Writing A Winning Executive Summary 2006

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A session on how to write the winning executive summary that I presented in Start-Up@Singapore 2006.

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Writing A Winning Executive Summary 2006

  1. 1. NUS Entrepreneurship Centre Writing the Winning Executive Summary Bernard Leong Adjunct Assistant Professor NUS Entrepreneurship Centre 1
  2. 2. NUS Entrepreneurship Centre We want to achieve by the end of today... • Why do you have to do this? • What not to write... • How to layout an executive summary that will not end up in the garbage bin on the first look. • What the judges are really looking for. 2
  3. 3. NUS Entrepreneurship Centre Why do you do this? • If you cannot summarize your idea to two A4 sheets, you are likely not able to convince your investors. • It demonstrates your organizational ability in putting the most difficult things into a few paragraphs. • Investors don’t have time to listen to your grandmother stories. • This is not for business plan competitions only 3
  4. 4. NUS Entrepreneurship Centre Cannot Make It Entries • The entries that will end up into the rubbish bin: – Starting an internet cafe, a restaurant, a consultancy, a chicken rice stall and a toy shop. – Online stores selling bicycles. • The judges are looking for innovative and sustainable business ideas, not innovative and sustainable scientific ideas. 4
  5. 5. NUS Entrepreneurship Centre If you need inspiration.... • If you have no ideas but with good business sense, you can take a walk to INTRO and check out their patents. You will be able to create a win-win situation. • If you have ideas but no business, you can attempt to find someone with that experience to help you. 5
  6. 6. NUS Entrepreneurship Centre Criteria for Good Executive Summary • The structure is organized and understandable. • Use simple language. • Present a simple and clear idea. • Tell the truth - Honesty is the best policy. 6
  7. 7. NUS Entrepreneurship Centre Language • Avoid phrases like – “We would like to....” – “We would make X$ by the end of this year.” – “We should do this and do that.” • Use phrases – “We aim to become the leading provider ..” – “Our core competency is ...” – “Based on our financial projections, we estimate our sales revenue to be $X and our profit margins to be $Y.” 7
  8. 8. NUS Entrepreneurship Centre Layout • Introduction - Type of Business • Problem and Opportunity • Technology (Optional) • Management Team • Business Strategy and Route to Market • Financials • Exit Strategy 8
  9. 9. NUS Entrepreneurship Centre Name and Logo • Name of your company • Logo (Optional) • Mission Statement – We want to put a desktop into every household. – Don’t be Evil – Think Different 9
  10. 10. NUS Entrepreneurship Centre Type of Business • What is the industry of your business? – Biotech, Nanotech, Fashion, Digital Media, Renewable Energies, Information Technology & Traditional with a twist. • Is your company product-based or service-based? – Make a black box vs Giving a service. • What is your core competency? – What are you good at doing? 10
  11. 11. NUS Entrepreneurship Centre Examples • MaterialSoft aims to be the best provider in creating new fabrics that can withstand harsh conditions. • RealTime is a Singapore based company that focuses on new digital media applications for consumer markets. It consists of a group of young and passionate students who.... 11
  12. 12. NUS Entrepreneurship Centre Problem and Opportunity • You are selling the solution to a problem. • You need to explain what is the niche area that you are exploiting on and how you can create a “blue ocean”. • Is there any interest in your business lately? • Lies, Damn lies and Statistics.... 12
  13. 13. NUS Entrepreneurship Centre Examples • Recently, the government has placed S$13.25B into high technology research and development, focussing on three areas: materials science, biomedical sciences and renewable energies. • The digital media market is estimated to be about US$3B 13
  14. 14. NUS Entrepreneurship Centre Technology • You need to make your technology sound simple. • The judges don’t like to know whether your product has sodium hydroxide, deoxyribonucleic acid (DNA), or need you to explain what light amplification by stimulated emission of radiation (LASER). • You just say, “It is a platform technology that can spill over to...” 14
