11.01.14 Angel Investor Conference L.A.

8/7/2019 11.01.14 Angel Investor Conference L.A.

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2011.01.14 Angel Investor Conference

Travel first class, to network. Expect more of yourself. Communication, marketing skills to get capital

sources. Money loves knowledge & confidence.

Work on a grander scale; make an extra 7 figures in the next year. Have an exit strategy of 8 figures or

more. Shoot for the stars, hit the moon, and go for Big. Size does matter. Not meager, abundance. Not

mousy, but energetic, healthy.

Make informed, calculated choices. Change your thoughts, connections. Courage, mon vieux. Roadmap

for the mines on your path.

Products, service you want to create $10MM. Be decisive, take action. Stop meditating, start motivating.

You dont know what you dont know.

Theres only one business in the whole world: Marketing. You should be marketing yourself, your biz and

yourself for money, capital sources. We all need mentors, a connector whos a phone call away.

3 lacks/hurdles: 1. Lack of money 2. Lack of KNOWLEDGE 3. Lack of confidence. KNOWLEDGE is the most

impt.the other 2 will come.

Mike Ballard, owner of One Velocity first wireless, local exchange carrier: high speed internet, etc. was

CFO of other wireless cos. CEO of a co. bought out by IBM. President of Vegas Valley Angels. Born &

reared in Vegas, son of alcoholic & compulsive gambler. Mother bought/sold houses to pay off gambling

debts.

Nick Swimmer, Autodesk programmer, website called Shoesite to sell shoes. Went to get Angel Investor

in S.F. Nobodyd invest. $40B/year business, 5% buy on internet = $2B biz. Made a deal with Vans in San

Carlos. Found a guy who just sold his biz to MicroSoft for $4M, pitched him on voicemail. Did the first 7

rounds of financing. Just sold Zappos to Amazon for $7B.

Angels fund OPPORTUNITIES, not ideas. You have to PROVE the concept, be PERSISTENT. Angels are

ideally looking for a person with an idea or business that:

Has management team in place.

Highly scale-able:

Has customers.

Achieve high gross margins >50%

Serves a large niche market.

Holds an unfair competitive advantage. When competition comes, have to do better

Evaluation priorities


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Management team 25-35%

Size of opportunity 2025%

Product or service 10-15%

Sales channels 5-10%

Size of this round 0-5%

Need for more funding 0-5%

Quality of plan 0-5%

Take what youre passionate about & take it to the next step, WORK. Its mostly about YOU, and what

youve done before, mistakes youve made on other peoples nickel, or have worked in that market and

been successful at it.

Vegas Angels: 30 people in all walks of life. Polished presentation, then 50 min. of Q & A after spiel.

Challenges other people in same industry have failed at. Must understand industry, be able to answer

questions.

Sources of Capital

FF&F family friends, fools,

Credit cards

SBA

Angel Investors

Venture Capital firms

Venture Leasing firms

Private Equity firms

Angels:

1. Wealthy individuals sophisticated/accredited investors net worth >$1M or 200K/year annual

income

2. Been there done that entrepreneurs c discretionary money (5% of your portfolio)

3. Part time investment of mad money

4. $25-250K/deal, group together, like mutual fund approach. Best approach: invest in >4 deals / year


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5. Several investments diversification

Range of involvements:

Venture capitalist: investing other peoples money. Public employee Retirement systems, collegiate

endowments, (Sequoia)

General & Limited partners: not the best deal. Only to make money. Charge endowments 2% of what

they invest to say, Stanford, to pay their salary plus 20% of upside, before entrepreneur gets anything.

Angels

1. Return on Investment is the metric2. 2. Stay involved, useful3. 3. Give back to community4. Affection for entrepreneursAngels & VCs both invested $18B, angels made 50K investments, VCs made 15.

Angels invest $450K/round, VCs $7M/round. Angels invest in early stage; VCs invest in later stages.

VCs mitigate risk, Angels take risk. Peter Thiel made PayPal $155M to EBay, then put $500K into

Facebook, now worth $1.5B.

Angel round $600K buy 25% of co. equity 20-40% expect 3X of portfolio $25% IRR because the

deals go under or dont generate enough. 10-15% of the deals provide all the ROI. If you say you can

get to $30M in 5 years, you have to pay for the losers who couldnt.

