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Inno venture bootcamp october 13 v4
 

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  • Launchpad session 16
  • Book rooms with local, rather than hotels
  • Launchpad session 16
  • Superfatahub http://startup-videos.com/superdatahub/Google now http://startup-videos.com/google-now-for-iphone-and-ipad-2/
  • Launchpad session 16
  • Last week we explained costs up to Unit Margin calculation….
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Inno venture bootcamp october 13 v4 Inno venture bootcamp october 13 v4 Presentation Transcript

  • InnoVenture Bootcamp 13th October 2013 1
  • Why this competition? Hands-on Risk Taking Problem Solving Multi-Disciplinary Community 2
  • Overview of the Competition Timeline 3
  • Bootcamp Agenda Assemble Components for your Presentation on Oct 31st 9:00 9:25 11:30 12:30 14:45 15:00 17:00 Recap of Previous Bootcamp Solution Visualization Lunch Business Models Break Putting Your Pitches Together Wrap-up & Final Announcements 4
  • Recap of Oct th 5 Bootcamp Randall Sie Manager, Enterprise Development Lab Institute for Engineering Leadership Faculty of Engineering, NUS 5
  • Successful Product Framework Value Creation 1. Who Cares? CPS SUCCESS MVP 3. Can we make money? •Business Model Canvas •Unit Margin •Scalability •Market Size 2. Unique? 4. Great team? 6
  • Anatomy of a 7 Min Pitch Luda Kopeikina Visiting Professor & Head, Enterprise Development Lab Institute for Engineering Leadership Faculty of Engineering, NUS 7
  • Anatomy of 7 Min Pitch Introduction Who is your Customer? 1 Min What is their pain (Quotes) The Solution Competition/Differentiation 3 Min Market Size Business Model Sales Strategy Partners 2 Min Profitability & Funding Team/Management Next Steps 1 Min 8
  • Introduction • Your name • Team/product your are representing • Attention grabber – why should they listen to you? – “we are here to present a solution that would …” (impactful, valuable, important) – Highlight the benefit but in a “media-like way” • 50% improvement vs “double the speed”, • 30% volume increase vs “triple the processes volume” 9
  • Example of a Pitch • http://www.pitchenvy.com/gallery/airbnbpitch-deck/ • Slide 1 Name of the company/product – Logo 10
  • Customer and Their Pain • Define the problem and WHO has this pain – Graphs – Pictures – Describe a problem scenario /usage case 1 Min
  • How bad is the Pain? Your Customer 12
  • Problem Description • Make it REAL!!! • … “Imagine you’re an exchange student on a budget and need to communicate with your family” • describe the frustration they experience in performing a task or searching for a service. 13
  • Example of a Pitch • http://www.pitchenvy.com/gallery/airbnbpitch-deck/ • Slide 2 Problem 14
  • The Solution • Overview of primary product or service that will solve the problem • Map the solution to the pain points described before • Use multiple slides if necessary • Videos/mockup/ • Product Photos, Screen shots • Logical Flow and Architecture diagrams Up to 3 Min • Short list of
  • The Problem: Recorded Claims Paper Claims File Weeks and Months • 75-100 Million Interviews (Per Yr) • $350 Billion Claims Related (Per Yr) • Process is “Off The GRID” This is an example for demonstration purposes only
  • The Solution: Digital Service Claims Rep Interviewees Bridge WMA Minutes • $15M Savings (Per Yr): Farmers Insurance • 24 x 7 x 365 Availability • Giant, Untapped Data This is an example for demonstration purposes only
  • Example of a Pitch • http://www.pitchenvy.com/gallery/airbnbpitch-deck/ • Slide 3 Solution 18
  • Market Validation Provide Proof/Credibility/Authenticity • Expert Companies might NOT be your customers!!! • Who IS your REAL CUSTOMER? • You have assumptions about their pain • FIND your REAL CUSTOMERS & VALIDATE PAIN ASSUMPTIONS GET CUSTOMER QUOTES! 19
  • Example of a Pitch • http://www.pitchenvy.com/gallery/airbnbpitch-deck/ • Slide 4 Market Traction 20