  15. 15. NUS Entrepreneurship Centre Examples • MaterialSoft uses a state of the art composite ceramic material to build fibres which can efficently hold vehicles on muddy grounds. • RealTime utilizes smart known heurestic algorithms to resolve blurred objects of old movies in mp5 format 1000 times better than present format. 15
  16. 16. NUS Entrepreneurship Centre Management Team • Make sure you have a team with diversified skills and how their skills can make this business work. • It’s no use to have 10 engineers in a team with no one with business experience. • If you have grey hairs with experiences, put them in your advisory board. 16
  17. 17. NUS Entrepreneurship Centre Examples • John Ho is the CEO of the company. Prior to joining MaterialSoft, he was working in Nippon Materials as a Vice President in Sales. • Larry Pang is the founder of the team. Currently a second year undergraduate in engineering, he has been interested in working on RFID technology. He will act as the CTO of the RealTime. 17
  18. 18. NUS Entrepreneurship Centre Route to Market & Business Strategy • How do you sell your service and product? • A market segmentation analysis in summary - 10% rule, population census. • What is your competitive advantage? – What makes you DIFFERENT from the rest? 18
  19. 19. NUS Entrepreneurship Centre Examples • MaterialSoft will engage directly with known industrial partners. It does not deal directly with the customer base. The company also makes profit by licencing their technology. • Realtime will enter into a partnership with Sony and Nintendo. It will offer the customers free downloads with the basic version of the software. 19
  20. 20. NUS Entrepreneurship Centre Risk and Barriers to Entry • How do you stop others from doing what you do? • How can you win over your competitors? • What is the problems that you will face? • Never say, “We are the only ones who know how to do it” or “We have the intellectual property which makes us invincible. 20
  21. 21. NUS Entrepreneurship Centre Examples • MaterialSoft faces the risk of a saturated and traditional ceramics industry. It requires to change the business mindset of traditional materials firm. • The compression format of RealTime is not easily replicated but there is a possibility of other emerging movie formats which can overtake mp5 format. 21
  22. 22. NUS Entrepreneurship Centre Financials • How much do you need? Show me the money? • How much stake do you want to give to the person who put money in your business? • How do you raise that amount of money through grants and funds? • Can you bootstrap without raising funds? 22
  23. 23. NUS Entrepreneurship Centre Fundraising • How do you get the investment required for your enterprise? – Friends, Family & Fools – Venture Capitalists, Business Angels, Bankers and Government – Bootstrapping your finances - the most recommended approach • Interest statistic: In Singapore, 3Fs totals 50% of the investments made. 23
  24. 24. NUS Entrepreneurship Centre Examples • MaterialSoft seeks US$300K for its initial investment to build the proof of concept and another US$1M to bring the prototype to market. • Realtime generates fund by the number of clicks and downloads for the software. It will also targets the movie industry for their movie files compression. 24
  25. 25. NUS Entrepreneurship Centre Exit Strategy • How are you getting out after 5 years if it becomes successful? • Standard answers: – Initial Public Offerings (IPO) – Leveraged buyout from a big company 25
  26. 26. NUS Entrepreneurship Centre Examples • MaterialSoft will exit in 3 years via leverage buyout from a big MNC such as Cepheus Ceramics. • Realtime seeks to go IPO in 3 years as an exit strategy. 26
  27. 27. NUS Entrepreneurship Centre Other Suggestions • Find a good mentor (someone in the industry) to be in your advisory board. • Think of new ways on how to market and sell your product to the marketplace. • Price the product/service correctly! • You better know who your clients, partners and collaborators are. Namedropping is good but don’t overdo it. 27
  28. 28. NUS Entrepreneurship Centre Services • For legal advice, go to IPOS: – http://www.ipos.gov.sg/main/index.html • For NUS Intro: – http://www.nus.edu.sg/intro/ • For Registering a company and auditing in Singapore – http://www.acra.gov.sg/ 28
  29. 29. NUS Entrepreneurship Centre Now make it happen... Good Luck for the Competition! http://homepage.mac.com/bleongcw/talks.html or http://www.sgentrepreneurs.com Email: bernard@nes.org.sg 29

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