Product & Service, Elevator Speech Business Plan Preparation Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado.

Product & Service, Elevator Speech

Business Plan PreparationBusiness Plan PreparationBusiness Plan PreparationBusiness Plan Preparation

Frank MoyesFrank MoyesLeeds College of Business Leeds College of Business University of ColoradoUniversity of ColoradoBoulder, ColoradoBoulder, Colorado


Tonight’s AgendaTonight’s Agenda TopicsTopics

Features & BenefitsFeatures & Benefits MarginsMargins Elevator SpeechElevator Speech Investor PresentationsInvestor Presentations

Read BP pp 6-7Read BP pp 6-7 Practice Elevator SpeechPractice Elevator Speech In the Fire – team meetings, last hourIn the Fire – team meetings, last hour

Preliminary Market & Industry Analysis ResultsPreliminary Market & Industry Analysis Results Preliminary Interview ResultsPreliminary Interview Results


Next WeekNext Week

Marketing PlanMarketing Plan Revenue ModelRevenue Model Customer SurveysCustomer Surveys Read BP pp 14-18Read BP pp 14-18

In the FireIn the Fire Prelim Industry AnalysisPrelim Industry Analysis Model company Model company

descriptiondescription Hand inHand in

10 Call Reports10 Call Reports Preliminary Competitive Preliminary Competitive

MatrixMatrix Model companyModel company

In the Fire GradingIn the Fire Grading

Points Criteria25 to 30 Good Clear indication tha time and effort spent has been spent

Creative thought is evidentCan clearly articulate the issuesProvide clear evidence to support points

20 to 25 SatisfactorySome effort is evidentUnderstand the issues, but not clearly explainedSome evidence to support points

< 20 Poor Little to no effort is evidentDon't understand or can't articulate the issuesNo evidence to support

Week Number 1 to 3 4 5 6 7 8 9 10 11 12 13 14 15Market & Industry Analysis

Market Research Market ResearchInterviews InterviewsModel Company Model CompanyCOMP's COMP'sOpportunity/Need Opport/Need Opp/Need (rev)Value Proposition Value PropositionWrite-up Write-up

Product/Service Product/ServiceFeatures & Benefits Features & Benefits

Marketing PlanCustomer Surveys Customer SurveysTarget Market Target MarketPositioning PositioningChannel ChannelProduct/Service Strategy Prod/Service StragegyPricing PricingE-commerce E-commerceRevenue Model Revenue ModelCommunications CommunicationsWrite-up Write-up

Operations PlanWalk an Order Walk an Order

Development PlanMilestones Milestones

Management Plan

Competitive Advantage Competitive Advantage

Financial PlanIncome Statement 5 yr Income Statement 5 yrBalance Sheet & Cash Flow 5 yr Bal Sheet & Cash Flow Monthly & Qrtly Statements Monthly & Qrtly StmtsAssumptions AssumptionsCustomer Acquisition Costs Cust Acq CostsRisks Risks

Funding PlanValuation ValuationOffering OfferingSource & Uses Source & Uses

Company Overview Company Over

Executive Summary Executive Summary

Publish & PresentElevator Speech Elevator SpeechInvestor Presentation Investor Pres Investor PresQ & A In the Fire SessionsRevise BP sections Revise BP sections

Funding Plan

Market & Industry Analysis

Publish & Present

Opertations Plan

Financial Plan

Marketing Plan

Development Plan

Management Plan


Business Plan ElementsBusiness Plan Elements

Executive SummaryExecutive Summary Company OverviewCompany Overview Market & Industry AnalysisMarket & Industry AnalysisProduct/Service DescriptionProduct/Service Description Marketing PlanMarketing Plan Operations PlanOperations Plan Development Plan Development Plan ManagementManagement Competitive AdvantageCompetitive Advantage Financial PlanFinancial Plan FundingFunding


Product/Service SectionsProduct/Service Sections

FeaturesFeatures BenefitsBenefits Proprietary RightsProprietary Rights Stage of DevelopmentStage of Development


