Elevator Pitch and Abstract Workshop - PowerPoint by noy99673

VIEWS: 0 PAGES: 24

									Elevator Pitch and Abstract
Workshop
     Agenda

• Introductions
• Elevator Pitch Presentation (11:00-11:40)
• Q&A Interaction (11:40-12:00)
• Assign Teams (12:00-12:10)
• Team Breakout and Working Lunch (12:10-1:00)
• Group Presentations and Feedback (1:00 – 2:00
  PM)
• Q & A and Feedback (2:00)
       Elevator Pitch – The Basics
• Elevator Pitch – What is it?
   – In the time it takes to ride an elevator from the 1st to the 10th
     floor – explain the gist of your business idea to a stranger!
   – An elevator pitch conveys the businesses’ key features and
     rationale in a clear, concise way so that it can be
     communicated easily to others
• Who is the primary audience?
   – Potential investors, customers, suppliers, partners, employees
   – Anyone who has or could have a stake in your business
• Why does it matter?
   – Communicate – What, why, how, where and when
   – Teaser to generate interest – the upfront hook!
   – Share a coherent vision of the firm’s goals and high level
     strategy for achieving these goals
   – And, last but not least - Raise $$$!
   – Plus, it might be your only shot!
       Elevator Pitch – What is it?

• Overview of the problem your business will solve
  and opportunity it will address
  –   Why does this problem matter?
  –   How severe is it?
  –   How big is the opportunity?
  –   How fast is it growing?
  –   Why has it not been solved yet?
  –   Why can you solve it when others could not?
• What value is being created?
• Who are the primary beneficiaries?
  – Think about who is capturing the value
  – Consider that some groups may capture more than
    others – these represent the ideal first customers
      Elevator Pitch – What is it?

• What are the products and services that you will
  deliver to solve the problem
• How do these products and services meet the
  unsolved market problem?
  – Do they immediately solve the entire problem?
  – Or what is the product and service “path” for getting
    there?
• Who are the competitors and why are your
  products and services superior?
  – Focus on direct competitors
  – Consider segmenting direct competitors by type
  – Why, where and how does each competitor or type fall
    short?
      Elevator Pitch – What is it?
• How do you plan to generate revenues
  – Short term
  – Longer term if there is a twist or kicker
• Hit the high points of your business model
  – Profitability
  – Leverage – As revenues and size increases, do gross
    and/or operating margins improve?
  – Scale efficiencies - how do the mechanics and economics
    of your business model scale
• What are the resources required?
  – Money – Capital intensity?
  – Time – core development, unique product versions for
    different customer types, distribution channel build, etc
  – Team background and expertise – what are the critical
    competencies of the team?
      Elevator Pitch – Why it matters

• Teaser to pique interest
  – Punchy, crisp and clearly articulated
  – Incentivizes stakeholders to care by logically presented
    the case for how the business benefits them
  – Delivered with confidence but not cockiness
  – Should leave them wanting to hear more about the
    details at a later date
• Communicate a common vision and goals
  – Everyone on the same page, working toward the same
    goal
  – Minimize non-productive activities, speeds up time to
    market
      Elevator Pitch – Why it matters

• Raise $$$
  – Distilling the essence of your business idea into a few
    critical points reflects well on you
  – Strong elevator pitch results in more favorable
    assessment of your talents by potential backers
     • VCs would rather back a Grade A management team with a
       Grade B product than vice versa
  – Decisions to proceed forward with due diligence are
    often made on the basis of the elevator pitch and the
    accompanying follow up conversation by seasoned VCs
      Elevator Pitch – NU Venture Challenge
      Specifics
• InNUvation Judging Criteria
  – Primary: Likelihood of business success
  – Secondary:
     • Creativity with regards to a market opportunity and a
       business concept
     • Appropriateness of the business strategy
     • Reasonableness of financing plans
• Audience
  – Judges comprised of entrepreneurs, VCs and faculty
      Building an Elevator Pitch Step by Step

