Click here to register and purchase a ticket for this event

Ottawa has long been known as a mecca of software development so why should mobile be any different? During the last four or five years some incredible mobile software has been developed and deployed, creating innovative and world-leading companies in the mobile space right here in Ottawa.

In this, our first Mobile Application Showcase, come out and celebrate this emerging economy, socialize with your peers and support a select number of local mobile developers who will demo their latest and greatest mobile applications.

From games for teens and toddlers to apps that help navigate the stars, come and see why millions of people worldwide are using Ottawa-made software on their mobile devices.

We’re pleased to have the following 5 companies presenting at the TONAppShow:

GlitchSoft
(makers of BarStar game for iPhone)
GlitchSoft is about to launch their first title, BarStar, which is a time management game about bartending
www.barstargame.com

Zeebu Mobile
(makers of SuperBabyGo! and other toddler games for BlackBerry)
www.zeebu.com

WickSoft
(exchange/sharepoint software for BlackBerry)
www.wicksoft.com

Magmic
(mobile games for BlackBerry - set to release Rubix and THK4)
www.magmic.com

QContinuum
(makers of Planets for iPhone and iPad, downloaded over 3M times)
www.qcontinuum.org

Our event has generated some local media interest and you can watch for the following coverage:

• CTV Ottawa’s Tech Now host Paul Brent is covering the event on channel 7, at 6:25 on Sunday night

• CBC Ottawa Radio at 91.5FM will be interviewing the event host Rob Woodbridge sometime between 7-8 am on Monday morning

• We also expect coverage in either the Monday or Tuesday online edition of the Ottawa Business Journal at www.obj.ca

You can also keep track of what attendees are saying about the event by following the Twitter hashtag #TONAppShow

This event is open to all members and non-members of The Ottawa Network. Click here to register and purchase a ticket for this event

]]> http://www.theottawanetwork.com/tonappshow22jun10/feed/ http://www.theottawanetwork.com/recap-ton-tuesday-may-25-2010-angel-investors-and-seed-money/ http://www.theottawanetwork.com/recap-ton-tuesday-may-25-2010-angel-investors-and-seed-money/#comments Wed, 26 May 2010 16:23:26 +0000 patricia http://www.theottawanetwork.com/?p=1082 Looking for seed money for your new venture? This TON Tuesday – another sell-out with 55 people attending – focused on how start-ups can access funding. Featuring a discussion moderated by James Smith at the LeBarge Weinstein offices in Kanata, Raymond Luk and Mark MacLeod discussed what you need to do to gain the attention of investors. Raymond, a classically trained musician, today owns Flow Ventures and a few other enterprises, and is currently working on developing hands-on workshops and mentorship programs for entrepreneurs. Mark, originally from Scotland, has spent 11 years arranging angel investment deals for entrepreneurs, now runs Startup CFO Enterprises. Here now a summary of their comments and advice for obtaining the funding you need to get your start-up out of the gate.

Reality Check

Today investors are different. “It used to be that you could go in with a concept and a business plan and get a $1M.” says Mark. “Today, those funds are not around. The investment today is smaller, and the bar is higher.” With $150K being the average investment, it means you have to work hard as a start-up to get the biggest bang for your buck. “If fundraising the first time takes 5-6 months, when it comes through you are right back to raising your next round. I believe mentoring with the right partners can help you make the most of your seed fund.”

Finding the Right Funds

“Ottawa angels haven’t been very active lately.” states Raymond. Your early research into the angels you want to reach out to is critical to your success. “Educate yourself…know the difference between angels and VCs.” Raymond recommends that you check out www.angelcapitalnework.com and the National Angel Capital Organization at www.angelinvestor.ca for more information. “You can cold call Angel Investors and make your pitch,” explains Raymond. “You can also go outside Ottawa – they(investors) are getting more outside their backyards now.” Some events in the US are even targeting investment in Canadian companies. “I love that Canadians can go to the US, get what they need in terms of funding, get successful and then come back to Canada as Angels!” says Raymond.

Raymond further explains that most angels don’t have access to entrepreneurs, and he is working to organize more meetings to get these two sides together. “A lot of them tweet, many have blogs – you can do your due diligence. The kimona is definitely open.” Raymond further stresses that investors work for you, and entrepreneurs do have the power in the relationship. “If an investor is difficult to get ahold of early on, they aren’t going to be good investors.” he cautions. Also a big no-no – paying to pitch. Raymond and Mark both agree, this is a waste of time and money. “Don’t hire a broker,” says Raymond. “Especially with early investment, it doesn’t work.”

To figure out the kind of financing you need, you have to know where you are today. “Angel investors or seed money is typically a lower investment,” explains Mark. This seed money is geared to get you off the ground. VC Funding is larger and should be your target when you are established with some traction and market penetration.

Being Attractive to Investors

For seed money, Mark stresses that it is better to go as early as possible. “Talk to investors about your plans, go away and execute, then come back and show that you did what you said you were going to do. Investors bet on the founder – your credibility and your brand are critical.” Raymond adds that your attitude towards investors counts for a lot. “If you’re friendly…people WILL spend time with you.” he says.

“There is a new Lean Start-up trend,” explains Raymond, and he advised TON to check out Steve Blank and Eric Ries and their funding philosophies. “Your goal as a start-up is to find a business model that works. Investors are paying attention to this and it will help you do a lot, with a lot less.”

