NWEN and The Zino Society are now offering reciprocal discounts to any entrepreneurs applying to both forums. Whether you are an early-stage innovator primed for First Look Forum, or an investment-ready deal ideal for ZZIF, send in your application and we’ll point you in the right direction at no extra cost to you. NWEN’s screeners will let you know if you’re too far along for our opportunity, and Zino will deduct $50 from their fee. To synch up with Zino’s schedule, we are extending our Early-Bird deadline to 7/31. Looking forward to your application!!

Be sure to follow us on facebook for all of our contest updates and pictures from our events.

It’s summertime, which means blockbuster sequel season: applications are now open for First Look Forum, Part Deux! Read here for reviews of March’s event—more than a popcorn movie, it was met with critical acclaim. It is this reporter’s opinion that sadly, most sequels are inferior to the original (with the obvious exception of The Empire Strikes Back ). So we’re taking a page out of the 1980 George Lucas playbook and kicking it up a notch.

Just how are we raising the bar?
a) Streamlined application: A one-page executive summary. Every entrepreneur needs one, and we want to get you on your way with a solid template (click here).A word of warning: Mark Twain aptly noted “I didn’t have time to write you a short letter, so I wrote you a long one.” It’s no easy feat to distill your business into a page, but we’re here to help. Speaking of which…..
b) Iterative feedback: Everyone who applies will receive commentary on their one-page summary. The earlier you apply, the more iterations of feedback you can receive. Take advantage of this lather-rinse-repeat opportunity, and apply now so we can help you whip that summary into shape.
c) Transparent process: We’ve published our timeline so you know what to expect every step of the way. Other than birthday parties, we fully support a “no surprises” approach, and are here to answer any questions you may have.

As for those questions, below please find some FAQ’s. Though school is out for summer there’s a little multiple choice test if you’re getting nostalgic:

Who should apply to First Look Forum?
a) Founders who have an innovative businesses poised for growth
b) Entrepreneurs who seek feedback and coaching on their business plan from investment professionals
c) Companies who have not yet presented to the membership of angel group or a VC partnership
d) All of the above

Why would I be disqualified if I’ve presented to angels or VC’s?
a) NWEN is all about bleeding-edge, seed stage companies who need connections and coaching.
b) Angel groups and VC’s have pretty darn good processes to evaluate investment-ready opportunities.
c) We are committed to bringing our audience new opportunities that have not yet seen the light of day in the investment community (it’s the truth in advertising part of “First Look”).
d) That’s right, all of the above.

So why is this event invite-only to attend?
a) We promised our presenters we would fill the room with investors.
b) Space is limited.
c) Rebecca has spent way too much time in Belltown and just loves the velvet rope.
d) Truth in advertising is the big winner: both (a) and (b).

Bonus facts: If pressed, the author, NWEN ED Rebecca Lovell, will admit to both (a) having an inordinate trivial knowledge of Star Wars (episodes 4, 5, and 6) and (b) having a special place in her heart for Belltown.

I was reading an article about Market Research and sources you can use when on a budget. I thought this would be great to share with our community. We are all looking for ways to save, without cutting corners. You need the most information you can obtain in order to make the best judgement. By using the right tools and techniques you can excel with your research. NWEN is having an event tomorrow, July 7 on Market Research. If this is something of interest to you please be sure to check out our website and sign up. Mike Pritchard will be discussing an introduction and refresher on market research tools and techniques, relevant tools for entrepreneurs, what you can do your self and how to work with a research vendor.

We have added new events to the calendar in July. Use the extra hours of light to network, and focus your energy on important entrepreneurship skills:

Market Research eIQ Session
Tuesday, July 7, offered twice 1:00 – 3:00 pm or 3:30 – 5:30 pm, NWEN Offices, Bellevue
Entrepreneurs need to know more about their prospective customers and markets, but perceptions or lack of knowledge sometimes gets in the way. “Market research is an expensive isn’t it?” “How much can I do myself?” How do I make sure the research gives me the answers I need?” Join Mike Pritchard as he shares cost effective tips for success.
Cost: $34 for members, $49 for non-members
Register for the 1:00-3:00 Session
Register for the 3:30-5:30 Session