ACA Member. Angel Capital Assoc. more than 300 in US. CA has 20, Nevada has 3. Pick by region in

your area.

TCA is the investor of S. Cal entrepreneurs. Tech Coast Angels. Angels subscribe to the same website

software that process the requests.

Angels 50K investments, VCs 3K investment

Angels 30K Startup deals, VCs 200

Why go to Angel groups:

1. Divide work, eases pain2. Variety of vertical experience avail.3. Standardize4. Tested processes & term sheets5. Pick & choose deals they like6. Deal flow encouraged, entrepreneur friendly7. Syndicate deals: send to other Angel groups for more cash


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Understand process: amazon.com has books Cutting Edge Practices in Am. Angel Investing by O Halloran

U ofVA

Process

1. Application2. Screening (2 per meeting, taken out of top 5)3. Presentation coaching: use 12 slides, address the market, spend less time on..etc.4. Investment presentation (1 or 2 people consult entrepreneur if it gets 3 or more people

interested in the deal)

5. Due diligence by those interested: financials, legal docs, background checks6. Follow up discussions & meetings

Vegas Angels ea. Year:

50-80 applicants

16-20 Ventures that present to them

5-8 proceed to due diligence

1-2 invested in annually. 1-3% is typical of angel groups

Put people on Board, restrict what entrepreneur can do without their votes = restrictive

covenants, so owner cant bail.

33% of co. for $1M.

CAPITAL RAISING ESSENTIALS

Elevator Pitch (Guy Kawasaki: the Art of the Start & look on TED Talks for Power Point tips) 30

sec 2 min. summary: product, opportunity, differentiate, attract interest, not close)

Executive Summary 2-4 pg. written summary, balance, attract interest, not closePower Point 20 min verbal presentation, cover whole plan, find serious investors Financial

Forecast: P& L, Monthly, Annual Balance Sheet, Cash Flow Forecast w. Separate Assumptions

Sheet first present to friends, then mean guys.

Term Sheet 20=-4 pg. summary of key terms of offering, Key to negotiating & closing the deal.

No perfect way to do, let your personality show through.

Full Business Plan 20-50

Fundable Entrepreneur =

y C-level (CEO< CFO etc.) made $ beforey Industry experiencey History of success or achievementy Coachable (important)y Leadershipy Passionate or enthusiastic.

Common mistakes


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Only discuss tech/pro

Under promise & over-deliver.

3 week test: Tell me about sales pipeline, what do you think will close soon?

What types of things do you think you can accomplish in next 21 days?

INVESTORS INVEST IN YOU, have to trust what you say, your forecast, that you are competent,

can deliver.

Milestones (see pic)

When closing

Read & understand closing docs

Remain patient w/ investors

Communicate regularly with possible investors, use friendly persuasion

Pursue low hanging fruit

Get the deal closed & execute the plan. Give & take, make the deal happen. A little is better

than a lot if the potential is high.

Keys to success

Think big, dare mighty things

Understand the system & work it

Measure twice, cut once, thing through situations, work smart, dot Is cross ts stay up late

Test assumptions; accept failure as prerequisite to success. Learn from your mistakes. Know

youll make mistakes, fail, prepare for it, and accept it. Edison I didnt fail, I succeeded in

learning what didnt work. When asked how he failed 1,000 times to dev. light bulb.

Manage expectations. Under promise, over deliver

Work hard, do more.

Keep your name clean. A solid reputation is invaluable.

Need CEO, CFO says Thos. Abelsen

What Angel Investors Know & Entrepreneurs need to know:

1. Is the Biz simple? 2. Does it solve a problem? Meet a need? 3. Large enough clients to sellto? 4. Have right people in place? CFO, CEO (if not, its a deal killer)

Common Errors:

Over-high valuation

Inexperienced management

Insufficient growth potential

Numbers have to make sense

Need to borrow money to pay back debt.

Archangels:


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Try a matchmaker.

Angel capital education: look at website. ANGEL CAPITAL FOUNDATION, check their website. Other

groups, like Gathering of Angels (charge $2,500 to present to you; Vegas Angels charges $100 & submit a

website) North Bay Angels. Lot of lenders & angels on West Coast.

