TELLING YOUR STORY IDEA Competition Finalists March 15, 2010.

TELLING YOUR STORY

IDEA Competition Finalists

March 15, 2010

Introductory Issues

IDEA Criteria

IDEA Mission

“…to assist the most promising local entrepreneurs in the commercialization of innovative products, processes and deliveries by connecting them to the best resources available, along with access to the capital it takes to launch a successful venture.”

What IDEA isn’t looking for

Fancy “exit” strategies Promises of significant new jobs People that are trying to be someone they

aren’t just to “get the money”

Acknowledgments

Portions of this presentation taken from: “Art of the Start”

Guy Kawasaki “Preparing Effective Business Plans”

Bruce Barringer

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Sample Presentation Sequence

1. Title Slide

2. Quick overview

3. What we do – problem we solve

4. Opportunity and target market

5. Technology/Business Model

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7. Competition

8. Marketing & sales

9. Management team

10. Financial projections

11. Current status

12. Financing sought

13. Summary & Questions

Sample Presentation Template

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Title Page

Company name/logo

Name of founder(s)contact info

Who the presentation is being made to

Date

Beginning Your “Pitch”

Do Provide simple

explanation Its relevance (why it

matters) Help people “get it”

Don’t Tell your life story Go into minute detail Assume your idea is

obvious

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What is the issue?

Explain the issue What’s the pain? Why current solutions are

unsatisfactory

Validate the problem

How significant is the issue? How bad is the pain?

Your Solution

Discuss your solution How is it better than

the alternatives in a meaningful way to customers?

Benefits (hopefully self-evident)

Remember, don’t go “geeky”

Helping People “Get it”

YOU SAY… Little Man Says You Reply You Then Explain

“We use digital processing in our hearing aids”

“So What!?”

“Our product increases the clarity of sounds”

“For instance, if you’re at a party where lots of people are talking, you’ll be able to hear what people are saying to you”

“We provide 128-bit encryption in a portable device”

“So What?!”

“It’s harder than hell to break into our system”

“For example, if you’re in a hotel room and want to have a secure telephone conversation with your headquarters”

“Ask the Little Man”“Ask the Little Man”

Technology (Secret Sauce)

Talk about your technology, or unique aspects of your product or service, if appropriate

Don’t go “Geek” Show pictures of your product or prototype

If possible show a “demo” Talk about any intellectual property issues

involved

Opportunity & Likely Market

Discuss likely target market Relevant trends,

issues Show, visually if

possible, size of market, projected sales (3-5 years)

Explain estimates & assumptions

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Competition

Discuss direct, indirect, and future competitors There is competition, even if you don’t think

so. Where are these $’s being spent now? Talk about your points of competitive

advantage Side-by-Side Comparison is helpful (visual

aids)

Marketing & Sales Product/business positioning Pricing strategy Sales process

Buyer purchase factors How you create awareness

& reach end users Channels of distribution

Who are your customers? Length of sales cycle

A Little Perspective B1-B: 30,000 feet & $200 million

$200 million “Lingo” rich Not specific enough

Navy Seals: bits, bites, nits, nats Geeky, too “in-detail”

A-10 Warthog: 1,000 feet & $13 million Provides appropriate detail Shows market savvy

Management Team Discuss the following: Management team

Personal/professional backgrounds and role in the project

Any gaps in management team and how they will be addressed

Board of directors and/or advisors (if applicable)

Current Status

Discuss accomplishments to date Investments made to date and by whom

How funds have been spent Current ownership structure of the firm Describe the firm’s form of business

ownership (i.e., LLC, Subchapter S Corporation, C Corporation)

Show that you have traction

Next Steps….

Our near-term objectives

1. Yadda

2. Yadda

3. Yadda

Financials

Break-even cash-flow Break-even unit sales Summary of income & cash flow projections

for the first 3 to 5 years Shows scalability

Financing Needs

Sources & Uses table Identify development and

marketing costs necessary to reach a major milestone

The sources of funding and corresponding amounts

In Conclusion…

Summarize the strongest points about your venture & team

Solicit feedback Set up a follow-up

meeting if possible

10/20/30 Presentation Rule

Actually more of a guideline 10-12 slides (no more than 15)

Provide “enough” info“Lead” not “Read”

20 minutes (tops) 30 point font

Easier to read

POWERPOINT “Pointers”

Dark background Substantive & professional

Add logo to master page Use basic fonts Don’t go “whiz-bang”

POWERPOINT “Pointers”

Use Bulleted Lists (preferably one level) Use diagrams & graphs (but not cheap

graphics) Make printable slides

Ask judges to not “skip ahead”

My Contact Info

Kevin Cooper

2900 University Avenue

148 Dowell Annex

Crookston, MN 56721

Office: 218.281.8187