Venture Breakfast: Meteor Solutions: A Love Story
Friday, July 10, 7 – 9 am, early bird networking starts at 6:30, Harbor Club, Bellevue
In a tale of two companies (and a venture capitalist), boy starts company, company goes to market, company meets venture capitalist, two companies meet, and live happily ever after. Though the story of Meteor Solutions isn’t nearly this simple, it is a Reese’s Peanut Butter Cup-style phenomenon where the whole is greater than the sum of the parts. Join us as Pete Parsons (founder of Fyreball) and Ben Straley (founder of Reach Machines) share some lessons learned from the market, the joy of being nimble and market-sensing, and the power of relationships in the community. Whether or not you agree the subsequent creation of Meteor Solutions is a classic romance, it is a fascinating story.
Cost: $25 for members; $40 for non-members, $5 additional after July 6 (walk-ins additional $5 at door)
REGISTER

Pub Night – New Location for July
Wednesday, July 15, 6:00 – 8:00 pm, Del Rey, Seattle
NWEN’s pub nights have been a long-standing tradition, and a popular favorite amongst our members for the networking opportunity, great appetizers, cold drinks, and the chance for 3 minutes of fame as brave souls pitch their business to a friendly (beer-drinking) crowd. We’ve kept all these great traditions, but in July will move the party to Belltown. With free street-parking after 6, a US Bank lot just over a block away, $7 all-evening valet parking available via a neighboring restaurant, and bus routes galore, we’d love you to join us and celebrate.
Cost: $10 for members
REGISTER

Business Plan Writing Workshop
Tuesday, July 21, 3 pm - 4:30 pm or 6:30 - 8pm, NWEN Offices, Bellevue
Are you struggling with writing your business plan or executive summary? If so, you’re on the right track. It’s supposed to be hard. Let us help you to make it effective as well. Learn how to use the business plan writing process tool for critically researching, evaluating, planning, and explaining your business. NWEN’s Business Plan Writing Workshop provides an overview of many of the critical questions that every entrepreneur needs to consider in the early stages of the company’s life. This popular session is led by Bryan Brewer of Business Plans Northwest.
Cost: FREE for members; $49 for non-members
Register for Afternoon Session
Register for Evening Session

Think Like An Investor eIQ Session
Wednesday, July 29, 3:30 - 5:30pm, NWEN Offices, Bellevue
If you’re seeking outside capital for your startup, you need to think like an investor when putting together your pitch. Investors seek to maximize opportunity and minimize risk; get inside their heads and anticipate their questions. This interactive session is peppered with real world examples and led by Rebecca Lovell, NWEN’s executive director.
Cost: $34 for members; $49 for non-members
REGISTER

When I’m pitching my Web site, I’m often asked what my “cash-burn rate” is. That’s startup speak for: “How long can you keep going until you run out of money?”

I’m going to take advantage of this blog to provide periodic updates on FLF, the NWEN replacement for ESIF. Since I was involved in ESIF for years, and am now involved in FLF, it seems appropriate that I outline some of the differences and similarities between the two events.

ESIF was an investment forum, not too different from the ones sponsored by AoA, WTIA, Zeno, Kiertsu Forum, and others. If you’ve been to one, you know the drill–investors on one side, entrepreneurs with racing heartrates on the other, pitching for bucks.

Some great companies pitched at ESIF over the years, and many got a real boost (funding, board members, key advisors) from the event. Over the years we’ve talked to enterepreneurs who presented about what value they received, and we heard a consistent story: Even if they didn’t get a check from ESIF (and let’s face it, it’s only one pitch), they were a stronger company for having gone through the process. Particularly a lot of companies like the coaching. After the fact. Before the fact most of them either don’t want it or don’t think they need it. After the fact they realize they are more prepared to pitch any investor, any time.

We’ve had some fun the last few years changing things up at ESIF in response to feedback from entrepeneurs and investors, and it clearly improved on all the key metrics: attendance by investors, quality of the companies, fun factor, and others. But let’s face it: there’s a lot of places around town for an entrepreneur to pitch a company, and it’s hard for any forum like this to show fresh faces. Deals that everyone hasn’t already seen.

So in response to that, we changed gears big time this year. Instead of YAIF (yet another investment forum) we decided to drop the whole investment angle, and focus on just finding companies that no one (well, almost no one) has seen and put them in a room with some folks who might want to meet them and help them.

