Entrepreneurs: Born or Raised?

1. Entrepreneurs: Born or Raised? Gina Bongiovi, JD/MBA, Managing Partner

2. My story, the short(er) version. • Las Vegas native • UNLV business school - marketing degree • Terrible networker, back to school for me • Law school or MBA? 50/50 decision • JD/MBA • Started company, couldn’t find a lawyer

3. Credentials • Startup Weekend coach • Graduate of Leadership Las Vegas • Frequent speaker on topics of business ownership • Published in: • Las Vegas Chamber Business Voice • Nevada Lawyer • Communique (Clark County Bar Association) • American Bar Association publications

4. What you should know about me... • Stay at home mother, self-employed father • Frame of references all entrepreneurs • Thought law school → business owner • Never saw an episode of Suits • Big “you’re not the boss of me” streak • Freedom is a priority • Freelanced through college So am I born or raised?

5. Entrepreneurs vs Employees Newly established law firm, commence freakout. Police officer husband can’t understand. He’s an employee, I’m an entrepreneur. No judgment, just know your drivers.

6. My Client Base Practice started in 2008, in Las Vegas, one of the hardest hit markets. Layoffs were plentiful and the unemployment rate was 9.1%. Clients starting businesses out of necessity and sometimes desperation.

7. Client failures... Military and public sector workers Smile guy with fetish for the number 25 Family businesses - 2nd generation Not getting good advice; personal injury attorney writing operating agreement. Franchises - not doing your homework

8. Client failures...reasons why • Poor planning • Not enough appreciation for the time it consumes, the sacrifices it requires • Not having a business plan with contingencies • Undercapitalized • White knight investors aren’t common • Overestimating the market • Underestimating the competition

9. With all this negativity, why do it? Determine what drives you. My driver? AUTONOMY. Ask the question “why?” over and over. If you’re following your passion, the sacrifices are worth it.

10. TED Talk - Srikumar Rao Plug into Your Hard-Wired Happiness • We learn to be unhappy: “If only I got __, then I’d be happy.” Most of the time we don’t get the outcome we want and are unhappy anyway. • We need to focus on the journey and not the outcome.

11. So...you want to be an entrepreneur? • Figure out your passion. • Figure out your driver(s). • Can you find a way to marry the two? • Are you afraid of failure? • How adaptable are you? • Are you a risk-taker? • Can you accept and implement input from others? • Are your people similarly adaptable and supportive? • Do you have savings? • Do you have an outlet for stress? • ...or a good therapist?

12. A few tips on avoiding failure • Plan, plan, then plan some more. • Include contingencies - changes in regulations, market shifting (Blockbuster v Netflix v New Netflix) • Stop spending; build up cash reserves • Find mentors • If you have a partner, have a written contract • Surround yourself with a team of trusted advisors • Lawyer, CPA, commercial insurance, banker, financial advisor • Find some balance • Work IN the business, work ON the business, but take time to recharge

13. Client Horror Stories - Anger Issues Clean cut partner + not-so-clean cut partner • anger issues of dirty partner • an operating agreement that would have protected the business = Dirty partner emptying bank account the day before payroll

14. Client Horror Stories - Lease Agreements Client buys nail salon and signs a fifth amendment to the lease agreement, without reading the entire lease. Buried in the language of the lease was a personal guaranty. New owner bought the complex and began to evict everyone (CAMs). Now she can’t afford the payments and is personally on the hook.

15. Client Horror Stories - Employees vs IC Nail salon, 65 techs, all paid as 1099 contractors. State of Nevada audits; charges back unemployment insurance AND penalties for failure to carry workers’ comp insurance. CRIMINAL PENALTIES

16. Client Horror Stories - Sole Owner Single member LLC, no operating agreement or estate plan in place. Owner is the only person who’s been involved in the business. Owner passes away, no one has authorization to get into the bank account, business dwindles while slow-as-molasses probate process takes over.

17. Client Horror Stories - Trademarks Family owned small Vegas-based company developed and marketed a product for treating artificial grass. Spends about $50k on label and bottle design. Got a contract with one of the big box warehouse stores. Product lands on the shelf, client celebrates. Giant competitor with a confusingly similar name threatens suit against little guy. Little guy loses big box contract, has to redesign labeling, loses $50k, almost folds because everything was riding on the big box contract.

18. Client Horror Stories - The Con Man Con-man, the “relationship” guy. • Two non-preneurs (military, no experience in the high-maintenance business) • SBA loan for veterans • Con-man cut in for 51% = Run!

19. Links for more reading Do You Have What It Takes to Be an Entrepreneur? 25 Common Characteristics of Successful Entrepreneurs The 7 Traits of Successful Entrepreneurs Do You Have What It Takes to Be an Entrepreneur? (Forbes) 8 traits of successful entrepreneurs--Do you have what it takes? Is Entrepreneurship For You? What Does It Really Take to Be an Entrepreneur? 6 Beliefs That Are Dead Wrong

20. Questions? Gina Bongiovi, Managing Partner 2620 Regatta Drive, Suite 102 Las Vegas, NV 89128 702.485.1200 gina@bongiovilaw.com