• The best way to develop an elevator pitch is to
  walk through several steps to formulate cogent
  answers to critical questions about your business
• Once this has been completed, you can create an
  abstract that forms a template for delivering your
  elevator pitch
• We call this the nine step approach to building an
  elevator pitch abstract!
      Building an Elevator Pitch

• Step 1: Describe the problem you wish to solve
  – What are the factors motivating you to launch the
    business?
  – What is the key problem or opportunity this business will
    address?
  – What is the overall time frame within which the business
    will be launched?
  – Who else is doing something similar to what you plan to
    do (or are doing)?
  – Has anyone already achieved a dominant position in this
    market or with a similar product?
      Building an Elevator Pitch

• Step 2: Define your solution to the problem or
  your approach to the opportunity
  – What is the first product or service that the business will
    deliver?
  – When is it expected to be ready (based on reasonable
    assumptions)?
     • Demonstrates you have made a thorough and realistic
       assessment of the business opportunity
  – What are the key features of the product or service?
  – How do these key features map to the market need and
    problem you are solving?
  – How is the product or service different/better from
    currently available alternatives?
       Building an Elevator Pitch
• Step 3: Describe the anticipated benefits
   – What groups or individuals will benefit most from this product
     or service?
   – How difficult (or easy) will it be for them to adopt this new
     product or service?
       • Consider the impediments for adoption from the perspective of a
         customer and how they can be overcome
   – How are initial users likely to benefit?
       • Incremental revenue or income generation
       • Cost savings or cost avoidance
       • Labor savings or improved individual performance
           – E.g. reduced time to complete business processes, reduced number of people
             needed to complete tasks, etc
       • Improved organizational performance
           – Better quality
           – Faster time to market
           – Decreased business costs with customers, partners, suppliers
       Building an Elevator Pitch
• Step 3: Describe the anticipated benefits
   – How are initial users likely to benefit?
       • Improved access to relevant information and expertise
           – New information created that when delivered results in better and faster decision-
             making, increasing revenues and reducing costs
       • Access to committed and loyal community of customers, partners
         and suppliers
           – Lower churn
           – Increased profitability per customer or per channel partner
       • Positive externalities - increased benefits to society
           – Lower unemployment
           – Improved student scores
           – Improved quality of life
   – When will measurable benefits be delivered?
       • Payback period
   – How much will stakeholders be willing to pay to receive these
     benefits and why?
   – How easy will it be to demonstrate potential benefits?
      Building an Elevator Pitch
• Step 4: Describe the implementation plan
  – What are the key activities the team must undertake?
  – What are the key decisions the team must make to
    launch the business?
  – Which activities should be done internally and which
    should come from outside suppliers and partners?
  – What relationships should we have with key partners
    and suppliers?
  – What are the major deliverables and when will they be
    delivered?
  – What is the timing on when each major deliverable will
    be available to relevant stakeholders?
  – Who are the key people responsible and what are their
    special skills and expertise?
  – How difficult/costly will it be to attract and build out the
    team with this set of skills?
      Building an Elevator Pitch

