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Techpreneuring for Wealth Creation
The POEM® Framework
by
Tomi Davies

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1st Some Definitions...
• Techpreneur
• A warm-blooded animal, male or female, who feeds on no sleep,
limited resources and a passion for technology: aka, any person
who creates a company around his or her vision of leveraging
technology to change the world around them.
• Wealth
• a great quantity or store of money, valuable possessions,
property, or other riches.
• the state of being rich; prosperity; affluence.
• Vision
• a vivid, imaginative conception or anticipation

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Next, The Context
• People invest in people, not just ideas - Investors buy into other
people first then their story. That story when told must contain the
information necessary to quickly engage and retain the interest of
any potential investor
• Because investors (and partners) are interested in learning about
the business of the company first and foremost, Techpreneurs need
to also focus on how their product or service makes money by
solving a problem rather than only on how delivery of the
technology solution is achieved.
• My POEM ® framework provides Techpreneurs with a model that
helps meet this need in a way they can use day to day knowing you
need more than a brilliant idea or fantastic innovation to start and
sustain a successful technology business – you need a vision!

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The POEM ® Framework
PROPOSITION
ORGANISATION
ECONOMICS
MILESTONES

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P is for PROPOSITION – what’s the value?
• The Techpreneurs vision should deliver a value
proposition which provides clear descriptions for:
• Functions & Features on Offer (Customer experience)
• Target Market(s), Segment(s) & Customer Profile(s)
• Derived Benefits of the Offer – WIIFM?
• Alternatives and Differentiation
• Regulation & Compliance
• Inputs & Dependencies
• Competition & Substitutes
• Elevator Pitch….3 minute guide

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O is for ORGANISATION – who and how?
• PROCESS
• BUY
• PROCURMENT & LOGISTICS
• VENDORS
• MAKE
• HUMAN CAPITAL
• RESEARCH
• ANALYSIS & DESIGN
• PROGRAMMING & DEVELOPMENT
• TESTING
• COMMISSIONING/LAUNCH
• SELL
• MARKETING
• SALES
• CUSTOMER SUPPORT
• CORPORATE AFFAIRS
• PEOPLE
• BOARD OF DIRECTORS/ADVISORS
• EXECUTIVE
• TECHNICAL
• COMMERCIAL
• OPERATIONS
• NON-EXECUTIVE
• MANAGEMENT
• SENIOR
• MIDDLE
• JUNIOR
• STAFF
• CAREER PROFILE
• EXPERTISE & EXPERIENCE
• PERSONAL VISION/ MISSION/
OBJECTIVES
• CAPABILITIES & COMPETENCIES
• TECHNOLOGY
• CLIENT
• INTIMATE, PERSONAL, DESKTOP
TGY
• SERVER
• APPLICATION, INFRASTRUCTURE,
SECURITY, SERVICES

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E is for ECONOMICS – show me the money!
P&L STATEMENT PERIOD 1
REVENUE 1,000,000
Less DIRECT COST OF SALES 300,000
GROSS MARGIN 700,000
Less OPERATING EXPENSE 500,000
EBITDA (Profit or Loss) 200,000
CASHFLOW STATEMENT PERIOD 1
INFLOWS
- REVENUE 1,000,000
- LOANS & FACILITIES 700,000
- SHAREHOLDERS EQUITY 500,000
OUTFLOWS
- EXPENSES 800,000
- INTEREST 70,000
- REPAYMENTS 400,000
NET FLOW 930,000
BALANCE SHEET
ASSETS LIABILITIES
FIXED ASSETS 1,300,000 PAYABLES 300,000
CASH & BANK 300,000 LOANS 700,000
RECEIVABLES 700,000 EQUITY
TOTAL ASSETS 2,300,000 PAID UP CAPITAL 1,000,000
RETAINED EARNINGS 300,000
TOTAL LIABILITIES &
EQUITY
2,300,000
MARKET(S)
• $ SIZE?
• % SHARE?
• % INFLATION?
• DEMAND
• TRENDS
ROI - NPV - IRR
FORECAST
ASSUMPTIONS
ACTUAL
PERFORMANCE

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M is for MILESTONES – where are you going?
• SEED
• CONCEPT DEFINITION
• BUSINESS MODEL
• FRIENDS, FAMILY & FOOLS
FUNDING
• START-UP
• BANKABLE BUSINESS PLAN
• ESTABLISHED CUSTOMER
BASE
• FULL-TIME OPERATIONAL
STRUCTURE
• STEADY CASH BURN RATE
• ANGEL/VC FUNDING
• GROWTH
• REVENUE GROWTH
• INCREASED MARKET SHARE
• PE FUNDING
• ESTABLISHED
• PRODUCTIVITY
• NEW PRODUCTS/SERVICES
• COST MANAGEMENT
• EXIT
• AGREED VALUATION
… and when will you get there?

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CONCLUSION
• The POEM ® framework provides Techpreneurs with a model that
meets the need for organising the business of their company in a
form which they can use on a day to day basis.
• Each Techpreneur will need to determine the level of detail they
require for each peculiar situation they find themselves in be it
operational, marketing, selling, soliciting for funding or recruiting
resources, POEM ® provides guidance for execution while ensuring
that all critical information are given consideration
• Because investors don’t only come to organised pitch events and
you may run into them anywhere, a simple mental model such as
POEM ® that can be backed up with as much documentation as
required gives you an edge in todays world where a growing
number of entrepreneurs compete for a shrinking pool of capital.

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THANK YOU!
QUESTIONS?