Connor’s Kits for Kids

Bill Warner Friday, July 30, 2010

The STEM (Science, Technology, Education and Math) education initiative is certainly gaining momentum throughout North Carolina. Without realizing it, Connor Bernstein started down the same path of being a leader in science education from the time he was in the fourth grade. Now, at fifteen, Bernstein is an emerging entrepreneur with exciting science project kits for kids of all ages; including adults that think like kids.

The mission of Bernstein's company, Kits For Kids, is to show kids just how much fun science can be with simple, focused, teacher and kid friendly science kits and activities. Bernstein says, “It’s important to give all kids the chance to find their place in the world of science. Science can sometimes seem complicated and mysterious, like it’s only for certain kinds of people. That’s definitely not true! I believe we can never have enough experimenters and innovators. Inspiring our next generation of scientists with exciting, hands on experiences at an early age is what I’m all about. I mean, what’s better than having fun while you’re learning?”

 

Bernstein founded Kits for Kids when he was in the fourth grade, because he was frustrated with the science kits he bought in stores. He says, “I’ve been playing with science kits and experiments since I was little. I look at things and wonder, why does that happen or how does that work, so it was frustrating when my teachers couldn’t always answer my questions, or when science kits ran out of materials before I was finished experimenting with them. I finally decided to see what I could do about that, and in third grade I began making science experiments and showing them to friends who thought they were really cool. By fourth grade, my love of teaching and my love of science came together when I started Connor’s Kits for Kids. Today, kids all over the country are using my kits and having fun with science! My allowance friendly kits help kids learn about science with awesome, focused experiments, lots of materials, and easy to follow instructions with clear explanations. In fact, I include such a generous amount of materials it’s like getting two kits for the price of just one!”

 

Bernstein is truly a unique individual. His curiosity is boundless and his energy is seemly unlimited. Bernstein can be found teaching science to school children, as they learn how to make Slime, create Plant Pals and discover Insta-Pets. All of this and more is out of Bernstein’s innovative mind. Remarkably, he has conducted team building sessions for small businesses, having them all make Slime together. Fun stuff!! He says, “I know that inspiring the next generation of scientists starts with positive science experiences at an early age. That’s why I raise funds so I can visit elementary and middle school classrooms at no cost to teachers and lead exciting science activities with students. I also speak to students about the importance of entrepreneurship and the pursuit of life goals.”

But, this is a business. Bernstein has pulled together the marketing program, science project design, packaging, raw material supply, manufacturing and assembly of his innovative science kits. He has sold hundreds of them, and is ramping up to sell thousands with the help of his new website and manufacturing operations.He is running an increasingly complex and rapidly expanding retail business, and has yet to graduate from high school.

 

Bernstein has big dreams of being a successful entrepreneur that brings value to society through science education. As a high school senior (Yes, a 15 year old senior) at Hawbridge Charter High School in Saxapahaw, NC, he plans to go onto college to further pursue his dream. In fact, he is getting a head start on that by already completing college Chemistry, Biology and Launching the Venture.

 

His mom has supported him the whole way. She's helped him develop the skills needed to build his company and stay organized. She's also helped troubleshoot issues, and of course, driven him to meetings and places he needs to be. Thanks to his devoted mom and dad's financial sacrifices, he’s been able to afford the costs associated with building his business.

 

If Connor Bernstein can do all of this himself, with his parent’s devoted help, think what could happen if he got some help from others. He has gotten professional business help and meets with them regularly. Keep an eye on this entrepreneur. He is going to be one of our leading business people in North Carolina.

 

I suggest that the education innovators of North Carolina learn some things from Connor Bernstein about how to bring science to kids in innovative and effective ways.

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We Need More New Companies

Bill Warner Sunday, July 11, 2010

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John Draper - Champion of the Entrepreneur

Bill Warner Sunday, July 11, 2010

Every day of his life, John Draper had time for an entrepreneur who needed help. Now we have lost John to an untimely death, but his influence on the world of entrepreneurs will long be felt.

