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  • Description Specifications Drawings Photographs Rendering Other Product Issues Customer support Warranty Repair service Training Technical Support
  • 9:50 Before we get started, let me give some background on the examples that we will be using in the following segment: These examples are taken from various companies that have been funded over the past year, including ones that obtained funding using the models and best practices from this workshop. To preserve confidentiality, the name Acme was used for all companies. We would like to acknowledge the support of Strategic Design Group in SF for assistance in assembling the slide examples for this presentation. Cameron Kane and his team are experts in graphic design and presentation development for groups including investor audiences. (RECOGNIZE CAMERON, IF IN THE AUDIENCE or REFER TO ONE PAGER INCLUDED IN THE COLLATERAL MATERIALS). Strategic Design Group will provide copies of the one pager to National. Contact Dina Oki with the number of copies you would like for your workshop. As we go through the materials, we will show you slides from these presentations to translate theory into specifics.   Any questions???
  • ESTIMATED TIME – START FROM 9:05 – 9:35 Describe exercise: Each person compose in writing elevator pitch elements (5 minutes) Form small groups (2-3 people) Each person presents and others provide written (see other materials for template) or verbal feedback and rank against criteria. (Ranking 1 to 10 with 1= Poor and 10 = Excellent). Instruct against using a rating of 5 as its middle of the road. (5 minutes per person including elevator pitch and feedback – total 15 minutes). Reconvene Discuss / list best practices as a group (10 minutes)
  • Product

    1. 1. Business Plan Preparation Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado
    2. 2. Tonight’s Agenda <ul><li>Topics </li></ul><ul><ul><li>Features & Benefits </li></ul></ul><ul><ul><li>Margins </li></ul></ul><ul><ul><li>Elevator Speech </li></ul></ul><ul><ul><li>Investor Presentations </li></ul></ul><ul><li>Read BP pp 6-7 </li></ul><ul><li>Practice Elevator Speech </li></ul><ul><li>In the Fire – team meetings, last hour </li></ul><ul><ul><li>Preliminary Market & Industry Analysis Results </li></ul></ul><ul><ul><li>Preliminary Interview Results </li></ul></ul>
    3. 3. Next Week <ul><li>Marketing Plan </li></ul><ul><li>Revenue Model </li></ul><ul><li>Customer Surveys </li></ul><ul><li>Read BP pp 14-18 </li></ul><ul><li>In the Fire </li></ul><ul><ul><li>Prelim Industry Analysis </li></ul></ul><ul><ul><li>Model company description </li></ul></ul><ul><li>Hand in </li></ul><ul><ul><li>10 Call Reports </li></ul></ul><ul><ul><li>Preliminary Competitive Matrix </li></ul></ul><ul><ul><li>Model company </li></ul></ul>
    4. 4. In the Fire Grading
    5. 5. Business Plan Elements <ul><li>Executive Summary </li></ul><ul><li>Company Overview </li></ul><ul><li>Market & Industry Analysis </li></ul><ul><li>Product/Service Description </li></ul><ul><li>Marketing Plan </li></ul><ul><li>Operations Plan </li></ul><ul><li>Development Plan </li></ul><ul><li>Management </li></ul><ul><li>Competitive Advantage </li></ul><ul><li>Financial Plan </li></ul><ul><li>Funding </li></ul>
    6. 6. Product/Service Sections <ul><li>Features </li></ul><ul><li>Benefits </li></ul><ul><li>Proprietary Rights </li></ul><ul><li>Stage of Development </li></ul>
    7. 7. Features <ul><li>Detailed description </li></ul><ul><ul><li>Attributes </li></ul></ul><ul><ul><li>Environment </li></ul></ul><ul><li>What is unique? </li></ul><ul><li>What is evidence that customers want these features? </li></ul><ul><li>How produce & deliver – systems approach </li></ul><ul><li>Don’t assume people know or understand your product/service </li></ul>
    8. 8. Attributes <ul><li>Performance : durability, quality of materials, defect levels, tolerances, construction, dependability, functional performance (acceleration, nutrition, taste), efficiency, safety, styling, packaging, etc. </li></ul><ul><li>Cost: purchase price, quantity discounts, operating costs, repair costs, cost of extras or options, cost of installation, trade in allowance, likely resale value, etc. </li></ul><ul><li>Availability: carried by local stores, credit terms, quality of service available from local dealer, delivery time, credit card, on-line transactions, etc. </li></ul><ul><li>Service: hours, warrant, guarantee, return/replacement policy, upgrades, maintenance, training, installation, repair service, spare parts, customer support, tech support, training, product design, make to order, level of inventory, quotation response time, lead time, quality certification, employee capabilities, etc. </li></ul><ul><li>Environment: location, atmosphere, layout, fixtures, aesthetics, style, sound, lighting, color, etc. </li></ul>0 Bad Slide