The Go Big network www.gobignetwork.com ($30 to subscribe) can be specific, the investors will filter it

too. 20,000 investors. Go big or go home. More sophisticated. Like a match.com for money.

www.go4funding.com = free & can upload videos.

Recruit an Archangel.

Inc. & Fastcompany, Entrepreneur magazine: subscribe. Magazines & books. Guy Kawasaki.

Join a business boot camp. NCH (like this seminar) Be able to connect with other business owners. Take

notes, research. Listen.

www.dreamitventures.com in Philadelphia. Takes 10-25K for passive 6% equity. You have to live in Philly

for 3 mo. To work with them.

www.techstars.com ? Tech Stars Boston Boulder NYC & Seattle they travel around. Connect with

speakers, biz owners.

Shark Tank reality show 2nd

season coming up, angels looking for entrepreneurs. www.sharktank.com ?

Better off staying close to homelook in TX for Lami, & Ionex, in Canada for Investit Decisions.

Got to have a passion behind the biz plan.

Learn ea. Angels favorite harp. Be prepared. Make it make sense for the investors, partners.

Talk to CPAs, attrneys, doctors, dentists ASK people around you even if you dont know them. Successful

people like to be measured and like to give advice, point you in the right direction. There are more

accredited investors around you than you know. Network.

Jeff Benjamin Breakthrough Training Vegas throws Biz Networking events q. mo.

Be prepared = biggest.

All angels are not equal. Can find specific angel groups: medical, scientific, etc. find investors who are

best match for your business. Heres what were good/not good at, can you help us?

Mark Cuban owns Mavericks, sold something.com to Yahoo in 1999. New project: SF Based

manufacturer who makes Japanese style toilet seats. Theyve attracted > $1M in seed stage funding.

Theres a toilet in every house.

Some investors like stuff you wouldnt think is an opportunity. SOMEbodys interested in what you have.

Theyre out there.


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ESignal built the high tech, but no sales ability or biz mgmt. Chicago angels got it, make it work.

Need: Good Credit, personal and business, one page Executive Summary & Biz Plan, short and long term.

Just put pen to paper, it will change. Be able to explain, answer Qs, specifically, be clear, concise,

specific, what ea. $ is for.

Watch Its Always Sunny In Philadelphia. It doesnt matter what it is, but who you are, what you bring to

the table.

Wikipedia: Look up almost anything: problems, stories that became businesses. Alicia Gray sold

something that produced musical tones through a telegraph wire, (while Alexander Graham Bells

patent application was in the patent office at the same time hers was). She also invented the

synthesizer. The difference between failure & success is a quarter turn of a screw.

Books: Ernest Holmes: Creative Mind. Creative Mind & Success. Core principles to apply.

Get facebook, twitter, website, and etc. all with your biz name.

James Hughey speaking about The 10 Minute Pitch

1. Introduction: 15 seconds company names & what it does: Were the one that. Or, Im theone that.

2. Problem: 1 minute. Need that the business solves.3. Solution: 2 minutes.4. Explode dynamite: 30 seconds.grab attention in middle of presentation in regards to Solution

part of presentation. i.e. its 100 times better than next best competitor. Demonstrate! Show

dont tell if you can.

5. Involve your Angel: 1 minute. Have them show themselves, do it themselves if poss.6. Traction: 30 seconds. Bullet point milestones of what youve accomplished up until now. If you

have patents, or have some in pipeline, biz plan, logo, etc. Work youve done to make it go.

Show how youre invested. Make it real.

7. Market Size: 30 seconds. Whats the potential?8. Customers: 1 minute. Especially corporate customers, like Chevron, Bechtel: show LOGOS of

your customers, it makes a big difference. Adds best credibility to solution to problem. Whats

customer profile? Testimonials (esp. with picture of customer using product)

9. Business / Revenue Model: 30 seconds. Whats cost to produce & deliver? Whats overhead?Hard costs? Paying for intellectual property? Show COSTS & what profits will be at end.