I am proud to have known John from the time he started the rejuvenation of the First Flight Venture Center in Research Triangle Park. From the first day I met him he always wanted to know how he could make First Flight a success. He wanted to know how to approach state government with a positive message about the future of First Flight. He wanted to meet the movers and shakers in the area. He had a flood of new ideas coming out of his head on how to help entrepreneurs create successful businesses. To say that John had energy is an understatement. He was a gusher of compassion, advocacy and innovation when it came to finding ways to help entrepreneurs.

My closest relationship with John was on the board of the Triangle Accredited Capital Forum, a local angel investor network. John was one of the original board members who helped us establish our founding principles and was a day-to-day critic of where we needed to focus. He was always available to coach the entrepreneurs through their business plan presentations and would go the extra mile or two to help them meet people they needed to meet. We had some heated debates about the viability of businesses that approached us, and in every case John spoke from his love for the entrepreneur and his sincere interest in helping them be successful.

Our hearts and prayers go out to John's family as they deal with John's passing. John will be greatly missed in our community.

There will be a memorial service and celebration of John's life on Tuesday, July 13th, from 3:00 to 6:00 pm, at the First Flight Venture Center at 2 Davis Drive in RTP.

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The Alternative Board

Bill Warner Friday, April 23, 2010

I recently had the opportunity to sit in on a meeting of The Alternative Board (TAB) in Research Triangle Park. We have all been to all sorts of networking meeting and events as well as executive round-tables. All of them are "nice to meet you" and "want to get to know you" kind of encounters. But, TAB is different.

TAB is not a "soft drink"

TAB groups are invitation-only organizations of peer business owners who want to have a serious conversation about how to grow their businesses. Business owners and executives are led by an experienced facilitator who has extensive experience in executive coaching. During a half-day meeting every month, the group of peer business executives conducts well structured discussions about specific business issues that each of them have.

OK, that's the easy part. These discussions have a serious intent. The peers act as they would if they were the board of directors of the company who has an issue under discussion. The business owner is given time to explain their business issue and its significance to the company. The peers then ask questions for further clarification, without making judgments. Once the issue is clarified, the board then gives advice. Quite frankly, the business owner needs to fasten their seat belt, because this part of the agenda is characterized by highly focused straight talk without any sugar coating.

The business owners get some very valuable and unfiltered feedback that they will often not likely hear even in their own management and board meetings. The reason is that none of the peers are wrapped into the business owner's strategy or their company politics, giving them the opportunity of being brutally honest.

Accountability and trust is at the heart of it all

What makes this work is that the members of the TAB group have built a high level of trust with each other and as a result command a high level of accountability. After the business owners get feedback on their issues, the business owners are required to summarize what they heard and say what they are going to do next.

This is where the accountability appears. The business owner has committed a course of action and will have to report results to the TAB group at the next meeting. Of course, all of these discussions are kept confidential.

But, there's homework

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Business Mentoring for Entrepreneurs

Bill Warner Wednesday, February 17, 2010

Approximately 26,000 new companies are formed each year in North Carolina. In that same year, over 23,000 companies fail due to poor management and operational mistakes. The statistics are worse in rural and minority populations. This means that good ideas go to waste along with the grant and investor funds that helped get these companies started. As a result, the potential growth of revenue and new jobs is lost also.

 

If we had assistance for entrepreneurs who are struggling to create successful businesses, the failures should decline considerably. Entrepreneurs should be seeking out business mentors that can help them through the early years of their business.

 

EntreDot™ Connects the Dots for Entrepreneurs

 

For the majority of the companies that fail, the missing ingredient that could have ensured their success is basic business-operations “know-how.” This is the void that EntreDot™ fills. At no cost to them, EntreDot™ provides business mentoring to entrepreneurs and helps them make the right decisions as they start and operate new companies.

 

Read More>>

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Managing in an Uncertain Economy

Bill Warner Monday, February 01, 2010

There is no one single thing that will protect your business in this economy. You need an array of actions to maximize your chances of getting through this downturn and pull you through what might be in store for us, whether it’s further depression or looming inflation.

Cash remains king

Have you tried to get a business loan lately? Pretty tough isn’t it? Better take a look at your line of credit and see if you can get a higher limit and a better interest rate over a longer period of time while you can.

