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  • Before we get started, I just want to tell you a bit about myself. *
  • attracting the money and people *
  • powerfully and *
  • communicate how your *
  • Divide into number of slide shares 1 who is plugg (include experience)2. Developing the two pager3. 4 foundation frameworkLook at pdf tuff lots of info.
  • So we ask, for a moment, to reflect, what is your outcome? *
  • generating value for *
  • the market place, and if your focus is on solving *
  • Given people such as investors and *
  • approach investors and team members with confidence ... investors who can assist you in *
  • approach investors and team members with confidence ... investors who can assist you in *
  • To give this a context put yourself in the shoes of an investor. Management is highly valued by potential investors and team members alike ... That is... management who can create a return on investment money, time and resources.Investors (and team members) are attracted to good management and make decisions based on their perception of the management capability.In a recent survey, by Wholesale Investor, it appears that the management team, was arguably the most important investment criteria for over 70% of investors surveyed. So as a founder or team member, your management capability is vital... and a key role for management is*
  • involve an inspired team.
  • FOUNDATION 2: REWARD / BUSINESS EXIT STRATEGY
  • One of the most important of the definitive 4 Foundations Enterprise Framework is what we call reward. Reward is often called an EXIT or the point of exit from the business. *
  • money and resources you need to stabilize your idea now AND expand in the future. Enterprise builders early stage enterprises and start ups seldom focus on the reward or exit making it very difficult to take off.*
  • When your team members can see their reward, they’ll come on board and if you’ve got a good team, you’ve arguably met 70% of the key criteria that investors are looking for.{pause}
  • Now its well worth stressing that your Exit Plan comes first because:-to align your team, investors and lay a foundation for many of the planning decisions you will make in the coming months and years *
  • example 2:*
  • Craig West an Australian business exit expert gives an example of his client who achieved a windfall sale price because Craig had advised this client to develop the right exit plan from the beginning *
  • Only after your reward is defined you are able *
  • *
  • thesetwo of the planks you use to build your bridge.If you’re interested in walking through more about building the planks onto your foundations, we cover that in our four week webinar we mention at the end.Ok then, well, now we will cover the importance of asking for *
  • And knowing this overcomes *
  • Page 261 Entrepreneurship Howard FredrickSelf funding, family and friends,Debt Equity (is ‘funny money’ to unsophisticated investors)Private equity, angel investment, which includes ASSOB and Wholesales InvestorVenture capital, Banks, public listing (including small exchanges and ASSOB) *
  • Now, if you are to remember one thing, please, remember this slide ….What we’ve found is that many people are *
  • establish the value of your sweat equity and *
  • So this is about Agreed Value ... of what? *
  • Agreed value of your products or services, For example, what people will pay in the market place ... how your users and buyers regard the value of your offering*
  • Agreed value of your products or services, For example, what people will pay in the market place ... how your users and buyers regard the value of your offering*
  • Agreed value of your products or services, For example, what people will pay in the market place ... how your users and buyers regard the value of your offering*
  • establish the value of your sweat equity and *
  • Transcript

    • 1. Plugg CONNECTSentrepreneurs, investorsand experts to turnGAME-CHANGINGIDEAS into THRIVINGENTERPRISES.To create real,POSITIVE CHANGE inthe world for futuregenerations.
    • 2. Who is plugg? We work with change makers enabling them to turn the key and kick start the journey of creating a thriving enterprise…
    • 3. How do you take a really good ideaand turn it into a thriving enterprisewith a world wide market? ?
    • 4. Introduction The single essential aspect that most business owners don’t know about transforming a good idea into a thriving enterprise is that people who have successfully funded their idea, innovation or start up know… ….you need to
    • 5. Introduction Effectively – Powerfully - Efficiently -
    • 6. Introduction Effectively – Powerfully - Efficiently COMMUNICATE Team – Investors - You
    • 7. Introduction Effectively – Powerfully - Efficiently COMMUNICATE Team – Investors - Stakeholder
    • 8. Introduction Effectively – Powerfully - Efficiently COMMUNICATE REWARD or OUTCOME Team – Investors - You
    • 9. Introduction Many business builders and start-ups seldom go for the outcome (the reward for team and investors) which makes it more difficult for the idea to take off. That is unfortunate because a lot more good ideas would happen if only more entrepreneurs knew ....