  • Competition • Never say “There is NO Competition” • Indirect Competition – Summarize the current alternatives (other technologies or types of products) • Direct Competitors (logos are easier to read than text) – List competing company 1 and an analysis – List competing company 2 and an analysis • Use a matrix if possible
  • Example – Product Differentiation
  • Customer Preference  Would buyers PREFER your solution to their current process?  Faster user feedback on Temp in Building  More frequent Temp adjustments ◦ 4 times/day; 15% energy reduction ◦ $10M/y for energy… $1.5M/y cost reduction
  • Competitive Positioning Hypothesis Benefits High Low ? High Feature Performance
  • Example of a Pitch • http://www.pitchenvy.com/gallery/airbnbpitch-deck/ • Slides 9 & 10 Competition and Competitive Advantages 25
  • Anatomy of 7 Min Pitch Introduction Who is your Customer? 1 Min What is their pain (Quotes) The Solution Competition/Differentiation 3 Min Market Size Business Model Sales Strategy Partners 2 Min Profitability & Funding Team/Management Next Steps 1 Min 26
  • 27
  • Solution Visualization 28
  • Why Demo? • Objectives: – Present the product clearly to the target audience – Illustrate the key points (business, technology, creativity) of the product – Demonstrate the team’s professional and creative talent – Communicate the VALUE
  • Demonstrating Value • Demo – how do you VISUALLY demonstrate the VALUE of your product? • Ideas… – “Before and after” presentation – Time advantage – timing the product performing with competitor product or how customer does it now and then timing it with yours • Example – Buying a leather coat in Turkey – Put on fire, poured water on it, wrung it
  • Best Examples of Demos • ScoopIt • EventBrite • http://www.quora.com/What -are-some-good-examples-ofstartup-product-demo-videos • Google Now • http://startupvideos.com/google-now-foriphone-and-ipad-2/ • Clearly defined Problem and whose problem it is • Benefits of the solution articulated • How the solution works • Comparison to competition • Why customers like it Duration: ~1.5min 31
  • Resources - MAC • Use iMovie • Normally pre-loaded but if not, download here: http://support.apple.com/kb/DL859 • Watch this 5 min tutorial on how to use iMovie: http://www.youtube.com/watch?v=J79_0h3ozS0 32
  • Resources - Windows • Use Windows Movie Maker • Normally pre-loaded but if not, download here: http://windows.microsoft.com/enSG/windows7/products/features/movie-maker • Watch this 5 min tutorial on how to use Windows Movie Maker: http://www.youtube.com/watch?v=3ZZij3NNyVg 33
  • InnoMem Video 34
  • 35
  • Break Out: (A) Storyboard Your Solution • Prepare a storyboard that includes: – Your customer – Their problem – How your solution addresses the problem – Advantages of your solution • Uniqueness • Benefits – Comparison to Competition 36
  • Break Out (B) Elevator Pitch • Create a 30 seconds Elevator Pitch – – – – Your customer Their problem How your solution addresses the problem Advantages of your solution • Uniqueness • Benefits – Comparison to Competition • Meet with your Mentor (Storyboard + Elevator Pitch) – Each team gets 10 min to receive feedback 37
  • Mentors’ Introduction 38
  • Lunch 39
  • Anatomy of 7 Min Pitch Introduction Who is your Customer? 1 Min What is their pain (Quotes) The Solution Competition/Differentiation 3 Min Market Size Business Model Sales Strategy Partners 2 Min Profitability & Funding Team/Management Next Steps 1 Min 40
  • How Big is the Market? • Identify the market that you are in Total Available Market • How many people would want the product? • How many units? • What is the total $ value if all bought?
  • How Big is the Addressable Market? Total Available Market Total Addressable Market • How many people (segment) – can use the product or – have money to buy the product? • How many units? • What is total $ value if all bought?