Take a really hard and pessimistic look at your cash position. How long will it last in the grimmest of sales forecasts? Establish refreshed limits on your cash reserves and then create the cost and expense budget that would achieve it.

Have you looked at your accounts receivables and their aging? Do it now. If needed, establish new goals for collections and execute them with discipline.

Of course, manage expense

Take a more insightful approach to managing expense. It’s not just a budget cutting exercise, although you may find unnecessary things to eliminate. More importantly, it’s a matter of getting more for your dollar.

This is about working smarter, being more focused and increasing productivity. Consider things like:

• Taking stock of your knowledge of your market and determine if there are better ways to reach your customer
• Looking for ways to reach additional customers within your current market, with essentially the same marketing dollars
• Creating teams of people that look at process improvements in marketing, sales, development, manufacturing and customer support, looking for ways to be more productive. Constantly ask why we do things they way we do them. Give them a reward when they find substantial improvements
• Analyzing your lines of business, bringing focus on those that are performing poorly. Find out why and fix them or eliminate them entirely

Communicate

Often overlooked, communications is even more important in tough times. When employees are left in the dark about the business situation, they will surely make things up based on any observation they make or rumor they hear. As they make up the situation for themselves, they will take care of communications for you by simply telling others what they believe to be true. Pretty soon, your business picture is painted with a brush you never held.

It’s time to over-communicate. Use whatever means of communication you have to your employees:

• Frequent all hands meetings
• Management meetings with stress on getting information to employees
• Newsletters to all employees
• Make a point of walking around every day, talking to everyone you meet

Most employees can deal with any news you give them, as long as it is the truth and you are realistic. When employees know the truth and the ramifications of it, they will work hard to achieve the company’s goals.

Get the best from the best

Take the time to realign everybody’s roles and responsibilities with the company’s goals. Everybody needs to understand what they have to do and why they are doing it. This will turn out to be a giant productivity improvement by getting everybody on the same page, and being able to clearly see how everybody’s job fits into the strategic plan for the company. It will help eliminate unnecessary work that is not important to achieving their goals.

It’s also time to put more discipline into managing the performance of people. This means setting realistic expectations, working with employees to meet them, and rigorously assessing their performance. This will bring the best forward as they rise to the challenge and will weed out those that are not been performing.

Just as in most start-up companies, you need all “A” players, because everyone has to be an outstanding performer to get you through the tough times.

Look to the future

In a way, this is all getting you repositioned for the good times. You business will come out of the downturn being stronger, more focused, more productive and with excellent people. Take the time also to look at new business areas you might attack when you are ready to spend some of your cash reserve.

Do the market research that will lead you to new opportunities. You are looking for the next great deal in which to invest your hard earned cash. You may find an acquisition or new partner that you never expected. Your new found strength may be just what they need at a price that is very attractive to you.

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Successful VC’s “Stay Fresh”

Bill Warner Thursday, January 28, 2010

I just read an amazingly refreshing perspective by Greg Gretsch in PE HUB. It’s all about what it takes to be a successful VC. It is counter-intuitive, but makes a lot of sense.

A Fresh View of a Successful VC

With only ten years as a venture capitalist, with some very successful investments and lucrative exits, Gretsch is worried about becoming stale and out of date. Heck, most VC’s with his record of success would be riding high, living the good life, and pontificating to the venture community about his formula for success.

But no! Gretsch doesn’t think that the longer you’re a VC, the more skilled you become in picking winners. Instead, he theorizes that if you’re a VC for more than 10 years, you’re likely to grow worse at your job over time. And, he has some data that point out that this may very well be true. Even with spotty verification, Gretsch takes this seriously. Here’s why:

• The older a VC becomes, the further out of touch with new technologies they become
• As they move up the professional pyramid, their network actually shrinks because they are working with fewer and fewer people
• They are not meeting the new people that are really bringing innovation to the market; as a result they miss trend setting ideas
• They are stuck in looking at existing market sectors for new opportunities, missing new and significant market changes
• Family demands increase as they get married and have children

How Do VC’s “Freshen Up?”