FeaturesFeatures

Detailed descriptionDetailed description AttributesAttributes EnvironmentEnvironment

What is unique?What is unique? What is evidence that customers want these features?What is evidence that customers want these features? How produce & deliver – systems approachHow produce & deliver – systems approach Don’t assume people know or understand your Don’t assume people know or understand your

product/serviceproduct/service


AttributesAttributes

PerformancePerformance: durability, quality of materials, defect levels, tolerances, : durability, quality of materials, defect levels, tolerances, construction, dependability, functional performance (acceleration, nutrition, construction, dependability, functional performance (acceleration, nutrition, taste), efficiency, safety, styling, packaging, etc.taste), efficiency, safety, styling, packaging, etc.

Cost:Cost: purchase price, quantity discounts, operating costs, repair costs, cost of purchase price, quantity discounts, operating costs, repair costs, cost of extras or options, cost of installation, trade in allowance, likely resale value, extras or options, cost of installation, trade in allowance, likely resale value, etc.etc.

Availability:Availability: carried by local stores, credit terms, quality of service available carried by local stores, credit terms, quality of service available from local dealer, delivery time, credit card, on-line transactions, etc.from local dealer, delivery time, credit card, on-line transactions, etc.

Service:Service: hours, warrant, guarantee, return/replacement policy, upgrades, hours, warrant, guarantee, return/replacement policy, upgrades, maintenance, training, installation, repair service, spare parts, customer maintenance, training, installation, repair service, spare parts, customer support, tech support, training, product design, make to order, level of support, tech support, training, product design, make to order, level of inventory, quotation response time, lead time, quality certification, employee inventory, quotation response time, lead time, quality certification, employee capabilities, etc.capabilities, etc.

Environment:Environment: location, atmosphere, layout, fixtures, aesthetics, style, sound, location, atmosphere, layout, fixtures, aesthetics, style, sound, lighting, color, etc.lighting, color, etc.


BenefitsBenefits

Describe major benefits - be specificDescribe major benefits - be specific What is the evidence that benefits are understood by What is the evidence that benefits are understood by

the market?the market?


BenefitsBenefits Emotional:Emotional: ambition, power, independence, achievement, ambition, ambition, power, independence, achievement, ambition,

pride of ownership, comfort, love, friendship, security, style, self pride of ownership, comfort, love, friendship, security, style, self Improvement, etc.Improvement, etc.

Social:Social: status, image, popularity with friends or family members, status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc.reputation of brand, personal relationships, style, fashionable, etc.

Health:Health: stress, fitness, mental capacity, strength, sex life, quality of life, stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc.muse, etc.

Financial:Financial: revenue, costs, savings, productivity, pricing, profitability, revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc.market share, save time, productivity, etc.

ConvenienceConvenience? ? Objective is distinguish between benefits and features, not put into Objective is distinguish between benefits and features, not put into

categoriescategories


Feature vs. Benefits Feature vs. Benefits


Net DogNet Dog

NetDogFeature Benefit

Adaptable to new network threats

Protection without a reduction in user productivity

Modular rules based system Adaptable to new business requirement and new threats

Guaranteed zero packet loss

Eliminates the risk of false negatives

Intelligent network adaptation

Protection is provided regardless of the network topology

Ships with a standard rule set

Provides out of the box protection from common attacks

Scripting language and API Customers can develop their own powerful rules

Web based reporting system Improves forensics and visibility into the security of the network

Web based interface Makes administration of the system easy


AmariAmari

FeaturesDUOBenefits

Ergonomic design

Eliminates back and shoulder pain so parents feel more comfortable while carrying their baby.

Cocoons Allow parents to more easily attach and detach baby from harness, eliminating fear of straining arms, dropping or tightly squeezing baby.

Multiple Cocoons

Parents maintain a look that can be seasonally updated to provide the feeling that they are on the leading edge of fashion. Babies are happier and more comfortable in Cocoons specifically designed to fit their current developmental stage.

Unexpected Attributes

Convenient features allow parents to keep important items, like keys, easily accessible. This saves time and energy spent preparing to get out the door.