    9. 9. Benefits <ul><li>Describe major benefits - be specific </li></ul><ul><li>What is the evidence that benefits are understood by the market? </li></ul>
    10. 10. Benefits <ul><li>Emotional: ambition, power, independence, achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self Improvement, etc. </li></ul><ul><li>Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc. </li></ul><ul><li>Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc. </li></ul><ul><li>Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc. </li></ul><ul><li>Convenience ? </li></ul><ul><li>Objective is distinguish between benefits and features, not put into categories </li></ul>
    11. 11. Feature vs. Benefits
    12. 12. Net Dog
    13. 13. Makes administration of the system easy Web based interface Improves forensics and visibility into the security of the network Web based reporting system Customers can develop their own powerful rules Scripting language and API Provides out of the box protection from common attacks Ships with a standard rule set Protection is provided regardless of the network topology Intelligent network adaptation Eliminates the risk of false negatives Guaranteed zero packet loss Adaptable to new business requirement and new threats Modular rules based system Protection without a reduction in user productivity Adaptable to new network threats Benefit Feature NetDog
    14. 14. Convenient features allow parents to keep important items, like keys, easily accessible. This saves time and energy spent preparing to get out the door. Unexpected Attributes Parents maintain a look that can be seasonally updated to provide the feeling that they are on the leading edge of fashion. Babies are happier and more comfortable in Cocoons specifically designed to fit their current developmental stage. Multiple Cocoons Allow parents to more easily attach and detach baby from harness, eliminating fear of straining arms, dropping or tightly squeezing baby. Cocoons Eliminates back and shoulder pain so parents feel more comfortable while carrying their baby. Ergonomic design DUO Benefits Features
    15. 15. Product & Service Conclusions <ul><li>Make it real </li></ul><ul><ul><li>Photo, rendering, specs </li></ul></ul><ul><ul><li>Prototype </li></ul></ul><ul><ul><li>Evocative description </li></ul></ul><ul><li>Make it exciting </li></ul><ul><li>Sell your concept </li></ul>
    16. 16. Product/Service Competitive Matrix <ul><ul><li>Product/Service offering – breadth and depth </li></ul></ul><ul><ul><li>Quality (define the type quality) </li></ul></ul><ul><ul><li>Detailed analysis of the key features </li></ul></ul><ul><ul><ul><li>Obtain samples of the competitor’s products, specifications & drawings </li></ul></ul></ul><ul><ul><ul><li>Retail go to competitor’s locations, observe the environment and how customers interact with the business. </li></ul></ul></ul><ul><ul><ul><li>Internet businesses evaluate the websites. </li></ul></ul></ul><ul><ul><li>Strengths and weaknesses </li></ul></ul><ul><ul><li>Location </li></ul></ul>
    17. 17. Product/Service Competitive Matrix ? ? ? Hoz Sandals Skate shops, dept stores Thongs, multiple colors $20 Reef Athletic/comfort shoe stores Multiples styles, colors $45+ Tevas Everywhere! One style, multiple colors $29 Crocs Availability Style Price Attribute 3 Attribute 2 Attribute 1
    18. 18. Quality Dimensions I <ul><li>Performance - the primary operating characteristics of the product or service </li></ul><ul><li>Features - the characteristics that supplement the basic functioning of the product or service </li></ul><ul><li>Reliability - probability of the product or service failing within a specified period of time </li></ul><ul><li>Conformance - the degree to which a product or service meets acknowledged standards </li></ul>
