Business Plan Pitches


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Mercury Technology Labs presentation for Invention 2 Venture Conference

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Business Plan Pitches

  1. 1. Business Plan & Pitches the Fundamentals Marc Diaz & Eric Mathews Mercury Technology Labs
  2. 2. purpose: to discuss the importance of business plans & pitches, what they should include and how to deliver them with the greatest impact
  3. 3. Upcoming Events <ul><li>March 5-7    48Hour launch                                                  ( </li></ul><ul><li>March 18      FastTrac ( </li></ul><ul><li>  </li></ul><ul><li>April 3           Business Plan Bootcamp - the                         Bootstrapping Version                                       ( </li></ul><ul><li>April 8 Baker Donelson Boot Camp </li></ul><ul><li>In Depth Legal, HR, Accounting </li></ul>
  4. 4. Why Bother? <ul><li>&quot;Business plans don't get funded, investors fund visionary  entrepreneurs&quot; </li></ul><ul><li>&quot;Investors don't even read business plans&quot; </li></ul><ul><li>&quot;Our product is too great - we don't need to write a business plan - just show it to them&quot; </li></ul>
  5. 5. Use of Business Plan <ul><ul><li>It's the Planning, not the Plan </li></ul></ul><ul><ul><li>Operating tool - roadmap </li></ul></ul><ul><ul><li>It lives and breathes - revisit and update every six months </li></ul></ul><ul><ul><li>Communicate your opportunity to others </li></ul></ul><ul><ul><li>Hire the management team </li></ul></ul><ul><ul><li>Secure financing for the business </li></ul></ul><ul><ul><li>Cannot outsource!!! </li></ul></ul>
  6. 6. Business Plan <ul><li>Elements </li></ul><ul><ul><li>Executive summary </li></ul></ul><ul><ul><li>Management and organization </li></ul></ul><ul><ul><li>Product and service plan </li></ul></ul><ul><ul><li>Marketing plan </li></ul></ul><ul><ul><li>Financial plan </li></ul></ul><ul><ul><li>Growth plan </li></ul></ul><ul><ul><li>Appendix </li></ul></ul>
  7. 7. Executive Summary <ul><ul><li>Description of venture </li></ul></ul><ul><ul><li>Market </li></ul></ul><ul><ul><li>Money needs </li></ul></ul><ul><ul><li>Financing </li></ul></ul><ul><ul><li>History/Background </li></ul></ul>
  8. 8. Executive Summary <ul><li>Pitfalls </li></ul><ul><ul><li>Failure to identify different or unique features </li></ul></ul><ul><ul><li>Providing too much superficial data </li></ul></ul><ul><ul><li>Using long sentences and phrases </li></ul></ul><ul><ul><li>Failure to specify management goals </li></ul></ul><ul><ul><li>Failure to identify money needs, how funds will be obtained & spent </li></ul></ul><ul><ul><li>Trick !! </li></ul></ul>
  9. 9. Management and Organization <ul><ul><li>Management Team </li></ul></ul><ul><ul><ul><li>Who will be the &quot;business&quot; gal?  </li></ul></ul></ul><ul><ul><ul><li>Who will be the sales guy? </li></ul></ul></ul><ul><ul><li>Board of Directors/Advisors </li></ul></ul><ul><ul><li>Infrastructure </li></ul></ul><ul><ul><li>Organizational Chart </li></ul></ul>
  10. 10. Management and Organization <ul><li>Pitfalls: </li></ul><ul><ul><li>Not making a case for the Management Team </li></ul></ul><ul><ul><li>Leaving out the Board of Directors </li></ul></ul><ul><ul><li>Forgetting about your infrastructure: </li></ul></ul><ul><ul><ul><li>Lawyers, accountants, bankers </li></ul></ul></ul><ul><ul><ul><li>Marketing consultants </li></ul></ul></ul><ul><ul><ul><li>Advertising/public relations agencies </li></ul></ul></ul><ul><ul><ul><li>Governmental agencies </li></ul></ul></ul><ul><ul><ul><li>Business consultants </li></ul></ul></ul>