Mark adds that first impressions mean a lot to investors and you should pay attention to how they react to your story. “If they are cold from day one,” explains Mark, “That doesn’t look good. If it isn’t love at first sight…move on!”

Options to Consider

An alternative to straightforward seed money, is convertible debt. “Sometimes, investors don’t want to value your shares and will walk away from a deal rather than have to do that.” explains Mark. Rather than lose the investment, you could consider convertible debt options. It works like this. The investor loans the corporation seed money and charges a healthy interest on that. When you gain your VC funding down the road, you convert the debt into discounted shares. This eases the investor’s jitters and gives them a solid return on their investment. Raymond cautions that some angels are uncomfortable with this arrangement, feeling that if they were the first ones to put their money into a venture, they should realize a full return, not a discounted one.

RECAP of TON Tuesday events are written by Patricia Heard, Director Client Relations, at HireSmart Human Resources Inc. If you don’t have professional in-house HR talent on your team, learn how you can save time and money and reduce risk to your company by contacting Patricia at pheard@hiresmarthr.com.

LaBarge Weinstein’s Kanata offices
515 Legget Drive, Suite 800

Come hear about emerging trends in seed and early stage institutional financing, from Mark MacLeod and Raymond Luk of two new Montreal seed funding sources. The event will be moderated by James Smith and hosted at LaBarge Weinstein. Drinks refreshments provided.

Raymond Luk

Raymond is an entrepreneur and Angel investor based in Montreal. He runs Flow Ventures, a startup accelerator, and recently founded ArtAnywhere, an innovative art startup. He has built and managed a number of successful startups over the last decade and has been an executive of both private and public companies. Raymond is a well-known instigator of tech events including founding StartupDrinks Canada, the largest monthly networking event for startups in Canada. He is a Director of Symtext Corp., is the co-chair of the National Angel Capital Organization Summit for 2010, and a member of the Advisory Cabinet at Project Olympus, at Carnegie Mellon University.

Mark MacLeod

Mark MacLeod has been a CFO for numerous start-ups in the Montreal over the last 10 years, including most recently for Terapath, Tungle, Akoha and Status.net. He currently runs StartupCFO Enterprises - providing financial & strategic guidance and back office admin services for, you guessed it, start-ups, and he is one of the co-founders of Founder Fuel, a Montreal-based QC-government backed early stage opportunities fund.

• Matt Massey, owner of drive2 Inc., helps customers drive sales and revenue goals through integrated marketing and demand generation strategies. www.drive-2.com
• Francis Liska, owner of OTUS Group, is a CGA who focuses on helping his customers improve their operations through sound business strategies and the ‘virtual CFOs’ he provides. www.otusgroup.com
• Frédéric Boulanger, President of Macadamian Technologies, provides his clients with software development from various branches world wide.  www.macadamian.com

The panel was kept in check and on track by moderator Janet Eastman who, with more than 20 years in media and communications, was more than up to the challenge with grace and good humour. Janet kicked off the discussion by informing the audience that a recent survey of US businesses with less than 100 employees actually have less than 5 employees…perhaps a great motivator for outsourcing!

The Benefits of Outsourcing

The work of running a business is time consuming and, as an entrepreneur or innovator, we aren’t necessarily the best choice for that particular role. Francis’ advice, “Find someone who is better at the task than you are.” Free yourself to run with what you are best at. “With so much information coming in from so many sources, plus the tasks you’ve got to move forward on…” there is just too much for one person to do, and you have to be able to hand it off to qualified experts.

“Money is a huge reason for outsourcing,” comments Frédéric, “but if that’s the only reason it’s not going to work.” The key is qualified experts: discover the skill level, the delivery time frames and that should all be part of the due diligence process. “Yes, cash is king,” says Frédéric, “but the right people have to be focused on the goal.” 

Getting value for every dollar is the start-ups challenge. “Outsource and find talented marketing specialists,” explains Matt, “and you’ll find a couple of times the value for your dollar.” Another benefit to an outside marketing resource is that they bring fresh eyes to your product. “If you’ve been involved with your technology for a long time you can be blinded by love… leverage outside eyes and experience.”

Do You Need a Virtual CFO?

A very good book keeper focuses on the day-to-day needs of banking and accounting. A skilled accountant will focus on reporting and what you need to comply with regulatory-wise. “80% of businesses fail because they don’t focus on financial information that is relevant to the objective.” points out Francis. “For example, if receivables are up,  is that because you have more sales or does that mean your collections are lagging?” The idea behind the virtual CFO is that you’ll have an interpretation of your financial data that will help you reduce costs, re-focus your spending, present your company in a good way to bankers and, if you are a start-up, it’ll get you off on the right foot.

Reinforcing this point, Frédéric adds, “I’m an entrepreneur, not an accountant. Dealing with raising capital, meeting CRA’s demands, complying with rules and regulations…” these are all critical to your success and if you don’t have it under control you should find talent that will help you reign it in.

When Should a Company Outsource?

Sooner is better! “They always come too late… when the problem is about to burst!” says Frédéric. “Spend an hour or two with an outside consulting company and they’ll help you ask better questions and make better decisions that will save you a ton of cash down the road. A problem caught before product release is far less costly.”

