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Purdue Center For Entrepreneurship Jan 19 2010

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Slide deck from guest lecture at Purdue\'s Entrepreneurship Capstone course in January 2010

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Purdue Center For Entrepreneurship Jan 19 2010

  1. 2. Lessons Learned in Entrepreneurship
  2. 3. Introduction <ul><li>Business Attorney </li></ul><ul><ul><li>B.S. Purdue, Butler MBA, IU Law </li></ul></ul><ul><li>Business Owner and Managing Partner </li></ul><ul><li>Private Equity Investor </li></ul><ul><li>Husband and Dad </li></ul>
  3. 4. Alerding Castor Hewitt, LLP <ul><li>Business law firm representing businesses through lifecycle </li></ul><ul><li>Capital Structuring, Securities, General Counsel, M&A, Business Litigation </li></ul><ul><li>www.alerdingcastor.com </li></ul>
  4. 5. Some Lessons Learned <ul><li>MUST HAVES: </li></ul><ul><li>1. Right Market Opportunity </li></ul><ul><ul><li>Proof of concept </li></ul></ul><ul><ul><li>Proof of scale </li></ul></ul><ul><ul><li>Proof of commercialization at profit </li></ul></ul>
  5. 6. Some Lessons Learned <ul><li>MUST HAVES: </li></ul><ul><li>Right Management Team </li></ul><ul><li>Right Capital Structure </li></ul><ul><li>When applicable… </li></ul><ul><ul><li>Right investment opportunity </li></ul></ul><ul><ul><li>Secured intellectual property rights </li></ul></ul>
  6. 7. Plan Appropriately <ul><li>Business Plans are helpful, but </li></ul><ul><ul><li>Write to intended audience (be as specific as needed for audience’s benefit) </li></ul></ul><ul><ul><li>Focus on the math </li></ul></ul><ul><ul><li>Don’t lie </li></ul></ul><ul><ul><ul><li>Saying “we are conservative” on projections is considered a lie </li></ul></ul></ul><ul><ul><ul><li>Exaggerations are lies </li></ul></ul></ul><ul><ul><ul><li>Assumptions are considered lies </li></ul></ul></ul><ul><ul><ul><li>Avoid the MBA hockey stick </li></ul></ul></ul>
  7. 8. Plan Appropriately <ul><li>Build Correct Management Team </li></ul><ul><ul><li>Who is putting in $$$? </li></ul></ul><ul><ul><li>What skills are needed / How is this reflected on team? </li></ul></ul><ul><ul><li>CEO MUST UNDERSTAND FINANCES OF BUSINESS (avoid technician syndrome) </li></ul></ul><ul><ul><li>Key resource needed should be on founding team (e.g., key developer in software company) </li></ul></ul>
  8. 9. Some Legal Considerations <ul><li>Properly organize business </li></ul><ul><li>Follow securities laws and procedures </li></ul><ul><li>Secure Intellectual Property </li></ul><ul><li>Secure key employees under agreements and non-competes (also, ask about previous non-competes) </li></ul><ul><li>For securities offerings, key is following procedure and making full disclosures </li></ul><ul><li>Be aware of your fiduciary obligations </li></ul>
  9. 10. My Contact Info <ul><li>David A. Castor, Esq </li></ul><ul><li>[email_address] </li></ul><ul><li>http://www.alerdingcastor.com </li></ul><ul><li>http://blog.alerdingcastor.com </li></ul><ul><li>Indianapolis Office: </li></ul><ul><li>47 S. Pennsylvania St., Ste 700 </li></ul><ul><li>Indianapolis, IN 46204 </li></ul><ul><li>317.829.1910 (Main) </li></ul><ul><li>317.829.1915 (Direct) </li></ul><ul><li>317.313.1119 (Mobile) </li></ul>

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