Capacity building business template (success lab to market)

Business Building

Presentation Templates

May 17, 2013

Suggested Process:

1) Complete Technical Business Canvas

2) From Canvas Prepare Presentation

Getting the Business Right

© Dr’s Gary Lynn & Peter Koen, Stevens Tech; All Rights Reserved.

Do not copy or distribute without permission.

[email protected]

1) Complete Technical Business Canvas

2) From Canvas Prepare Presentation

Suggested Process:

© 2013 Prof. Lynn. All Rights Reserved. 5

Your Company Name

(Logo)

(Tagline)

(Date)

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

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

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

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

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

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

Competition (a)

• Show the competition and how your product/service compares along two important dimensions.

• Describe the market gap or opportunity.

13

Competition (b)

• Show the competition and how your product/service compares along other important dimensions.

• Describe the market gap/opportunity

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

Business Model

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

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

“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

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

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

Channel Validation

Validation of Channel Strategy from

one Channel Partner

Photo or Video of Channel Partner Confirming Interest

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

23

Sales Forecast

Explain key assumptions.

24

Sales Forecast

Explain key assumptions.

1st Month’s Sales from X & Y . . .

2nd Month’s Sales from Y & Z . . .

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?

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.

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.

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

Ris

k Fa

cto

r

Probability of Event

1.0 0.0

10

0

1 page map

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

30

Phase 1 or 90 Work Plan

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?

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.