Deciding when to outsource is a balancing act of timing and budget. “Size is not the issue,” explains Matt. “if (your outsource resource) provides value, if you trust them and if they’ve saved you money, why change this relationship?” Entrepreneurs have to look at long term strategy and short term tactics and determine if developing in-house talent is worth the pain. “Go outside for expertise, nimbleness and cost,” says Frederic. “Think of these partners as more of a team.”

“Don’t reverse-engineer your finances.” recommends Francis. Thinking about your credibility with financers, a virtual CFO can help you prepare. “Put the right infrastructure in place from the start. We see organizations struggling with investing and we help them become more attractive.”

How Do You Find and Work With the Right Outsource Talent?

It’s easy to find a supplier – finding the RIGHT supplier is what you must do to have a successful outsourcing relationship. The key points:

1. Get Referrals:  “Reputation is everything, especially in our business.” explains Frédéric. “People love to work with people they know, or people who have been referred to them. Ask for help!”
2. Communicate: Trust in your outsource partner is a huge factor to the success of the relationship. Each of the panel expressed the need for openness, honesty – that transparency in the relationship where you feel your outsource partner will tell you the truth, even if you don’t want to hear it. “Clarity about the expectations and the delivery…you need candid answers when things aren’t going as expected.” Stresses Francis. Matt adds, “It is critical that both sides are able to have a back-and-forth, without avoidance on either side.” Frédéric recommends you put aside email or text messages and go for a more direct approach. “The manager of the outsource relationship has to have the ability to pick up the phone and communicate directly with the provider. In an email, only a tiny bit of the communications come through.”
3. Establish an Accountable Partner Relationship: “In the development world, I strongly advise an accountability-based relationship.” Says Francis. “Everything needs to be done in stages…get benchmarks on a regular basis so you can correct issues early in the process.” Matt stresses the need for the partners to follow the plan. Tweaking is allowed, but changing everything in reaction to a bad report in the press, for example, distracts from the plan and delays results. “The client has to value the direction you are taking them.” says Matt.

What is the Budget for Outsourcing Marketing and Finance?

It comes down to needs. Francis advises companies to look objectively at the senior management team and infrastructure and be honest about the strengths and weaknesses. Identifying what a company needs in order to be able to advance to the next level of business growth, then budgeting around that need.

In marketing, you can budget several different ways from the cost of the product to the revenue being generated to the projected revenue.  “At drive2,” says Matt, “We pro-rate up-front costs and look for a % of gross revenue as successes happen. Most CEOs like to know that if they’re outsourcing, they are partnering with someone who is compensated based on success.”  Understanding the metrics helps you identify a budget and Matt advises companies to think about allocating marketing funds in terms of percentages of revenue.

Special Note: No TON Tuesday on June 8, but a Summer Cocktail Reception is planned for June 27.

(160 Elgin Street, 26^th Floor)

Virtually Yours:  Building a Winning Team through Outsourcing

As access to capital continues to be a challenge for Ottawa Hi Tech Start-Ups, more and more companies are adopting the virtual and outsourcing business models.  R&D, production, staffing, sales/marketing, legal and finance are just some of the areas where you can have experienced resources without the costs associated with full time employees. Companies who adopt outsourcing are founded on the concept of focusing on doing what they do best, running lean, and building their IP and capabilities with the help of more experienced outside virtual resources

Please join us on May 11^th to hear an expert panel on outsourcing moderated by accomplished Ottawa Tech Media expert, Janet Eastman.  During this seminar, we will discuss various topics, such as how opportunities for outsourcing of non-core services have made the “virtual” company structure more achievable, and how these opportunities might be particularly relevant for Ottawa Start-Ups.   

Gowlings is very pleased to host Starting Your Start-Up, The Ottawa Network monthly event stream that combines quality networking with practical advice and insights from industry leaders and subject matter experts.   Starting Your Start-Up focuses on the business basics that are the foundation for launching and building a successful start-up in these promising and challenging times including financing, team formation, business & product development, sales, and marketing.

RSVP today, as space is limited.  This event is provided at no cost for members of The Ottawa Network.

Please click here to register

Moderator - Janet Eastman

Janet Eastman is a media & communications expert who has worked extensively on both sides of the industry during her more than 20 year career.   Janet began her career in radio as a broadcaster and quickly moved into writing and television media.  In 2001, Janet became the host and producer of the only independent Canadian Business Television program; Ottawa Citizen Business TV.   After a successful 6-year run and over 1100 shows, Janet left Ottawa Citizen Business Television and evolved her career as Manager of Communications and Investor Relations with publically-traded Orezone Gold Corporation.

Janet joined drive2 Inc, in 2009 as Director of Media and Communications where she works with drive2’s customers to develop effective communications, brand and PR strategies and tactical messaging for our customers.   Janet is a storyteller at heart who has produced local and national radio documentaries and television programs, newspaper and magazine articles.  Her experience allows her to take often complex, hard to understand technology and effectively define and translate it into relevant, make sense communications and content.

Panellists

Frédéric Boulanger, President, Macadamian Technologies

As President and co-founder, Frédéric is responsible for Macadamian’s long-term vision and strategic direction. Under his leadership, Macadamian has grown from four founders to a team of more than 130, known as one of the most respected software development firms in the industry.

