Business Plans 2.0 Sam Huleatt // Kam Khare Carey Business School (JHU) March 21, 2009

Outline of Presentation Concept-to-Action (Kam) Business Plans: Process & Competitions Structure & Model Securing Investment (Sam) Validating Yourself & Your Idea Structure & Model

Concept-to-Action (Kam)

Business Plans: Process & Competitions

Structure & Model

Securing Investment (Sam)

Validating Yourself & Your Idea

Structure & Model

Who We Are Kam Khare Extensive experience financing as well as working with early and late stage technology start ups Co-Founder & President, KamDenn LLC, new media holding company http://emgtconsultants.com Sam Huleatt (CBS, 2008) Extensive work with startups and early stage fundraising Founder/CEO of Workstreamer (Austin Ventures) Author of LeveragingIdeas.com

Kam Khare

Extensive experience financing as well as working with early and late stage technology start ups

Co-Founder & President, KamDenn LLC, new media holding company http://emgtconsultants.com

Sam Huleatt (CBS, 2008)

Extensive work with startups and early stage fundraising

Founder/CEO of Workstreamer (Austin Ventures)

Author of LeveragingIdeas.com

Concept to Action

Concept to Action

Entrepreneurship & The Economy Wall Street Journal Article – February 23, 2009: So, You Want to be an Entrepreneur? Financial Risk Lifestyle/Family Buy In Like Running a Business Decisions on the Go (no playbook) Idea Execution Persuasive and Well Spoken Passionate Self-Starter Business Partner

Wall Street Journal Article – February 23, 2009:

So, You Want to be an Entrepreneur?

Financial Risk

Lifestyle/Family Buy In

Like Running a Business

Decisions on the Go (no playbook)

Idea Execution

Persuasive and Well Spoken

Passionate

Self-Starter

Business Partner

Why Write A Business Plan? Financing: Friends and Family, Angel, Venture Capital, SBA, Credit and Other Sources Your Business Model, New Venture Idea - Have You Thought Through All the Parts? Q1: Is this Opportunity Interesting? (Market Risk) Q2: Is this Company Credible? (Operational Risk) Q3: Is this Investment Attractive? (Investment Risk)

Financing: Friends and Family, Angel, Venture Capital, SBA, Credit and Other Sources

Your Business Model, New Venture Idea - Have You Thought Through All the Parts?

Q1: Is this Opportunity Interesting? (Market Risk)

Q2: Is this Company Credible? (Operational Risk)

Q3: Is this Investment Attractive? (Investment Risk)

Business Plan Criteria: Executive Summary Pain Customer Solution Market Competition Strategy Marketing and Sales Operations Management Financials Investments Exit

Executive Summary

Pain

Customer

Solution

Market

Competition

Strategy

Marketing and Sales

Operations

Management

Financials

Investments

Exit

Business Plan Competitions: Example: Husk Power Systems Fast Company “Social Entrepreneurs of the Year, 2008” Pop!Tech Fellows 2nd Place: 2008 MIT Ignite Clean Energy Competition Winner: 2008 UT Austin RGK Center - Social Innovation Competition (Named "Most compelling idea to change the world.“ Winner: 2008 University of Virginia Darden School of Business - Business Plan Competition.

Example: Husk Power Systems

Fast Company “Social Entrepreneurs of the Year, 2008”

Pop!Tech Fellows

2nd Place: 2008 MIT Ignite Clean Energy Competition

Winner: 2008 UT Austin RGK Center - Social Innovation Competition (Named "Most compelling idea to change the world.“

Winner: 2008 University of Virginia Darden School of Business - Business Plan Competition.

Business Plan Competitions: Your Journey – If You Do Go This Way… Theme The presentation has a single, clear purpose. Supporting Evidence (Content) (Pain, Customers, Solution, Market, Competition, Strategy, Marketing, Operations, Management, Financials, Investment, and Exit) Delivery The presenter’s posture, voice, eye contact, and attitude enhance the message of the presentation. Visual Aids Any visual aids used enhance the message of the presentation. Persuasiveness The presentation attracts potential management, staff, suppliers, customers, strategic partners, and investors to the business.

