technical consulting and entrepreneurial opportunities for stanford grad students
DESCRIPTION
Presentation by Joe Miler, Stanford PhD Candidate 2 May 2012 Contact Joe: sites.google.com/site/joemilerTRANSCRIPT
Joe Miler – 2 May 2012 1
Technical Consulting and Entrepreneurial Opportunities for Stanford Grad Students
2 May 2012
Joe Miler ([email protected])PhD CandidateGoodson Group
Dept. of Mechanical Eng.Stanford University
Joe Miler – 2 May 2012 2
Standard InteractionStanford GSB Stanford Engineer
Umm…{Why are you
shaking my hand so hard?}
Hey SUPER GREAT talk!! Let’s chat/sync up soon!
MBA student Grad student engineer
Joe Miler – 2 May 2012 3
Standard InteractionStanford GSB Stanford Engineer
Umm…{Why are you
shaking my hand so hard?}
Hey SUPER GREAT talk!! Let’s chat/sync up soon!
Dorks
Unrealistic
Smelly
Awkward
Deaf to customerInterchangeable
Arrogant
Rambling jargon
Obsessed with the irrelevant
Greedy Bossy
Paper-pushing
HypeBullshitting
Networking
Tricking people into buying stuff
Manipulative
Contracts
Unnecessary
Money-hungry
Engineers are so… Business people are so…
MBA student Grad student engineer
Sleazy
Joe Miler – 2 May 2012 4Grad student engineer
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Transferrable Skills• Work independently• Strong work ethic• Defining problems• Solving problems
– Deep expertise– Broad knowledge base
• Healthy skepticism• Good at experimenting
Skills Needed• Project management
– Setting priorities• Big picture strategy• Communication• Willingness to take risk
Do engineering grad students make good entrepreneurs?
Joe Miler – 2 May 2012 6
Outline
Networking
Technical Consulting
Starting a company at Stanford
Learning more…
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hi cool!
sh!t…
• Research– PhD Candidate in the Goodson Group– Research on microfluidic heat exchangers and
hotspot detection and prediction• Technical consulting
– Med device patent litigation– EV battery start-up (Series-A)– Grid-scale storage (Series-A)
• Various entrepreneurial projects, no winners– EV battery secondary use (GSB Nii Award)– Breast cancer detection
• BASES (~3 years)– External partnerships– IP workshops– Social-E Challenge
• Coursework– Entrepreneurship– Social entrepreneurship– Patent prosecution
• Miscellaneous– Filed research-related patent application– TA for 7 quarters
About me
yes
How I got here…
But also…
Joe Miler – 2 May 2012 8
hi cool!
sh!t…
• Research– PhD Candidate in the Goodson Group– Research on microfluidic heat exchangers and
hotspot detection and prediction• Technical consulting
– Med device patent litigation– EV battery start-up (Series-A)– Grid-scale storage (Series-A)
• Various entrepreneurial projects, no winners– EV battery secondary use (GSB Nii Award)– Breast cancer detection
• BASES (~3 years)– External partnerships– IP workshops– Social-E Challenge
• Coursework– Entrepreneurship– Social entrepreneurship– Patent prosecution
• Miscellaneous– Filed research-related patent application– TA for 7 quarters
About me
yeshmm…
I’m not an expert, but I have some experience that could be useful…
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Technical Consulting…
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• Start-ups• Investors• Lawyers
Who hires technical consultants?
http://www.pajamasandcoffee.com/?p=5161http://beyond.customline.com/2012/01/26/where-can-you-find-article-ideas/http://billsbigmlmblog.blogspot.com/2011/09/big-mlm-tip-decisions.html
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Who hires technical consultants?
http://www.pajamasandcoffee.com/?p=5161http://beyond.customline.com/2012/01/26/where-can-you-find-article-ideas/http://billsbigmlmblog.blogspot.com/2011/09/big-mlm-tip-decisions.html
• Start-ups:– Scenario 1: Fast solution– Scenario 2: New Ideas– Scenario 3: Big decision
• Investors• Lawyers
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• “No free puppies”. Your rate determines how you are treated. • Cash vs. Equity
How to determine your value: • Default answer: 2x-3x your FT hourly rate• Consider costs you incur
– Overhead– Dispatchability
• Consider your value to the company– Degrees have value– Domain expertise– IP contributions– Scarcity of skills
• Consider your opportunity cost• Other considerations
– Learning experience– Interest in their mission
Consulting rates: How much am I worth?
