About UCI Applied Innovation: UCI Applied Innovation is a dynamic, innovative central platform for the UCI campus, entrepreneurs, inventors, the business community and investors to collaborate and move UCI research from lab to market. About the Cove @ UCI: To accelerate collaboration by better connecting innovation partners in Orange County, UCI Applied Innovation created the Cove, a physical, state-of-the-art hub for entrepreneurs to gather and navigate the resources available both on and off campus. The Cove is headquarters for UCI Applied Innovation, as well as houses several ecosystem partners including incubators, accelerators, angel investors, venture capitalists, mentors and legal experts. Follow us on social media: Facebook: @UCICove Twitter: @UCICove Instagram: @UCICove LinkedIn: @UCIAppliedInnovation For more information: cove@uci.edu http://innovation.uci.edu/

3. 20% Down
+ 80% for 10 years
@ fair interest rate
= deal

5. Listen

6. Life Cycle – Product & Business

7. Three Scenarios
• Bad - Expected (OK) - Good

8. Four Financial Statements
• Bank for credit - Government Taxes,
Operation, Build Wealth(Long Term)
• Example of building long term wealth – buy
RE, depreciate building and expect
appreciation on land.

9. Five Steps
• Business & Not for Profit Organizations – Risk & Reward
• Surround yourself with people of impeccable character
• Have a positive cash flow
• Satisfy customer’s & Members “perceived value”
• Minimize your risk & Maximize your rewards (play the
game)

10. Six ways to keep the organization
healthy. Ask the following:
• What can the organization do without & when?
• What overall or category price increases can be made & when?
• Repeat question one now that the distance to the improvement goals are
apparent.
• What individual product &/or service price increases are possible, over &
above those in question?
• What can be done differently? Begin with the identification of product &/or
services that are not contributing sufficiently to overhead & profit.
• Implement all these answers & changes as soon as possible & continue
repeating the process by starting at (a.).

11. Seven steps to do it:
• Plan
• Set Tasks
• Delegate
• Control & Monitor
• Listen & Learn
• Reward
• Repeat all the above – an on going process.

12. Eight Disciplines to continue to learn
about:
– General Management
– Human Aspects of Business and Organization
– Management Control
– Financial Management
– Marketing Strategy
– Decision Analysis
– Business, Government & the Global Economy &
Society
– Creating & Managing Global Business &
Organizational Relationships

13. Nine Uncontrollable Environmental
Forces to be aware of:
• Changes in Macroeconomics,
• Microeconomics,
• Technology,
• Governmental rules & regulations,
• Physical environment,
• Social forces,
• Life styles,
• Your mental ability & well-being,
• Your physical and personal health.

14. Ten Steps to take entrepreneurial
action
1. Listen & Learn
2. Focus
3. Plan-write it down (Business and personal life Plan)
4. Delegate
5. Control & Monitor (Systems & Processes)
6. Teach & Train
7. Learn & Listen
8. Reward
9. Improve (change & adjust)
10. Repeat all above steps.

15. • Before starting your dream business from scratch consider buying a business and
tweaking it in order to have exactly what you want.
• What did I do wrong? I started from scratch instead of buying: Ian Sharlit
• 5-8% of businesses succeed from starting from scratch
• 80-90% of purchased businesses succeed
• Do the math
• Do your “Due diligence”
• Treat people fairly. Do not attempt to get everything in a negotiation, find out
what they want and attempt to give it to them while you get what you want.
• 20% down and 80% pay out over 10 years (Interest rate negotiable – fair)
• Make sure you can pay the 20% back to yourself within weeks by lowering
inventory, selling off assets that are not needed, collecting receivables faster,
cutting expenses like bottled water, etc.
• My key was having a clause that if I missed two payments, even if they were the
last two payments, the sellers would get everything back. The word got out and
they lined up.
• Buy a business and then “tweak it” like you would want it.
• Also, you can buy businesses in not popular industries (for example petroleum &
diesel rail road train engine overhauling)

16. • Two stories which convinced me:
• A corrugated box company in San Gabriel Valley. He had seven
competitors and the third one he asked to buy out said yes, for $1M. Gave
him $200k down, and the other $800k over ten years. Within three
months he moved the operation to his plant and operated 24 hours per
day, sold off equipment for $150k cash, sold the building and real estate
land for $200k, put $150k cash into his pocket and made approximately
$1M per year from then on.
• A newspaper in the Bay Area was loosing over $1M per year and BofA was
calling their $2M loan. Ian told the editor that he must cut 5 of his 10
reporters. The editor said he was unable to do that. Ian then said, OK,
then cut 8 and run the reporting with 2 reporters. The editor said that
would be impossible, how would they have any news. The suggestion was
to have the two reporters watch CNN the night before and report from
that new source. Five reporters were temporarily laid off and the cash
loss went to zero per month within two weeks. Ian then visited the
warehouse where there was 32 days of paper in large rolls inventoried. He
said to not buy anymore paper until there was only 3 days supply. The
warehouseman said what would happen if they had a strike and were not
able to get paper? Ian’s answer was that they would probably be out of
business before that ever happened. In not buying paper for 30 days they
were able to cumulate $2M in cash and pay the bank off completely.
After cutting other expenses they were able to hire the reporters back
within a few months and have been profitable ever since.