Frédéric is on the executive committee of the Ottawa Software Cluster, and is co-founder and co-executive of the Ottawa Software Executive Forum, an Ottawa-based networking group that brings high-level software executives together to share best practices, exchange ideas, and explore new technologies. Frédéric is also a board member of the Information Technology Association of Canada (ITAC) and is active in a number of ITAC committees, including outsourcing and Canada’s competitive positioning.

Prior to founding Macadamian, Frédéric was the Senior Development Manager of Paradox, Corel Corporation’s flagship database product. There, he managed the first release of Paradox after Corel acquired the relational database management system from Borland. His team successfully tackled an unfamiliar code base and met an aggressive deadline, developing a new version of the complex application in eight months. Frédéric also managed Corel Family Tree Suite, which received the ZDNet Editor’s Choice award.

Francis Liska

Are you looking for sustainability in your business? Francis has a passion for learning and sharing ideas. He is a strategic thinker who excels at carefully considering alternative scenarios to find solutions in a world of seeming complexity.

Francis holds a degree in Business Administration and a Post Graduate Diploma in Applied Information Technology. He is a Certified General Accountant, Certified Information Systems Auditor, Certified Internal Control Auditor and a Certified Management Consultant. He also holds the COBIT Foundation Certificate from the Information Systems Audit and Control Association.

Francis is an owner of OTUS Group, a firm of business advisors dedicated to making businesses stronger. Over his career he has helped numerous organizations in the government, entrepreneurial and not for profit sectors to improve their operations.

Matt Massey

Matt Massey has spent the majority of his career building new revenue opportunities for business-to-business organizations.  He is an enthusiastic, highly talented marketer with a passion to succeed. 

Matt founded drive2 Inc. in 2006 to assist small and medium-sized enterprises in getting in front of the companies they want as customers.  Driving sales and revenue and better positioning drive2’s customers for growth and success.  The foundation of drive2 is based on a philosophy that smart, integrated marketing infrastructure coupled with effective demand generation programs drive sales effectiveness and revenue goals.

drive2’s Demand Generation Model has a proven track record for success. In the last 10-months alone, Matt and his team have successfully generated over $11 million in qualified new business opportunities for their customers.

Matt is a contributing author of Guerrilla Marketing for Job Hunters 2.0, is actively involved in the community and volunteers with a number of charitable organizations.

Click here for registration details.

How are your sales? If you believe your company could be more effective at selling your products or services, attending last night’s TON session with Trevor Wilkins, Principal of Holis Associates Inc., would have been a great start. Trevor is an Engineer turned sales professional who has practised sales for the last 25 years. Today, owner of Holis Associates Inc., Trevor delivers training programs all over the world. Graciously delivering a small segment from his full curriculum, Trevor battled a severe ear and throat infection to explain to TON how to structure a sales meeting for success.

Attended by start-up owners, marketing and sales professionals, established business executives and one lawyer, this TON session was a huge success. Here now, a brief recap of the main learning points from Trevor’s presentation.

Point One: We are all salespeople.

Trevor drove home the point that everyone sells – to family, friends, clients, suppliers, employees – we’re all selling all the time. We use different methods with different people to persuade them, convince them to our viewpoint. “Start-ups,” says Trevor, “Don’t have time to wait for the customer’s process. Start-ups have to take control of the buying process and drive the sale from the beginning.”

Point Two: It’s about control

When you structure a business conversation the way you should, the sale should be a natural outcome if you’ve properly qualified. Ask the right questions and you will learn what your client needs, THEN you can pitch them the right solution. Trevor explained that the right questions to ask of your prospect are ‘Seed Prompters’. These types of questions should be in line with your offering, but structured to find out what the prospect’s pains are and what the value of the solution would be. Trevor told TON that there was a sentence we should memorize: “Well that’s great; that’s exactly what we do.”

Point Three: Sell ‘Take-Aways’

“The key here,” explains Trevor, “Is to discover what your customer’s take-aways will be.” The concept is that customers buy for one or more of only five reasons – the ‘take-aways’. They do not buy because of features and functions. Trevor uses the phrase ‘Tires Check’ to map customer reasons for buying. These are the things that impact on the customer’s life and cause him or her to buy your solution.

Simplified Explanation of the TIRES Check concept:

Time – your solution is delivered faster/more controlled/etc.

Income – your solution will increase customer’s income

Risk – your solution decreases customer’s risk

Expense – your solution reduces costs

State – your solution improves the way your customer feels

The rule is that the factor must be specific, measurable, realistic and achievable. “Efficiency,” explains Trevor, “Is very hard to measure so it would not qualify as a Take-Away. If your solution is cheaper, then yes, that’s a Take-Away.” To discover your company’s Take-Aways, ask yourself ‘So What?’ about the features and functions of your product or service.

Point Four: Research Before the Meeting

To inspire a purchase, rather than force a sale, you should analyze your prospects Take-Aways before you meet them. “You are not selling to YOU,” emphasizes Trevor. “Most salespeople approach a sale from their own perspective… you have to get into the prospect’s skin. Get interested in their company.” Use everything at your disposal to research the company from Google to calling someone you know who worked at the company.

Point Five: The Pitch

Once you understand your customer’s needs and you’ve given them the “..that’s exactly what we do!” line, you need to move to your pitch. Align your pitch to their needs, discuss pricing aligned to the value the customer attached to the problem and move to delivery discussion. At this point your customer has told you what he needs and how much it’s worth to him, and you’re offering the solution that fits… if you’ve done it right, the deal should be done!