  • How Big is the Target Market? Total Available Market Total Addressable Market Target Market • Who are likely to buy in the first several years? • How many customers? • How many units? • What is the total $ value if they all bought?
  • Market Size • Build the number from the ground up • Total Addressable Market • Use drivers relevant to your product • Show the different segments – Pie Graph works well – Explain how you prioritize the segments • “This is our initial market” (speak to why) • If you must use 3rd party figures, cite the source Total Available Market Total Addressable Market Target Market
  • Market Size Examples Total Addressable Market: US home broadband users ages 12 to 34 who actively consume internet video 8.5 22.4 2.7 2006 14M 7 18-28yrs 14.1 4.4 12-17yrs 2011 45M 29-34yrs This is an example for demonstration purposes only
  • Example of a Pitch • http://www.pitchenvy.com/gallery/airbnbpitch-deck/ • Slides 5 Market Size 46
  • Business Model • Licensed Software • Hosted Solution, Monthly Fee + 2% of all transactions booked through our system • We Sell Widgets; Direct and Through a Channel • Time and Materials Customer $2500 Average Customer is worth $60,000 in annual Revenue Avg Customer Buys 24 Widgets per year Gross Profit $1150 20% Retailer $2000 10% Distributor $1800 Gross Margin >60% Cost $650 This is an example for demonstration purposes only
  • Example of a Pitch • http://www.pitchenvy.com/gallery/airbnbpitch-deck/ • Slides 7 Biz Model 48
  • Selecting the BEST Business Model • Step 1: Design a Business around the solution (Generate 3-5 Business Models) • Step 2: Test for Business Viability Test Profitability (Unit Margin) Test Scalability • Step 3: Select the BEST Business Model based on Step 2
  • Step 1: Business Model Generation 50
  • Successful Product Framework Value Creation 1. Who Cares? SUCCESS 3. Can we make money? 2. Unique? 4. Great team? 51
  • How can we make money on it? is answered by the Business Model Business Model is Viable when the company makes money
  • What is a Business Model? • “Business Model describes the rationale of how an organization creates, delivers and captures value” Alex Osterwalder, “Business Model Generation” • Business Model includes all activities to make, promote, sell, deliver and support your product
  • Example – Business Model Innovation 54
  • Business Model Canvas Make Deliver Promote Valuable Product Sell Support Costs Revenue Price Make Money? VIABLE BUSINESS
  • 56
  • Break Out 3: Business Model Generation • Brainstorm at least 5 different business models • Example: Making money with a car • • • • • • • Sell Lease Rent out Taxi driver Delivery Advertisement on car … 57
  • Selecting the BEST Business Model • Step 1: Design a Business around the solution (Generate 3-5 Business Models) • Step 2: Test for Business Viability Test Profitability (Unit Margin) Test Scalability • Step 3: Select the BEST Business Model based on Step 2
  • Unit Margin Calculation Unit Margin = Unit Price – Unit Direct Cost (Produce 1 unit) Unit Margin = (Produce multiple units) Total Revenue – Direct Costs Number of Units Sold 59
  • Approaches for Price Setting • “Loss Leader” Price: cheap or free to get business – “Freemium” is a special version of this • “Survival” Price: just covers your costs (Skip!) • “Fair” Price: covers costs, funds growth, builds value • “Value” price: based on perceived/real value – May be higher than “Fair” price – Competition driven 60
  • iPhone: An Example of “Value Pricing” 61
  • Costs • Direct Costs (to make your product) – Manufacturing Costs – Supplier Costs – Logistics Costs • Indirect Costs (to run your business) – – – – Rental of space (office, lab, storage, etc.) R&D costs Sales, discounts, marketing Free samples and trial products 62
  • Direct Costs
  • Testing Unit Margin @ Start-up • Producing small number of units • High cost • Most start-ups require “seed” capital making computations of unit margin confusing Testing Unit Margin is better done “at Ramp” 64
  • Example - Unit Margin • Unit margin tells you whether the business can make money
  • Consider Additional Revenue Streams • • • • • • • • Fee Commission Subscription Toll Interest Rent Tax Shipping Incorporate RECURRING Revenue Streams 66