Gretsch’s simple advice is to “remain humble, keep your attitude in check, and stay hungry.” The hard part is to remember how that all feels. Here’s his formual, which might apply to many of us in lots of different lines of work:

• Increase the number of relevant technologies with which you are familiar
• Follow the leading industry analysts to learn what they are thinking
• Build relationships with the next-generation of successful investors and technologists
• Reach out to the younger entrepreneur and learn from their fresh ideas
• Always be better at what you do

I think Gretsch really believes this and will remain on top in the VC community for another decade.

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VC Investment Outstrips Fund Raising

Bill Warner Wednesday, January 27, 2010

In 2009, the venture capital industry experienced the biggest gap between investment and fund raising in the last six year. In a recent Wall Street Journal Venture Capital Dispatch blog, it was reported that investment was down nearly $10 billion, from $30 billion to $20 billion, while fund raising declined $17 billion, from $30 billion to $13 billion. This $6 billion plus difference is the amount more invested than was raised by VC’s.

Bad news for companies

The implication is that although venture firms still have a lot of money, it is still going to be increasingly hard to get funding because they are running low on available funds and it is still very difficult for them to raise further funds from their limited partners. Their limited partners are still suffering from the economic downturn and have not opened this investment class for funding.

Corporate and other private equity investment is also suffering, further reducing the number of options for equity financing.

Is IPO the answer?

Another source of funds could be successful IPO’s, which could breathe more money into the VC firms. We have recently read about an emergence of IPO filings, including Motricity, a former RTP darling. However, many analysts are quite skeptical that 2010 will bring much hope in this arena either.

What companies need to do

2010 is not going to be much different than 2009; perhaps worse, with respect to your chances of getting new VC investment. It is still a game of the “best of the best” getting due consideration. It means that you need to have a very compelling business, with meaningful and growing customer traction, having the potential for large and rapid growth, to a level that will provide a handsome return.

Due diligence will be treacherous, filled with disappointment for many, but there is still gold in “them there hills.” You will have to mine it with a focused laser.

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You Sell To More People Than You Think

Bill Warner Tuesday, January 26, 2010

“Let’s get some good sales people. We need those hungry ones that know a lot of customers. That’s all we have to do. Right?” These are famous beginning and last words. You are selling your product to almost everyone you meet as your business matures. And, everybody in the company sells in one form or another; it’s not just the sales team’s role. You certainly have to identify and sell to potential customers. But, there are many other interested parties that you have to sell to as your company evolves. The sales process begins on day one and lasts for the life of your company.

Selling in the market research phase

Even before you have a product, you have to sell your ideas to contacts you make while doing your market research. This phase is not just filled with reading and finding numbers that support your business strategy. You will have to sell your idea to industry analysts, market consultants, companies providing similar products and potential customers in your chosen markets. Seeking out the opinions of analysts and consultants makes a lot of sense. They know your markets in detail. You present your product or service idea, supported by your business rationale, looking for further insight that they can provide. In a way, you are selling by trying out what you think the value proposition is and how you will take it to market. Understanding that you may not have it quite right, they will provide you feedback that helps you to further refine your business plan.

Contacting companies that are within your market segment is also smart. If they are a potential competitor, you may have to get information from a third party, but you are essentially trying to figure out how your product fits into the market. You are prepared to sell your ideas, but also have questions like:

• Are you complementary?
• Will you need their help?
• Do you add value to their products?
• Are they a competitor?
• How will we fit?
• Why are they succeeding or failing?

Of course, the best piece of research is to approach a potential customer and get their feedback. You sell your product or service, but really want to know:

• Do they really have the need you think they have?
• Will your product solve their problem?
• Do they see the value of your product or service?
• How do they become aware of and buy products?
• Are they in a position to buy?

Getting funded

Once you have a well formed business plan, your next sales call will be on an investor or potential strategic partner from whom you need money to get your business started. This is a critical sales call which has to be successful. In this case you are selling a lot more than your product or service. You are selling the value of your company, and trying to create a long lasting partnership that will give the funds to launch your company and your vision. The business plan story has to:

• Be complete
• Represent a compelling business idea
• Be attractive in a large market of needy buyers
• Reflect a rich financial model
• Have a truly competitive and differentiated product
• Be managed by a superior management team
• Provide strong financial performance

This sales call is made by the top executives of the company, who have to be very well prepared to explain all aspects of the business and create excitement with the potential partner.

