Category Archives: Business Planning

2019 Major Startup Events

2019 Major Startup Events

The Events Every Startup Should Know About in 2019

We’ve compiled a list of some of the best conferences in the coming year to keep an eye out for. Don’t have these on your calendar yet? We’d recommend you do !

Startup Grind Conference

The Startup Grind Global Conference provides an environment unlike anything else – where our community of startups, partners, investors, thought leaders, and worldwide directors come together for 2+ days of invaluable education, connection, and inspiration.

Where: Palo Alto, CA

When: February 12 – 13, 2019

SXSW Conference

Featuring a variety of tracks that allow attendees to explore what’s next in the worlds of film, culture, music, and technology, SXSW proves that the most unexpected discoveries happen when diverse topics and people come together.

Where: Austin, TX

When: March 8 – 16, 2019

Ceres Conference

The Ceres Conference 2019 will convene more than 600 influential investors, senior corporate executives, policy makers and capital market leaders to reaffirm the business case for sustainability and share best practices to empower leadership, build solutions, and drive change.

Where: San Francisco, CA

When: April 29 – May 1, 2019

Collision Conference

Collision is the fastest growing tech conference in North America. Now in its fifth year, Collision has grown to over 25,000 attendees and is in for a big change in 2019.

Where: Toronto, Canada

When: May 20 – 23, 2019

Launch Festival

LAUNCH Festival is the largest startup event in the world. For the past 10 years we’ve hosted Festival in San Francisco, featuring fireside chats with Silicon Valley technologists and pioneers, demonstrations of cutting-edge future technology, and exciting startup competitions with founders and teams from all around the world.

Where: Sydney, Australia

When: June 18 – 19, 2019

Industry: The Product Conference

Over 3 days, 1,200 attendees from over 30 countries will learn from renowned product leaders and share the latest methods, tools, and frameworks that they use to build, launch and scale world-class software products.

Where: Cleveland, OH

When: September 23 – 25, 2019

Disrupt SF

If you’re serious about startups, we’re still keeping it as real as ever. At Disrupt, everyone is a startupper – no matter if you’re a founder, investor, hacker or tech leader. So much more than just on-stage interviews, Disrupt is where you’ll find the renowned Startup Battlefield competition, a virtual Hackathon, hundreds of startups in Startup Alley, Workshops and legendary networking at our After Parties… and we’re in San Francisco, right where startup dreams began.

Where: San Francisco, CA

When: October 2 – 4, 2019

**This will be an ongoing post as new dates/conferences become available.

For more information on fundraising, our Founder/CEO, Tyler Jensen has created several eBooks on the topic.  We invite you to browse our website to request free downloads.

5 Reasons Why You Can’t Afford Not to Hire a CFO for your Business

5 Reasons Why You Can’t Afford Not to Hire a CFO for your Business

In most cases it takes a very large payroll and budget to staff a full-time CFO however; today, more and more small and mid-sized business owners are capitalizing on the extensive education and training that a part-time CFO brings to the table. For this reason, we are seeing an uptick in the number of business owners that are turning to part-time CFOs and Strategic Business Consultants to get high-level financial guidance and consultancy without cutting a big paycheck.

In this month’s post, we are highlighting some of the many benefits you will receive through partnering with a part-time CFO and/or Strategic Business Consultant:

Potential to increase cash flow

A CFO has the expertise and ability to uncover problems and provide practical solutions in a way that is constructive and educational. They will also handle your day to day finance and accounting issues giving you back perhaps your most valuable asset — time.

Clarity and the ability to make better business decisions

A CFO knows how to thoroughly evaluate financial data so you can make smart business decisions. They provide a holistic approach to assessing your business including monetization strategies and business models, target markets and competitive differentiation, management team and personnel plan, sales and marketing communication strategies, and more.

Help when you need to raise capital

A CFO can help you calculate how much capital you may need in order to grow your business AND then strategize with you on how to get it. Additionally, they have an intimate knowledge of the capitalization timeline, who invests at the various stages, and what investors need to see at each stage.

A strategic partnership

A Fractional CFO is more than just a consultant…he or she is your strategic partner. Part-time and contracted CFOs wear many hats and are often times multi-talented; therefore, bringing with them a broad range of experience.

Flexibility

A Fractional CFO is an outsourced consultant so the business owner has the flexibility to increase or decrease the CFO’s hours based on the needs of the company.

Still not convinced? Here are a few questions you may want to ask yourself:

  • Can you afford to hire a part-time CFO?
  • Have I been successful in raising capital?
  • Am I growing at the rate I want to be?

If you are unsure on how to answer any of these questions we invite you to contact us for a free consultation. With over 10 years of industry experience, The Startup Garage and our Founder/CEO Tyler Jensen, are proud to be recognized as a boutique consultancy that has helped hundreds of Founders raise capital through proven startup strategy consulting services including preparation of Business Plans/Investor Documents and Fractional CFO/Accounting Services.

