american idol - bootstrapping

17
Living the Dream an investment opportunity . . .

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My bootstrapping preso from the MIT Enteprise Forum 2010

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Page 1: American Idol - Bootstrapping

LivingtheDreamaninvestmentopportunity...

Page 2: American Idol - Bootstrapping

LivingtheDreamaninvestmentopportunity...

InvestmentSought:$1,150,000

Timeframe:12months

Poten7alReturn:10X

Page 3: American Idol - Bootstrapping

Salaryforme:$120,000/12months

Weightreduc7onsandfitnessprogram:$120,000/9months

LivingtheDreamaninvestmentopportunity...

Page 4: American Idol - Bootstrapping

HairTransplant:$90,000/6months

Cosme7cSurgery:$120,000/9month

Wardrobe&Stylist:$400,000/1month

LivingtheDreamaninvestmentopportunity...

Page 5: American Idol - Bootstrapping

VoiceTraining:$100,000/12months

GuitarLessons:$100,000/12months

DanceLessons:$100,000/12months

LivingtheDreamaninvestmentopportunity...

Page 6: American Idol - Bootstrapping

Areyouin?Youshouldn’tbe…

LivingtheDreamaninvestmentopportunity...

Page 7: American Idol - Bootstrapping

Yourdreamsandideasdon’townyou…

Page 8: American Idol - Bootstrapping

Thesis:

Itisagreat7metostartabusinessinTexas!

Page 9: American Idol - Bootstrapping

But,yousay…•  Therearefewac@veVCsleDinTexas...

•  Theangelsarebroke...

Page 10: American Idol - Bootstrapping

Itdoesn’tmaPer...TheVCmodelisdying(fornow)ANDVCmoneyisusuallybadforyourbusiness!‐  VC/Angelinvestment=lowerchanceofa1‐5xreturn‐  VC/Angelinvestment=higherchanceofcompletefailure

‐  VC/Angelinvestment=slowerexit(typicallyadecade)

…oh,didImen,on,youhavea50%chanceofge7ngfiredinthefirstyeara<eraVCinvestment?

Page 11: American Idol - Bootstrapping

Whatkindofbusinessshouldyoustart?

–  Whatareyoupassionateabout?

–  Whatexperiencedoyouhave?–  Howmuchmoneydoyouhave?

–  Howmuchmoneycanyouraise?–  Howlikelyisyourbusinesstosucceed?

Gates(so<ware),Dell(resale)andCuban(service)startedbusinessesthatgeneratedposi,vecashfromthestart,theydidnotneedmuch(ifany)outsideinvestment.

Page 12: American Idol - Bootstrapping

Revolu7onRopes

SandyStephens‐  BeSerropes

‐  $60MMmarket

‐  Part‐@meun@llaunch‐  Profitable

Page 13: American Idol - Bootstrapping

ShopSavvy

RylanBarnes‐  BeSershopping

‐  $12Bmarket

‐  Part‐@meun@llaunch‐  GrowthStage

Page 14: American Idol - Bootstrapping

RPValet

RPPayervand‐  BeSerparking

‐  $7Bmarket

‐  Part‐@meun@llaunch‐  VERYProfitable

Page 15: American Idol - Bootstrapping

Architel

ScoPRyan‐  BeSerITservices

‐  $3.2‐10Bmarket

‐  Part‐@metolaunch‐  Profitable

Page 16: American Idol - Bootstrapping

BeCapitalEfficient

•  Startabusinessyoucanbuildwithoutoutsidecapital.

•  Focusonservices,soDwareortechnology.

•  Assumeyouwillneedtobeprofitable.•  Startsellingimmediately.

•  Partnerprolifically.

Page 17: American Idol - Bootstrapping

Ques7ons?