10.Marketing Plan / Sales Cycle: 30 seconds. How youll bring it to market. Need plan. Numbershave to be right on vs. competitions numbers. Whats a normal number? 1% = 1 out of 100

respond to direct mail, i.e., then say .5 out of 100. Best / average / worst case scenario. How

long is product useful? i.e. typewriters had 5 year life cycle. Computers have 18 mo. How often

will client pay more?

11.Partners: 15 seconds. Especially someone with a great title specific to the market. i.e. famousDoctors for medical products, or corporate partners (logo).


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12.Competition: 30 seconds. Must tell.13.Management Team / Board of Advisors: 30 seconds. Someone Angels can Google, esp. if

notable.

14.Financial Projections: 30 seconds.15.The Offer: 30 seconds. Ask for the money, what kind of deal you want from them. Switch places

with the investor; Stand in the Angels shoes. Approach: whats in it for them?

Perseverance: I made a resolve then that I was going to amount to something if I could. And no hours,

nor amount of labor, nor amount of money would deter me from giving the best that there was in me.

- Colonel Sanders.Filters:

1. Dont work c anyone c uncontrolled ego.2. Dont work with anyone with uncontrolled greed.3. Dont work with anyone whos not competent.4. Dont work with anyone you dont implicitly trust.5. Dont work with anyone you dont like.6. Divorce rate in CA 66%, so consider yourself married to the Angel. You may spend more time

with your biz partner than your spouse.

Be honest: whats the risk both ways, for Angel and entrepreneur.

Clarifications, re-clarify, present & re-clarify. Get the message down. Dumb it down to third grade: what

does it do for someone, what impact upon whom.

Specific deadlines on the pitch dont belabor it. Specific details: Angels are just looking for wheres theopportunity not the details. Let them extract details if they bite. The pitch is just the hook.

Can take your controller, CFO or any specialist with you, tag team it, and bring along to the pitch anyone

who can make it more compelling, answer questions. If Angels ask you questions, youve got a fish on

the hook. Bring a team if you need to.

Due diligence: Why wouldnt Angels steal your idea? Because they know 80% of businesses fail,

regardless of how great the idea. Angels wont sign non-disclosures.

VCs will pirate companies (get control of your company) by getting you to give up 70% of the company

for $7MM, say, and then boot you out when youre not able to run a bigger company. It happened toNick who started Zappos, and Tony (the face of Zappos) ran it, the Angels just got Nick to take

stock.which in the end was more than OK, but not for the years that Zappos was built up by Tony.

Whats the weakest link in your chain? Where are the future landmines as you expand? Be a bit of a

pessimist to temper the optimism that you have the best product in the world.

Dont ever give up more than 51% of your company.


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Dont be broke before you talk to an angel. Have stellar credit scores.

$4.7 Trillion in unused credit cards in 200? Now the bank that gave her the credit line took it away.

However, BUSINESS credit CARDS are not subject to the Card Act. Others find loopholes to get around

the other Card Act constraints: i.e. students with someone over 21 to co-sign.

Innovus = where Transunion was 20 yrs. ago. Owned by a family 2nd

wealthiest after Oprah Winfrey.

Free credit report.com is owned by Experian, incredibly deceptive.

ANNUALCREDITREPORT.COM is free per year. Cant get FICO score there, the only one that matters.

There is no FICO score avail. Online.

MyFICO.com will sell you your FICO score, Equifax.com where you can only get 1 FICO score,

www.Transunioncs.com there is nowhere online can you get your Experian FICO score.

Lenders give the info to Credit Bureaus for free, and then have to buy it back from Experian, Equifax, and

Transunion. Fair Isaacs doesnt have your data or payment history, just take alogrythms & run them

though their software: length of time, ratios, limits, payment history, revolving credit, low balances,

higher credit lines, prompt payment etc.

All were 20% of all credit scores (before recession)

Above 780 Now, Fair Isaacs says 750 & above 37.4%

740-780 15%

690-740 12%

620-690 9.5%

Below 620 23% ? = top and bottom heavy.

Biz creditDun & Bradstreet D&B can be manipulated.

Experian Business (0-100 scoring model) lenders must report the info

Equifax Commercial solution (distant 3rd

) PG personal guarantee loans

Several others, but not noteworthy.

