Traction

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BYU Entrepreneur Lecture Series
2
The Idea

• From paper to the web
• Rush to get a product up
• Why this was a problem for us
• Addressing a market vs
• making it for yourself

NEVER USE THIS!
3
Fake to Real

• Realization you are an actual business
• Panic vs planning
• Balancing near term cash vs long term
• viability

4
Chasing Cash

• Scalability?
• Is it actually building your business?

5
Technology hurdles

• Everyone has to think about tech
• Email spam
• Server bandwidth
• Merchant account costs
• Customer service

6
Knowing your limits

• Tech guys think they know everything
• We actually do
• Smart people gt like-minded in business
• Always get fresh perspectives but dont
• crowd source your business

7
Business Model Evolution

• Always starts with Consulting
• Subscription Model
• Product Expansion
• Market Expansion

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Monetizing Customers

• Initial Screening (Intro., EP, ES)
• 40 pass rate (100 ? 40)
• Meetings with the Entrepreneur
• 30 pass rate (40 ? 12)
• Due Diligence Negotiation
• 40 pass rate (12 ? 5)
• Investment
• 50 pass rate (5 ? 2.5)

Result? 2.5 customers
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Market Opportunity

• 5.6M new start-ups/year
• 1.9M seeking funding
• Only 50k successful raising capital
• Market Opportunity 97 need help!

• Doesnt include
• Havent incorporated
• Non start-ups

Source Center for Venture Research
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• Angel Investors
• Venture Capitalists
• SBA Loans
• Equipment Leasing
• Venture Debt
• Factoring
• Hard-money Loans
• Real Estate Investors

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• Angel Investors
• Venture Capitalists
• SBA Loans
• Equipment Leasing
• Venture Debt
• Factoring
• Hard-money Loans
• Real Estate Investors

• Results
• Increased Efficiency
• More deals done

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Business Model
Analysis Recommendation
Lending Scorecard
1 5 per deal
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Sample Lending Scorecard
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Local Market
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Looking at the Numbers
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1 1 3
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Lessons Learned

• Bootstrapping Mindset
• Do things that you dont want to do
• Persistence
• Have Fun!

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Thanks!

• Brock Blake, CEO
• bblake_at_fundinguniverse.com
• Trent Miskin, CTO
• trent_at_fundinguniverse.com