    • 10. getting from an idea to a thriving enterprise is a journey.....exit strategy (startwith end in mind) +tive global impact attracting using a framework Definitive Idea stakeholders to your idea 4 foundation framework Identifying window of opportunity achieve this sharing this adopting this
    • 11. For this journey of creating an idea to a thrivingenterprise we suggest one needs to: bring a compass understand and take heed of the road rules navigate the pot holes and road blocks build vital infrastructure (a framework) to get you to your destination
    • 12. Ideas to Enterprise model Attracting Team Members Attracting Investors 2 Pager’ document The 6 Planks to build the bridge over the 4 Foundations 4 Foundations Enterprise FrameworkCompass: true north Understanding Road Rules Navigating Road Blocks
    • 13. Ideas to Enterprise model Attracting Team Members Attracting Investors 2 Pager’ document Focus of this presentation The 6 Planks to build the bridge over the 4 Foundations 4 Foundations Enterprise Framework
    • 14. Rewarding team members and investors Given that the essential aspect to transforming your idea into a successful enterprise is communicating that reward, the place to start is with that end in mind. In other words, focus on the realization or intended outcome/reward of your idea.
    • 15. Rewarding team members and investors What is your outcome?
    • 16. Rewarding team members and investors What is your outcome? Outcome focus Generating VALUE ...generating VALUE for who????
    • 17. Rewarding team members and investors Generating VALUE  Users  Customers  Clients  Investors  Team members  Market place
    • 18. Rewarding team members and investors Your focus on intended outcome is about generating value for investors, team members, the market place; those are emerging opportunities where you could build a thriving business.
    • 19. Rewarding team members and investors How do you attract investors and team members to your idea?
    • 20. Rewarding team members and investors Investors and potential team members are time poor, and have an enormous number of opportunities presented to them. That is why we have developed the “2 pager”.
    • 21. Developing a two pager and sharingexit strategy (startwith end in mind) +tive global impact Using a Attracting stakeholders to framework Idea your idea (“2 pager”) (4 foundation framework) Identifying window of opportunity achieve this sharing this adopting this
    • 22. 2 pager The 2pager is a simple but well substantiated 2 page document designed to enable those you wish to attract to your idea quickly and easily and identify what their reward will be.
    • 23. The 2 pager It’s about the essential aspects of your idea or enterprise that investors and team members find valuable and will want to be involved. Attracting Team & Investors
    • 24. The 2 pager The 2 pager easily and concisely shows reward or outcome . Attracting Team & Investors
    • 25. 2 pager The 2pager enables entrepreneurs to:  approach team and investors with confidence  unlock wealth in idea
    • 26. 2 pager .....without a 2 pager you could risk never fully realizing the wealth in your idea.
    • 27. 4 foundations enterprise framework To build the 2pager we use our definitive 4 foundations enterprise framework. The framework can give you the credibility for attracting the people, money and resources needed to carry your idea from just an idea or early stage enterprise to a thriving enterprise, to unlock the wealth in your idea.