The good news is we have a full slate of applicants with cool new ideas that will go through screeching (as we call it–screening and coaching) shortly. They will be winnowed down from 20 companies to 12 that will actually present at the event on March 24. Each company gets two experienced people–primarily investors and entrepreneurs–who stay with them for the full screeching experience. This addresses the problem some people reported in the Old Days of having one set of coaches tell them to make a change, then the next set of coaches tell them to revert back to what they had before. Ugh. Goes to show this isn’t an exact science.

I’ll post more as the show unfolds.

Cheers,

John Browne, Co-chair

This is the 2nd post in series written by Jason Cohen on the topic: Joy of Honesty in Business.

Dishonesty is so rampant we can hardly be bothered to take offense.

A previously recorded message insists that our call is important, but apparently not important enough to answer.

A letter arrives marked “Important! Open Immediately” — a sure sign of unwanted solicitation.

A privacy policy surreptitiously allows a company to sell our email address; we’ve given up the fight; say a prayer to the patron saint of spam filters.

A vendor sends you a mail-merged thank-you note; your last name is misspelled and in all-caps.

A corporate mission statement places customer satisfaction first, then throws up layers of bureaucracy to distance customers from those with the knowledge and ability to solve problems.

Almost all our business interactions are tainted with these half-truths, actions incongruous with words, all smoke-and-mirrors. Half the time it feels like companies are doing just enough to not outright lie… but only just.

Do you want to be different from 99% of other companies? Be honest. Be genuine.

I’m not the first to recommend this, but how do you go about “being genuine?”

• Admit when you’re wrong, quickly and genuinely.
• As soon as something isn’t going to live up to your customer’s expectation — or even your own internal expectations — tell them. Explain why there’s a problem and what you’re doing about it.
• Send hand-written letters. Second-best send typed but personalized letters.
• Newsletters and blogs should contain useful, interesting articles, not just plugs for your product.
• Instead of pretending your new software has no bugs and every feature you could possibly want, actively engage customers in new feature discussions and turn around bug fixes in under 24 hours.
• A human being answers the phone, as fast as possible.
• Emails are answered in under 15 minutes by a human, not an automated reply. If it’s going to take a long time to answer, a short response buys you as much time as you need.
• Send emails from real people, not from info@company.com.
• Send personal emails.

It’s true that most of these ideas take time and effort; that’s exactly why they work! That’s why your competitors don’t do it, but that excuse isn’t good enough for you. You know that thrilling your customers is how you keep customers, how you earn their business even in recession, and how you get people to fight on your behalf when the budgets get cut.

People do business with people they like. Communicate quickly, as yourself, and be willing to admit shortcomings.

In other words, be a real person.

Jason Cohen wrote this post and allowed us to syndicate it. He is the founder of Smart Bear Software, maker of Code Collaborator, the world’s most popular tool for peer code review and recent winner of the Jolt Award.

I was starry-eyed when Frank showed up 18 months after the birth of my company, Smart Bear. Picture it: Frank was a silver-haired ex-VP-of-Sales for a big, successful company. An IPO had made him comfortably wealthy, and now he wanted to hook up with a promising new startup. With his résumé and enough money that he never had to work again, he could be choosy.

And he chose little ol’ me!

And boy did I (think I) needed him. “I’m just a software developer, I don’t know anything about sales” I explained to Gerry, who had already unknowingly cemented himself as my mentor. “I’m just a lowly engineer, ignorant of the mystical voodoo of six-figure purchase orders. I don’t even play golf! Frank has been there.”

Gerry tried to explain. “There’s no magic to it. I’ve sold companies for $100 million without stepping foot on a golf course. You have a good product, you have some customers, just keep going.” Of course I didn’t listen.

So Frank and I headed down the road to partnership. Frank had lots of ideas that “we have to implement, otherwise no big company will give us money.” For example, we had to change our name. “Smart Bear” sounded to Frank like a dorky one-man shareware site. (Ahem…) We needed something stoic and corporate. His suggestion was “Enterprise Development Tools, Inc,” or EDT for short. Big companies like acronyms, he explained, as if “big company” is an entity that can express an opinion.

There was more: We needed patents (”to keep competitors at bay”), we needed a sales team (”software doesn’t sell itself”), and we needed to lighten up (”I like to knock off early on Fridays”). In fact it seemed I was doing very little right!