  11. 11. Product / Service <ul><ul><li>What does it do? </li></ul></ul><ul><ul><li>Unique features </li></ul></ul><ul><ul><li>Stages of development </li></ul></ul><ul><ul><li>Future research and development </li></ul></ul><ul><ul><li>Patents, trademarks, copyrights, </li></ul></ul><ul><ul><li>licenses, royalties </li></ul></ul>
  12. 12. Product / Service <ul><li>Pitfalls: </li></ul><ul><ul><li>Failure to do your research  </li></ul></ul><ul><ul><ul><li>&quot;Oh isn't that what xyz does? How are you different?&quot; </li></ul></ul></ul><ul><ul><li>Failure to find your niche </li></ul></ul><ul><ul><li>Forgetting to protect your work </li></ul></ul><ul><li>Trick: </li></ul><ul><li>     Pitch to someone and have them repeat back to you </li></ul>
  13. 13. Market Analysis <ul><ul><li>Industry Overview </li></ul></ul><ul><ul><li>Trends </li></ul></ul><ul><ul><li>Competition Profile </li></ul></ul><ul><ul><li>Target Market </li></ul></ul><ul><ul><li>Customer Profile </li></ul></ul><ul><ul><ul><li>Who in the company will buy from you? </li></ul></ul></ul><ul><ul><li>Marketing Strategy </li></ul></ul><ul><ul><li>What is a sales call like? </li></ul></ul>
  14. 14. Market Analysis <ul><li>Pitfalls </li></ul><ul><ul><li>Failure to do your research </li></ul></ul><ul><ul><li>Assuming you know your customer </li></ul></ul><ul><ul><li>Assuming you know your competition </li></ul></ul><ul><ul><li>Thinking everyone is a potential customer </li></ul></ul><ul><ul><li>No competition  </li></ul></ul><ul><ul><li>Approaching marketing haphazardly </li></ul></ul><ul><li>  </li></ul><ul><li>Don't underestimate marketing!! </li></ul><ul><ul><li>  </li></ul></ul>
  15. 15. Market Research Sources <ul><ul><li>Library </li></ul></ul><ul><ul><li>Government agencies </li></ul></ul><ul><ul><li>Trade associations </li></ul></ul><ul><ul><li>Trade conventions </li></ul></ul><ul><ul><li>Magazines </li></ul></ul><ul><ul><li>Computer searches </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Competitor's customers </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul>
  16. 16. Target Marketing <ul><ul><li>Identify potential target markets </li></ul></ul><ul><ul><li>Size of target markets: customers and dollar volume </li></ul></ul><ul><ul><li>Prioritize target markets </li></ul></ul><ul><ul><li>Cost of penetration </li></ul></ul><ul><ul><li>THINK LIKE THE CUSTOMER! </li></ul></ul>
  17. 17. Pricing and Profitability Analysis <ul><li>  It's true - it's always MORE </li></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Start-up Costs </li></ul></ul><ul><ul><li>Income Projections </li></ul></ul><ul><ul><li>Break-Even Analysis </li></ul></ul>
  18. 18. Pricing and Profitability Analysis <ul><li>Pitfalls </li></ul><ul><ul><li>Not understanding your costs </li></ul></ul><ul><ul><li>Undervaluing your time </li></ul></ul><ul><ul><li>Being unrealistic with your sales projections </li></ul></ul><ul><ul><li>Ignoring sales cycles </li></ul></ul><ul><ul><li>Starting the business with insufficient cash reserve </li></ul></ul>
  19. 19. Growth Plan <ul><ul><li>New offerings to market </li></ul></ul><ul><ul><li>Capital requirements </li></ul></ul><ul><ul><li>Personnel requirements </li></ul></ul><ul><ul><li>Scaling metrics </li></ul></ul><ul><ul><li>Exit strategy </li></ul></ul>