Your Journey – If You Do Go This Way…

Theme The presentation has a single, clear purpose.

Supporting Evidence (Content) (Pain, Customers, Solution, Market, Competition, Strategy, Marketing, Operations, Management, Financials, Investment, and Exit)

Delivery The presenter’s posture, voice, eye contact, and attitude enhance the message of the presentation.

Visual Aids Any visual aids used enhance the message of the presentation.

Persuasiveness The presentation attracts potential management, staff, suppliers, customers, strategic partners, and investors to the business.

Securing Investment

Landscape: Lower Barriers to Entry Decreased Capital Needs (Infrastructure & Labor) Distribution New Tool Sets Investors Response: Prototypes & Live Demos Focus on Metrics (Traction: Customers & Revenue)

Decreased Capital Needs (Infrastructure & Labor)

Distribution

New Tool Sets

Investors Response:

Prototypes & Live Demos

Focus on Metrics (Traction: Customers & Revenue)

New Investment Models & Mindset “ Small is the new BIG” Angel investment on the uptake Venture Firms using convertible notes Incubator Models (Ycombinator, Digital Launchbox) Rapid Prototyping (Agile Mindset)

“ Small is the new BIG”

Angel investment on the uptake

Venture Firms using convertible notes

Incubator Models (Ycombinator, Digital Launchbox)

Rapid Prototyping (Agile Mindset)

Step 1: Validate Yourself “ Why Can YOU Execute On This Vision?” Track Record Social Capital (Network / Relationship Building) Blog & Online Presence Build a great team (If non-technical, find a CTO!) Leverage the Hopkins Brand for a foot-in-the-door

“ Why Can YOU Execute On This Vision?”

Track Record

Social Capital (Network / Relationship Building)

Blog & Online Presence

Build a great team (If non-technical, find a CTO!)

Leverage the Hopkins Brand for a foot-in-the-door

Step 2: Validate Your Idea Build Something & Launch It! Prototype / Wire Frame (ex: OmniGraffle) Google SEM Strategy (Eric Ries) Business Plan Competitions Friends & Family Money

Build Something & Launch It!

Prototype / Wire Frame (ex: OmniGraffle)

Google SEM Strategy (Eric Ries)

Business Plan Competitions

Friends & Family Money

Step 3: Put It All Together 1) Create a Prototype 2) Point to Market Validation “ Customer Discovery” (Steven Blank) Research: Blogs; YouNoodle, HackerNews Point to Metrics (SEM/Adwords Strategy) Competition is Good 3) Pitch Deck (10 Slides + Prototype + Exec Summary)

1) Create a Prototype

2) Point to Market Validation

“ Customer Discovery” (Steven Blank)

Research: Blogs; YouNoodle, HackerNews

Point to Metrics (SEM/Adwords Strategy)

Competition is Good

3) Pitch Deck (10 Slides + Prototype + Exec Summary)

Market Place Trends: Michael J. Steep - Chief of Operations Microsoft HQ Innovation Team Social networking P2P (Peer to Peer) (Decentralized data warehousing / networking) User designated Sites Mobile is the new advertiser I am the advertiser Complete globalization Virtual Worlds & Gaming Fast/Fail development Virtualization Network anywhere Massively powerful computing (also known as cloud computing) Energy costs

Michael J. Steep - Chief of Operations Microsoft HQ Innovation Team

Social networking

P2P (Peer to Peer) (Decentralized data warehousing / networking)

User designated Sites

Mobile is the new advertiser

I am the advertiser

Complete globalization

Virtual Worlds & Gaming

Fast/Fail development

Virtualization

Network anywhere

Massively powerful computing (also known as cloud computing)

Energy costs

Questions? Kam Khare [email_address] Twitter/KKUVA Sam Huleatt [email_address] LeveragingIdeas.com Twitter/squasher98

Kam Khare

[email_address]

Twitter/KKUVA

Sam Huleatt

[email_address]

LeveragingIdeas.com

Twitter/squasher98