Ok, now you’ve done your research, you’ve prepared the ‘Seed Prompter’ questions, you know what the Take-Aways should be and you’re face-to-face with the prospect and he or she says to you, ‘Ok, I have ten minutes, what are you selling?’ This happens, it’s about control and Trevor recommends you take that back by asking permission. ‘Thanks for asking! So I don’t waste your time, before I get into that, would it be ok if I asked you a few questions first?’ Trevor maintains that in 15 years he has never had a client respond negatively. “They always say YES!” says Trevor.

As a final word, Trevor admonishes TON to remember, “Qualifying out is fantastic! If they don’t have a need you can help them with today, make an appointment for the future and go on to the next prospect.”

Questions from the Audience:

What about on-line sales?

“Think about your website – they should be Take-Away driven.” recommends Trevor. “Put your Take-Aways right on your home page.” Trevor illustrates this with an example from a plumbing contractor who put right on his home page the phrase, ‘You Will Take-Away On-Time Delivery…’ and had nothing on there about the number of years experience, etc.

How do you handle the 7-second window of opportunity you have with a cold call?

“The key here is the seed question,” says Trevor. “Work with your team to come up with the right seed question and get to the value as soon as possible in the call. Get what you want, and get off the call.”

How do you deal with the “let me think about it” response?

“If you’ve done your job right, you’ll get into the process discussion, and this response shouldn’t come up at all. Qualifying and answer the need eliminates this one.” Explains Trevor.

For a copy of some of the points from the presentation, and a list of Trevor’s research recommendations, please send an email to admin@theottawanetwork.com.

The next TON Tuesday will be chaired by Janet Eastman on May 11 at Gowling’s offices, and will focus on using virtual resources and outsourcing. In the works for another session of TON Tuesday is the topic of using partners and alliances to grow your business.

RECAP of TON Tuesday events are written by Patricia Heard, Director Client Relations at HireSmart Human Resources Inc. Learn how you can save time and money and reduce risk to your company by contacting Patricia at pheard@hiresmarthr.com.

Inspiring a Sale From the Buyers Side
The First Step in Turning Selling into Buying

April 27, 2010, 5:30-7:30 pm

@

bitHeads Inc.
1309 Carling Avenue
(entrance at east end of Westgate Shopping Centre)

Do you need to influence investors, partners or customers to buy products, ideas or services, or to buy into a vision? All of us influence and persuade other people every day, at work and in our personal lives. 

This session will focus on how to find and use a customer’s REAL psychological drivers to buy. Old school techniques of spraying features and functions and hoping, produce only random success and wasted effort. In today’s more sophisticated markets, discovering what drives another person’s business and decisions is essential before proposing a solution. The same applies to finding partners and investors. 

So come and experience our dynamic speaker and add insights and practical tools to your approach to sales influence. Discover how simple techniques can deliver dramatic results, whether you are a business owner, marketer, project manager or just thinking about a startup.

Trevor Wilkins
Principal of Holis Associates

Trevor Wilkins is an engineer turned software developer, who has ‘jumped the fence’ and been selling complex solutions worldwide for 25 years. He has been involved in or led start-ups large and small, from owner/developer in a garage, through to Director of a NASDAQ middleware company; from the City of London to the America’s Cup; in software and hardware technology; in the Americas, Europe and the Far East.

Trevor and his team have developed a radical and highly effective approach to selling which they deliver as the BCI Programme™. This session is a short snapshot of a key component of the broader BCI programme.

Event Moderator: Walter Knitl, The Ottawa Network
 

Click here for registration details.

The event is free of charge to TON members and anyone who would like to experience TON networking before deciding on membership.

Why should you look for a mentor for your new business? Martin Horne, co-founder of the financial consulting company the Finelyne Group, maintains that businesses need coaches to help them make their products commercially successful. If it’s something that the CEOs of Google and Apple both use today, then start-ups shouldn’t turn up their noses either!

Martin moderated the April 13 session of TON, graciously hosted by Gowling’s and attended by 50 or more young company CEOs, ambitious start-ups, established companies and more. The two panellists, Bruce Lazenby, TEC Chair and Denis Colbourne, President and CEO of DC-Technologies Ltd., have both been mentors and advisors to different companies for many years. Here now, the top tips from the discussion.

How should you choose your board?

Experienced, challenging and someone not afraid to ask you the tough questions is what you should be looking for. Someone who can tell you what you need to hear, not what you want to hear. “If you are really, really comfortable with your mentor,” says Bruce, “it’s probably the wrong person.”

How many mentors do you need and what if they disagree?

“You can deal with advisors 1-on-1; divide and conquer works.” says Martin. If you are considering a Board, it’s really hard to get these people all around the same table. “What you’re looking for,” says Bruce, “is data points. If you ask three people the same question and get very different opinions…problem!” You need to have the tough questions, the fierce conversations. “Good mentors will often ask more questions than they answer,” says Bruce.

How do you find the right mentor?

Dennis recommends you approach a CEO or other senior executive with whom you’ve worked in the past. Going through a knowledge network like OCRI is a good idea also, and he urges you to choose someone with whom you don’t necessarily agree. You will want skills that are different from yours and, says Dennis, “If you aren’t happy with them, fire them!”