Fortunately Gerry finally got through. “Let me get this straight,” he rightly admonished me for the fourth time, “this guy wants 50% of the company, he wants a salary while you get none, he’s going to work 35 hours a week while you work weekends, he’s not bringing any money to the company, and his big idea about how to get more customers is to change your name? Does that sound fair? Do you think he will really contribute that much?”

Gerry’s criticism of Frank was harsh — as harsh as Frank’s criticism of me — but Gerry was right and luckily I heeded him.

Two weeks later I landed a $50,000 deal with a “big company.” A few years later we were doing millions in revenue with “big companies,” still called Smart Bear, still no patents, still no sales guys. Who knew? (Gerry knew.)

You have to understand though, saying no to Frank was hard. He had the expertise, I didn’t. I was convinced that he was right and I was wrong. If it wasn’t for Gerry’s guidance, I would have gone through with it.

So how do you separate the the good counsel from the bad — the Gerrys from the Franks? Both sounded like advice and criticism, both were experienced, both were strong-willed, and both truly believed in what he was saying.

Here are a few things that have helped me filter advice:

• The best advice doesn’t come as a barrage of statements but rather from a series of questions, askbed by someone playing devil’s advocate.Rarely will an advisor know more than you do about your domain of expertise but that doesn’t mean an outside voice is useless. Pointed questions force you to defend your choices. A healthy debate challenges your assumptions without implying they’re false. New ideas are batted around as a brainstorm rather than handed down as gospel.In my case, Frank presented his view as a series of statements, axioms even; Gerry counched his perspective as pointed questions that required either rebuttal or agreement.

  In fact, playing devil’s advocate is a great exercise to do periodically anyway. Find an intelligent foe, take her to lunch, and follow Scott Berkun’s advice about Rude Q&A.

• “This is how it’s done” is almost never a good reason. If the sole basis for the advice is “tradition,” it’s just momentum and you might be right to buck the trend.Example: Smart Bear posts its prices on the Internet rather than negotiating. Enterprise software sales are rarely done that way, but posting your price is honest and makes business sense, so we do it anyway.
• It’s easy to cut down ideas; it’s hard to create and execute them. Give me any idea and I can find someone who thinks it’s dumb. So what? “Constructive” criticism means constructing, not just blasting. Look for advice with a clear method for implementation and a clear path for results.
• Does the criticizer volunteer a way to measure the success of her new idea? If so, the only reason not to try it is time or money. This is the guiding principle behind our marketing efforts. If not, how will you ever know whether or not it was wise?
• Actively develop a network of trusted advisors. These could be local entrepreneurs, on-line forums, even bloggers you like. Everyone needs a Gerry or two. Advisors won’t always agree with each other of course, but nothing beats running ideas past people you respect and who truly have your interests at heart, even if their advice ends up being wrong.

Jason Cohen wrote this post and allowed us to syndicate it. He is the founder of Smart Bear Software, maker of Code Collaborator, the world’s most popular tool for peer code review and recent winner of the Jolt Award.

After 14 months as NWEN’s Executive Director I find myself moving on. My reasons are strictly personal. If there were a way to stay I would. NWEN is an important cog in the entrepreneurial wheel. It’s mission is an important one and I look forward to watching it continue. I leave with nothing but good wishes for everyone involved. I will miss it.

My wife and I have decided to permanently relocate to Port Townsend, where we have a home and increasingly, have become involved. I have been offered an opportunity to work in the maritime industry, a passion nurtured by my ship’s captain father and my  grandfather.

I will be working for the Northwest Maritime Center of Wooden Boat Festival fame. A new building is under construction and many cool things are happening. Also, my wife recently opened a store for writers (www.writersworkshoppe.com) in downtown Port Townsend. I couldn’t resist the pull of those two, long neglected, passions. This will allow my wife (my most important passion) and I to share these priorities in our new home.

Working with the entrepreneurial community from this perspective has been invigorating and rewarding. NWEN has been a special organization for almost 25 years.

Working with a board of directors that is truly committed and extremely supportive of both the entrepreneurial community and me, has been a great pleasure. I will miss it. I thank them for their support.

A keystone of our efforts in the last 14 months has been to keep NWEN relevant and move it forward in ways that kept us relevant over time. I believe it has in the following ways.