  20. 20. Format and Writing tips <ul><ul><li>35-65 pages </li></ul></ul><ul><ul><li>Cover page </li></ul></ul><ul><ul><li>Table of contents </li></ul></ul><ul><ul><li>Use subtitles </li></ul></ul><ul><ul><li>Use page numbers </li></ul></ul><ul><ul><li>Use charts, graphs, and bullets </li></ul></ul><ul><ul><li>Check math </li></ul></ul><ul><ul><li>Check spelling </li></ul></ul><ul><ul><li>Support documents in appendix </li></ul></ul>
  21. 21. Appendix <ul><ul><li>Detailed descriptions of high-tech products </li></ul></ul><ul><ul><li>Resumes of management team </li></ul></ul><ul><ul><li>Patent, trademark, and copyright documents </li></ul></ul><ul><ul><li>Business agreements, employee contracts, stock option plans </li></ul></ul><ul><ul><li>Product and service brochures and advertising samples </li></ul></ul>
  22. 22. Appendix <ul><ul><li>Company logos </li></ul></ul><ul><ul><li>Reference letters, recommendations, endorsements or testimonials </li></ul></ul><ul><ul><li>Research documentation </li></ul></ul><ul><ul><li>Product and location photos </li></ul></ul><ul><ul><li>Operating and control systems </li></ul></ul><ul><ul><li>Customers’ letters of intent </li></ul></ul>
  23. 24. Pitching <ul><ul><li>Time for Making a Pitch </li></ul></ul><ul><ul><li>Full versus Complete </li></ul></ul><ul><ul><li>Living Artifact </li></ul></ul><ul><ul><li>Compelling and Clear  </li></ul></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li> has detailed notes. </li></ul><ul><li>  </li></ul>
  24. 25. 4 Parts of the Pitch <ul><li>1) Context </li></ul><ul><li>2) Soluton </li></ul><ul><li>3) Business Model </li></ul><ul><li>4) Ask </li></ul>
  25. 26. Part 1: Context <ul><li>Point 1: What is the Company and its Core                 Value? </li></ul><ul><li>Point 2: What is the Pain/Problem that you                 seek to solve? </li></ul><ul><li>Point 3: How Big is the Pain/Problem? </li></ul>
  26. 27. Part 2: Solution <ul><li>Point 4: What is Your Solution? </li></ul><ul><li>Point 5: What is the Benefit(s) or Value that                 your Solution provides? </li></ul><ul><li>Point 6: Who else provides a solution and                 why is yours better? </li></ul>
  27. 28. Part 3: Business Model <ul><li>Point 7: How will you get your solution to the              Market? </li></ul><ul><li>Point 8: If you can get your solution to                         market, how will you make money? </li></ul><ul><li>Point 9: Assuming you can get it to market &              make money, how much will you                     make? </li></ul>
  28. 29. Part 4: Ask <ul><li>Point 10: What will be needed to succeed                     and how will you and others                             measure progress? </li></ul><ul><li>Point 11: Why you? Why now? </li></ul>
  29. 30. Building Toward the Ask <ul><li>Slide 1: (Title Slide) What is your company and its core                     value? </li></ul><ul><li>Slide 2: What is the Pain/Problem that you seek to solve? </li></ul><ul><li>Slide 3: How big is the pain/problem? </li></ul><ul><li>Slide 4: What is your solution? </li></ul><ul><li>Slide 5: What are the benefits that your solution provides? </li></ul><ul><li>Slide 6: Who else provides a solution ad why is yours                         better? </li></ul><ul><li>Slide 7: How will you get to market? </li></ul><ul><li>Slide 8: How will you make money? </li></ul><ul><li>Slide 9: How much money will you make? </li></ul><ul><li>Slide 10: What do you need to succeed? How will it be                     measured? </li></ul><ul><li>Slide 11: Why you? Why now? </li></ul>