SMTEC accelerator process


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This presentation outlines the venture development process of SMTEC

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  • Well, the name of this session is “Business Models” and we have yet to even talk about what a business model is. It is one of the questions you will get most often when promoting your company to investors and you will have to communicate your business model quickly and clearly. {click} Here’s the formal definition. A business model is a framework fro creating value. {click} It starts with your technology or service which represents your core capability. You have to develop that capability so that it can be priced and packaged for sale and you have to develop a network of service providers and manufacturing partners… {click} … which altogether, represents your value proposition. {click} From there you have to develop a relationship with your customers, sometimes directly but also through distribution channels which gets your product or service into the hands of the customer. {click} The foundation of the model is your financial infrastructure which insures your costs are less than your revenue stream which eventually leads to profits. {click} Another way of defining a business model is simply, how you make money. It’s very important that you learn to describe your business model in a way that people unfamiliar with your technology or service will understand quickly. If your business model is complicated, it will be judged to be risky and you will have to defend your ability to manage that risk. If you can’t describe clearly how you will make money, you will lose credibility. {click} Here are some tips to consider as you learn how to communicate your business model. Describe clearly how your company will do business. Your description should consider these elements: First, keep it simple. You should be able to describe it in a few words. If written, it should fit neatly on one page or slide, preferably on a simple diagram. You should clearly describe who the customer is And you should be able to identify your market segment. Then you should describe how you will generate revenue and finally, A view of how you will compete and win. {next slide}
  • SMTEC accelerator process

    1. 1. the SMTEC venturedevelopment process
    2. 2. The Business Plan
    3. 3. …or plan C, D,E, F….“perfection comes from rapid cycles of ‘good enough’ “ Steve Hane – CEO Ampulse
    4. 4. 5. Business model the business model
    5. 5. A Framework for creating valueInfrastructure Partner Offer Customer Customer { { Core Network { Value Relationship { Target Capability Proposition Customer Value Distribution Configuration Channel Direct Operations Working Revenue Costs Cost Capital Finances Model Personal Funding Debt Equity Investment Model How you make MONEY!
    6. 6. Offer Value Proposition“For People who (problem) ,we offer (solution) ,and we’re different because .
    7. 7. 1. talk to them!
    8. 8. 2. develop a profile
    9. 9. Customer Customer Relationship { Target Customer Distribution Channel3. count them!
    10. 10. 4. build out the value chainInfrastructure Partner Offer Customer Customer { { Core Network { Value Relationship { Target Capability Proposition Customer Value Distribution Configuration Channel
    11. 11. “it’s fine to question your assumptions… …not your strategy.” Direct Operations Working Revenue Costs Cost Capital Finances Model5. the pro forma
    12. 12. 6. the strategy Key hire of Contract with Finish consumer 5 beta facilities Peer Reviewed Development of 2nd marketingArticle Publication Product executive 4th Qtr 4th Qtr 4th Qtr 4th Qtr 1st Qtr 2nd Qtr 2009 2009 2009 2009 2010 2010 Close Seed Round Partnership Attract 25,000 with Training visitors per Company month to site
    13. 13. Personal Funding Debt Equity Investment Model7. how much? money? equity?
    14. 14. the mind of the investor
    15. 15. 8. tell the story
    16. 16. pat metheny
    17. 17. “telling a good story is about communicating an emotion… … it’s the listener that gets to judge.”
    18. 18. mentoring ties it all together
    19. 19. ?
    20. 20. Growth Business ModelThe Stages Idea Pre-revenue
    21. 21. Idea technology identified ip available engaged researcher market identified
    22. 22. champion identified scaleable product idea company formed prototype developmentPre-revenue market validation seed funding
    23. 23. first customersbusiness model executionfunding plan execution Business Modelcompany strategic plan in placecash flow!
    24. 24. Growthseries A fundingcash flow break evenmanagement team in placepredictable sales process$2 - 3 million annual sales