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JRogers Pitchcamp Presentation Oct 2009

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Going from Project to Business: touches on risk assessment, valuation and other topics everyone should consider before pulling the trigger on an opportunity.

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JRogers Pitchcamp Presentation Oct 2009

  1. 1. RAMPING UP: Going from Project to Business Jim Rogers October 20, 2009
  2. 2. Mission Home grown economic development by fostering the birth and nurturing the growth of Oklahoma advanced technology companies
  3. 3. Business & Capital Lifecycle
  4. 4. Business & Capital Lifecycle
  5. 5. Project vs. Business • A project centers around activity, technology, function, and results •A business centers around the same things, except it takes its cues from a market, rather than one contracting entity •So… Business = Project + Market
  6. 6. Project Homework •What am I doing? •Who do I need to do this? •Who else is doing anything close? •Why isn’t anyone else doing this? •How will I do this?
  7. 7. Market Homework •Who’ll pay for this? •How much will they pay? •What else could they use? •How will they get/buy it? •What’re the cool kids doing?
  8. 8. Business Homework •How much could I sell? •How much could I make? •What else could I be doing? •Where will I get help? •What will it take to get going?
  9. 9. The Question VALUATION!!!
  10. 10. The Rough & Dirty Guide •Take the amount of money you think you’ll need •Multiply that by 5x, 10x, or 20x •These are exit multiples •Divide that amount by how much you’re willing to sell of your company (e.g. 20%, 30%, 40%) •Divide that amount by 5 •That’s how much you need in profits by Year 5
  11. 11. Example •I need $250K, and I have a demo •$250K x 20 = $5MM •If I give 25%, then $5MM / .25 = $20MM •$20MM / 5 = $4MM in earnings •$4MM / .8 = $5MM in sales •WHY????????????????
  12. 12. Now I Feel Sick… •Don’t. •Analyze your data… •Analyze your assumptions… •Analyze your plan… •Analyze your wallet… •Analyze your heart…
  13. 13. In Summary… •Be creative •Know your craft •Know your market •Ask for help (of all kinds) early and often •Go.
  14. 14. $DO || ! $DO ; try try: command not found
  15. 15. Jim Rogers 405-813-2420 jrogers@i2E.org www.i2E.org http://jrr2ok.blogspot.com

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