Capacity building business template (success lab to market)

1. Business Building Presentation Templates May 17, 2013

2. Suggested Process: 1) Complete Technical Business Canvas 2) From Canvas Prepare Presentation

4. 1) Complete Technical Business Canvas 2) From Canvas Prepare Presentation Suggested Process:

6. 6 The Market Problem and Cost • What is the problem you are solving? • What is the cost to the customer of the problem?  Quantify the problem (medical expenses, time lost from work, production delays, lost sales, etc.) – converted to dollars and cents. Include references/sources of information

7. The Market Problem & Cost (Example) Each year, 44,000 people in the U.S. suffer back injuries from shoveling snow -- severe enough for the person to go to the emergency room or doctor. Each visit costs $2,000 and results in two days (on average) in lost work time.1 1 National Bureau of Labor Statistics (Vol. 12, No. 2, p. 19: Dec. 2010)

8. 8 The Target Customer (Ideal Customer) • “Whose hair is on fire?” Describe the Ideal Customer (demographics, psychographics, behavioral characteristics) • Describe how the Ideal Customer fits into the larger market. Real Photo of Ideal Customer with their name and address Or show a video of customer interview Include references/sources of information The Overall Market The Target Market

9. The Target Customer (Example) Jake Picket, 4455 S. Mountain, Jersey City, NJ; Lives in N.E.; Age 51; Income: $43,000/yr; Does not own a snow blower; Does not hire a show removal service. 10-18 6% 19-30 3% 31-39 11% 40-49 21% 50-59 30% 60-69 19% 70-79 8% 80+ 2% % of Back Injuries From Shoveling Snow by Age1 1 National Institute of Health: Annual Report of Injuries (9/2011) Ideal Customer

10. 10 Product Description • 1 slide that describe your product…in simple terms that “stupid” any investor can understand. • Compare your product/service to what is currently available. • Describe why it is a game-changer • Discuss where you are in the development process • Show video of product in use if available.

11. 11 Technology Strategy • 1 slide that describe your underlying technology…in simple terms that stupid any investor can understand. • Compare your technology to existing products currently in the marketplace. • Do you have IP or other secret sauce? • Discuss where you are in the development process.

12. 12 Competition (a) • Show the competition and how your product/service compares along two important dimensions. • Describe the market gap or opportunity.

13. 13 Competition (b) • Show the competition and how your product/service compares along other important dimensions. • Describe the market gap/opportunity

14. 14 Snow Boss 13% Pick-up 17% Snow Wolf 8% Ames Wizard 28% Suncast Plow 16% ManPlow 12% Other 6% Include references/sources of information Current Market Share Total Market Size: 1.7 million units; $23.5M/yr Explain From Whom You Will Take Market Share and Why.

15. 15 Business Model • Describe how you will make money – your pricing strategy and your cost.

16. Problem/Solution Validation Validation of Problem and Endorsement of your Solution from one Ideal Customer Photo or Video of Ideal Customer Validating the Problem and Supporting Your Solution

17. “Almost every year when it snows over 6- 8”, I throw my back out shoveling. This gives me intense pain for three days. I love your idea and would readily pay $39. When can I buy it?” Jake Picket, 4455 S. Mountain, Jersey City, NJ; Interview 3-8-2013 Problem/Solution Validation

18. 19 Go-To-Market Strategy (a) • Discuss your advertising strategy: – Where you will advertise and the cost (source and frequency). • Where are you in that process? Promotion Type Detailed Description (e.g., Name of Magazine or Name of TV Show for Commercial) When, Size, Type & Frequency Cost Advertising Sales Promotion Public Relations Direct Sales

19. 20 Go-To-Market Strategy (b) • Discuss your sales/channel strategy: – How your product will be sold…direct, distribution, OEM, international • Where are you in that process? Segment Priority Target Segment Name Channel Strategy: Name of Representative, Distributor, or National Account to go Direct #1 #2 #3

20. Channel Validation Validation of Channel Strategy from one Channel Partner Photo or Video of Channel Partner Confirming Interest

21. Channel Validation (Example) I love this product and think my store alone could sell 50 per season. Gregg Jason, Home Depot Department Manager, Livingston, NJ

22. 23 Sales Forecast Explain key assumptions.

23. 24 Sales Forecast Explain key assumptions. 1st Month’s Sales from X & Y . . . 2nd Month’s Sales from Y & Z . . .

24. 25 Financial Forecast • This will include a discussion of sales growth, gross margins and operating income – Some graphs and charts will work best here • When will you become cash-flow positive?

25. 26 Competitive Advantage & Risk Assessment • Do you have special IP or secret-sauce that will be enabling for you to establish an advantage – How long will it last? – How will your competitors react? • Are their barriers for you to enter the market? • What are the critical success factors? • What are the key risks faced by your startup? • What is your plan to mitigate these risks? • Show your validation – Ideal Customer reactions or Testing Results.

26. 27 Risk Assessment • Do you have special IP or secret-sauce that will be enabling for you to establish an advantage – How long will it last? – How will your competitors react? • Are their barriers for you to enter the market? • What are the critical success factors? • What are the key risks faced by your startup? • What is your plan to mitigate these risks? • Show your validation – Ideal Customer reactions or Testing Results.

27. Risk Assessment Risk Risk Event What is it? Risk Impact What happens if risk occurs? Risk Drivers What increases the risk? Risk Factor (RF) (From anchored scales) Probability of Event (PE) (From anchored scales) Risk Exposure (RFxPE) Risk Mitigation Plan 1 2 3 RiskFactor Probability of Event 1.00.0 10 0 1 page map

28. Risk Assessment Risk Factor (1-10) 1-3 3-5 6-8 >9 Criteria Minor: No noticeable harm to project if this event occurs Modest Impact: Alternatives are available for different solutions Significant to Difficult to recover if this event occurs Very High: Project future will be impacted if this event occurs Probability of event <30% 30-60% 60-90% >90% Criteria Low Probability this event will occur. No need to evaluate contingences Moderate Chance this risk will occur. Project should have alternate contingencies in place. Significant chance this risk will occur. Project should be taking actions to minimize risk. Highly certain that this event will occur. Team should explain why project is being undertaken with this high risk Risk Factor Probability of Event Anchored Scales

29. 30 Phase 1 or 90 Work Plan

30. 31 Business Team • Describe the key players on your team and what make them special…a short CV • What additional key positions need to be filled once you get financing?

31. 32 Summary • Several bullet points that summarize your product/company in a way that is special – Why this is a great business and why you will win.