WARF Entrepreneurons Series Paul Shain President and CEO Singlewire Software, LLC

Agenda Personal Background What makes a good start-up What type of person is best to be in a start-up Early years – what to expect Early years – personal impact Q&A

Personal Background

Education – UW Madison BBA – Finance MBA – Finance, Applied Security Analysis Program Robert W. Baird – Equity Research Analyst Berbee Information Networks – President/CEO Singlewire Software – President/CEO

What Makes a Good Start-up?

Apply a known framework to this question Equity Research – what makes a good company? Market (What problem are we solving?) Growth (Who has this problem?) Differentiation (Why is our solution different from others?) Financial Model (What will the market pay for our solution?) Predictable performance (Will customers continue buying?) What makes a good stock? (or investment in a start-up) Valuation!

Personality Profile

What characteristics makes a successful start-up leader? Visionary Team Builder Motivator (culture building) Collaborative Sales Skills Financial Skills Risk Management Skills Organized, Efficient and comfortable at multi-tasking

Risk Management and Decision Making High rates of company failure due to these two items: Risk Management Evaluate risk with vigor Understand second and third order impact of key decisions Teach your team to better evaluate risk – and bring risky decisions forward for further analysis Decision Making Most people are very poor at making decisions Teach your team a methodology for decision making Empower your team to make decision Manage bad decisions in a learning way

Decision Methodology Impact of the decision outcome LOW HIGH Probability of being right LOW HIGH Empower the team CEO Focus Senior Leadership Focus Team Focus

Early Years – What to Expect

Early Years – What to expect Follow a plan Financial plan Business plan Human capital plan Build the team Sales Product Back office Capital Management Culture Advisors Legal Accounting Board

Creating Organizational Alignment Six Key Questions for Every Organization: 1.Why do we exist? How do we contribute to a better world? 2.What do we do? What business are we in and who do we serve? 3.How will we succeed? What are our three strategic anchors that guide everyone’s work? 4.What is most important right now? What is the single most important thing we need to achieve together in the next 6-9 months to be successful? 5.How do we behave? What are the core behavioral values that all employees must have to thrive? 6.Who must do what? Who is responsible for what and what is each person expected to deliver?

Early Years – Personal Impact

Long hours Solitary in nature Financial risk Family risk Because I was able to do it, I know that it can still be done in America today, and I encourage all of you who have a burning desire to start your own business, to try it. Start with an idea, and a niche, and I wish you the “little bit of luck” you’ll need. Gary Comer, Founder of Lands’ End

Q&A