Contact us or call (858) 876-4597 for a free consultation.

More information: Business Plan Writer vs. Business Plan Strategic Consultant

 

The Startup Garage at Hera Venture Summit 2017

The Startup Garage at Hera Venture Summit 2017

The Startup Garage had the opportunity to be a partner of the Hera Venture Summit for the 2nd year in a row. This annual event, hosted by Hera Hub, Hera Labs, and Hera Fund, brings together experts from both sides of the investment table to share best practices, provide learning opportunities and foster networking. The theme of this year’s event was “Building Bridges” – with the intent to focus on building bridges between female founders and funders in the greater CaliBaja region.

This year’s opening keynote was given by Vicki Saunders (http://www.vickisaunders.com), Founder of SheEO. SheEO is a leader in global innovation in the female entrepreneur marketplace whose model serves to finance, support and celebrate female entrepreneurs. SheEO operates in cohorts where women pool funds together, which are then loaned out at low interest to 5 women-led Ventures selected by Activators. Activators range from corporate executives, successful entrepreneurs, women leaders, students, mothers, daughters, etc. ranging in age from 14-92 making for quite a unique community (https://sheeo.world).

Other Keynote speakers included:

  • Andrea Guendelman, CEO BeVisible LatinX — Creating a Collaborative Community for LatinX
  • Elissa Freiha, Co-Founder, WOMENA (female angel group in UAE) — A Womentum in Mena
  • Lisa Odenweller, Founder Beaming — Be your BEAMING Self

The summit also included an expo hall with many wonderful businesses and refreshments, several panel discussions and an interactive Fast Pitch, Fast Due Diligence & Fast Funding session.

As part of the event programming, TSG provided the following Top 8 Success Tips for Entrepreneurs:

Startups take time. Create a plan that avoids too much false or unnecessary urgency.

Having a false sense of urgency can keep us from putting our energy into the right things at the right time. It’s true – success doesn’t just happen – it requires careful, detailed planning and action. Be sure to enlist the help of business plans, checklists and project management platforms, to prioritize and stick with daily, weekly, monthly, and annual goals.

Don’t focus too much on the product/service. Balance your focus.

All too often entrepreneurs become so excited over their product or service that they get lost in their own enthusiasm. The core of the business might be the problem the product solves; but it’s imperative to give equal weight to other key comments of the business like, the team, the marketing strategy, and the business model and customer feedback.

There is plenty of investor money out there for companies who reach the milestones investors care about. Know what investors care about and focus on that.

Remember as an entrepreneur your perspective and mindset, often times differs from that of an investor. There are a few key things that you will need to show and/or achieve in order to get them to sign over the check.

– Business Plan

– Personal Investment

– Capital and Milestone Timeline

– Market Validation

– Prior Success

Founders are the biggest problem for most startups. Get out of your own way.

We call this “the founder’s dilemma”, and it’s a big one. Founders don’t let go easily. Surrendering control, delegating tasks, and learning to be a leader rather than a micro-manager can take time. Recognize the dilemma and start delegating tasks early on (even if it feels uncomfortable).

A healthy founder leads to a healthy startup.

Founders are the core of the business. Inspiration, motivation and success start with you and then ripple out to the organization at large. Your business is your responsibility – treat it with care by caring for your health and wellbeing. To be efficient and firing at a high caliber it’s essential to embrace a healthy physical routine and check in with your mental state. Moderation is key — working non-stop leads to startup burnout.

Know your exit strategy.

Knowing your end game makes every decision easier. Having clarity on your exit plan — whether it’s not exiting, Merger & Acquisition, or IPO — affects how you run your business day to day.

Planning is critical.

The lifecycle of you startup depends upon planning, documenting, and communicating even the most mundane tasks.

Take on the student role and always be learning.

The smartest founders are the ones that don’t know all of the answers. Being a lifetime learner evokes greater innovation and creativity. Knowledge is power and will help increase awareness of the world around you.

 

Rise Up Radio Interview with Tyler Jensen Founder of The Startup Garage

Rise Up Radio San Diego with Tyler Jensen

Rise Up Radio Interview with Tyler Jensen Founder of The Startup Garage

You are listening to James Carmody and Jared Kelley here, in studio for SDriseup.com

We are looking to hear stories in your life about local leaders in San Diego.

Whether it is the small business owner, your Pastor or leader of your church, your kid’s school teacher or maybe it’s their Little League coach.

James:

With us in the studio now we have Tyler Jensen, who is the owner of Startup Garage. I am super-excited to hear about Tyler’s background, his journey in life and how he is making a difference in the community.

Tyler:

James, I like start ups and I love my garage. I am just so excited to dig into combining those things two things…

James:

Or maybe use it as a guide to combine.

Jared:

I think the play on it is that we are taking start ups out of the garage but that’s where they start. I know I am tinkering on toys in there and stuff, there are 360 video cameras in my garage and having fun…

Jared:

That is why I love start ups too, I have to say that. I am fascinated with that game.