  • Net Income Net sales (revenue) – Cost of goods sold = Gross profit (Unit Margin) – SG&A expenses (Selling, General and Administrative expenses are combined costs of operating the company) = EBITDA – Depreciation & amortization = EBIT – Interest expense (cost of borrowing money) = EBT – Tax expense = Net income
  • Indirect Costs (to Run your Business) • Same as SG&A (Selling, General & Administrative) • • • • Rental of space (office, lab, storage, etc.) R&D costs Sales, discounts, marketing Free samples and trial products • Can be estimated as % of Revenue based on Public Companies’ info (Caution – these estimates are industry specific)
  • Assessing Business Profitability
  • 70
  • Break Out 4: Best Business Model • Use Business Model Canvas to think through Revenue Streams and Costs • Compare Biz Models by their Profitability • Select the Best Biz Model Approach mentors for help! 71
  • Example of a Pitch • http://www.pitchenvy.com/gallery/airbnbpitch-deck/ • Slides 7 Biz Model 72
  • Anatomy of 7 Min Pitch Introduction Who is your Customer? 1 Min What is their pain (Quotes) The Solution Competition/Differentiation 3 Min Market Size Business Model Sales Strategy Partners 2 Min Profitability & Funding Team/Management Next Steps 1 Min 73
  • Sales Strategy How do you sell your product? Direct and/or Channel Sales If Direct, • How many sales people? • How long does it take to close a deal? • Who is the key decision maker? (Especially if that differs from the key user) If Channel, • Who are the partners? • How many are required? • How are the territories divided? (If relevant)
  • Customers This is an example for demonstration purposes only
  • Partners Targeted Partners • Revenue share • Content provider • Distribution partner/broker This is an example for demonstration purposes only
  • Anatomy of 7 Min Pitch Introduction Who is your Customer? 1 Min What is their pain (Quotes) The Solution Competition/Differentiation 3 Min Market Size Business Model Sales Strategy Partners 2 Min Profitability & Funding Team/Management Next Steps 1 Min 77
  • Developing a Prototype • • • • Illustrate what you want to test/prototype What do you need to create the prototype? How much money will you require to prototype? Provide a cost breakdown of the different components for your prototype 78
  • Financial Projections Five Year Projections (Millions, US) $150 $120M $130 Revenue Income $110 • • • • $80M $90 $70 $40M $50 $30 $3M $10M $10 -$10 2007 Assumptions: 2008 2009 2010 2011 • • In 2013, $__ per sale In 2014, __customers 2014 market share: __ % In 2013, __% from new sales; __% from recurring U.S. market only Does not include future product extensions This is an example for demonstration purposes only
  • Team • Photo, Name, Specialization/Expertise • Photo, Name, Specialization/Expertise • Photo, Name, Specialization/Expertise • Main Question: Why is this the best team? • If you have worked together before, say so • If any members have expertise for this project, say so
  • Thank you! Q&A 81
  • Anatomy of 7 Min Pitch Introduction Who is your Customer? 1 Min What is their pain (Quotes) The Solution Competition/Differentiation 3 Min Market Size Business Model Sales Strategy Partners 2 Min Profitability & Funding Team/Management Next Steps 1 Min 82
  • Financing Your Prototype, Product Introduction & Ramp Luda Kopeikina 83
  • Product Investment Stages Expand Invest in Prototype Seed – make first units Manufac turing Facility 84
  • Prototyping Costs • • • • Cost of Materials Shipping costs Rent of equipment/space Access to 3rd party resources 85
  • Bill of Materials • Bill of materials (BOM) is a list of – – – – – – materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and the quantities of each needed to manufacture the end product 86
  • Product Structure 87
  • Vapor Power • • • • • Never buy new what can be bought second-hand Never buy what can be rented Never rent what can be borrowed Never borrow what can be begged Never beg what can be salvaged Ian MacMillan, Wharton 88
  • Break Out 5: Prototyping Costs • Estimate money needed for Prototyping • • • • Illustrate what you want to test/prototype What do you need to create the prototype? How much money will you require to prototype? Provide a cost breakdown of the different components for your prototype 89
  • Five Year Plan 90
  • Quiz • In 2004, three college sophomores arrived in CA to raise money • Product – college social network • Not the first and not most feature rich • Raised $500K that summer • Raised $12.7M less than a year later • Who are they?