Selling to your channel partners

If you are going to use indirect channels, you will need to have a sophisticated process to sell to the channel partners through which your product will reach the ultimate buyer. The value proposition has to be specifically tailored for this audience to show them how they are going to make money in a relationship with your company. The partnerships could be with wholesalers, distributors, integrators, value added resellers and dealers. All of these partnerships have to established, and in addition to your product or service, will require you to sell some combination of:

• Training
• Product information
• Sales support
• Problem support
• Warranty management
• Inventory
• Discounts that make them profitable

Your sales efforts are to close a channel partner agreement that will result in financial success for them and an increase in revenue for your company.

What about alliance partners? If your product requires that you have to go to market jointly with another company, you have to make sales calls to them too. For example, if your product is integrated with another company’s product, then you may have to have an agreement where you are jointly marketing and selling. You may be integrating some other company’s product into your solution, so an agreement is needed for you to market and sell their product along with yours. The value proposition here has to bring a share of the overall revenue to the partner to recover the expense that they incurred plus a reasonable profit.

Sell to the influencers

When your product is ready to be taken to market, it is important to make sure all of those that influence your customer are aware of it. Industry consultants, partners and early customers need to know of your plans to launch your product. During the time when the product is first being introduced, you want potential customers to be able to call their outside consultant and get advice on your product. You also want your customers to be able to contact your early customers as a reference for your product. So, you need to make sales calls on all these influencers and make sure they have the most important facts and messages about your product or service. You will look very smart if a potential customer contacts one of them and learns the truth about your product. That is, the truth that you taught them.

Oh, the media too

Who would ever give up on some free visibility? Another important influencer is the media. They represent trade magazines, local newspapers, business press, television specials and radio news programs. When you launch your product, they too will need to know about your product or service. You want your customers to read the right messages, and from the media source that makes them aware of new products and services. The media will want to get quotes from consultants, analysts, customers and partners. They make the story come to life with the reality that it’s not just your company talking about the new product or service. Always make the media aware of positive news and use them as a way to get effective marketing information to customers.

So, selling is a process that involves much more than sending the hungry sales people after potential customers. Selling involves approaching the whole set of stakeholders in your market segments. You need to make sure that your company properly fits and that your customers know all the right things about your product or service.

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Successful Investor Presentations

Bill Warner Thursday, January 14, 2010

One of the leading angel investor organizations in the United States is the Tech Coast Angels in California. They have some great advice on how to put an investor presentation together on slideshare.

The seven P’s

They simplify this process into seven concise steps that hit at the heart of what an investor presentation needs to be about:

• Pitch – answering the question, “who are you and why should we care?” The importance of this bold introduction is to get the investor’s attention right away by telling them why they need to pay attention.
• People – convincing investors that there is a management team that can really deliver what they are committing. Having this right up front emphasizes how important the management team is to investors.
• Pain – explaining how compelling the industry problem or opportunity is to the potential customer. If the “pain” isn’t high, the investor’s interest will be low.
• Product – describing the innovative and differentiated solution to the customer pain, getting across the high barriers to entry and its demonstrable readiness for market.
• Players – showing that your product is the best in the industry while bringing to life how you will actually win against all competitors.
• Projections – illustrating how you will make money and that you have a thoughtful picture of the financial dynamics of your business.
• Proposition – introducing to investors what you are proposing be the investment deal showing that you have a specific view of who the money will be used and how the investors will be rewarded.

There are many other sources of information on the internet, but here is one on how to put together a structured business plan presentation that is often used with investors here in the Research Triangle Park.

Wrap it up

In closing, give an investor highlights summary explaining again why they should be interested, and then open up for their questions. You need to be ready to answer a wide range of questions about your business. Practice these because it is going to be your chance to show that you really understand your business and will be the clincher for gaining investor confidence.

Be sure to practice

Entrepreneurs need to be very well practiced in making these presentations and handling investor questions. Often you will only get one chance at this. If you do well, others will know. If you don’t, others will know. Go into these sessions loaded for bear having had a chance to practice on the firing range.

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