James:

Yes, taking a risk and getting things off the ground.

Jared:

Tyler, welcome to the show; welcome to the fun we are going to have here. Tell us a little bit about your journey and what you are doing with Startup Garage.

Tyler:

Yes, thank you so much for having me. I’m excited to be here and to share all the good that you are doing in the community. So, I launched Startup Garage about 5 years ago, as a result of having some struggles earlier on in my previous company. I really made a lot of mistakes earlier on in my first company.

Jared/James:

Yep, we all do that

Tyler:

And I realized that I made a lot of silly mistakes that I could have avoided and so that inspired me to help other people who are starting companies. People who have great ideas and passion and motivation, with ideas that can help improve the community, their families and themselves. So, that really gets me up out of bed every morning.

Jared:

Not only does it get you up out of bed. You have helped over 200 companies, non-profits and social enterprises. That is not light work.

Tyler:

It doesn’t feel like work, honestly. So, I think that’s the key. I wake up on Saturdays and sometimes I don’t have anything committed and sometimes I just start working again because I love it and it’s really fun, and people are coming up with some amazing ideas. People are really amazing when they are given the time and creativity to put something into action.

James:

Give us the background on Startup Garage. I know you started it back in 2010, so you are about 6 years in, what does it look like when someone comes to you, as you engage someone? What are you helping them with?

Tyler:

Typically, we have two different types of entrepreneurs who will come to us: one who we call the Lifestyle Entrepreneur and one we call the High Growth Entrepreneur.
The real difference is the high growth entrepreneur is looking to start something technology and really looking to scale really fast, maybe $100M in revenue within 5 years. They are going to need a lot of capital.

The Lifestyle Entrepreneur is really your traditional small business owner, maybe they are a sole proprietor, maybe they want to start a coffee shop or something like that and they just need help. So, on the high growth side we help them through the fund raising process and we do that through helping them build business plans, financial modeling, investor decks and we coach them on the fund raising process because as an entrepreneur we think certain things are important and investors almost think the exact opposite.

On the lifestyle side, it is really about education. On the small business side a lot of people have these great ideas and just really don’t know what the next steps are. They are really not that difficult but without access to someone who has gone through it before, it’s even more challenging and they make a lot of mistakes and sometimes even get stuck. So, we have an accelerator program on the lifestyle side that we just launched and I’m pretty excited about as well.

Jared:

Wow!

James:

Really cool!

Jared:

I think that it would be beneficial to sit down and have a conversation. Not on the radio, I probably need to break out my financials and see…because I personally fall more on the lifestyle side, that I just love being involved with people and I know a couple of venture capitalists, so I think that’s probably the point that most of them look at…everyone thinks it’s all about profit and that’s important, it is important to have revenue but I think that most partners are also looking on like “who is this guy, what is his story and what’s happening?”

I think again, that is more my passion, the lifestyle side, as it’s about just empowering and encouraging people to say: who are you, what are you doing and you have some passion around there right? Passion drives efficiencies and it drives innovation, and when you are sitting there doing the grind (and that’s important to have some grind and hustle) but if you are just doing a 9 – 5 to get a pay check, then look at that and see if that is really what you want to do.

If you have that entrepreneurial spirit it is just inspiring to sit down with people like Tyler who will tell you “I’ve been through the struggle and you could probably do a pretty sick billion of a widget company yourself.”

He said: “I’ve got these talents how do I help other people and how do I multiply this?” I commend you for doing that and I know that that space is not an easy one. So, it’s fun and you like to work on your Saturdays but you probably get some notes once in a while in the finance space and growing through that.

James:

Sure. Speaking of passions folks, one of the things that you may be very familiar with if you are listening here is that Tyler Jensen is also the founder of VAVi Sports. I know firsthand I’ve played in multiple VAVi leagues in my 13 years as a San Diegan.
I’m sure Jared has, I know my wife has and my friends and clients have. Tell us how VAVi got started? It’s such a thriving, amazing organization now. Where did you get it started and how did you guys come to San Diego and where we are at today?

Tyler:

I’m originally from Virginia

James:

An East coaster like myself. I’m from Massachusetts.

Tyler:

Okay, nice. I went to University of Virginia and moved back right after I graduated in 2008, with big dreams (most 21 year olds are full of ego and full of confidence). I came out with that and ran out of money in about 3 weeks after I got here – the 21st day.

James:

Where did you go, to the beach and the bar?

Tyler:

I was looking for a job. So, I came out here and I got offered a job to run a political campaign. I ended up running a U.S. congressional political campaign for about a year. One of the women and I on that campaign started talking about wanting to start a business. I had just moved here and I saw the need to start building a community beyond just the bar scene.