Product & Service ConclusionsProduct & Service Conclusions

Make it realMake it real Photo, rendering, specsPhoto, rendering, specs PrototypePrototype Evocative descriptionEvocative description

Make it excitingMake it exciting Sell your conceptSell your concept


Product/Service Competitive MatrixProduct/Service Competitive Matrix

Product/Service offering – breadth and depthProduct/Service offering – breadth and depth Quality (define the type quality)Quality (define the type quality) Detailed analysis of the key featuresDetailed analysis of the key features

Obtain samples of the competitor’s products, specifications & Obtain samples of the competitor’s products, specifications & drawingsdrawings

Retail go to competitor’s locations, observe the environment and how Retail go to competitor’s locations, observe the environment and how customers interact with the business. customers interact with the business.

Internet businesses evaluate the websites.Internet businesses evaluate the websites. Strengths and weaknessesStrengths and weaknesses LocationLocation


Product/Service Competitive MatrixProduct/Service Competitive Matrix

Attribute 1Attribute 1 Attribute 2Attribute 2 Attribute 3Attribute 3

PricePrice StyleStyle AvailabilityAvailability

CrocsCrocs $29$29 One style, One style, multiple colorsmultiple colors

Everywhere!Everywhere!

TevasTevas $45+$45+ Multiples styles, Multiples styles, colorscolors

Athletic/comfort Athletic/comfort shoe storesshoe stores

ReefReef $20$20 Thongs, Thongs, multiple colorsmultiple colors

Skate shops, Skate shops, dept storesdept stores

Hoz SandalsHoz Sandals ?? ?? ??


Quality Dimensions IQuality Dimensions I

Performance Performance - - the primary operating characteristics of the primary operating characteristics of the product or servicethe product or service

Features Features - - the characteristics that supplement the the characteristics that supplement the basic functioning of the product or servicebasic functioning of the product or service

Reliability Reliability - - probability of the product or service failing probability of the product or service failing within a specified period of timewithin a specified period of time

Conformance Conformance - - the degree to which a product or the degree to which a product or service meets acknowledged standardsservice meets acknowledged standards


Quality Dimensions IIQuality Dimensions II

Durability - a measure of product life (both technical and Durability - a measure of product life (both technical and economic)economic)

Serviceability Serviceability - - the speed, courtesy, competence, and the speed, courtesy, competence, and ease of repair or recoveryease of repair or recovery

Aesthetics Aesthetics - - how a product or service looks, feels, how a product or service looks, feels, sounds, tastes, or smellssounds, tastes, or smells

Perceived QualityPerceived Quality - - various tangible and intangible various tangible and intangible aspects of the product from which quality is inferredaspects of the product from which quality is inferred


Service Quality DimensionsService Quality Dimensions Reliability Reliability - - ability to perform service dependably & ability to perform service dependably &

accuratelyaccurately Responsiveness Responsiveness - - willingness to help customers & willingness to help customers &

provide prompt serviceprovide prompt service Assurance Assurance - - knowledge & courtesy of employees and knowledge & courtesy of employees and

ability to convey trust and confidenceability to convey trust and confidence Empathy Empathy - - provision of caring, individualized attention provision of caring, individualized attention

to customerto customer Tangibles Tangibles - - appearance of physical facilities, appearance of physical facilities,

equipment personnel and communication materialequipment personnel and communication material


The Elevator PitchThe Elevator PitchThe Elevator PitchThe Elevator Pitch

Based on material developed by:


Elevator PitchElevator Pitch

What is the objective?What is the objective? Who are you talking to? What motivates them?Who are you talking to? What motivates them? Must be exciting and compellingMust be exciting and compelling This is a conversation, not a speechThis is a conversation, not a speech


The Elevator PitchThe Elevator Pitch

Goal: Buy-inGoal: Buy-in Investors Investors EmployeesEmployees Customers and partnersCustomers and partners

Critical Attribute: FocusCritical Attribute: Focus What do you want remembered?What do you want remembered?

