William M. Moore founded Trident Financial Corporation in 1975 which eventually became a very successful investment bank. However, it only found success after Moore made many mistakes along the way. Some key lessons learned included developing a strategy that fits one's capabilities, building a strong team, being prepared for market declines, focusing on a few high-value services, committing to clients, and insisting on impeccable ethics. Moore hopes sharing his experiences will help others avoid similar mistakes in entrepreneurship.

1. Entrepreneurship:
Lessons learned building a successful investment bank
William M. Moore, Jr.
Professor the Practice of Finance
Founder & CEO (1975-99), Trident Financial
Corporation
2008

2. Outline
Trident was eventually a very successful
investment bank
– But only after I made many, many mistakes
– The key is to learn from your mistakes
– Finally, we built the right team & began to roll
– By sharing my experiences, I hope I can help you avoid
some of my errors
• My background -- How Trident came to be
• Keys to success
• Two important universal keys
• Three strategic Trident keys
• Q&A

3. My Background
• Native of Goldsboro, N. C.
• BS, U. S. Naval Academy, 1961
• Supply Officer, U. S. Navy, 1961-65
• MBA, UNC-Chapel Hill, 1967
– An incredible learning experience (six 8 o’clock classes my first
semester)
– My mistake: too focused on quant classes
• Take advantage of the incredible “people skills” classes at KFBS
• As you progress in your career, you will increasingly get things done
through others
• Vice-Pres. Investment Banking, Legg Mason, Inc.
– In charge of IB due diligence, research and analysis
• Founded Trident Financial Corp. in 1975
– Trident Securities formed in 1981
– Sold to KeyCorp in 1999
• Partner, Franklin Street Partners
– Chapel Hill-based investment management firm
• Professor of the Practice of Finance, Kenan-Flagler
– Teach (orchestrate) class in investment banking
• Serial volunteer

4. Starting a Company:
Two Keys to Success
• Developing a strategy/plan consistent with your, interests,
capabilities and capital resources
– Winning the “race against insolvency”
• Happiness is a positive cash flow
– Traded professional services for office facilities
– Trident total equity investment=$100.00
– Initial monthly “burn rate” <$500.00
• Building a winning team
– I screwed this up at first but eventually got it right
• Consistent 100+% return on total capital in last decade of operations
– Almost all great companies focus on hiring and training their own
• Hire carefully—focus on team-oriented, positive-attitude people
• War story: dealing with community bank CEOs
• Correct mistakes ASAP
– Emphasize promotion from within
– Invest in your employees
– Trust your employees (but cut the cards)
– Develop & inculcate core values
• Insist on adherence to the highest ethical standards
– Reward team-oriented behavior
• Penalize selfishness—terminate persistent selfishness
– Carefully choose your professional resources
– Trident’s secret weapon – our administrative staff
• War story: Shirley Lowe hosting a dinner party

5. Trident Financial Corp.
Key Principles and Strategy
• Note--Our blockbuster service—IPOs for community banks & S&Ls
that were far superior to, and cheaper than, traditional IPOs
– We successfully completed over 300 of these offerings from 1981 through
1999 (size range: $1mill-$330mill), leading the U.S. in the number of these
offerings managed every year– and without a single failure
• Must be disciplined--focus on only a few products or
services
– High value added transactions
– Many potential transactions
– Sustainable competitive advantage
– “Good” transactions—ones that deserve to be done & with which we
would be proud to be associated
– Must complement existing services
• Commitment to clients
– Only compete for business where we truly believe we are the best firm
to perform that service for the client
– Learn at our expense, not the client’s
– Continuous improvement (better, more efficient)

6. Trident Financial Corp.
Key Principles and Strategy
• Be prepared for sudden, precipitous market
declines
– Very low fixed costs and no debt
– On Black Monday. October 19, 1987 our total potential
market declined over 70% overnight
• Our response was to aggressively cut costs and more than double our
market share—closed an office, reduced number of employees,
outsourced
– Helped almost every person laid off find a new position
– No bonuses to senior and mid-level professionals, small bonuses to deserving support
staff and junior professionals
• Accept only impeccable ethical behavior
– When it’s not black & white, stay in the very light grey
– Insure that what clients tell you will never hurt them
– Terminate employees who don’t comply
– In 25 years and hundreds of transactions—Trident never
had a complaint to NASD or SEC

7. Trident
Doing well by doing good
It’s about more than just money
“ Bill, you and the others at Trident should be very proud. The U. S.
community banking industry is significantly better and stronger
because of Trident. Many banks, including ours, owe their very
existence to you and your firm.”
Community Bank CEO
• We saved more than 100 community banks & S&Ls
nationwide from failure through
recapitalization/restructuring transactions
– Many only after traditional IBs or others had failed
• We saved US taxpayers hundreds of $millions
– $200-300+ million in one transaction

8. Questions?
• A few I might ask –
– How do you identify entrepreneurial opportunities?
• Most important: something you know well and love doing
• Pay attention to demographics
– The one area where you can predict the future (e.g., if you know how
many 16 year-olds there are in the US today, you can predict how many
21 year-olds there will be in 5 years with great accuracy)
• Address underserved or high-growth areas
– Two areas – healthcare & accessible, low-cost, quality investment
management services
– Can you tell me a guaranteed way to get absolutely filthy
rich before I retire?
• Save and invest wisely over many years
– Will Carolina win the national championship in basketball
this year?
• Absolutely 100% guaranteed yes
– But then I say that every year