    • 28. 4 foundations enterprise framework Navigating the journey: building the infrastructureexit strategy (startwith end in mind) +tive global impact attracting using a framework Idea stakeholders to 4 foundation your idea framework Identifying window of opportunity achieve this sharing this adopting this
    • 29. Creating an idea to a thriving enterprise one needsto: bring a compass understand and take heed of the road rules navigate the pot holes and road blocks build vital infrastructure (a framework/bridge) to get you to your destination
    • 30. 4 foundations enterprise framework Constructing a bridge (framework) to get to your destination you and team right money agreed value reward
    • 31. 4 foundations enterprise framework You & team Agreed value Reward / business exit strategy The right money ........attract team & money to launch, stabilize, expand
    • 32. 4 foundations enterprise frameworkYOU & TEAM you and team
    • 33. 4 foundations enterprise framework Management capability Management is highly valued by potential investors and team members alike. It is management who can create a return on investment money, time and resources.YOU & TEAM
    • 34. 4 foundations enterprise framework Management capability needed In a recent survey, by Wholesale Investor, it appears that the management team, was arguably the most important investment criteria for over 70% of investors surveyed.YOU & TEAM
    • 35. 4 foundations enterprise framework Management capability needed  Consistent vision and clear direction for action.  Be aware of your key strengths and that you need to attract other team members who have other key strengths.YOU & TEAM
    • 36. 4 foundations enterprise framework Vital key management capability needed is the to build and involve an inspired team.YOU & TEAM
    • 37. 4 foundations enterprise frameworkREWARD / BUSINESS EXIT STRATEGY reward
    • 38. 4 foundations enterprise framework Reward is often called an EXIT or the point of exit from the business.REWARD / BUSINESS EXIT STRATEGY
    • 39. 4 foundations enterprise framework Reward / Exit Team Investors membersREWARD / BUSINESS EXIT STRATEGY
    • 40. 4 foundations enterprise framework = 70% investor criteria When your team members can see their reward, they’ll come on board and if you’ve got a good team, you’ve arguably met 70% of the key criteria that investors are looking for.REWARD / BUSINESS EXIT STRATEGY
    • 41. 4 foundations enterprise framework Exit plan comes first It is worth stressing that your exit plan is a key part of the framework because it aligns your team, investors and lays a foundation for many of the planning decisions you will make in the coming months and years.REWARD / BUSINESS EXIT STRATEGY
    • 42. 4 foundations enterprise framework Examples of attracting right team with exit plan when you don’t have the money to pay them. Microsoft multi millionaires staff.REWARD / BUSINESS EXIT STRATEGY
    • 43. 4 foundations enterprise framework It’s well known that Microsoft has created numerous multi millionaires of staff who’s wealth was derived from company stock options in the early days. When Microsoft was initially taking off they were paid partly in money and partly in equity.REWARD / BUSINESS EXIT STRATEGY
    • 44. 4 foundations enterprise framework Craig West an Australian business exit expert had advised a client to develop the right exit plan from the beginning. In fact they unlocked the full value of their business of many millions of dollars above what they initially expected by selling to a public company who paid them 9.5 times their earnings where as the average of a private company is 2.5 to 3.2 times earnings.REWARD / BUSINESS EXIT STRATEGY
    • 45. 4 foundations enterprise framework With an exit plan you can involve right team members when you don’t have the money to pay them.REWARD / BUSINESS EXIT STRATEGY
    • 46. 4 foundations enterprise framework Without an exit plan  Not get the team members you want  Get the wrong team members  Conflict with team membersREWARD / BUSINESS EXIT STRATEGY
    • 47. 4 foundations enterprise frameworkMONEY Pic of bridge second foundation money right
    • 48. 4 foundations enterprise framework Money is a key foundation of the enterprise framework... some people regard the ability to raise money or attract capital to your enterprise as the most important skill of a founder or key team member.MONEY
    • 49. 4 foundations enterprise framework Why is MONEY one of the 4 Foundations? Only after your reward is defined you are able to ask for money... and know what sort of money to ask for ... and which type of investor to ask it from ... and when to ask for it.MONEY
    • 50. 4 foundations enterprise framework Attracting money affords your enterprise advantages such as having ..... .... a strong enough cash position for your enterprise to stabilise and expand and...MONEY
    • 51. 4 foundations enterprise framework  the ability to attract good people on your team  better equipment and technology  better access to education and training  the ability to get to and more quickly penetrate markets  more capability to serve customers faster  the ability to achieve greater scale i.e. to plan and execute long-termMONEY
    • 52. 4 foundations enterprise framework Attracting money though not at all easy is possible. There are a large number of sources of money and funds available.MONEY