Annual Salary
Equiv. Hourly
ConsultingHourly
50K $25 $50-75
100K $50 $100-150
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• Expect negotiation• Do your homework
– MIT salary data (link)– Equivalent job offers
• Believe a solution exists, then look for it• Explore interests, not positions
Take a negotiation seminar/class, etc.
Negotiating your consulting rate
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• Both sides need it done right• Read carefully• Key issues to look for:
– Maintain right to invent in future– Duration of agreement– Two-way NDA or not– IP assignment restricted to business area
• Get everything in writing
• Once you sign it, follow it.• People will push you to disclose.• Reputation is everything, but only you care about your reputation.
NDA’s and Consulting Agreements (NDA = Non-disclosure agreement)
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• Understand the problem(s)– Warning: The company may not.
• Discuss solution options– Trade-offs (e.g. accuracy, modularity, etc.) – Timelines
• Get to work• Check-in frequently
Critical skills• Demonstrate technical expertise.• Respect their domain-expertise.• Be creative.• Focus on tangible contributions. • Adopt their goals.
Maximizing your contribution
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Building start-ups at Stanford…
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• Start-up companies always have 2 products:– The widget/service– The business itself
• An entrepreneur is a “business experimentalist”ResearcherEntrepreneur
Research idea/hypothesis Startup ideaResearch proposal Business modelResearch funding Risk capitalMetric: performance data, fig. of merit, etc. Metric: Customers, clicks, etc1st experiment garbage data 1st business model iteration2nd experiment “preliminary data” 2nd business model iterationWell-designed experiment good data Scalable business modelGraduate! Get rich!
“A start-up is a temporary organization formed to search for a repeatable business model.” – Steve Blank (serial entrepreneur, Stanford Prof.)
An engineering approach to start-ups
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• Start-up companies always have 2 products:– The widget/service– The business itself
• An entrepreneur is a “business experimentalist”ResearcherEntrepreneur
Research idea/hypothesis Startup ideaResearch proposal Business modelResearch funding Risk capitalMetric: performance data, fig. of merit, etc. Metric: Customers, clicks, etc1st experiment garbage data 1st business model iteration2nd experiment “preliminary data” 2nd business model iterationWell-designed experiment good data Scalable business modelGraduate! Get rich!
“A start-up is a temporary organization formed to search for a repeatable business model experimental results.” – Steve Blank (serial entrepreneur, Stanford Prof.)
An engineering approach to start-ups
research teamOr…
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• Technical breakthroughs• Needs-finding
– Biofellows program– ME Design program– Informational Interviews– Networking
Where do start-ups come from?
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• First, what is a patent?– Right to exclude, not a right to build– A license to sue– Self-defense (M.A.D.)– A business asset – Resume/career builder
• What does it cost?– Time:
• Garbage: 1 hour • Good: More (depends on lawyers)
– Money: • Provisional: $2-3k (lawyer), $100 (yourself)• Full: $10k-20k (lawyer)
Should we apply for a patent?
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Good news• Stanford OTL helps
file the patent• You get royalties
Bad news• Stanford owns your IP • You have to compete to
license your own technology
IP at Stanford
Advice: • Keep a dated journal for anything remotely
patentable• Don’t underestimate the patentability of an idea… but only if that patent would have value to you
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• Business plan competitions– BASES– DoE– National
• Incubators– StartX – Ycombinator– Many more
• Angels• VCs• Strategic Investors
Understand the difference between business plans and business models
Raising $$$
Osterwalder Canvas
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Networking…
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• “Palm-up” networking• Imagine a role-reversal• Good networking opportunities
– Talks and lectures– Networking events (e.g. CHIPS, PRL)– Interdisciplinary classes
• You already have a network (i.e. peers at Stanford)
• Preparation:– Business cards– Skim headlines ahead of time– LinkedIn
Networking Basics
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• Likes to think:– She’s helping people.– She’s important.
• But also…– She’s missing the next big
thing.– She’s irrelevant.
• What she has to offer:– Connections– Deal-flow – Logistics enabler (eg cash)
• What you can bring to the table– Fresh ideas– Technical expertise – Access to your technical
network• Strategy
– Do quick background research– Get face time– You have 30 seconds to get
their interest– Be ready for 2 questions:
• How can I help you (right now)?• Why?
Networking: the big shot VC partnerRich entrepreneur( )
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• Likes to think:– He’s a leader.– Business runs the world.– Things work out, check the
details later.• But also…
– Oh crap, I need (start-up) ideas– Oh crap, I don’t have technical
skills• What he has to offer:
– Connections– Business knowledge– Big picture perspectives
• What you can bring to the table– Technology ideas– Technical expertise – Access to your technical
network• Strategy
– Goal is to start a relationship– Start high-level– Be ready for 2 questions:
• What are you working on? • What start-up ideas do you
have?
