22 a1 business-plan_panidea_training


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22 a1 business-plan_panidea_training

  1. 1. 24 Hours of Technology Panidea Inc. proudly announces the upcoming program, “24 Hours of Technology”, a global online program with a focus on technology commercialization. The program will be on Wednesday, July 13, 2011 with programs in Asia and will chase the sun across Asia, Australia, The Middle East, Europe, Africa, South America and North America. Speakers across the world will talk about their country, their programs, and their ideas, in a series of thirty minute presentations. By having live presentations in local time zones, we will demonstrate the movement of innovation around the globe.
  2. 2. The Business Plan Presentation by Earle Hager, COO of Panidea Over 30 Years Experience with Businesses Global Project Work in Hungary, India, Chile, Mexico, Korea, and the United States Global Network of Contacts
  3. 3. The Business Plan Examples of Good and Bad Ideas Discussion of Features and Options Presentation Tips
  4. 4. Guidelines for Presentation 10 Slides 3 Points Per Slide No Eye Charts
  5. 5. Business Plan Examples Two examples will be offered for each issue Providing specific detail and justification for all points is key Vague promises of savings should be re- evaluated
  6. 6. Business Plan - The Product or ‘The Elevator Pitch’ One slide 15 seconds of talking Describe product, problem, and saving End result – why they should listen Assume your audience understands your business – you do not need to explain how hospitals work
  7. 7. Business Plan - The Product or ‘The Elevator Pitch’ The technology is a smartphone application which will allow medical staff to scan patient information and medications and upload them to the patient accounting system via hospital WiFi. Cost savings will be found in more efficient inventory tracking and more accurate patient billing.
  8. 8. Compelling problem with Cost Problem Definition is Key Establish interest of listener who will follow your solution Assume listener is knowledgeable in your business area
  9. 9. Compelling problem with Cost - Example Administrative time for keying information – 12% Lack of timely inventory management More efficient order management More accurate patient billing
  10. 10. Bad Example - Compellingproblem with Cost Hospital staff must enter information on patient medicines on a regular basis Time savings from use of scanning system Less mistakes Everyone has a smart phone
  11. 11. Discussion of how product is used Demonstrate your knowledge of the business and the products currently in use Demonstrate why your idea is an improvement on the current systems Justify why your solution is unique or protected by patent
  12. 12. Discussion of how product is used - Example Nurses scan information at patient bedside Synchronization occurs automatically on predefined intervals or events In the event a bar code is unreadable, the information will be manually reentered at the nurses’ station
  13. 13. Bad Example - No discussionof how Product is used Nursesscan patient and medical bar codes and therefore save time using our system
  14. 14. Documentation of ROI Definition of the problem leads to definition of the cost of fixing the problem Key step is to identify the groups who have the problem and can justify spending to fix the problem ROI includes the cost of not fixing the problem, which is an option
  15. 15. Documentation of ROI - Example Efficienttracking allows more thorough accurate billing of products More efficient tracking of administrative costs / overhead associated with the product Updated inventory management allows for more efficient order quantities and floor stocking
  16. 16. Bad Example - PoorDocumentation of ROI Less administrative time for nurses Less nurses and hospital staff required Low cost to enter information
  17. 17. Not Everyone is a Customer Startups cannot focus on ‘everyone’ as a target Defining targets by a problem area or size allows you to allocate resources for specific groups Building on successes at one customer will allow you to use their testimonial at similar customers
  18. 18. Not Everyone is a Customer - Example Targeting 100-500 bed hospitals in the EU Larger hospitals have their own systems Smaller hospitals will not see the ROI There are 252 hospitals in the EU who fit our profile
  19. 19. Bad Example - Everyone is aCustomer All hospitals give medicine to patients and need to track the accounting We need to cover all hospitals
  20. 20. There is Competition Competition is necessary – it defines a market which has needs you can address Competition allows you to define your solution in terms of options on the market Competition allows you to develop a sales strategy in terms of products already in the marketplace
  21. 21. There is Competition - Example Multiple competitors exist in larger IS systems for hospitals There is a low barrier to entry in the development of smartphone applications Under current billing processes, hospitals may not have a compelling reason to implement the system
  22. 22. Bad Example - There is noCompetition There are no competitors in this space who are focusing on the hospital market It is difficult to create systems which solve the problem we have described
  23. 23. IP Strategy IPallows you to mark off a space in the marketplace for your product Without IP, you must create a sales / marketing advantage for your product Both models will work
  24. 24. IP Strategy - Example We have developed a provisional patent application in conjunction with our attorney The product is a sales / marketing play and we will be developing the name brand by trademarks and web site reservations
  25. 25. Bad Example - No IP Strategy We have taken no steps to copyright, trademark, or patent our product line We have no strategy to create a name brand for products which are a sales / marketing play
  26. 26. Internal Experts and Advisors Seek external advisors with industry experience Experts are critical for networking and introductions, not just advice
  27. 27. Internal Experts and Advisors - Example Key advisor – Herbert von Karajan, former hospital administrator, Berlin Philharmonic Hospital Beta site – Staff members of the PDQ Bach Hospital, Warsaw, Poland have agreed to help evaluate the product during the pre-beta and beta stages
  28. 28. Bad Example - No InternalExperts or Advisors We are a team of 5 programmers who have developed several games for the iPhone and Android phone Sales are small but we have demonstrated our ability to create and sell the game