At 21 I was living in Pacific Beach and you just went to bars and that is how you met new people but I wanted something different than that. We came up with the idea to have that community built around sports. I certainly wasn’t very good at sports, I’m okay…I’m average at best and so was my friend. So, it wasn’t about the super competitive sports, although VAVi does have some competitive leagues now. We just got started right after the campaign. We printed 5000 flyers.

James:

What year was this?

Tyler:

2002 – right after the campaign we printed 5000 flyers, set up a one-page website and we bought vavi.com. The day we launched and got the flyers in the mail, VAVi.com expired and we didn’t know that. A Chinese company bought it and so we had to launch govavi.com. We went around the beach and handed out flyers to get it started. We started with one volleyball league and now it’s got about 35,000 members here in San Diego. I sold it back in January 2008. So, it’s been quite a journey.

Jared:

I’ve also played in those leagues and I’m just like you, I’m not the super-competitive, achiever mentality person but I know my role, I’m not the greatest out there on the field but it was a great place to go play those sports and have fun. I think that’s why entrepreneurs are needed and leaders are needed, just to see those gaps and fill them.

So, if you are sitting at your desk or in your car having that thought in your head: “man, there is something here that can I can help do,” that’s what your role is, if that’s your passion find a way to do it. I’m not going to get `Gary Vaynerchuk’ on us right now but if it’s good – do it…make it happen.

James:

Tyler, it’s such a pleasure having you on air, someone who this entrepreneurial mindset and you have made such a difference here in the community. How many people play in VAVi sports nowadays?

Tyler:

I’m not sure exactly what it is anymore because I sold it a number of years ago. I’m trying to think…

James:

Ten…twenty people maybe?

Tyler:

Probably. There were probably 3,000 people in a given week playing in some sort of event when I sold it.

James:

Right, that’s amazing. That’s the adventure, right? And at Startup Garage, you are impacting local entrepreneurs in a major way and they are impacting their communities.

Tyler:

Yes, and that’s really what motivates me, to contribute entrepreneurs of impact to the community. So I am impacting the entrepreneurs. I’m not, like you who said you like to network and get out there and do all that. I’m a kind of introverted guy, so I figured out how do I make the biggest impact if I don’t have to go out and be in big crowds all the time? I got enough of that through my VAVi days. I moved up to Encinitas and hide out up there.

James:

Oh, that’s fantastic. Tyler Jensen making a big impact, empowering others through entrepreneurship to give back to their communities.

Jared:

Tyler, let’s go into Startup Garage just a little bit more, and maybe you can say some of the companies or maybe not. What does it look like for a couple of companies that are coming in and talking to you, and what are you doing with them?

Tyler:

I will give two examples: one for the high growth type company and one for the lifestyle type company because it’s a little bit different of a process. On the high growth side I will be kind of vague about all the details because of confidentiality.

I’m working with a company that came to me about a year and a half ago wanting to get into the solar space and had a concept and really needed cash, lots of cash to be able to execute on that idea he had. We helped cultivate that idea and put it into a business plan and through a really complicated financial model (as it turned out to be pretty complex for this particular one) and crafted the investor deck so that investors would respond to the story as well.

When an entrepreneur goes in they just want to talk about their product or service because they are so product/service-centric and they think that’s the best idea ever as they are putting their lives into it. It may be a great idea but investors want to know more.

So, we crafted all that together and put that investor package together. He went out to investors and has successfully raised several rounds of capital now. After the first round I continued to help as a part-time CFO on the team. I think he is nearing about $2 million raised, and really seeing a lot of traction and solar going in a lot of homes.

Jared:

Wow! You are like the Shark Tank Prep Crew.

James:

Folks, if you are at home, we’ve got the red beard and red haired Mr. Wonderful

Tyler:

You are hired as my branding consultant.

James:

I could run with that.

Jared:

And then for the lifestyle side what does that look like?

Tyler:

The lifestyle side was really motivated because to work one-on-one with myself and the team it costs a good chunk of change, and on the lifestyle side we found all these people, a lot of whom are my friends, coming to me and saying: “I really need your help…I want to get this off the ground.” I just didn’t have the band width to help them for free, and the finances just didn’t make sense.

So, I finally came up with the idea to do a group setting where we created this accelerator where we can take this whole group of people and teach them a lot of the same things but in a way that is going to be more beneficial to them.

They are not going to need to raise money from angel investors or venture capital but they are really going to need to get their service and their target market dialed in and all those pieces figured out, and learn the basics of business because a lot of them in this group do not know the foundation of business which can really catapult them to the next level.

So, they come and they sign up for a class. We are just finishing our first ever Lifestyle Business Accelerator class; we are in week 9 of 12, so we have 3 weeks left: Marketing, Sales and Small Business Funding. Then we are going to another class which (I think) starts on May 17.

It is a 12-week program and whenever there are 12 weeks we do 12 classes where you are going to learn and be interacting with others about the basics of business and getting your business plan done. There is also going to be 7 co-working nights, so you get together with your little pod within this group and work together.