Bruce recommends you look for companies that are doing the type of things that you wants to do. “Read the press releases to get the name of the CEO, call after 5 or 6 at night or send him or her an email and make your pitch right there. Do NOT ask them for coffee…” Apparently, invitations to coffee are issued frequently, are impossible to make happen and your goal should be to make a great first impression and intrigue your would-be mentor into investing more time in you. Bruce says he often gives a home-work assignment to the caller, requesting that they spend a bit of time to develop a formal answer and get back to him. Astonishingly, only 1 out of 10 will call back!

Martin adds that LinkedIn’s premium service allows you to send CEO’s emails directly and that they read them personally.

Should your mentors be compensated for their time investment in you?

Dennis says that paying a mentor means they’ll feel obliged to help you. “Stock offerings would be an option here.”

Mentoring should never stop…top CEOs learn every day. “I ask them tough questions…and I’ve discovered that people like the IDEA of being an entrepreneur, but they don’t really like being an entrepreneur.” says Bruce. According to Bruce, a great test for this is to ask yourself how early in life you made your first sale. Entrepreneurs were often early sales professionals – the kids with the paper routes, trading their bikes or cars.

Why do mentors invest their time? What’s in it for them?

For Dennis, it’s about keeping involved and being useful. As a retired professional, he missed the energy of business and being in at the ground level with new start-ups gives him that outlet he craves. “Entrepreneurs love the hunt!” says Bruce. He doesn’t want to be a CEO anymore, but he can live that life vicariously – and in a part-time way – through young start-up companies.

What do start-ups most often lack?

“In Ottawa,” says Dennis, “there’s a huge pool of technical talent, but commercial skills are lacking.” Innovative start-ups are begun by inventors, but they need to be run by skilled CEOs. Interestingly, Bruce tells the group that a recent survey of Canadian companies showed that Canadians believe their products are better, more innovative, more robust and less expensive then competitors versions. “They should be MORE expensive!” Martin supports this notion that Canadian’s un-aggressive attitude holds us back from being even more successful than we are. “It’s hard to advise entrepreneurs to start their business in Ottawa,” he says, “you need to be connected to the buzz.” Bruce agrees and says start-ups need to tell each other about their businesses and get connected – he challenged the group to follow-up with fellow TON members and made the prediction that most of us wouldn’t!

How much do you tell your board?

Stop being so Canadian, was Bruce’s advice. Dennis agrees, saying that his job as a mentor is to find out everything about the start-up.  “Tell your Board what’s keeping you up at night, be completely open with them. I fire companies who aren’t telling me the truth.” said Bruce. If your advisory board could one day turn into your Board of Governors, they need to know it all. Bruce notes, however, “never go near a Board of Governors unless you absolutely have to.”

About your advisory Board meetings:

-         have an agenda

-         give your questions in advance

-         don’t have it just be a jam session

What are some of the questions a mentor will ask?

-         How does your family feel about this?

-         What would they say if I asked them?

-         How much sleep do you get?

-         What keeps you awake?

-         What are you thinking?

-         What do your customers think?

-         What decisions did you make in the last six months that were terrible?

-         What decisions will you have to make in the next six months that are ‘company risking’ decisions?

-         What do you HAVE to do in the next year: goals that are practical, achieveable in both your personal and your business life

Note: “I don’t know” is NOT an acceptable answer.

What should mentors bring to the table?

“Bring people to the table who have the experience you need. They should have what you’re missing in order to be successful. You have to fill the gaps, so don’t bring people who have the same skills as you.” recommends Bruce. Dennis adds, “Find a mentor who’s connected to your target market CEOs. Your mentor should introduce you.” Martin added the final advice that you could consider aligning advisor financial rewards to your advisor with the company’s success which would motivate your mentors to recommend you to customers.

(160 Elgin Street, 26^th Floor)

Business is a team sport!
Developing a winning game plan with mentors, coaches, and advisors.

Tuesday, April 13, 2010 (5:30pm - 7:30pm)

Much like with sports, every winning business team has a group of dedicated, experienced, and enthusiastic coaches and mentors who offer guidance from the sidelines.  Do you have a set of good coaches and mentors offering you guidance?  Do you want to have a team of mentors helping you?  Not sure where to start?  Please join our expert panel of Bruce Lazenby and Denis Colbourne, moderated by experienced Hi Tech CEO, Martin Horne, for a discussion on these topics and more.

Our panel will be discussing how establishing an advisory board of proven business mentors can help you to grow your business.  Establishing and maintaining a clear vision and direction for your company, developing new ideas from fresh perspectives, obtaining impartial and objective feedback, and helping to maximize your business opportunities are just a few of the benefits that you stand to gain by having the right board of advisors as part of your team.  So, it does not matter if you already have an established board of advisors, or if you are looking to find out how to create one….you will benefit from this session.

Gowlings is very pleased to host Starting Your Start-Up, The Ottawa Network monthly event stream that combines quality networking with practical advice and insights from industry leaders and subject matter experts.   Starting Your Start-Up focuses on the business basics that are the foundation for launching and building a successful start-up in these promising and challenging times including financing, team formation, business & product development, sales, and marketing.

This event is provided at no cost for members of The Ottawa Network.

Click here for registration details.