Shelf Corps: a.k.a. a seasoned Corp. Buy one to obtain business credit to fast track their lending

capabilities. Always check out www.bbb.org . Dont go into it deluded that you can fake out bankers.

Lenders Usage Pattern Model:

Home values declining.

Work in troubled industryNon or low usage

Cash advances

Job loss, medical, divorce

Traffic tickets

Income taxes

Not using credit line

Retreading tires


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99 cent stores (if you used to shop at Saks 5th

Ave. & now shop at Dollar General)

Credit counseling activity on your card

Marriage counseling

Rehab or construction costs on personal cards

High use of BT or large paydowns. BT = balance transfer, pay down on a long term high credit line (like

when re-financing) = chasing the balancethey lower your credit borrowing potential,

Multiple enquires, dont believe the hype or listen to the wrong person.

Business lines of credit can use multiple times as opposed to one loan. Few available without collateral,

used short term. National, regional & local lenders offer them. UBLs = unsecured lines of credit

personally guaranteed, under $15K. Used for restaurant franchise, dealership distributor, retail store,

RE investing, be a cash buyer, for reserves & liquidity, marketing & advertising, demonstrate skin in the

game to VC & Angels, for partnerships.

Banks tend to approve less than 10% vs. 70% from UBLs.

1. Vendor Trade lines of Store Credit (Dell computers, whatever) very impt. To obtain theseproperly to build your Biz Credit: Net 30, revolving, proper order to apply.

2. Traditional UBLs: for cos generating $500K+ in annual revenue, need to find right bank, not bein high risk industry like R.Estate, right person, application, etc.

3. Through Biz Credit Cards: pay attn. toa. Report to personal credit report? Hurts your DTIsb. People with good credit denied because personal credit borrowing balances too high,

and too many inquiries (the #1 reason)then need a vendor to remove the inquiries etc.

c. Scores affected: last 12 mo. automated underwriting can kick it out if 8 mo. ago toomany inquiries, although now more like 6 mos.

Sample clients: got $765K in 60 days, took back to same two banks he was denied by, Full Doc with help

from (this speaker).

Home based R.E. Investor, engineer got $325K in 2 yrs. makes $500-700 per mo per deal.Home based R.E. Investor.

Permissible purpose inquiries: anyone giving you credit can look at your credit report any time.

Hard inquiries: find out why if you didnt apply for credit. May be i.d. theft.

30 day window to repair credit (outsources this vendor). Speaker: Tom Gazaway, Hawkeye

Management.

Executive Summary is appetizer given to investors, Angels, banks, other partners. Last to be written,

most often read. Time consuming. Write it last & put most critical components.

Management team is critical: theyre investing in you not your idea.they go right to the details.

Financial analysis in Biz Plan is critical: is there money in it or not? Run the numbers, be conservative

(cut projection in half), Profit Profit Profit. How many people do you need for selling, marketing,

manufacturing, etc? Dont get caught up in your own story. How will Investors get taken out, with how

much?

What did you forget: rent, medical, accounting, licenses, software, liability insurance, legal fees, stat-

county-city fees, payroll taxes, long distance, internet, automotive, utilities etc etc etc.

Industry Analysis. Is it hot or not, better than others, going up or down? Be obsolete? Cutting edge?

How big is it? Potential of it?


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Extended Brochure: after the Executive Summary has whetted the appetite of investors. Ask Angels to

tear it apart, show holes & weaknesses in it before you shop around for money.

Exit Strategy: Beware of dead end businesses, just about you you and you. Plan for your exit strategy,

get others in, (how much do you keep, how much do they, in what amt. of time?) clauses in contracts

that give you freedom of choice.

Marketing Plan: Clear, simple, COMPELLING. Were all in the biz of marketing. Differentiate yourself. The

rest of the world does it X way, we do it THIS way. Give it as much dimension as you possibly can. If its

boring, get someone else to write it.

Business Plan Pro software, Business Plan Success, internal software from NCH, hire a specialist, whats

your time worth? How long can you stand to stare at the computer screen? There are groups and

specialists. Get the software, pull business plans online, people put up their own; put up color, graphs,

make it easy, dumb it down,

______________________________________________________

Trevor Rowly Business Credit

Imagine what your business would look like if you had additional lines of credit. $50K or $100K, $500K,$1M +..how would biz look 1 year from today.