So, there is learning and support, you are developing this little community of entrepreneurs that you can lean on. There is going to be 5 other nights of guest speakers where you are going to get to go and see other entrepreneurs talk about a number of different topics that are applicable to someone getting a new business up off the ground.

So it’s a 12-week program. We’ve made it really affordable, it’s only $1,500 for that whole program and so you end up with a business plan that you have created yourself, plus your business idea has changed from the idea into a real business that you can communicate to others and sell and make money.

Jared:

I think I’m an entrepreneur because my heart is just beating like it’s on fire right now…

James:

It’s so exciting!

Jared:

…and I can speak for myself; but if you are sitting in the same seat of: “what do I do next? I’m kind of lost in this thing…I have a great idea…” This is a solution that will provide high-tech coaching, have consultants come in and $1,500 is like a drop in the bucket – that is very affordable.

James:

Absolutely. And maybe you are sitting at home listening to us right now and you are working for a corporation and you are not stoked about it…you are not excited about it and you’ve had this passion project rolling around in your head, and you are like “how the heck do I even do this?” For $1,500 you could really play around with that idea, get some good training from Tyler and his crew and see if that has legs.

Tyler:

All the events are planned for in the evening as well, so if you have a full time job it’s after work. We definitely did it with that in mind, like “hey, if you want to get out of a job…” We just advise people “hey, don’t quit your job.” [Laughter] It’s going to take some time – not yet.

Jared:

So, please reach out. You can visit us on www.sdriseup.com, we have all of Tyler’s information there and how to get a hold of him and the company.
You have events all the time.

Let’s go into another event which I think is really really amazing and putting out that flag on the ground of rising up and being different, being part of your community. You are going to be talking about building a business to create impact, so the title of the business is very simply: Build a Business to Create Impact and that’s on April 12.

Again, we have information on that on our website, but Tyler, tell us more about what that event is.

Tyler:

That event is going to be a sampling of this lifestyle business accelerator. We are going to have a number of the different contributors coming in to do 5 minute instead of doing a whole class so you can get a flavor of who is going to be a part of this accelerator program and see if it’s a fit for you.

To be really fun, we are going to get that running up and moving and then we are going to dive into some business where we are going to be introducing the Business Canvas Model, which is a one-page business plan. You will do some actual learning which will move your business idea forward even if you decide not to take that class.
It’s from 6:00 – 8:30 in the Del Mar area.

Jared:

That one-page business plan that I looked at on your website, www.startupgarage.com, it is very clean but a very powerful tool. There’s a lot of information on that one-pager. So, if you’ve enjoyed this, please understand that you’re an entrepreneur and you’re a leader.

If you haven’t enjoyed it and you are just saying “hey, I know a lot of people like this,” be a leader in your space. If you are walking your dog wave to your neighbor, that’s leadership. Be a part of the community that you are in. That’s what this show is about.

James:

Folks, thank you so much for tuning in. Let’s continue to empower others, empower our neighbors, family, friends and co-workers. Tyler Jensen, with Startup Garage, it’s been a pleasure having you on.

If you have a question about your raising capital for your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

5 Excellent Startup Tips on Securing a Bank Loan

Bank Loan Tips From The Startup Garage

5 Excellent Startup Tips on Securing a Bank Loan

It’s no secret that securing bank funding for your startup is difficult these days – but it’s not impossible.

Give yourself better odds with these 5 simple
Startup tips:

Write a clear and convincing business plan.

Business owners must build a strategy from the very beginning around being “lendable,” so a business plan helps lay that proper foundation. Focus especially on the financial estimates and offer well-researched documentation for those estimates.

In addition, be sure to illustrate in your plan how you will generate revenue, how
much you’ll generate and how long it will take to get to positive cash flows. (Side tip: you may
want to have a CPA look over your financials beforehand).

Boost your credit rating.

A solid credit score lends legitimacy to your request and shows you’re less of a financial risk to the bank. They’ll want to see that you have a history of paying bills on time, as well as your history of minimizing outstanding debt. Have a less than desirable credit score?

Seek out smaller, more local banks, since large banks typically are pickier as to the kinds of businesses they want to work with. Smaller ones may be more forgiving of new businesses and may have less stringent credit requirements for opening accounts and lines of credit.

Launch your business in a solid industry.

Certain industries, such as food service and apparel,are considered extremely risky by potential lenders. Thus, if you are determined to get bank funding, consider an industry that doesn’t depend on fluctuating resources (such as oil prices) and has a relatively large profit margin.

Once selecting that industry, be sure to demonstrate your experience in it: offer real, measurable examples of your expertise in your chosen industry or of your experience of running successful businesses. Banks back those with a track record of success, so you’ll have to convince them you have the skill set, drive and experience to make their lending decision a successful one.

Owner’s equity.

If you expect lenders to put their “skin in the game,” they’re going to expect
you to do the same. As a general rule, you should personally invest 20% of the total projected
loan request. Your willingness to risk a sizeable portion of your own capital (and not just capital from their bank loans) shows your commitment to the venture.

