Starting your Start-Up: How to Develop a Workable Innovation Process & Business Plan. Presented by. Tanya Candia
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1 Starting your Start-Up: How to Develop a Workable Innovation Process & Business Plan Presented by Tanya Candia
2 Tanya Candia Candia Communications International marketing consulting company More than 25 years startup experience Launched startups in Europe, Americas, Asia Strategy, positioning, branding, pricing, market analysis, market visibility, public relations, channels E-books: IEEE Starting Your Startup Series Hit the Market Running Build Market Momentum
3 What are you getting yourself into?
4 The Business Plan
5 Excuses, excuses I have a business plan sort of I ve got it all in my head I only need a business plan if I am looking for funding I can have someone else write it for me
6 Building your blueprint for success
7 Part 1 The Business Concept
8 Example of a Business Concept Company X has produced a patented cloudbased offering that secures executive communications desktop-to-desktop. This eliminates exposure to insider hacking, which represents 70% of security problems today, while ease of use and low cost remove barriers to adoption. The company s direct sales team will target IT and corporate compliance managers in markets where the need for security is most compelling and highly regulated: healthcare and financial services.
9 What Not to Write Company Y is game changer. We are in the vanguard of the event-based systems market. Our ability to filter and correlate real-time information, and provide immediate answers means that we will be the next Google (Amazon, ebay, Facebook,...) With no competition, we will be able to develop and capture a very large percentage of this unexplored market.
10 Part 2 Market Analysis and Strategy
11 Industry and Key Segments What is your industry? What is a segment? Where does your company fit in?
12 How to Determine Market Size
13 Example of Market Size Company N will provide affordable, easily-adopted Dental Billing Management Systems to the huge underserved market of small and medium-sized dental offices in the US and Canada. The dental office market size is estimated at $1.1 Billion but this represents only large enterprise purchases. Most small and medium-sized dental offices fall outside the scope of the visible market yet they represent some 60% of the total number of dental offices. The market for our solutions has the potential to be in the range of $1-1.5 Billion.
14 Target Customer Specific customer need/problem Pricing, spending threshold Company viability Technology: better/faster/cheaper Business model Partnerships Technical aspects
15 Part 3 Competitive Advantages and Pricing Strategy
16 Competitive Comparison Weight (1-10) My Product Product X Product Y Price Company Viability Performance Scalability TOTAL
17 Pricing Models
18 Part 4 The Product
19 Giving too much detail Death by screenshot Confusing the present with the future Pitfalls for Engineers
20 The Elevator Pitch
21 The Elevator Pitch Done Right
22 Completing the Product Section Elevator pitch Short paragraph new, different, compelling Intellectual property Patents granted or pending Methods, algorithms, other new approaches Marketing aspects To complete the product Market development
23 Part 5 The Go-To-Market Plan
24 How You Will Sell
25 How You Will Market
26 Pick 3 PR Low cost, high return Website Face of your company One other Trade shows, events Direct /mail campaigns SEO, social media campaigns Etc etc etc
27 Part 6 Business Structure and Management Team
28 Executive Team and Organization CEO HR, Finance, Facilities Product Development Outsourced QA, Outouced devt resources Marketing Outsourced web design, collateral development Sales Outsourced telesales support
29 Operating Expenses Example of industry averages
30 Part 7 Financial Plan
31 Basis for Projections BASIS FOR PROJECTIONS: Market positioning Pricing model Distribution approach Marketing and sales strategies EXPECTATIONS Generate a small amount of revenue in Year 1, following the initial product launch. Revenues ramp up by the end of Year 2, due to aggressive marketing campaigns and programs to leverage early customers, We expect to grow momentum and reach break-even by the end of Year 5.
32 Revenue, Expenses, P&L Year 1 Year 2 Year 3 Revenue ($K) 216 3,055 7,320 Expenses ($K) 2,200 3,400 7,500 Profit/(Loss) ($K) (1,994) 345 $180 Investment ($K) 2,000 2,000 0
33 Fine Tuning
34 Funding The Presentation Title slide Big Fat Claim Market definition and size Target market segment and buyer characteristics Your solution with proof points High-level evidence slide Competitive landscape Company profile Management team Status and outlook Financials (Backup slides)
35 Next Steps Full 2-4 Business page Business Plan Plan Launch Planning Market Sizing Pricing, Packaging, Positioning Competitive Analysis
36 Q&A
37 Tanya Candia
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