  • Facebook Facts • Users spent serious time on the site • >50% came back every single day • High rate of growth – ¾ of Harvard undergrads were using it in less than a month after launch, with no marketing! = Demonstrated VALUE and SCALABILITY
  • Companies and VCs Invest in Scalable Opportunities Small Business Start-Up o Business Model found o Profitable business o Revenue < $10M Scalable Start-Up Large Company o Total Available Market > $500m o Company can grow to $100m/year o Business model found o Focused on execution and process o Typically requires “risk capital”
  • Scalable Business - Example
  • Testing for Business Viability • A. Test for Profitability – High Unit Margin • B. Test for Scalability – Size of the market – Ease of spread – can it be viral? 95
  • Product Investment Stages Expand Invest in Prototype Seed – make first units • $?? • $?? Manufac turing Facility • $?? • $?? 96
  • The Brewery Process (Manufacturing) 97
  • Tradeoff Unit cost Investment (Tooling, cost down engineering, automation)
  • 99
  • Break Out 6: Five Year Plans • Estimate revenue in 5 years – can the business be scaled to a SIGNIFICANT Revenue in 5 years? • Estimate large investments in later years 100
  • How To Pitch Luda Kopeikina 101
  • Pitching Best Practices • Talk to the audience • Tell the problem through a story – make it come to life! • Minimize bullets!  VISUALS!!! • Know your material, and keep the energy up! • Practice and time your presentation! • If you don’t know…just say so 102
  • Energy Level Example https://www.youtube.com/watch?v=YzZpFczUm0 (@ 30sec) For best practices: www.pitchenvy.com 103
  • Exercise 104
  • Break Out 7: Putting It Together • Put your pitches together • List down the “gaps/missing parts” • Meet with your Mentor – Each team gets 10 min to receive feedback 105
  • Announcements 106
  • Company  Team Calls • Use your LIMITED time efficiently – Prepare questions !!! – NOT: “What does your company do” “What products do you sell?” • Inform the company liaison if you are coming a day before the meeting • Show up 5 minutes before your timeslot 107
  • Companies Call Schedule • Is posted on the InnoVenture Website COMPANY 14 - 20 October DAY/TIME NUH (Dr. Dino Liem) 17 October, Thursday afternoon OED TBD DOW CORNING (Mr. Peter Moore) Every 17 October, Thursday, 1-2 PM NESTLE (Ms. Catia) VENUE REMARKS Advanced surgery Need to call Dr. Liem and training centre, confirm, he may be having Kent Ridge Wing, other visitors to the centre NUH Ventus 17 October Thursday, 5-6 PM JTC (Mr. Yao Ming Yong) JTC (Ms. Woan Ling Tang) JTC (Ms. Theresa Loh) Provided toll free number or can use Livemeeting 17 October Thursday, 5-6 PM 17 October Thursday, 5-6 PM 16 October Wednesday, 5-6 PM 108
  • Mentors • Arrange individually to meet with your mentor • If you don’t have a mentor yet, please approach InnoVenture Org Committee 109
  • Submission Submission • Deadline for submission  30 October 12:59pm • Instructions on how/where to submit will be given via mail Pitch Day (5-9PM) • Each team has 7 minutes to pitch (hard-stop) • 3 minutes Q&A • Teams can leave after they pitch, come back at 19:30pm • More information to be send via email/website/FB 110
  • Last but not least… 111
  • GOOD LUCK!!! 112