Networking: the GSB’er
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Learn more…
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• NSUR 278A How to start a med device company• ME 245 IP strategy for start-ups • E-245 Customer development, start a company• ETL Success stories in Entrepreneurship• EDUC 224 Success stories in social entrepreneurship• Startup (CS-183)• Technology Venture Formation• High Performance Leadership • Interpersonal and Small Group Communication• Negotiation• Plenty of others…
Stanford Courses
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• Ask around, it’s a good conversation starter• Blogs
– Steve Blank– Paul Graham– Techcrunch– Etc.
• Other talks: – BASES email list– Energy Club email list
• Stanford E-corner videos • Books• See Appendix
Other Resources
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• Equity and vesting• Incorporation• Board strategy• Strategy for finance rounds• Evaluating a startup for employment
Topics that are hard to learn at Stanford
Addition: Much of this is covered in CS-183, taught by Peter Thiel. Informal coursenotes are available at :
http://blakemasters.tumblr.com/peter-thiels-cs183-startup(thanks to Sanjay Dastoor for sharing this info)
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Transferrable Skills• Work independently• Strong work ethic• Defining problems• Solving problems
– Deep expertise– Broad knowledge base
• Healthy skepticism• Good at experimenting
Skills Needed• Project management
– Setting priorities• Big picture strategy• Communication• Willingness to take risk
Do engineering grad students make good entrepreneurs?
Joe Miler – 2 May 2012 32
Saniya LeBlancAshish NagarSaahil MehraGreg Reiker
Michael BarakoGhyrn LovenessPolina Segalova
Amit DesaiTom Stepien
Jeff Schoxand company…
Thanks
Joe Miler – 2 May 2012 33
Please:• Email me with any additional
feedback: [email protected]
• Leave me your email address if you want a copy of the slides
Questions / Comments / Feedback
All Done
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Appendix
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• Ask lots of questions to understand their pain points. • Respect their domain-expertise (don’t be arrogant)• Be aware of confidentiality concerns.• Don’t be negative about anything until you know for
sure they don’t do it, never have, and don’t plan to. (ie don’t be negative)
• Send a thank-you note within 24 hrs
Visiting companies(eg research visits, interviews, etc.)
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• How should we structure this consulting work?• I’d like to discuss compensation…• I’m not comfortable with …• I want to provide the most value for [Insert
company name] while also…• Perhaps what you’re looking for is an
undergraduate intern…
Helpful phrases for discussing technical consulting opportunities
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• Meet in person, not phone, if possible• Be prompt and professional• Always bring pen and paper• Use a dedicated “IP-legit” notebook• Dress appropriately (probably business casual)• Distribute business cards• Take initiative on unsettled issues
Keep in mind: • Stanford limits you to 8 hrs/week• Inform your advisor
Tips for 1st day of consulting work
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• On-campus talks and workshops• Incubators• Call a lawyer (first 5 minutes free!)• Network• Marry one• Or…pay
Where to find cheap legal advice
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• Some of my work is covered by an NDA, but…• What is public domain is this: …• What I can tell you is this…• I’m not sure I’m comfortable talking about…• You know I’m not at liberty to talk about that
right now, but I would like to discuss…
Helpful phrases for avoiding disclosure of protected information
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• Know when to call, when to email. When in doubt, call.
• Get comfortable with indirect wording, e.g.: – “Talk off-line”– “Sync up”
• Learn good email etiquette for different situations: – Be direct, but polite.– Keep conversational/high-level, add details elsewhere
(e.g. as attachments or below)– Include your cell number in signature when appropriate– Write a clear, interesting subject line
Minutia: Business Skills
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• Be prompt. • Know who you’re talking to.• Follow-through• Extra-credit: Follow-up with introducer.
Managing on-line introductions
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• Be prompt. • Know who you’re talking to.• Follow-through• Extra-credit: Follow-up with introducer.
Managing on-line introductions
Note: names changed for privacy
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Online Resources
E-245 Resources for Start-upsGSB Entrepreneurial Studies Reading List
Stanford E-Corner
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• Do I want to found/work at a start-up?• How to assess market opportunities?• How do start-ups fail?• Why are people so important at a start-up?• How to raise money?• How to think about IP at a start-up?
Important topics to learn about from on-campus talks and classes
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Sample NDA and wage negotiation…
Joe Miler – 2 May 2012
Paperwork
My rate
Possible phone call
Details below
46
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Joe Miler – 2 May 2012 48
Joe Miler – 2 May 2012
Paperwork
My rate
Possible phone call
Details below
49