1)      The board, always NWEN’s true strength, has added several strong entrepreneurs in the past year. They join a board that is very active and devoted to furthering NWEN’s mission. The board is the lynch pin to everything good that has happened here.

2)      Staying relevant meant moving to a more flexible format for all NWEN offerings;

a.        moving to an on-demand system for educational offerings that allowed popular workshops to be held as often as the demand was there.

b.      Launching eIQ (entrepreneurialIQ), a series of 90-120 minute sessions, held as often as demanded, in a low cost venue and at a low cost. The first 3 sessions will be offered in the next few weeks with more coming on rapidly. Watch.

c.       Revamping our Investment Forum. NWEN is all about early stage entrepreneurs. Our job is to provide a forum that is relevant to them. We are replacing the Early Stage Investment forum with the First Look Forum. Presenters will be companies that have likely, never presented before. Again, the venue will be smaller, there will be fewer presenters engaged in a more interactive format that emphasizes the learning process. It will be held 2-3 times each year. Business plans will be received year round, when the entrepreneur is ready not when NWEN is ready. It’s an exciting new format. Watch.

NWEN has helped thousands (that is not an exaggeration) of entrepreneurs get started. Through good times and bad. It has grown with the region. To some degree, the region has grown because of NWEN. It will continue to do all it can to support and nurture anyone with the guts to, not only dream, but actually dive into the mysterious, wonderful, stressful, dangerous, high risk, world of starting a company with great aspirations.

Thanks to everyone for this time. I wish you all the best in the years ahead. I’ll watch NWEN grow.

Cheers!

December 2, 2008

Location: Schaeffer Auditorium, Seattle University, Seattle
Time: 7 pm - 9 pm
Cost:  FREE
Register Now >>

What you will Learn:
Are you working on something that you think may be a break through idea or perhaps wondering what the really great break through ideas are?  Whether you already have your idea or are looking for something to help you figure out your next big idea is, join us on December 2nd to hear insights from Nick Hanauer who has been described as “truly incredible about spotting so many of the successful ideas in the Northwest for the last 10 years.”

Nick will share his thoughts on what break through ideas are and offer examples of companies he views as having developed true break throughs during the past ten years.  Best of all, Nick will offer his perspectives on how you know a break through idea when you see it and where he thinks the next break through ideas will be.

As always with NWEN Think Tank events, there will be opportunity for dynamic and engaging interactive dialogue.  This event is certain to be a unique and outstanding program so don’t miss it.  Early registration is recommended.

Featured Presenter
Nicolas J Hanauer is a founding partner of Second Avenue Partners, a Seattle-based company that provides management, strategy, and capital for early stage firms such as HouseValues.com, Ice Energy, Insitu Group, Modumetal and Newsvine. Nick is Vice Chairman of Marchex and serves as a Board Member and Advisor to House Values.com.

Hanauer became the first non-family investor in Amazon.com in 1995 where he served as a Board Advisor for the company. In 1996, he founded and served as CEO of internet media company Avenue A Media; later re-named aQuantive, Inc. and became Chairman of the board when the company went public.  aQuantive was purchased by Microsoft in August of 2007 for 6.4 billion dollars; the largest acquisition in Microsoft history.  In 1998, Hanauer founded Gear.com and served as Chairman of the company for three years until it merged with Overstock.com.

Nick began his professional career at Pacific Coast Feather Company as the company’s executive VP of Sales and Marketing, and helped grow Pacific Coast from several million dollars in sales to more than 300 million. He remains the company’s Co-Chairman and Chief Strategy Officer. While still an executive with Pacific Coast, Hanauer co-founded Museum Quality Framing Company. Today that company has 60 stores and is the largest of its kind on the west coast.

Today, Hanauer is actively involved in the Seattle community and Washington State’s public education system, and serves on the boards of the Cascade Land Conservancy, The University of Washington Foundation, The Seattle Alliance for Education, The University of Arizona’s Mt Lemmon Science Center and the Biosphere2; a University of Arizona climate research project.  He published the book “The True Patriot” with co-author Eric Liu in 2007.

Nick Hanauer received a Bachelor of Arts degree in Philosophy from the University of Washington in 1981.

Thank you to our Think Tank Sponsor: