ENTRE 440/540 Business Plan Practicum

Transcription

1 ENTRE 440/540 Business Plan Practicum Sign-in - Sit down front - Name tents! Clearly state your name! What do you need? One Minute Pitches Sign-up in front of class Join a team? - what kind? what do you have to offer? Another team member? What skills or experience? Resource Help? - Market data? Introduction? Tom Eckmann ENTRE Business Plan Practicum 1

2 Welcome! ENTRE AB Business Plan Practicum On-ramp to the 2015 U.W. Business Plan Competition Tom Eckmann

3 Course Journey January 8 January 15 January 22 January 29 February 5 February 12 February 19 February 26 March 5 March 12 Is entrepreneurship for you? and Good business ideas Lean Startup, library resources, and networking night Business planning and risk assessment Markets, competition and uniqueness Business models and financial projections Legal basics for startups Insights from past BPC participants Bootstrapping and Crowdfunding Raising investor capital Dreaming Big! (who says the sky s the limit?) Tom Eckmann ENTRE Business Plan Practicum 3

4 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 Tom Eckmann ENTRE Business Plan Practicum 4

5 Dreaming Big: Who says the sky s the limit! Chris Lewicki President & Chief Engineer Tom Eckmann ENTRE Business Plan Practicum 5

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

7 Growth of streaming sites PROBLEM Ways to share are limited Lack of sociability Focus is streaming free music, not sharing it with friends

8 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

9 FREEMIUM MODEL Increase User Base Revenue Stages

10 18-to-36 year-olds TARGET MARKET Avid Music Listeners 77 million in the United States Account for 24% of the overall United States population

11 RISKS Product risk Market risk Team risk Financial risk

12 WHY IS IT VIABLE? Superior optimal value proposition Users: Engagement Collaborators: More traffic and exposure Company: Profits and providing a valuable solution

13 Team Members Lesley Yun Chen, Brad Silldorff, Chris Wigley

14 NoMosquito The All-Natural Insect Repellent Designed to Replace DEET-Based Repellents Team NoMosquito: Keane Sweet Fei (Florence) Fang

15 The Problem DEET Neurotoxin Petroleum-based DEET Alternatives

16 The Solution - NoMosquito All Natural - Displaces DEET Effectiveness tested Pleasing fragrance Waste-Free Petroleum-Free

17 The Market Opportunity - The Insect Repellent Industry at a Glance

18 Go to Market Strategy Traction Retail Successfully marketed and sold NoMosquito to small vendors in North Idaho 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

19 Income Statement

20 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.)

21 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 Business Plan Practicum 21

22 Many Avenues for Entrepreneurs Risk Growth Company Solopreneur (life style) Social (impact) Entrepreneur Re-entrepreneur (purchase) Franchisee (operator) Intrapreneur (manager or executive) Reward Tom Eckmann ENTRE 440/540 Business Plan Practicum 22

23 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 Tom Eckmann ENTRE Business Plan Practicum 23

24 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 ENTRE Business Plan Practicum 24

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 Tom Eckmann ENTRE Business Plan Practicum 25

26 Plan it and Pitch it! Elevator Pitch 30 second and 1 minute versions Business Plan Executive Summary (1-2 pages) Financial Projections Problem Solution Market Competition Operations strategy Go-to-market strategy Team Risks Appendix PowerPoint slide deck (plus backup slides if needed) Presentation and leave-behind versions Tom Eckmann ENTRE Business Plan Practicum 26

27 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) Tom Eckmann ENTRE Business Plan Practicum 27

28 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 ENTRE Business Plan Practicum 28

29 Sources of Capital for Startups Phases of Development Revenue Time Risk Idea/Startup Launch Traction Growth Personal 3 F s Bootstrap Grants Crowd-funding Angels VCs Strategics Loans VCs Strategics Private Equity Public market Loans and bonds Tom Eckmann ENTRE Business Plan Practicum 29

30 Finis Best of luck with all your entrepreneurial endeavors! Tom Eckmann ENTRE Business Plan Practicum 30

31 Class Evaluations 1. Enrolled students only 2. Complete evaluation form 3. Add comments on second sheet 4. Hand to monitors before leaving Tom Eckmann ENTRE Business Plan Practicum 31