tag:www.netgaincom.com,2006:/blog/cofounder//3 2006-11-28T22:03:55Z Lessons learned on the challenges and rewards of being a co-founder and entrepreneur. Movable Type 3.31 tag:www.netgaincom.com,2006:/blog/cofounder//3.30 2006-11-28T21:56:15Z 2006-11-28T22:03:55Z

There is nothing more key to the success of every business than the ability to “Get Ink”. Even with a super-star management team, incredible business plan and a Nobel prize-winning product or service, it just does not matter if the...

Peter Callowhill There is nothing more key to the success of every business than the ability to “Get Ink”. Even with a super-star management team, incredible business plan and a Nobel prize-winning product or service, it just does not matter if the business cannot produce sales. No doubt that many factors contribute to success. But sales are the first step to realizing revenue. Revenue pays the bills, pays you and your team, and allows for growth. Many entrepreneurs come from financial, engineering or operations careers and many more come from sales and marketing backgrounds. It is of great benefit when the initial team includes partners with these diverse capabilities. However, it is imperative that someone knows how to produce business. My partner James and I began making sales calls the very first day of NetGain. By the end of the first week we had met with five prospects and generated three proposals. From this sales activity — and knowing when to ask for the order — came our initial clients and our first, subsequent and, hopefully, future dollars. The ability to Get Ink will generate excitement in your company, help substantiate the market need for your service, and provide the cash you need to run your business. Go Get Ink! tag:www.netgaincom.com,2006:/blog/cofounder//3.27 2006-11-16T16:38:32Z 2006-11-16T16:46:24Z

Initial fundraising is tough and requires perseverance. It also may be the source of unforeseen opportunity that must be seized. One of my happiest memories of Net2000 was the day we were making a pitch to George Mason Bank (later...

Peter Callowhill Initial fundraising is tough and requires perseverance. It also may be the source of unforeseen opportunity that must be seized. One of my happiest memories of Net2000 was the day we were making a pitch to George Mason Bank (later bought by United Bank). We were at their headquarters location in Fairfax, Virginia and were meeting with Kevin DeCoste, an officer and EVP of the bank. We had begun to present our multi-slide, omni-color PowerPoint describing why our business idea was so good and why they should lend money to us. Part-way through the presentation -- way prior to our closing slides -- Kevin said, "Stop, can you help us?" It took a few seconds to register but we all looked at each other and realized we had our first prospect. We had done such a good job detailing the client problem(s) that Net2000 would solve that our (future) banker recognized the issues of his own organization. Two weeks later we were meeting the entire board and presenting the very first Net2000 proposal. We were so convincing that both our business loan application was approved and we landed our first client! We understood that it is critical to be alert and seize every opportunity!! tag:www.netgaincom.com,2006:/blog/cofounder//3.22 2006-10-27T20:27:40Z 2006-10-27T20:38:52Z

During the initial formation of Net2000 Communications, a CLEC from 1993 - 2001, we were out doing our first "road show" in an attempt to secure bank financing. We had spent a number of months developing our Business Model and...

Peter Callowhill During the initial formation of Net2000 Communications, a CLEC from 1993 - 2001, we were out doing our first "road show" in an attempt to secure bank financing. We had spent a number of months developing our Business Model and had developed a comprehensive Financial Plan. We had very strong conviction that we had a great plan and a naive belief that banks would clamor to lend us money. Of the four co-founders, three of us had spent much of our careers in sales and marketing roles for large companies and we believed we had a story that had to be told and that we would be comfortable in delivering. Securing a bank loan was our final step to launching Net2000 and as noted we were certain it would be easy. One afternoon in mid-summer of 2003 we had just finished presenting our plan to a large bank in the Washington, DC area. We thought our presentation had been compelling and were greatly dismayed when at the conclusion of the meeting the bank loan officer, kindly but firmly, told us, "Thanks - but no thanks." This was the second bank rejection we had had that week. We decided to go grab a coffee and as we sat there discussing our options, Cory Marsan coined a phrase that became our early mantra, our rallying point and ultimately one of the corporation's core values. She said simply, "We will not be deterred." Without doubt, all companies whether it be in the early-, mid- or latter-stages of their life cycle will face challenges. In reality, there are generally hurdles in all phases. A great key to successfully meeting and beating those challenges is to Not Be Deterred. tag:www.netgaincom.com,2006:/blog/cofounder//3.17 2006-10-10T16:51:41Z 2006-10-10T17:00:04Z