    19. 19. Quality Dimensions II <ul><li>Durability - a measure of product life (both technical and economic) </li></ul><ul><li>Serviceability - the speed, courtesy, competence, and ease of repair or recovery </li></ul><ul><li>Aesthetics - how a product or service looks, feels, sounds, tastes, or smells </li></ul><ul><li>Perceived Quality - various tangible and intangible aspects of the product from which quality is inferred </li></ul>
    20. 20. Service Quality Dimensions <ul><li>Reliability - ability to perform service dependably & accurately </li></ul><ul><li>Responsiveness - willingness to help customers & provide prompt service </li></ul><ul><li>Assurance - knowledge & courtesy of employees and ability to convey trust and confidence </li></ul><ul><li>Empathy - provision of caring, individualized attention to customer </li></ul><ul><li>Tangibles - appearance of physical facilities, equipment personnel and communication material </li></ul>
    21. 21. Financial Dynamics <ul><li>Every entrepreneur must know – part of your DNA </li></ul><ul><li>All your decisions have a financial impact </li></ul><ul><li>Not accounting </li></ul><ul><li>Language of business </li></ul>
    22. 22. Financial Dynamics 4 Key Elements <ul><li>Revenue </li></ul><ul><li>Margins </li></ul><ul><li>Assets </li></ul><ul><li>Cash Flow </li></ul>
    23. 23. Margins <ul><li>% Gross Profit Margin </li></ul><ul><li>% Contribution Margin </li></ul><ul><li>% Net Profit Margin </li></ul><ul><li>% Operating Expenses </li></ul>Revenue – COG’s Revenue Revenue – Variable Costs Revenue Net Earnings Revenue Sales, General & Admin Revenue
    24. 24. Margins %
    25. 25. The Elevator Pitch Based on material developed by:
    26. 26. Elevator Pitch <ul><li>What is the objective? </li></ul><ul><li>Who are you talking to? What motivates them? </li></ul><ul><li>Must be exciting and compelling </li></ul><ul><li>This is a conversation, not a speech </li></ul>0
    27. 27. The Elevator Pitch <ul><li>Goal: Buy-in </li></ul><ul><ul><li>Investors </li></ul></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><li>Customers and partners </li></ul></ul><ul><li>Critical Attribute: Focus </li></ul><ul><ul><li>What do you want remembered? </li></ul></ul><ul><li>Result: Motivate </li></ul><ul><ul><li>Listener wants to hear more </li></ul></ul>
    28. 28. The Elevator Pitch <ul><li>What market are you in? </li></ul><ul><li>What urgent problem are you solving? </li></ul><ul><li>What is the size of the opportunity? </li></ul><ul><li>Value proposition </li></ul><ul><li>Why will you win? </li></ul><ul><li>Where is the validation (customers, investors, etc.)? </li></ul><ul><li>The order is flexible </li></ul>
    29. 29. Elevator Pitch Communication Imperatives <ul><li>Show passion, energy, and enthusiasm </li></ul><ul><li>Use appropriate eye contact when face-to-face </li></ul><ul><li>Slow down and speak clearly </li></ul><ul><li>Be brief (target 30 seconds) </li></ul><ul><li>Be confident </li></ul><ul><li>Use understandable vocabulary </li></ul>
    30. 30. Elevator Pitch – Example <ul><li>P1 Diamond develops proprietary thin film diamond products and equipment that dramatically improve heat dissipation on microprocessors, solving one of the highest priority pain points in the industry. </li></ul><ul><li>We address growing markets that will exceed $1.5B by 2006 and will become the dominant supplier with the best team having the most comprehensive patent position in the industry. Intel is our largest current investor, and we are actively engaged with other top target customers and partners who provide very strong references. </li></ul>
    31. 31. How Do You Get Immediate Attention? <ul><li>Reduce to one sentence or question what is unusual, interesting, exciting or dramatic. </li></ul>
    32. 32. Elevator Pitch <ul><li> </li></ul>
    33. 33. Elevator Pitch Exercise <ul><li>Your name and the name of your firm </li></ul><ul><li>Your pitch </li></ul><ul><li>Evaluation by class on a scale of 1 to 10 </li></ul><ul><ul><li>Urgent pain </li></ul></ul><ul><ul><li>Large growing market </li></ul></ul><ul><ul><li>Unique, defensible position </li></ul></ul><ul><ul><li>Validation </li></ul></ul><ul><ul><li>Communication skills </li></ul></ul><ul><ul><li>Desire to hear more </li></ul></ul>
    34. 34. Be Prepared to Answer Questions About <ul><li>Product and technology </li></ul><ul><li>Marketing strategy </li></ul><ul><li>Market research </li></ul><ul><li>Revenue and profitability </li></ul><ul><li>Funds required </li></ul><ul><li>Valuation </li></ul>