Christo Partners Op Eval, Screen and Evaluation


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Got a great idea,.. good. Now the work begins to turn it into a business! This is the workshop we run for aspiring entrepreneurs seeking to commercialise their idea!

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  • I am assuming all this s sorted. You have a business plan.
  • Christo Partners Op Eval, Screen and Evaluation

    1. 1. Pitching Workshop Presenter: Peter Christo
    2. 2. OVERVIEW - Evaluation
    3. 3. How does an idea become abusiness? Growth Startup Opportunity Risk ScreenIdea
    4. 4. Three things need to cometogether! ? $ !
    5. 5. A Metaphor It’s a journey not unlike driving from Melbourne to Perth at night in the fog without a GPS or Map. We know where west is that’s about it. Each wind in the road appears unexpectedly, the fog lifts occasionally then comes down thick as pea soup and you wonder whether it would be better to stop and go back. If you keep going you will get there, but Perth may have changed in the process!
    6. 6. A framework to manage ventureRISK!EVALUATION EXECUTION EXIT Register Design Review Qualify Build Learn Commit Deploy Archive
    7. 7. Idea v Opportunity Ideas are not necessarily opportunities Opportunities may not be commercial Commercial opportunities are relative to the idea owner (Opportunity Cost) ◦ Skills ◦ Passion ◦ Stage of life ◦ Net worth ◦ Risk tolerance/appetite
    8. 8. Key elements of a commercialidea! Taps into demand that is quantified and understood (what is that?) Includes a clear value proposition (what is that?) Has a business model that results in value being created for the business ($$) It is protectable Can deliver value to the investors/shareholders
    9. 9. Screening “A series of questions that determine risk and reward!” What questions would you ask? ◦ What is the problem/opportunity? ◦ How does this product provide a solution? ◦ What makes this business & team right for this opportunity? ◦ What will it take to launch it? & is there a return?
    10. 10. Screening categories Industry & Market Market Structure Economics Harvest Issues Competitive Advantage Management Team Personal Criteria Strategic Differentiation Fatal Flaw?
    11. 11. A technique
    12. 12. A Let’s go Fishing TechniqueCapture Produce Distribute Demand Driver Subject Range W/Sale matter xpt Timely Equipt Retail Price OH&S Mktg/Brand Demographics Quality Knowledge Service
    13. 13. Economics A clear demand driver A way to drive demands A way to deliver quantifiable value A sales model A margin A known break even point
    14. 14. Valuations The idea The opportunity The Startup ◦ No revenues ◦ revenue, no B/E ◦ B/E + Full costed ◦ Profit Trajectory Going & Growing Concern Established Business few growth prospects
    16. 16. Concepts around pitching Purpose of the Pitch Use of aids Context ◦ In the lift/BBQ ◦ Informal business ◦ Formal but brief ◦ Full presentation Reading from notes An idea v’s an opportunity
    17. 17. Key Criteria before you canPITCH The problem/opportunity Industry and market. Economics (Business model) Harvesting (can you sell the business?) Competitive Advantage (protect yourself) Who is with you? The Team. Any fatal flaws?
    18. 18. Audience Unsophisticated investors Sophisticated Investor/s Business Angel/s Committees (Govt) Venture Capitalists Suppliers Customers Business Partners Other stakeholders
    19. 19. Objectives Getting a meeting Getting the second meeting with the decision makers Qualifying that who you are pitching to is the right target Forcing you to be clear and commercial in your presentation Closing the deal and getting the outcome you want.
    20. 20. EXAMPLE of a pitch
    21. 21. Dummy Pitch You are a seasoned software engineer. You have come up with a way to quadruple the efficiency of any solar panel via software and so supply all the average homes power, including power up the electric car every night. You have done your numbers and believe that an investment of $5Million would allow you to kick off and is the best way forward for you from a power of energy company. On your way to a friends office for a lunch meeting, James Packer enters the elevator you are in. You are on the ground floor, and he is heading to the 22nd. You get off on the 23rd. You have your business plan in your bag!
    22. 22. Review your own pitches Does it cover the key criteria? Is it succinct? Does it include unnecessary information? Can you cover the key points fast (elevator pitch) Do you have the extended version? Other factors? ◦ How you dress ◦ How you communicate verbally ◦ You confident you are
    23. 23. Screen your opportunity Use a template or tool What are the key areas that need work CHECK ◦ Business Model Economics ◦ Demand Drivers ◦ The management team ◦ Validation of assumptions ◦ Actions forward
    24. 24. Key things to remember What are you pitching for? ◦ Time ◦ Money ◦ Knowledge? ◦ Relationships? Is your evaluation rational/sensible ◦ Get a 2nd opinion ◦ Get a 3rd opinion ◦ Keep it simple
    25. 25. Screen Tool
    26. 26. Questions?Clarifications?Challenges?