  29. 29. Discussion of Systems Your product is part of a larger system How the product is implemented and utilized is key to your success Your understanding of systems demonstrates your knowledge of the business issues
  30. 30. Discussion of Systems - Example The smartphone application uploads a CSV file to the main hospital IS systems which can be imported The application uses the hospital WiFi for communications By scanning patient medicine bar codes, there will be no requirement to download information, only uploading data
  31. 31. Bad Example - No Discussionof Systems The smartphone application is a standalone device and can be used with any hospital information system It reads all bar codes
  32. 32. We need Cash to Grow our Business Demonstrate strategic spending Limited resources must be allocated carefully Understand the idea of ‘Crossing the Chasm’ Look for direct financial return on all spending
  33. 33. We need Cash to Grow our Business - Example We will work part time on this project until the cash flow will allow us to leave our current positions to work full time We will conduct our meetings electronically and will not need office space We will leverage Skype, LiveMeeting, and other tools to manage client meetings
  34. 34. Bad Example - We need Cashfor our Salaries and Offices Our business plan includes $350K in salaries for our founders for the first eighteen months We will open an office in downtown Warsaw for client meetings
  35. 35. Sales Process Criticalto all planning Understand customer targets, length of time to close sale, time to place orders, time to supply, time to receive payment From the initial contact, this can be 6-9 months on a successful sale Establish plan which allows you to survive between the sale and payment
  36. 36. Sales Process - Example Pilot of 1 hospital for beta phase Target 15 geographical advantageous hospital for first quarter Develop sales plan for additional 100 hospitals for 2011 Advance sales plan for additional 100 hospitals in 2012-2013
  37. 37. Bad Example - No SalesProcess Rollout to 75 new hospitals each quarter System is self supporting
  38. 38. Partnerships for manufacturing and sales force As a startup, you have limited resources for infrastructure Use contract manufacturing and determine the point in sales when it is feasible to develop your own manufacturing Use relationships with complementary sales organizations to move product
  39. 39. Partnerships for manufacturing and sales force - Example We plan to leverage relationships with groups who already sell to hospitals in our target market We plan to interface with other hospital IS systems and become key partners to these organizations For manufacturing, we have identified contract manufacturers
  40. 40. Bad Example - Create ownmanufacturing and sales force We will hire a small sales force to contact these hospitals and sell the product If there is manufacturing, we will need to build our own plant
  41. 41. Goal for End of Second Year Develop a vision for your organization at the end of the second year Include revenue, staffing, customer base Develop implementation plan backwards from that point and create milestones Stay focused on goals
  42. 42. Goal for End of Second Year - Example Develop stable business process by mid 2012 Develop network and relationships for growth with revenue target of $1.5M US Anticipated sales to 175 hospitals by late 2013 with staffing levels of 15 people for sales, support, administration, and development
  43. 43. Bad Example - No Goal forEnd of Second Year Continue to grow sales Add Asia and Middle East to targets in 2013
  44. 44. Realistic Financials Startfrom the bottom with planning Identify specific customers, action plans, and expectations for closures Assign probabilities to unknowns Create realistic growth plan Do not create expectations of controlling a percentage of the market without putting a name to the customers
  45. 45. Realistic Financials Financial statement included with sales costs and realistic process and startup costs Assumptions noted in revenue cost calculations Justifications for assumptions along with explanations of issues which would affect the financials
  46. 46. Cash flow Statement Begin Sales Negotiate Closed Delivered Jan Feb Mar Apr May June Jul Aug Sept Oct Nov Dec Jan FebSales - Cust 1 0 0 0 0 0 25 25 25Sales - Cust 2 25 50 50 50Sales - Cust 3 50 100 200 200Sales - Cust 4 100 200 200 200Pmt - Cust 1 0 0 0 0 0 0 0 25 25 25Pmt - Cust 2 25 50 50 50Pmt - Cust 3 50 100 200 200Pmt - Cust 4 100 200 200 200Cash from Sales - - - - - - - 5,000.00 10,000.00 25,000.00 50,000.00 90,000.00 80,000.00 40,000.00Cost of Goods - - - - - (2,000.00) (4,000.00) (10,000.00) (20,000.00) (36,000.00) (32,000.00) (16,000.00) - -SG&A (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00)Net Cash for Month (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (12,000.00) (14,000.00) (15,000.00) (20,000.00) (21,000.00) 8,000.00 64,000.00 70,000.00 30,000.00Cash Position (10,000.00) (20,000.00) (30,000.00) (40,000.00) (50,000.00) (62,000.00) (76,000.00) (91,000.00) (111,000.00) (132,000.00) (124,000.00) (60,000.00) 10,000.00 40,000.00
  47. 47. Income StatementIncome Statement Jan Feb Mar Apr May June Jul Aug Sept Oct Nov Dec Jan FebSales - - - - - 5,000.00 10,000.00 25,000.00 50,000.00 90,000.00 80,000.00 40,000.00 - -COGS - - - - - (2,000.00) (4,000.00) (10,000.00) (20,000.00) (36,000.00) (32,000.00) (16,000.00) - -Net Income - - - - - 7,000.00 14,000.00 35,000.00 70,000.00 126,000.00 112,000.00 56,000.00 - -SG&A (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00)EBITDA (10,000.00) (10,000.00) (10,000.00) (10,000.00) (10,000.00) (3,000.00) 4,000.00 25,000.00 60,000.00 116,000.00 102,000.00 46,000.00 (10,000.00) (10,000.00)
  48. 48. Bad Example - No RealisticFinancials Financial statement not included Sales costs not included Realistic process and startup costs not included
  49. 49. Call to Action At the end of the presentation, tell people what you are going to do and what you need You have their attention and you will need to set the agenda for the conversation after the presentation You are being evaluated on your product and your perceived ability to deliver on the plan
  50. 50. Call to Action - Example We are seeking $1.5m in funding for the following: We are seeking to work with your organization to evaluate our beta product We are seeking feedback on our business plan
  51. 51. Bad Example - No Call toAction Thank you for joining us