    • 53. 4 foundations enterprise framework Your confidence about asking for money emerges primarily out of… …business models and revenue models. Does your idea have legs? …selling the exit. Investors and team members knowing how they get their reward.MONEY
    • 54. 4 foundations enterprise framework What are the potential sources of investment and when are they most appropriate as a start-up and as an established enterprise?MONEY
    • 55. 4 foundations enterprise framework Who is funding entrepreneurial start-up companies?MONEY
    • 56. 4 foundations enterprise frameworkThe following diagram depicts a financing model forstart-ups IPO’s Trade Sales Venture Capital Angel Investors Incubators Family and friends Adapted from “successful Angel Investing’, Indiana VentureFounders Center, March 2008MONEY
    • 57. 4 foundations enterprise frameworkAGREED VALUE agreed value
    • 58. 4 foundations enterprise framework What we’ve found is that many people are either over optimistic about the prospects of their idea and do not know how to substantiate their claims about its value or they under value their idea ... ... either way they lose credibility!AGREED VALUE
    • 59. 4 foundations enterpriseframework  Do you know the value of your idea/enterprise?  Has your business been valued by one of the accepted methods?AGREED VALUE
    • 60. 4 foundations enterprise framework Key elements of agreed value  Attracting team  Negotiate with investors & team  Establishing the value of your sweat equity  Keeping your fair share of control and exit and any windfall profits.AGREED VALUE
    • 61. 4 foundations enterprise framework Agreed value … ...agreed value of what?AGREED VALUE
    • 62. 4 foundations enterprise framework Agreed value of (1) your products or services, For example, what people will pay in the market place.. How your users and buyers regard the value of your offering.AGREED VALUE
    • 63. 4 foundations enterprise framework..agreed value of (2) intellectual property.Includes patent, trademark, designtrademark, copyright and unique knowledge.AGREED VALUE
    • 64. 4 foundations enterprise framework ...agreed value of (3) intellectual capital Description very often given to the value of the team members knowledge and experience and their capacity to operate as a team.AGREED VALUE
    • 65. 4 foundations enterprise framework ...agreed value of (4) company shares e.g., in the shareholders agreement each shareholder will know the value of the shares at the start of the enterprise that they have acquired as founding shareholders. AGREED VALUE
    • 66. 4 foundations enterpriseframework ... agreed value of any (5) profit share and bonus systems These have become key methods of attracting, rewarding and retaining team members.AGREED VALUE
    • 67. 4 foundations enterprise framework Only after knowing the agreed value of your products or services and the intellectual property and intellectual capital can you work out your agreed value of company shares and the agreed value of any profit share and bonus systems. AGREED VALUE
    • 68. 4 foundations enterprise framework Agreed Value emerges primarily out of: Investor Value Selling an idea – monetizing your ‘blue strategy’ vision, valuation methodologies essential in targeting buyers Selling the Exit Importance of investors and team members knowing how they get their rewardAGREED VALUE
    • 69. 4 foundations enterprise framework When you’ve got your agreed values you can then work out what your rewards and exit strategy are going to be... With this clearly and easily communicated, your team members & investors feel more comfortable about coming on board.4. AGREED VALUE
    • 70. 4 foundations enterprise framework This is vital when you are approaching your key sources of money for start ups and early stage enterprises.AGREED VALUE
    • 71. Summary In summary…. We trust that now you can see that the key aspect to attracting money and a team is to and launch your idea powerfully & successfully is to…. …communicate the reward to team members & investors.
    • 72. Summary It is more effective to build your powerful communication if you base it on the 4 Foundations Enterprise framework. Without understanding the 4 foundations enterprise framework the large amount of information needed to manage to communicate effectively can tend to overwhelm many people or they may not be as well organized and presented as they need to be.
    • 73. Summary Quite possibly you will enthuse potential team members but be unable to really convince them of how and when they’re going to be rewarded.
    • 74. Summary It is essential to communicate effectively with your potential investors as they’re the last group of people you do not want to lose credibility with.
    • 75. Summary That is the very reason why we have developed a program to assist you in utilizing the 4 Foundations Enterprise framework to compose your 2 pager to greatest effect.
    • 76. Ideas to Enterprise model Attracting Team Members Attracting Investors 2 Pager’ document The 6 Planks to build the bridge over the 4 Foundations 4 Foundations Enterprise FrameworkCompass: true north Understanding Road Rules Navigating Road Blocks
    • 77. To learn more about plugg servicesincluding our enterprise acceleratorand board room visit us on: plugg.com.au