John Dimmer

Recently John Dimmer from Firs Management spoke to our class about funding a new company.

John has many years of experience in banking and funding start-ups. He actually started his career as a repo-man. He was actually the most successful repo-man in the bank. Over time he moved up the ranks and eventually felt ready to move out on his own and start a business.

A cousin or brother or some friend of John's was selling a new technology called an internet browser. This was back when there was only 48 websites online - 48!!!! John had always wanted to start a business and this friend was thinking about starting one too. At the same time Andrew Fry was leaving Microsoft to get into multimedia. So John, his friend, and Andrew all decided to go into business together. They started an online media company called Free Range Media.

Free Range was sold and John now works for his father's investment company - FIRS Management.

John seemed to be very focused on the people in business. He places a priority on integrity (which is my number 1) and passion (which is my number 2). This reminded me of something a friend once said, "Employers don't hire people, they hire passion."

Of everything John shared this table was most interesting to me:

Company Evolution Concept Start-up Growth Phase Expansion

Financial Performance: Pre-revenue Nominal, Not Profitable Moderate, Break-even Profitable

Funding Sources: You Friends and family Angels VC

Amount Invested: As much as possible $25k - $150k $150 - $2,500k $4 million plus

Jon Goodman

The Goodman Commandments

1. Don't be nervous to share your idea
2. Take market research with a grain of salt
3. Research everything you can about good business processes
4. Get seasoned legal advice
5. Get a good accountant
6. Get a great BoD
7. Do not define your business in terms of your product - Does Nike identify itself as athletic equipment, basketball shoes, casual footwear, skate shoes, or lifestyle enhancers. A lifestyle enhancer can address each of those niches and serve them, whereas it would be hard for an all-cleats brand to try a new market.

Exit Strategies:

Class A

Run it until you die, give it to children (Kikkoman is on its 17th generation).

Run it until you die, sell it.

Class B

Grow it, sell it (know who you are growing it for).

Grow it, take it public.

Grow it super quick and bail. (Fads)

There is no such thing as an informal partnership. If you die, it is very possible that your informal partner formally ends up with EVERYTHING.

An S-Corp can't have foreign investors or passive income.

LLC is your best bet.

Do not do good business with bad people. Find good, honest, hard-working business partners.

The management of a company usually follows this path: you, a trustee manager, someone who can take it national and possibly go public.

Strengths and Weaknesses

I lost my notes, so I'll have to do this again.

Strengths

• I'm a leader
• I listen well
• Public speaking
• I can analyze anything and point out flaws or weaknesses in anything
• I see opportunities
• Persistent if there is a goal
• time-management if there is a goal

Weaknesses

• Sometimes the tone of my voice does not reflect what I mean to say
• I'm forgetful
• I lose interest and focus if there isn't a good plan and goal
• Math