Result: MotivateResult: Motivate Listener wants to hear more Listener wants to hear more


The Elevator PitchThe Elevator Pitch

What market are you in? What market are you in? What urgent problem are you solving?What urgent problem are you solving? What is the size of the opportunity? What is the size of the opportunity? Value propositionValue proposition Why will you win? Why will you win? Where is the validation (customers, investors, etc.)?Where is the validation (customers, investors, etc.)? The order is flexibleThe order is flexible


Elevator Pitch Elevator Pitch Communication Imperatives Communication Imperatives

Show passion, energy, and enthusiasmShow passion, energy, and enthusiasm Use appropriate eye contact when face-to-face Use appropriate eye contact when face-to-face Slow down and speak clearlySlow down and speak clearly Be brief (target 30 seconds) Be brief (target 30 seconds) Be confidentBe confident Use understandable vocabularyUse understandable vocabulary


Elevator Pitch – Example Elevator Pitch – Example P1 Diamond develops proprietary thin film diamond products P1 Diamond develops proprietary thin film diamond products and equipment that dramatically improve heat dissipation on and equipment that dramatically improve heat dissipation on microprocessors, solving one of the highest priority pain points microprocessors, solving one of the highest priority pain points in the industry.in the industry.

We address growing markets that will exceed $1.5B by 2006 We address growing markets that will exceed $1.5B by 2006 and will become the dominant supplier with the best team and will become the dominant supplier with the best team having the most comprehensive patent position in the industry. having the most comprehensive patent position in the industry. Intel is our largest current investor, and we are actively Intel is our largest current investor, and we are actively engaged with other top target customers and partners who engaged with other top target customers and partners who provide very strong references.provide very strong references.


How Do You Get Immediate Attention? How Do You Get Immediate Attention?

Reduce to one sentence or question what is Reduce to one sentence or question what is unusual, interesting, exciting or dramatic.unusual, interesting, exciting or dramatic.


Elevator Pitch ExerciseElevator Pitch Exercise

Your name and the name of your firmYour name and the name of your firmYour pitchYour pitchEvaluation by class on a scale of 1 to 10 Evaluation by class on a scale of 1 to 10

Urgent pain Urgent pain Large growing marketLarge growing market Unique, defensible positionUnique, defensible position ValidationValidation Communication skillsCommunication skills Desire to hear moreDesire to hear more


Be Prepared to Answer Questions AboutBe Prepared to Answer Questions About

Product and technologyProduct and technology Marketing strategyMarketing strategy Market researchMarket research Revenue and profitabilityRevenue and profitability Funds requiredFunds required ValuationValuation


Financial DynamicsFinancial Dynamics

Every entrepreneur must know – part of your DNAEvery entrepreneur must know – part of your DNA All your decisions have a financial impactAll your decisions have a financial impact Not accountingNot accounting Language of businessLanguage of business


Financial Dynamics Financial Dynamics 4 Key Elements4 Key Elements

RevenueRevenue MarginsMargins AssetsAssets Cash FlowCash Flow


MarginsMargins

% Gross Profit Margin% Gross Profit Margin

% Contribution Margin% Contribution Margin

% Net Profit Margin % Net Profit Margin

% Operating Expenses% Operating Expenses

Revenue – COG’s Revenue

Revenue – Variable Costs Revenue

Net Earnings Revenue

Sales, General & Admin Revenue

Margins %

ToyotaIntel Dell HP Corp

2005 2005 2005 2005 2004 2005Gross Profit 59.4 17.8 23.6 11.2 17.3 19.5SGA 16.4 9.3 16.6 3.6 2.4 4.8Net Profit 22.3 6.4 2.8 -5.7 1.4 6.5

P & G Whole Fds Kroger Amazon Merck2005 2005 2005 2005 2005

Gross Profit 51.4 35.1 24.8 24.0 76.6SGA 28.2 27.2 19.3 17.5 43.4Net Profit 12.7 2.9 1.6 4.2 21.0

Gen Motors

Product & Service, Elevator Speech Business Plan Preparation Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado.

Documents

product service

productservice slide

colorado slide

grading slide

quality of service available

cost of installation

cost of extras

productservice dont