Creating a Company (ENTRE 472/473)

1. Creating a Company (ENTRE 472/473) John R. Castle, Sc.D. castlej@u.washington.edu 425-503-1079 Mackenzie 261 www.fostercac.com Creating a Company

2. John R. Castle, Sc.D • Chemical Engineering, MIT • Harvard Graduate School of Business • Founder/CEO of 15 companies • Director/Advisory Board - 20 companies • Angel investor – Keiretsu Forum • Non-Profit Organizations • Northwest Entrepreneur Network (director) www.nwen.org • MIT Enterprise Forum (director) www.mitwa.org • Encompass (director) • Local YMCA (board president) Creating a Company

3. Varied and broad background Creating a Company

4. Industries and products • Kinetic orthosis device • Web portal for sustainable water use • Music software • Monitoring underground storage tanks • Blood vessel repair • New detergent product • Seaweed extraction process • DNA/Protein separation medium • Hazardous waste destruction • Costume jewelry Creating a Company

5. Course Requirements • All or Nothing - 2 Quarters, One Grade • Time Required: 10 - 20 Hours/Week, so not a good “filler” course • Judged by Business Standards • Full Immersion Experience Creating a Company

6. Instruction is Minimal • Guidelines and basics from Instructor • Tips from guest speakers • Learn from each other • Test your own ideas in the market Creating a Company

7. You do the work. I advise. Creating a Company

8. Business Environment • Risk taking is rewarded more than success • Ethical behavior and full disclosure • On time attendance to show respect • Active participation • Dress is business casual to build credibility Creating a Company

9. Proper business attire Creating a Company

10. Skills Required • Emotional Intelligence • Team spirit • Resourcefulness • Flexibility • Clear writing • Public speaking Creating a Company

11. Business Ideas(see company history) • Possible in 2 quarters • Fit with team’s skills • Exciting • Challenging • Fun Creating a Company

12. Don’t be afraid of big ideas. Redwood Grove Sequoia Natl Park Creating a Company

13. Funding and Profits • Loans awarded by judges • Limited personal financial risk • Revolving Fund • Excess profits donated to Business School Creating a Company

14. Team Grading Criteria(see example) • 1Q - Presentation of business plan : 30% (team) • 2Q - Execution and result : 70% (team) • Profits : 30% • Response to change : 40% • Complexity : 10% • Performance to plan : 10% • Accuracy of Reporting and Financial Records : 10% Creating a Company

15. Grading Criteria (see example) • Personal performance : +/- 0.2 gp (individual) • Peer reviews, leadership, class participation (see sample) • Board of Advisors for other company: up to 0.1 gp (individual) Creating a Company

16. Course Admin Tasks: + 0.1 gp • Financial auditing • Judges, coaches interactions • Mentor matching • Peer review management • Website updating Creating a Company

17. Assignment for Next Class • Form teams of 4-6 people • Choose a business • Elect officers • Be prepared to report to the Board of Directors Creating a Company

18. Introductions • Name • Major and skills • Business experience • Importance of the course to you • Business idea that you want others to join you in (if you have one) Creating a Company