrival - 2007<br />Direct customer acquisition; 1,500 merchant customers<br />Solution for e-commerce merchants only (15% of small merchant market)<br />No PCI story<br />No strategic partnerships<br />Fuzzy business model<br />Vision - 2008<br />Ride momentum/mandates in PCI market <br />Recruit experienced team to complement enthusiastic young talent<br />Recruit payment experts to the board to build credibility<br />Focus on small merchants, both e-commerce and brick and mortar<br />Sell to merchant banks to simplify distribution model<br />Now – 2010<br />> 80,000 merchants enrolled<br />Close to 80 partnerships<br />Break-even in sight<br />Recent funding event<br />6<br />
  17. 17. Agenda<br /><ul><li>Overview of Experiences
  18. 18. What I’ve Learned
  19. 19. Any Questions?</li></ul>7<br />
  20. 20. “The single biggest constraint on the success of any organization is the ability to get and hang on to enough of the right people.” - Jim Collins<br /># 10 - Get the right people on the bus<br />Surround yourself with people who are better than you<br />Check your insecurities (and your ego) at the door <br />Get the wrong people off the bus<br />Make tough people calls quickly <br />Your gut is usually right <br />Treat people well<br />8<br />
  21. 21. #9 - Listen more than you talk<br />Hone your listening skills (with customers, investors, colleagues, competitors, peers)<br />Get comfortable with silence<br />Use “we” more than “I” <br />Practice the listening “Game”<br />“Watch, listen, and learn. You can't know it all yourself... anyone who thinks they do is destined for mediocrity.” - Donald Trump<br />9<br />
  22. 22. #8 - Stay outside your comfort zone<br />Being uncomfortable is part of startup life – get comfortable with it<br />Be decisive – it’s far better to make the wrong call than to make no call at all<br />Expect many sleepless (and uncomfortable) nights<br /> “Takes risks: If you win you will be happy; if you lose you will be wise.” - Author Unknown<br />10<br />
  23. 23. #7 - Live below your means<br />Raising money is hard<br />Raise as little as possible to capitalize on the opportunity<br />Best to raise it when you don’t need it<br />Not a rational process <br /><ul><li>Get to breakeven as quickly as possible</li></ul>Understand the evolving business model<br />Which dials to watch, which levers to pull<br />Also true in your personal life – allows you to take more risks <br />“Contrary to popular belief, frugality is the foundation of wealth.” - Thomas Stanley and William Danko<br />11<br />
  24. 24. #6 - It’s the market, stupid<br />The most important key to success in a startup is the market opportunity<br />You can execute brilliantly in a bad market and not succeed<br />You can execute less brilliantly in a great market and succeed wildly<br />Get in the game; if the market is ripe (the market will tell you how to improve your products/services; how to price; etc.)<br />“Opportunities multiply as they are seized.” <br /> - Sun Tzu<br />12<br />
  25. 25. #5 – Make new friends, but keep the old<br />Form strategic partnerships early<br />Build a company for greatness, but have the exit in mind<br />Most early stage companies will fail, and those that don’t will most likely be acquired<br />"Our success has really been based on partnerships from the very beginning.” - Bill Gates <br />13<br />
  26. 26. #4 – Start, Stop, Keep<br />Great organizations aren’t all things to all people<br />Learn how to say “no”<br />Focus can be a differentiator<br />Doesn’t mean you shouldn’t have a hedge strategy<br /> “Those who built the good-to-great companies, however, made as much use of "stop doing" lists as "to do" lists. They displayed a remarkable discipline to unplug all sorts of extraneous junk.” - Jim Collins<br />14<br />
  27. 27. #3 - Ask for help<br />Seek counsel from trusted advisors (especially those outside the organization)<br />Ask stupid questions, and then listen<br />Be a Curious George (“Hmmm, really? How did you do it?”)<br />Write someone every day and ask them for help<br /> “The important thing is not to stop questioning. Curiosity has its own reason for existing.” -Albert Einstein <br />15<br />
  28. 28. #2 – Obsess on the customer<br />If you listen, the market will tell you where to go<br />Form a customer council<br />Make “the customer” part of the culture<br />Empower your people…to the customer they are the company<br /> “There is only one boss. The customer. And he can fire anyone from the chairman on down, simply by spending his money somewhere else.” - Sam Walton<br />16<br />
  29. 29. “Ladies and gentlemen: Wear sunscreen. If I could offer you only one tip for the future, sunscreen would be it. The long-term benefits of sunscreen have been proved by scientists whereas the rest of my advice has no basis more reliable than my own meandering experience.” - Mary Schmich , Chicago Tribune<br />#1 - Wear sunscreen<br />Work Hard…Have fun!<br />Don’t take yourself too seriously<br />17<br />
  30. 30. In Summary<br />Cash is king<br />Strive for 80%, not perfection<br />Avoid “wet logs” at all cost<br />This is not for the faint of heart<br />There are NO “Rock Stars”<br />18<br />
  31. 31. Agenda<br /><ul><li>Overview of Experiences
  32. 32. What I’ve Learned
  33. 33. Any Questions?</li></ul>19<br />