Relationships are key.

Ultimately, securing a bank loan is about building a relationship with your bank, and if done correctly, your banker can become your biggest ally. If the banker knows you, your business operations and that you have good employees and a stable customer base, they
will be more likely to go out on a limb for you.

Having a good relationship with your bank can
make running your business a lot easier, so don’t underestimate it!

If you have a question about your raising capital for your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

5 Reasons to Attend The USD V2 Pitch Competition For Entrepreneurs

5 Reasons to Attend The USD V2 Pitch Competition For Entrepreneurs

On Thursday April 28th University of San Diego School of Business will hold an exciting competition in a “Shark Tank” like setting.

Top student entrepreneurs from USD and Tijuana will compete for a total of $100,000 in cash and invaluable mentorship and support.

The Startup Garage Team Compiled The Top 5 Reasons this is a must attend event:

1. There’s is no cost to attend.
It’s a completely FREE event although space is limited.
*HINT sign up early to reserve your seat.* When was the last time you had the opportunity to spent time with like minded entrepreneurs in a beautiful setting at no cost?
Register here

2. Absorb expert advice and insights from keynote speaker Tim Suski.

Tim co-founded one of the fastest growing boutique fitness franchise in Southern California, (The Rush Cycle Franchise) and also launched a technology platform used by 500+ businesses across the globe.

3. Fuel your entrepreneur inspiration.
The students pitching include a unique blend of entrepreneurs, each with their own innovative story and journey to share.

USD Current Student Entrepreneurs includes:

Lacy
Lacy is a bra washing machine (patent pending) that carefully protects bras and
delicates from the damage they normally endure during traditional washing methods.

FoldedColor
Technology company FoldedColor is an e-commerce solution for custom printed
packaging, offering standard and customizable folding carton options through a web-
to-print interface that includes instant pricing, an intuitive design editor, virtual 3D
proofing and online checkout.

TechMeetsTrader
This free social community for stocks and options investors, TechMeetsTrader
makes it easy to capitalize on investment opportunities and to learn from
experienced traders.

Like Cats and Dogs
Like Cats and Dogs produces a safe pet toy for both cats and dogs.

Bi-National Track Entrepreneurs Include:

AGROSOL
AGROSOL offers a fertilization, fumigation and geographical scanning system
performed by drones.

Baja Saver
Baja Saver generates clean and cheap energy through a product as small as a home
refrigerator that is 100 percent self-sufficient, more effective than wind and solar
systems and a better return on investment.

Ñapanga
Ñapanga produces and distributes a microbrew with a female focus.

FXR
FXR is an app used to request certified professional services for home repair and
maintenance.

4. Learn the art of pitching a Startup first hand.
Feel the presenters emotion and techniques when listening to a pitch, and tune into the panelist (potential “investors”) asking hard hitting questions.

5. Anyone can benefit from attending the V2 Pitch Competition.
Networking is key. “Meeting the right people and making connections to the San Diego start-up community is key to the success of any venture. We are lucky to bring in a unique crowd to the V2 Pitch Competition filled with investors, Entrepreneurs, alumni, and community partners. V2 has become an evening to connect, celebrate, and support our thriving San Diego and CaliBaja start-up ecosystem.” Regina Bernal, Entrepreneurship and Experiential Learning USD

Now that you’ve decided to join us, be sure to say hello to The Startup Garage Team!

We’ll have a table set up from 5-6pm at the Venture Fair prior to the event to answer any burning Startup Questions

How to Craft an Effective Mission Statement For Your Startup

How to Craft an Effective Mission Statement For Your Startup

When developing a business, an important component of your overall strategic plan is a mission statement.

This brief statement declares the purpose of an organization and defines the reason for the
company’s existence. It provides the framework to help guide the company’s strategies and actions by spelling out the business’s overall goal.

Ultimately, a mission statement helps guide decision-making internally, while also articulating what your business is all about to customers, suppliers and the community.

An effective mission statement is clear and concise, yet resonates with both employees and those
outside of the organization. It captures, in a few succinct sentences, the essence of your business’s purpose in a way that inspires support and ongoing commitment.

So, how should you go about crafting one for your business? Here are some helpful tips:

Involve others

The best way to develop a mission statement is to brainstorm with those connected to your business. Ask employees, customers and investors what they see as your biggest strengths and weaknesses. It’s important to see how others see your company and your brand so that you have more than one perspective. Not only will you get a more comprehensive statement that’s reflective of your company culture, but your employees will be more invested in it because they helped form it.

It takes time

Crafting a mission statement of value requires time, thought and planning. Typically, it’s recommended to set aside several hours – a full day, if you have it – to piece together everyone’s ideas and arrive at a finished product. Though time-consuming, this process will solidify the reason for what you are doing and help clarify the motivations behind your business.