Must have LLC, to conduct biz & hold assets.

Choose state to incorporate. Check annual filing fees, state taxes, employment, licensing,

unemployment, and workers comp requirements. Prepare corp. record book, Prepare corp. accounting

ledgers. What jurisdiction is most favorable? NV has advantages for LLC: strongest laws to protect corp.

veil.

What you dont know will kill you and you dont know what you dont know: i.e. how much (what %)

ownership or management of your company to give up in exchange for money or help growing the

business?

Lean, slow motion potion, the anti-energy drink. Premier relaxation beverage for non-alcohol drinking

people. Came from the bottling industry. Need distribution, management. Lean means to chill.

Company is Dumar international. Yella is the lemon flavored one.

Be very very very clear what the investors getting back, ROI: part of the co? What %? When? What

contingencies?

SB franchise report lists reasons for failure. 2,500 Quiznos (20% failure rate) & 2,500 Subway (5% failure

rate) funded by SBA loans.

Make it easy to understand at the beginning of the pitch, and why were the best & how much investorll

get back at the end of the day.

Be aware of the time: use 9 minutes if you have 10 min. let em know what you want em to know

IMMEDIATELY and dont go over the time they give you. Theyre busy.lose instant massive credibility if

you take more time than theyre willing to give you.


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Know who your audience is. Dont pitch info. thats not helpful to them. govt. contractors, hard money

lenders, real estate investment background people vs. medical devices people. Know your audience.

Place your presentation with the right Angel group. Angels are solicited a lot. If someone says I dont

have time they mean it.

If you know people with money, approach them in the right way. Be courteous, professional, if they

want your info. through the website, do it. If you dont know what to do, ask. You may only get one

shot. Its easy to lose. Our most precious commodity is our time. Respect their priorities.

Letterhead, logo, website, good name that sounds big. Have the look & feel of credibility. You can get

money when you dont need it. Hunt while youre full, not when youre hungry. Work the relationships

at the bank, put rainy day money aside, keep reserves. There WILL be bumps in the road. Youll need

capital to end or start a business after its ended.

In every industry, someones making a million bucks in it. Over a billion SBA loans given out, $350K was

the average.

Do your homework, find their hot button (exotic cars, fly fishing, war eagles, whatever) theyll perk upand listen.

Women investors. Out of 40-50 people, maybe 6 women. Yet 60 % of all new business creation is by

women. Hmmmm.

Due diligence: 90% Investment Bankers..nexus lexus, background checks, whats the character of this

person? Who am I dealing with? Does someone know this person and can get character references that

the person doesnt know were getting. Handwriting, personality profiling. Psych eval. Depending on the

size of the deal. Whats this person capable of? Depends on the amount of money asking for. SEC

enforcement standards for IPOs, certain things the people involved cant do or have: violations, may

represent groups, as point man.

Support staff: get it. Be willing to stretch yourself & do more than youre willing to do or able to do now.

Hire people who are smarter than you, all day long. If at all possible, define your mission, values & set

the tone of the culture up front. The logo, think about it. Your name. Dont change it. Domain names:

trademark them!

Expand, move forward, dont be limited by your name. Have the vision of your biggest goal in 5 years+

and plan for it, take care of the details.

COURAGE to pursue your dream ->

DEADLINES that force you to perform = reality.

Slow to hire, quick to fire. Hire for attitude, train for skill.

When you fire them, help them get hired by your competitor. Ha ha.

Learn to let go of decision making. You cant be all thingsif youre working on a $10/hour task, and

youre worth $1,200/hour, learn to take advice. If you dont have an assistant, you ARE the assistant.

Victory is he who takes the greatest risk succeeds.