Moderator: Martin Horne, CEO IPeak Networks

Martin Horne has over 25 years experience in High Technology including management positions with Digital Equipment, DY-4 and Monenco Agra.  For the last 15 years Martin has founded and led several venture backed companies as CEO.  These ventures  returned to investors over $122M on $19M capital raised.  In 1994 he founded ProMIRA Software and in 1998 he sold it to Manugistics.  In late 1998 he founded Nitidus Technology and in 1999 he sold the company to Parametric Technologies.  Most recently Martin as founding CEO, financed and grew online Web 2.0 travel site TravelPod into the leading Travel Blog community culminating in an acquisition in late 2006 by online travel leader Expedia.  Martin is currently the CEO of IPeak Networks an Internet Video Acceleration Company.

Panellists:

Bruce Lazenby

Bruce Lazenby’s TEC members benefit from his wealth of business experience as a CEO, his strategic military management and his leadership training. As a Chair in the Ottawa/Gatineau region of the nation’s capital, he puts  this unique combination of skills to work in his group.

Bruce specializes in advising organizations on strategic issues related to sales, marketing, corporate structuring and M&A through his company Global Virtual Software Company Advisors Inc. (GVSCA). As founder and Chair, he advises the CEO’s and boards of several private Canadian software companies. Bruce and other GVSCA associates work with these companies to drive their sales and marketing efforts as well as their corporate structuring plans.

In addition to his work at GVSCA, Bruce serves as Regional Director in Canada for Corum Group - the world’s largest software M&A advisory firm. In this capacity he oversees all software M&A activity undertaken by Corum in Canada and advises on other global transactions.

Denis Colbourne

Born in Canada, Mr. Colbourne has over 40 years of experience in the high technology industry. Currently President and CEO of DC-Technologies Ltd., he offers expertise in business operations, technology transfer, and industry-government liaison, with a strong focus on high-tech restructuring and turnarounds. Mr. Colbourne maintains established relationships with high-tech executives, governments and educational institutions around the world.

His client list includes The World Bank, various investment banks, and the Canadian and Ontario Governments.

During the past 12 years, Mr. Colbourne has served on numerous corporate boards. He is currently Chairman of Opel Solar Inc (Connecticut). He is a member of the advisory boards of Spectalis Inc. (Ottawa), Avalon Micro Inc. (St. John’s) and the National Research Council’s Canadian Photonics Fabrication Centre. He was also a member of the Board of Governors of the Ottawa Hospital.

This event is provided at no cost for members of The Ottawa Network.

Click here for registration details.

If you are contemplating taking your company to Asia, this session is a must-read!

First, a little perspective from the Chair of the discussion, Walter Knitl, in the form of the following statistics comparing China, India and Canada:

	China	India	Canada
Area in Sq. Km	9,596,961	3,287,263	9,984,670
Population	1.34 B	1.16 B	0.033 B
GDP in 09	$8,791B	$3,561B	$1,287B
GDP Growth (2010 est)	9.6%	7.7%	2.7%
Imports in 2009	$921.5B	$253.9B	$305.2B

Question: What are the key opportunities and market segments in India?

Mike: There are huge market opportunities in India and big companies just weren’t represented there. You name a sector and there’s a market. For example, consider telecom. Every month in India there are 12-14 MILLION new subscribers. People who had never had a cell phone before. And consider that everything in that supply chain is required from the towers to the retail set-ups. Infrastructure, banking, retail, security – it’s all booming.

Marvin: Companies selling to Indian – the ones doing really well – are security, fraud detectors…with Ottawa and so many great tech companies, we are well positioned to succeed. It’s not that we don’t have the right technology.

Mark: I often get asked, “If you had to choose between China and India as a place to export to…” and they both offer great opportunities. However, China is looking for niche technologies right now. Their economy is still state-driven so bio-tech, clean environment technologies, ICT opportunities – less on telecom but more on knowledge-based technologies. Regulations can be an issue – but special effects tech, on-line or cell phone gaming opportunities are there and you can get the licensing opportunities in China.

Ying: With regard to licensing it is different. For example, a drug company that didn’t think to develop business in China years ago, did not bother to get a patent for their product in China. When they did come to market it was too late. You should patent now, to protect your future. IT and life sciences are both very important industries in China right now.

Mark: IP fear is huge with those looking to market in China. It’s not that there isn’t a process – it’s following the process yourself. Their patent and copyright laws are very different in some key areas. For example, the sleeves that protect coffee drinkers from the hot liquid aren’t patentable, but the FUNCTION of protecting people from hot beverages IS.

Mike: In India, we get asked about software sourcing developers and IP there goes way beyond anything we see here. Companies seem more afraid of what could happen in India, yet they leave their local doors wide open! In India, if you’re a software developer, your computer has no way for you to remove information. There are no USB ports, no networks – NO way to get information off your computer.

Marvin: policing and regulations are very strict in India to try to make companies feel comfortable.

Question: How long does it take to get a patent?

Ying: In China, you file a patent and it is fairly easy. There are Utility, Invention or Industrial Design Patents. Invention patents take a bit longer, but you can file a Utility Patent instead – it is cheaper and easier.

Question: Where in India should you go to do business?

Mike: The finance hub is Mumbai, the government hub is New Delhi. There are 5 ‘tier one’ cities with 15-20 million people, and many ‘tier two’ cities that are bigger than Toronto with around 5-6 million people. The largest centre for IT is is in Punai, a Teir 2 City, and InfoSys has more than 25000 engineers on a campus there.