Make it count

Even though mission statements are short, every word counts. Your statement should not only be memorable, but it should inspire action, as well. However, there’s no need to make it overly complicated – just state the purpose of your company and your reason for starting it in the first place. Its value only comes from when stakeholders can use it as a guide when making day-to-day decisions.

Spread the word

Once your mission statement is complete, display it internally and externally with pride. Post the statement in the office, print it on company materials and be able to recite it to potential customers who walk through the door. This way, you can ensure everyone who reads it understands the direction of the company and why you’ve chosen that focus.

If you have a question about your mission statement for your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Crowdfunding For Equity: Title III and Equity Crowd Funding 101

Business Plans and Crowdfunding

Crowdfunding For Equity: Title III and Equity Crowd Funding 101

What is Equity Crowdfunding?

Equity crowdfunding is on the rise after the signing of the Jumpstart Our Business Startups (JOBS) Act was signed by President Obama in April 2012.

Simply put, it is a type of crowdfunding that enables broad groups of investors to fund startup companies and small businesses in return for equity.

Three years after the JOBS Act was initially passed, Title IV (Regulation A+) went into effect, allowing larger companies to accept capital from both accredited investors (the wealthiest 2% of Americans) and non-accredited investors (the other 98% of Americans). This expanded when Title III (Regulation CF) was enacted in October 2015, which also allowed early stage companies to accept capital from both accredited and non-accredited investors.

More About Title III (Reg CF)

Title III allows startups and small businesses to raise up to $1M from the general public – an unprecedented way to raise capital. More specifically, investors who have less than $100,000 in both income and net worth may invest at least $2,000 per year, and as much as 5 percent of their income or net worth (whichever is less) per year.

Investors whose income or net worth is greater than $100,000 may invest up to 10 percent of their income or net worth (whichever is less) per year.

Thus, Title III gives companies that are historically underserved by the current capital markets an equal opportunity to equity financing.

On May 16th, Title III will officially go into effect.

Process

Choosing a Funding Portal

Under Title III, companies must use an online intermediary (either a broker-
dealer or crowdfunding portal registered with the SEC and FINRA), to facilitate a
fundraise. Experienced portals with a deep understanding of the regulations
surrounding Reg CF can help ensure that their campaigns are compliant with SEC rules.

Filing a Form C

Companies raising under Title III do not need to get SEC approval to initiate their
raise. They must, however, prepare a Form C and file it with the SEC 21 days prior to launching an offering. This form includes basic information about the company, its employees and the terms of the raise.

Disclosure Requirements – Financial Information

In addition to Form C, necessary financial information will depend on the size of
the intended investment needs:

 Under $100k – Internal financial statement review

 $100k-500k – CPA reviewed financial statements

 500k-1M – 3rd Party audited financial statements

 1st time crowdfunding issuers offering more than $500,000 would be permitted to provide reviewed, rather than audited, financial statements.

 Disclosure Requirements – Ongoing Reporting

Providing progress reports not only build trust with investors and keep them informed, but they’re also a very much required part of the disclosure requirements. Upon the successful closure of your campaign, you will be required to provide ongoing updates to your investors in the form of an annual report, which will include similar information that was included on the Form C.

In summary, what are the benefits and pitfalls of Title III?

Benefits:

 Title III can be an efficient way to quickly startups raise capital from the crowd

 More investors equate to more supporters in your startup

 Reporting requirements give founders and investors an opportunity to

Pitfalls:

 Current statutory disclosure obligations and costs are overly burdensome

 Legal and accounting fees may be higher than traditional capital-raising

 Title III does not include a “testing the waters” provision (like Reg A+ maintain a more open and transparent dialogue methods does) so that issuers can gauge interest before incurring burdensome filing and preparation costs

Remember, Regulation CF will become effective 180 days after the final rules are published in
the Federal Register on May 16, 2016.

If you have a question about your equity crowdfunding for your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

How Does A Convertible Note Works For Startups?

How Does A Convertible Note Works For Startups?

A convertible note is an investment instrument intended to provide a startup company with early stage financing.

It’s a compromise of sorts, blending the downside protection associated with a loan and capturing the upside potential of selling equity shares.

Why are they used?

It can be very difficult for investors and entrepreneurs to agree on the valuation of an early stage company. Valuations are complex, and require a considerable amount of time and data that early stage startups just don’t have. A convertible note for startups allows the valuation conversation to be delayed until later down the road when a valuation can be more easily determined. Typically, this occurs at the next funding round. At which time, the note will convert from a loan to equity.

What’s the “discount rate” and other terms?

Early stage investors that invest in the form of a convertible note expect to be appropriately compensated for the extra risk taken by investing at such an early stage. As such, when a valuation is determined at a subsequent round of investment, the early stage investors typically receive a “discount” on that valuation where their investment gets converted at a cheaper valuation. The discount rate is predetermined and agreed upon at the time of signing the note. 20% is a common discount, but it can range widely from around 10% on the low end to 35% on the high end.