Many business professionals discuss the importance of developing a written Business Plan. I agree that the development of this document is of real value - both for learning to communicate key aspects of the business idea and to demonstrate to...

Michael Cannon Many business professionals discuss the importance of developing a written Business Plan. I agree that the development of this document is of real value - both for learning to communicate key aspects of the business idea and to demonstrate to both internal and external parties that there is a market for the product or service and that the basic concept has merit. With that said, I believe that all entrepreneurial ideas need to have their roots in how the business will actually make a profit. The way this can be determined (at least on paper) is to focus on building a Financial Model from the very outset. If the initial co-founders have the ability to build a solid financial model themselves, they should invest the time and energy to do so. If hiring an outside party with financial acumen is necessary, then that needs to be done. It is one of the very best initial investments a young business needs to consider. Further, the financial model needs to evolve. NetGain's financial model is the core tool for our management team to understand our cash flow and the fiscal health of our business. It has been our barometer in projecting when key financial milestones, such as operational profitability and then free-cash flow status, would be achieved. It is these metrics that are essential in understanding, forecasting and planning the growth of any company. There are many great ideas. Not all of them will make money. A well conceived, thoroughly developed financial plan with best estimate data points (for both income and expenses) will help all entrepreneurial teams understand their own opportunity to succeed. tag:www.netgaincom.com,2006:/blog/cofounder//3.15 2006-09-25T13:00:00Z 2006-09-25T19:54:16Z

Ahh, what a simple thought. And surely a mandate that must be followed as in reality it is a major, if not the main, reason to be in business. It is also a statement that is much easier said than...

Michael Cannon Ahh, what a simple thought. And surely a mandate that must be followed as in reality it is a major, if not the main, reason to be in business. It is also a statement that is much easier said than done. The wives of my partners - Helen Larsen, Susie McClellan and Monica Murphy - all made enormous contributions to our company's ability to adhere to this mantra. The partners of NetGain agreed on a strategic plan to dramatically reduce our early expenses. We did not pay ourselves a single cent for many months. Truly, there was no bacon to bring home and nothing to fry in the pan. With the total support of all four wives we were able to forego borrowing money, eliminate the associated ownership dilution, keep initial debt to a minimum, and position the business to achieve a free cash-flow position by the end of our second year. As previously shared, I believe much of business success comes down to great teamwork and collaboration. When this is true both in the office and at home, your company will have a super chance to make more money than you spend. tag:www.netgaincom.com,2006:/blog/cofounder//3.14 2006-09-11T13:00:46Z 2006-09-11T05:32:13Z

If I had asked Heidi, my wife, to ghost write this blog it most likely would convey different messages. She, in truth, has been my greatest support and afforded me the opportunity to pursue the life of a serial entrepreneur....

Michael Cannon If I had asked Heidi, my wife, to ghost write this blog it most likely would convey different messages. She, in truth, has been my greatest support and afforded me the opportunity to pursue the life of a serial entrepreneur. She is a great partner, and she is the inspiration for my belief in the power of teamwork. Much has been written about entrepreneurs and too often the focus is on the CEO. Having been the co-founder of a few companies and the lead dog in a couple, I have developed strong feelings on the advantages of collaborating to achieve great things. Without a doubt, starting a company requires many attributes, among them energy, determination, confidence and conviction. The true warriors are the sole proprietors and I have great admiration for them, but for entrepreneurs seeking larger corporate structures, I am a firm believer in the importance of finding great team mates. The perfect number of co-founders may exist for specific businesses -- but overall I am convinced that more is always better!