15 390 NEW ENTERPRISES 15 390 New Enterprises

15. 390 NEW ENTERPRISES 15. 390 – New Enterprises “Selling: It’s not a dirty word. ” Brandon Busteed busteed@outsidetheclassroom. com 617 -641 -2001, ext. 222 2000 -2002 Copyright – MIT 1

Outside The Classroom 15. 390 NEW ENTERPRISES § Leading provider of online alcohol prevention programs 4 Alcohol. Edu. TM single most widely used course on the Internet; 100, 000+ students § Pioneering a powerful new model of Population-level Prevention. TM 4 Efficacy data: attitude & behavior change § Over 10 million data points about college student drinking behavior 2000 -2002 Copyright – MIT 2

15. 390 NEW ENTERPRISES Busteed Background § Cut my selling teeth early: garage sales, school magazine fundraisers, screen printing orders § Competitive instincts honed: sports § Student activism at Duke: class pres. , CSB, CIRCLe § View world through public policy lens § Duke Trustee § Took a sales job at graduation 2000 -2002 Copyright – MIT 3

15. 390 NEW ENTERPRISES Business School vs. Old School § $75 k w/3 -5% tuition increases § Shitty economy (+) § Finance, mktg. , accounting, etc. § MBA 2000 -2002 Copyright – MIT § $5. 5 M w/unlimited tuition increases § Shitty economy (-) § Eternal “dog and pony” show § MBWA 4

15. 390 NEW ENTERPRISES My thoughts on s___ing § It’s the only thing that matters in a startup § It’s the most important item on an entrepreneur’s agenda § Like anything done well, it is a balance between art and science, eg. the right spiel and lots of it § Everyone sells! 2000 -2002 Copyright – MIT 5

15. 390 NEW ENTERPRISES Selling Advice 1. Be excited about what you do and what you’re selling 2. Connect what you’re selling to your own passion – have a story to tell 3. Promise only what you are sure you can deliver 4. Ask the right questions and listen 5. Be bold, but only after #4 and when supported by a conservative statement 2000 -2002 Copyright – MIT 6

15. 390 NEW ENTERPRISES Selling Advice 6. Understand the psychological profile of your audience and tailor your pitch to it, but… 7. Present your view of the future in ways that bridge the gaps between where they are and where they aspire to go 8. Do your homework and practice 9. Always be confident and calm 10. Charm 101 2000 -2002 Copyright – MIT 7

Selling Advice 15. 390 NEW ENTERPRISES § Don’t underestimate the value of good old fashioned charm! 4 Eye contact 4 Body language 4 Hand shakes 4 Thank yous 4 Sincerity/honesty 4 Smiles 2000 -2002 Copyright – MIT 8

15. 390 NEW ENTERPRISES Inside the Deal: Good idea pitched with charm brings $2 million in first round funding “Brandon does a better job of sucking up to slightly over the hill white middleaged guys than anyone I’ve ever met, ” quipped Howard Anderson, founder of the Yankee Group, currently senior managing director at Yankee. Tek Ventures and a member of the Common Angels. “Our own kids don’t return our calls, ” Anderson continued, “and he comes in with the ‘Sir’ routine and we eat it up. ” – Howard Anderson, MIT Sloan professor Initially, Geshwiler was skeptical of the deal, given the Common Angels’ investment bias. But Geshwiler said Busteed’s charm went a long way toward securing the investment. “We really like Brandon, ” Geshwiler said. “Angels really have to click with the team. ” Once Geshwiler started calling college deans, he was sold. “I called big-name schools, ” Geshwiler said. “And although several hadn’t heard of the company, they said, ‘Oh, Brandon Busteed? He’s such a nice young man. ’ And then they’d go on for 20 minutes. ” -James Geshwiler, MIT Sloan graduate 2000 -2002 Copyright – MIT 9

15. 390 NEW ENTERPRISES How One Startup Wowed Investors NEW YORK - After the crash of so many dot-coms, angel networks are a far more sober bunch. But that didn't stop Common. Angels, a group of 50 investors in Boston, from giving $2 million last month to Brandon Busteed for his company, Outside The Classroom. In fact, Busteed, a 24 -year-old graduate of Duke University, edged out two seasoned entrepreneurs developing communications software for Web sites. A year ago, those other guys would have likely walked away with a pile of money. Not today. What gave Busteed the edge? Though he lacks the management experience that many investors now demand, Busteed made a convincing case for his online alcoholeducation course targeting colleges and universities. … "Network, make calls, schedule meetings and introduce yourself to people--any way you can get in front of them, " Busteed says. "This market downturn is shaking out fake entrepreneurs and focusing on people with a real commitment to making a successful company. " 2000 -2002 Copyright – MIT 10

15. 390 NEW ENTERPRISES Pitfalls § § Board meetings Investors Public statements Internal communications “The toughest job of a CEO is to position yourself, your company, and the expectations of both between the world as it is and the world as you want it to be. ” 2000 -2002 Copyright – MIT 11

15. 390 NEW ENTERPRISES Entrepreneur Gut Check § Don’t do it for the wrong reasons § Nothing happens until somebody sells something 2000 -2002 Copyright – MIT 12