Here’s an example of the convertible note process:

Joe Angel invests $500K in a seed round investment
Startup issues Joe Angel a convertible note for $500K that has an automatic conversion feature at the next round of financing with a conversion discount of 20%
Startup closes a $1M Series A round with a VC at a pre-money valuation of $5M
VC receives 16.67% equity
Joe Angel’s note will convert to equity at a 20% discount on the pre-money valuation for 10% equity

The above return does not account for interest on the loan, which typically ranges from 5-7%. It’s not paid out like a regular loan, but instead accumulates and then the interest is added to the conversion amount at the end of the Series A startup funding round.

Main benefits:

Convertible notes are attractive for both the startup founders and potential investors. The startup needs this type of early funding to prove their concept and build momentum, and it gives savvy investors a way to gain significant discounted equity in a potential rising star.

Other benefits include:

Relatively simple to create, especially when compared to the preparation and legal resources needed for later funding rounds. The negotiations around valuation can be deferred, so the founders can focus on initial strategy and refining their service offering
Early investors should receive discounts because they took a chance on the firm at its earliest stages and they then often remain as loyal long-term investors.

Some caveats:

With the discount, the startup does give the investor a bigger stake in the company compared to the same money received by other investors, but this early-stage investment is often required in order to reach any growth.

On the investor’s side, they need to look very closely at the startup to be sure they are not taking on outsized-risk. The risk involved is higher than what is reflected in the typical 20% discount of the convertible note. This simply boils down to the challenges facing startups to actually move forward from seed to Series A funding rounds. Less companies are able to do it as they don’t build enough momentum to warrant larger-scale VC money.

Another risk for convertible note financing can come if the convertible note is too large. The problem can come when it converts to represent a big portion of the next round, which might discourage other investors from coming on board because they’re limited in the potential equity stake.

If you have a question about pursuing a convertible note strategy for your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Top 8 Success Tips For First Time Founders

Top 8 Success Tips For First Time Founders

As a Startup entrepreneur it’s easy for your work to become your life, and 8 years to effortlessly slip by.

I founded what has become The Startup Garage in January of 2008 with passion for helping entrepreneurs start and launch companies of impact.

Our business, team, and services have evolved, transformed, and changed many times over. Yet, throughout the years the fears, issues, and struggles seen amongst first time founders have remained the same.

As a Startup founder, regardless of where you are geographically or financially, there appears to be common threads, and snags all of us face at one point or another along the journey.

In 8 years of service, The Startup Garage, has helped over 200 companies, non-profits, social enterprises, find success. In celebration of our 8 year anniversary, I’d like to share with you.

My Top 8 Success Tips:

Startups take time. Create a plan that avoids too much false or unnecessary urgency.

Having a false sense of urgency can keep us from putting our energy into the right things at the right time. It’s true, success doesn’t just happen, it requires careful, detailed planning and action. Be sure to enlist the help of business plans, checklists and project management platforms, to prioritize and stick with daily, weekly, monthly, and annual goals.

Don’t focus too much on the product/service. Balance your focus.

All to often entrepreneurs become so excited over their product or service, that they get lost in their own enthusiasm. The core of the business might be the problem the product solves. But, it’s imperative to give equal weight to other key comments of the business like, the team, the marketing strategy, business model and customer feedback.

There is plenty of investor money out there for companies who reach the milestones investors care about. Know what investors care about and focus on that.

Remember as an entrepreneur your perspective and mindset, often times differs from that of an investor. We’ve designed a helpful infographic here>> Achieve Investor Milestones
to keep you visually in tune with achieving the milestones investors care about, to communicate with them in a language they understand.

Founders are the biggest problem for most startups. Get out of your own way.

We call this the founder’s dilemma, and it’s a big one. Founders don’t let go easy, surrendering control, delegating tasks, and learning to be a leader rather than a micro-manager can take time. Recognize the dilemma and start delegating tasks even if it feels uncomfortable.

Healthy founders leads to healthy startups.

Founders are the core of a business inspiration, motivation, and success starts with you, then ripples out to the organization at large. Your business is your responsibility, treat it with care by caring for your health and well-being. To be efficient and firing at a high caliber it’s essential to embrace a healthy physical routine, and check in with your mental state. Moderation is key, working non-stop leads to startup burnout, and doesn’t help anyone within your startup.

Know your exit strategy.

Knowing your end game, makes every decision easier. Having clarity on on your exit plan, whether it’s not exiting, Merger & Acquisition, or IPO affects how you run your business day to day.

Planning is critical

The lifecycle of you startup depends upon planning, documenting, and communicating even the most mundane tasks.

Take on the student role and always be learning.

The smartest founders, are the ones that don’t know all the answers. Being a lifetime learner, evokes greater innovation and creativity. Knowledge is power and will help increase awareness of the world around you.

If you have a question about your raising capital for your Startup or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!