ENTRE 440/540 Business Plan Practicum...2015/04/03 · One Minute Pitches Sign-in - Sit down front - Name tents! 2 ENTRE 440-540AB Business Plan Practicum “On-ramp to the 2015 U.W

Tom Eckmann ENTRE 440-540 – Business Plan Practicum 1

ENTRE 440/540 – Business Plan Practicum

• Clearly state your name!

• What do you need?

• Join a team? - what kind? what do you have to offer?

• Another team member? – What skills or experience?

• Resource Help? - Market data? Introduction?

Sign-up in front of class

One Minute Pitches

Sign-in - Sit down front - Name tents!

2

ENTRE 440-540AB Business Plan Practicum

“On-ramp to the 2015 U.W. Business Plan Competition”

Tom Eckmann 206-441-2067

[email protected]

Welcome!

ENTRE 440-540 – Business Plan Practicum Tom Eckmann 3

January 8 “Is entrepreneurship for you?” and “Good business ideas”

Business models and financial projections

Legal basics for startups

Insights from past BPC participants

Bootstrapping and Crowdfunding

Raising investor capital

Business planning and risk assessment

Markets, competition and “uniqueness”

Lean Startup, library resources, and “networking night”

Course Journey

January 15

January 22

January 29

February 5

February 12

February 19

February 26

March 5

March 12 Dreaming Big! (who says the sky’s the limit?)

Today’s Agenda


1. Dreaming Big: Chris Lewicki, Planetary Resources

2. 3 BOA Team Presentations (10 minutes each)

EchoFlo – Music Sharing

Auctora -- Simple Resume Sharing

NoMosquito – Natural insect repellant

3. This entire course in 15 minutes (or less)

4. Class evaluations


Dreaming Big: Who says the sky’s the limit!

Chris Lewicki

President & Chief Engineer

Company: EchoFlo Chase Klingel, Trent Robinson, John-Michael Larson

PROBLEM

• Growth of streaming sites

• Ways to share are limited

• Lack of sociability

• Focus is streaming free music, not sharing it with friends

SOLUTION

• Hybrid System

• Create a diverse library

• Create unique three way reward system

• More Interactive (ability to echo)

• We help drive traffic to our collaborators websites

FREEMIUM MODEL

• Increase User Base

• Revenue Stages

TARGET MARKET

• 18-to-36 year-olds

• Avid Music Listeners

• 77 million in the United States

• Account for 24% of the overall United States population

• Product risk

• Market risk

• Team risk

• Financial risk

RISKS

WHY IS IT VIABLE?

• Superior optimal value proposition

• Users: Engagement

• Collaborators: More traffic and exposure

• Company: Profits and providing a valuable solution

Team Members

Lesley Yun Chen, Brad Silldorff, Chris Wigley

http://auctora.co/slides

NoMosquito The All-Natural Insect Repellent Designed to Replace

DEET-Based Repellents

Team NoMosquito: Keane Sweet Fei (Florence) Fang

The Problem

DEET

Neurotoxin

Petroleum-based

DEET Alternatives

The Solution

- NoMosquito

All Natural - Displaces DEET

Effectiveness tested

Pleasing fragrance

Waste-Free

Petroleum-Free

The Market Opportunity - The Insect Repellent Industry at a Glance

Go to Market Strategy

Traction

Successfully marketed and sold NoMosquito to small vendors in North Idaho

Retail

In 2015, sell at least 5000 units to retail outlets in the Greater Seattle Area

In 2016, expand to other areas in the region

In 2017, expand to California

In 2018, partner with national natural products distributor to sell across the US

Online/Direct

In 2015, launch a website with information, and sell products through Amazon.com

In 2016, launch an online sales portal

Income Statement

Risks and Opportunities

Risks

Personal injury

Unable to prove

NoMosquito’s efficacy in

clinical setting (wasted

money)

Opportunities Prove that NoMosquito

competes with—or beats—DEET

Grow organically without the need for outside investors

Partner with a national distributor after success at regional level

Find adjacencies for primary ingredient in other applications (head lice, ticks, etc.)


