1. Turning Your “Shiny
Object” Into an
Investable Buisness:
Dr. Michael R. Burcham
How Does This Thing
e. michael@michaelburcham.com
Make Money? w. www.michaelburcham.com
t. www.twitter.com/michaelrburcham
f. www.facebook.com/michael.r.burcham
l. www.linkedin/in/michaelburcham

2. Lesson 1 Turning Your Shiny Object Into an
Investable Business
Create a Legitimate Business Model:
Be certain that you are using a business model that is known among the
investment community and has successful companies using it.
• Subscription
• Transaction
• Bricks and Clicks
• Component Business Model
• Direct Sales
• Franchise
• Freemium
• Razor and Blades Model
• Intermediary Distribution Model

3. Lesson 2 Turning Your Shiny Object Into an
Investable Business
Save the Writing of a Plan for Later:
Begin with a process that turns
assumptions into facts!
NoBusiness Plan survives the
first contact with customers

4. Lesson 3 Turning Your Shiny Object Into an
Investable Business
Frame Your Idea:Know the drivers of Revenue and Costs.
4 Things Drive Revenue:
• The Product or Service
• Customer Adoption
• A Strong Distribution Channel
• Customer Intimacy
4 Things Drive Costs:
• Human Capital – Labor
• The Essential Ingredients for the Product or Service
• The Process or Value Chain
• Ability to Partner and Outsource

13. REVENUES

14. Lesson 4 Turning Your Shiny Object Into an
Investable Business
Build Your Business Model from the Ground Up!
Understand your competitors’ processes. Get insight as to which
customer needs are being met (and done really well) and which are not.
Identify the opportunity to be DISRUPTIVE!

15. Lesson 5 Turning Your Shiny Object Into an
Investable Business
Know Your Margin – And the Industry Margin
Most private firms are “valued” based upon the acceleration of revenue
(growth) and the cash flow margin (EBITDA) as compared to others in
the sector. A faster growth and a higher EBITDA % increase value.

16. Building Your Model
“Think Architecture”
Develop the Model:
• Within the Model, what % of sales would each expense be?
• How does this compare to the rest of the industry?
Flowchart the Model:
• Identify the Revenue Drivers,
• Identify the Cost Drives, and the
• Points of Differentiation & Value-Add.
Stress Testing:
Should Key Revenue or Cost Drivers vary 5-10%, what happens to the business model?

17. Lesson 6 Turning Your Shiny Object Into an
Investable Business
Stay Focused on “Magnetic North”
All business plans and models
are off “magnetic north” by 10-15
degrees.
Closing the Gap
Defines Success

18. Investors realize that all new businesses
must walk through the valley of death prior
What to becoming a Viable Business.
Investors The ability of a business venture to pass
through this valley in a predictable and
Want timely way determines its ultimate viability.
18

19. What Materials Do You Need?

20. One Entrepreneur’s View
The Pitch:
• Direct and Concise.
• Passion and Enthusiasm Sells.
• Know Your Customer/Audience.
• Listen, Ask Questions, and Know Your Stuff.
• Elevator Pitch-Customer and You.
• No NDA’s.