Marvin: 2^nd or 3^rd tier cities in India are bigger than most of our cities. Infrastructure in these cities is really gearing up – water, power and airport upgrades are all required in order for India to continue to compete. Trade missions are ramping up in these 3^rd tier cities. In Tier 1 cities you are often hitting a well-beaten path…don’t think of 3^rd tier cities as too small. If you’re involved in infrastructure of any kind, that’s where you should be.

Mark: Where you want to be really depends on your product. There are major centres for IT…but these are also major areas of intense competition. Look at your buyers and play in secondary or tertiary cities where there is less competition – it’s still a large market! Fastest growing areas are out in the country and government is putting money there for investment. Don’t forget Hong Kong – it’s great for several reasons: it makes a great test case for Asia for your product, and it’s a great launching pad for your entry into Mainland China.

Marvin: If you are preparing to go to India or China you need to do more than find an agent. You have to develop your Canadian network and leverage that for advice, connections, market research, business culture, etc. You also have to recalibrate your business plan for this new market – it’s going to take at least 3 times as much time and money as you think it is to see a return on your investment.

You will hear that it’s about presences and relationships. If you aren’t willing to set up a presence there, you are at a severe disadvantage. Patience, Planning and Seizing the Moment. You will be surprised by how much you have to negotiate to win the deals.

Mike: The best advice: Be Committed to the Market. You can’t go over, get a bunch of business cards and think you’ve built relationships. To get them to take you seriously you have to invest. The world is knocking on India’s door right now. For example, Prince Andrew is in India four times a year for the UK…it’s very much a relationship market.

Mark: For China, any place in Asia, the commitment has to be there and at the executive level. The Chinese are looking for a family-type relationship. In business and in friendship for the long term. Use the Canadian Trade Commissionaires. They have a strong presence in China and India and they can help you find contacts, give advice, etc. Don’t get distracted by vast numbers…target your search and your market. Don’t let your guard down on your ethics – do your due diligence.

Question: What is the biggest hurdle to doing business in Asia?

Mark: Attitude: You have to spend time and money there to build a presence. If you don’t have a strategy for these countries as part of your plan, you need one.

Marvin: Understanding – the culture; understanding if you are getting anywhere in the business relationship; understanding the bureaucracy. Don’t rely on just one agent…the connections are just too vast for one agent to be able to handle it all. An on the ground presence is required and your agent is critical to your success and must be aligned with you.

Mike: An early hurdle is the one within your own company. The preconceptions of people are a huge hurdle. India has changed a lot in the last ten years, but the executive buy-in on your team has to be there. Also, you have to take the time to foster the relationships.

Question: How do the countries compare in being savvy in business dealings?

Mike: Canada has some fantastic technologies. From a marketing standpoint, we fall down. India is very brand-oriented. For example, no one in India knows Mitel – they know other brands, but not Mitel. Also, the level of entrepreneurship in India is amazing, as well as the youthfulness of business leaders. Companies considered “mid-size” in India are making $2-3M a year and are run by very young people. We have a lot to learn on that side.

Marvin: Canadian companies haven’t been prepared for these markets because we’ve been concentrating on the US. I see us as being a bit dis-jointed. Less inclined to work together. They want to be independent, but with a market like India, you need to leverage team effort. We are not as aggressive as we need to be. We need to get into those 2^nd and 3^rd level cities and develop a presence.

Mark: You used to deal with the State-run agencies but in the last ten years we now deal with private industries that have western-educated leaders. So the number one thing I hear from Chinese companies is, “If the Canadian company had only listened and been a bit more accommodating to our needs…made some slight adjustments to their product…” Also, I hear that Canadian’s never actually ask for the business! They had the best product, best offer, but they just never asked. And I haven’t just heard this once or twice.

Question: What’s one myth about doing business in Asia?

Mike: There are 300 million English-speaking Indians and they have four times the vocabulary of the average Canadian! All my dealings in India are in English. There are more English-speakers in India than there are in the US.

Marvin: it’s not just about patience – it’s about finding your way through and seizing the moment. Go the extra mile to win the business. Sure there is paperwork and bureaucracy, and government contracts can certainly test your resolve, but the business culture is changing.

Mark: There is a myth that your commercial contract clearly defines your relationship. No. That’s always open to negotiation and discussion – and that means any clause of the contract.

Question: What’s the ROI given the huge market versus the expense of a local presence?

Mike: It’s all about the scale. You are offered a scale you can get no where else in the entire world.

Marvin: Measuring the scope and timeframe for the ROI. If you’ve been working in the US and want to diversify, you have to recalculate your business plan and understand the return can be 3-5 years out. Long term potential within the market, plus growth in the country – it’s hard to ignore.

Mark: consider the product. If you’re a small company with a standard product…probably not a great market. It will be copied and your investment won’t last. Niche technologies may play better.

Question: How much money do you invest?

Mike: at least six figures for a small company, on an annual basis.

Mark: Better to partner here in Canada or work with reputable company who can represent your product in China. $50-100K in 1^st year to explore the market.

Marvin: Consider the time and the human resources for visiting companies. You need CEO presence in the market on a regular basis.

Mike: There is financial support – the Ontario Ministry of Trade can fun up to $50K, EDC has an Export Express program to help with new market entry…

The next TON Tuesday will be held on April 13^th at Gowlings on Elgin Street and will feature a panel discussion on mentors, coaches and advisory boards – why you want one and what they will do for your start up!