ENTRE 440/540 in 15 minutes (or less)

Course Objectives

• Prepare you for success in the 2015 BPC Identify a good business opportunity (idea) Form a team Develop and present a compelling business plan and

presentation

• By end of course, you should have: An understanding of entrepreneurs and what it means to

be one An idea of how to plan and start a new venture A network of new people who can help you

Tom Eckmann ENTRE 440/540 – Business Plan Practicum 22

Many Avenues for Entrepreneurs

Risk

Reward Intrapreneur (manager or executive)

Growth Company

Solopreneur (life style)

Re-entrepreneur (purchase)

Franchisee (operator)

Social (impact) Entrepreneur


Where good ideas come from

Curiosity Triangulation Opportunism

• Draw on life learnings and let many small things build on themselves

• Question everything - cultivate an appetite for information of all kinds

• Live in the future

• Don’t limit your ideas to what you “know” (you can learn what you don’t know!)

• Read and observe - correlate seemingly unrelated bits of knowledge (connect the dots)

• Seek out analogous problems and solutions in other industries, societies or countries

• Seek “adjacent” and complementary opportunities

• Copy-transform-combine – your new idea!

• Don’t assume existing solutions are adequate

• Reverse engineer what’s already out there – do it better, faster or cheaper!

• Find products or services offered in other places that might find an eager, local market


Markets, Competition, Uniqueness

Market?

Definition:

Same People Same Product Same Way Same Reasons

How many?

Where are they?

How do you find out?

Competition?

Anything that vies for same customer dollars you want spent with you

Follow the money… it’s usually a zero sum game.

It can be direct, indirect or substitute

Uniqueness?

What sets you apart from competition and makes people want to buy from you.

Tom Eckmann 25

Business Models and Projections

Business Model

How company creates and delivers value

How the business makes money!

Financials

Profit and Loss

Pricing Sales Forecast COGS Operating Exp.

Balance Sheet

Assets Liabilities

Cash Flow

Cap Ex. Working Capital

Uses:

Major milestones

Key assumptions and data sources

When business breaks even

How much capital to start and grow

Expected return on investment

ENTRE 440-540 – Business Plan Practicum


Plan it and Pitch it!

Elevator Pitch

Business Plan

PowerPoint

30 second and 1 minute versions

Executive Summary (1-2 pages)

Financial Projections

• Problem • Solution • Market • Competition • Operations strategy • Go-to-market strategy • Team • Risks • Appendix

10-12 slide deck (plus backup slides if needed) Presentation and leave-behind versions

The Lean Startup


What is a startup?

• Organization dedicated to creating something new under conditions of extreme uncertainty.

• Mission – penetrate the fog of uncertainty to discover a successful path to a sustainable business

Why Lean Startup works

• Rapid scientific experimentation -- fail fast!

• Focus on what customers really want

• Maintain agility - shift directions, alter plans on real time basis

• Core Lean Start methodologies:

“Minimum Viable Product”

“Validated learning” (Build-Measure-Learn-Adapt)


Working with Attorneys

Network and find an attorney who understands your business and you want to work with

Don’t wait too long

But don’t move too fast -- minimize legal fees early on – money better spent on building the business.

Tom Eckmann 29

Sources of Capital for Startups

Idea/Startup Launch Traction

Time

Revenue

Risk

Phases of Development

Growth

ENTRE 440-540 – Business Plan Practicum

Personal 3 F’s

Bootstrap Grants Crowd-funding

Angels VCs Strategics Loans

VCs Strategics Private Equity Public market Loans and bonds


Finis

Best of luck with all your entrepreneurial endeavors!


Class Evaluations

1. Enrolled students only

2. Complete evaluation form

3. Add comments on second sheet

4. Hand to monitors before leaving

Documents

ENTRE 440/540 Business Plan Practicum...2015/04/03 · One Minute Pitches Sign-in - Sit down front - Name tents! 2 ENTRE 440-540AB Business Plan Practicum “On-ramp to the 2015 U.W