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y You can bullshit others, but dont bullshit yourself. Find out what youre good at, dont do therest, get a team around you who are better at doing what you dont do well. It frees your time

up & you can be more efficient. Arizona Angels - Scottsdale, AZ

y Arizona Technology Investor Forum (ATIF) - Tempe, AZy Baylor Angel Network - Waco, TXy Camino Real Angels - El Paso, TXy Central Texas Angel Network - Austin, TXy Concho Valley Angel Network - San Angelo, TXy Desert Angels - Tucson, AZy Eyes of Texas Partners - The Woodlands, TXy Houston Angel Network - Houston, TXy Lone Star Angels - TXy New Mexico Angels Inc - Albuquerque, NMy North Dallas Investment Group - Dallas, TXy North Texas Angel Network - Fort Worth, TXy Northern Arizona Angels - Flagstaff, AZy Startech - San Antonio, TXy Texas Women Ventures Fund - Dallas, TXy The InvestIn Forum of Angel Investors - Dallas, TXy Waco Angel Network - Waco, TX

Build your community around other like minded people.

Cort W Christie Nevada Corporate Headquarters Inc.

Look the part, brand yourself, the business faade, website, biz plan, image thats inviting, that others

want to be a part of, that draws people in. An office that attracts the right people to your organization.

Clean, professional, cubes, (call center?), if you see too much ostentation = waste, too high cost to

consult. Conservative business looks better. Think Nordstrom.

You can do well in unsophisticated industries just from cleaning up, tight, neat. 1-800-Got-Junk = sharp,

nice image, brand, feel, with uniforms. Speak to your market.

Important how you present yourself. Your card, postcards, website, what envelope you deliver your

request for money in. No MLM. Be careful whatever you put in front of someone. Resolution of type,

font, no copies, faxes. No more than 6 or 7 lines. Angels assess your professionalism. Youre being

judged every second. When youre looking for Millions, package the request like a million, knock their

socks off. Dont just use off the shelf office supplies. Speak first to the 3rd

grader with PHOTOS. Bullet

points, simple, quick to read. Patent office. A DVD infomercial, show dont just tell. Put up front what

youre looking for. Its got to RELATE TO THE PERSON VIEWING IT. MAKE A CONNECTION, find out about

them. Tie their interests into your product.

The NAME of your company: google, amazon, 1800 got junk, Zappos, subway. Thats marketing, but

savvy investors want to know whats in it for me? ENGAGE the investor. If your name is your phone

number, its best. Ie. 1800gotjunk has call center in Canada, who make appointments, park trucks

around retail centers for free advertising.


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Start small with a big NAME. Script net. (lawyer & 1 employee) Names that are linked to what you do.

Is it an IDEA or an OPPORTUNITY? If it has a patent, a website, DVD, product that has been made, 8X10

full glossy photos.

Angels dont want IDEAS, you have to turn it cosmetically into an OPPORTUNITY.

1. Inc or LLC2. Tax ID3. Business License4. Bank Account5. Retirement account being used?6. Sweat equity

ONLINE PRESENCE

URL, simple website, email through your URL contact http://www.sitebuildercorp.com they only work

by referral. www.Freelogoservices.com

Business Plan: Make sure its edited, bound, with charts & color. Go to Kinkos fedex. Pictures, put what

you want up front. Charts, graphs, photos.

You are being judged every step of the way, pay attention to details. Entrepreneurs & investors are like

clones.

1. Invest with your IRA : open an acct. at a self directed custodian & transfer retirement funds intoit

2. Acct holder (yself) has a special purpose LLC created & name yourself as the manager of the LLC3. The account holder directs their custodian to invest some or all of IRA funds into a newly

created LLC

4. Custodian just monitors the funds, but wont give legal advice of how to use the IRA funds toinvest.

5. The LLC invests in funds, real estate, private cos or mortgage notes. THE IRA OWNS THE LLC, butmanaged by the IRA acct. holder. The mgr. is authorized to sign on all LLC accounts.

6. Beware of self-dealing rules.Combine your investment funds into your LLC: non-recourse loans, IRAs, outside non-IRA money,

Personal $ all together, various people can pool their funds.

Roth IRA catch up limit: $6,000 up till April 15th

this year can put in to 2010 fund.

Solo 401K catch up $22,000 both for 2010 (before April 15) & 2011.

SEP-IRA $245,000 catch up ea. year.


15/15

Corporation defined benefit plans. Non-profit corps have one too.

11.01.14 Angel Investor Conference L.A.

Documents

Transcript of 11.01.14 Angel Investor Conference L.A.