• Step 5: What resources are required?
  – What does it cost to launch the business?
     • Think about major milestones…
         –   Cost to develop the first product?
         –   Cost to launch and market the first product?
         –   Cost to sell the product?
         –   Profitability of a customer over its entire lifetime
     • Sources of funding (in diminishing order of preference)
         – Cash flow from business operations
         – Debt
         – Equity
     • Timing of sources of funding
         – Only raise what you need to minimize your ownership dilution since
           more money earlier on means VCs take more of the company…
         – Should be based on achieving successive milestones
       Building an Elevator Pitch
• Step 6: Describe the anticipated benefits for
  investors, partners and employees
   – What is the estimated size of the market opportunity?
      • Top down method (e.g. starting with number of people in
        the US, etc)
      • Bottoms up method (based on revenues of firms in existing
        or closely analogous market
      • What share of the market can you capture in the short,
        medium and long terms?
      • Value of Intellectual Property (IP), including patents,
        licenses, copyrights, trademarks
      • What is the anticipated terminal value of the business
        based on steady state margins, growth and market
        penetration?
      • When do you anticipate turning a profit and returning value
        to the investors?
      Building an Elevator Pitch
• Step 7: Do you and the management team have
  the support required to ensure success?
  – Who are the key supporters for this business?
  – Why are they supporting it?
  – What type of support do they provide?
  – How will you market this project to internal and external
    stakeholders?
  – What opposition may stand in the way and how do you
    propose to overcome it?
      • Think about who would be hurt most by this business
         – Through disintermediation, obsolescence, etc.
      Building an Elevator Pitch
• Step 8: What are the risks and how will they be
  managed?
  – Pricing risks – could customers be willing or able to pay
    less than you expected?
  – Market risks
     • Why would the market be slower to grow than expected?
     • Why would your market share fall short or take longer to
       achieve than you expected?
  – Competitive risks
     • Are there any other big companies that could enter the
       market
     • How could your competitive advantages erode?
  – Execution risks – what about your operations are
    difficult to get right and could fail?
  – Government and regulatory risks – could government
    intervention negatively impact your business?
       Building an Elevator Pitch
• Stoogle – a vertical search engine optimized for student
  needs
• Step 1: Describe the problem you wish to solve
   – Current horizontal search engines like Google do not
     deliver adequate search results for university and
     graduate students conducing research
   – What are the factors motivating you to launch the business?
     Horizontal search engines have made academic
     research easier but is still far from optimal
   – What is the key problem or opportunity this business will
     address? Improve by an order of magnitude academic
     research search results
   – What is the overall time frame within which the business will
     be launched? Deliver first prototype within 3 months
   – Who else is doing something similar to what you plan to do (or
     are doing)? Google, Facebook, small startup vertical
     search engines
   – Has anyone already achieved a dominant position in this
     market or with a similar product? No, the market is nascent
          Building an Elevator Pitch Abstract
• Use the template below as a framework to help
  nail down the elevator pitch abstract!
•   Abstract Template: Our business {Name} will deliver {list key
    deliverables} to {list key beneficiaries} to enable them to {list key
    benefits}. The business is led by {list founder and key executives,
    investors and advisors} that have {list key backgrounds and
    qualifications}. The business {will launch/was launched} on {date} and
    we {will begin/began} delivering {first product or service} on {date} and
    anticipate that the terminal value of the business will be {list anticipated
    value}, which represents a {list return} to investors. The total cost to
    achieve this goal will be {total cost}, which includes the following key cost
    categories {list}. The key risks for the project are {list risks}. These
    risks will be managed by {list key approaches to managing each risk}.
    We anticipate raising capital from {list investor categories – friends and
    family, angel investors, VCs, grants}
       Stoogle Elevator Pitch Abstract
• Stoogle Abstract
  – Our business Stoogle will deliver a revolutionary new search engine
    optimized to deliver superior search results for academic researchers
    who need to increase research productivity, time to market and
    quality. The business is led by CEO Michael Marasco and an executive
    team that has more than 100 years of cumulative web surfing/search
    engine usage. The business will launch on six months from funding
    and anticipate that the terminal value of the business will be $1bn,
    which should generate a 100x cash on cash return to investors. The
    total cost to achieve this goal will be $10 million, which includes the
    following key cost categories filling out the management team, hiring
    an offshore development team, building a sales force, marketing and
    business development teams, a tiered distribution channel and a US-
    based infrastructure. The key risks for the project are horizontal
    search competitors like Google going vertical, development execution
    missteps. These risks will be managed by a high quality management
    team and partnering with complementary offline and online partners
    to build awareness and cost effectively build traffic. We anticipate
    raising capital from tier I VCs like Heiner Ferkins and complementary
    partners like Amazon and Yahoo! as well as Mom and Dad.
      NU Venture Challenge Timeline


Feb. 28   Sign-up deadline


          First Round deadline; business plan abstracts due
Apr. 13


Apr. 16   Semi-finalists announced

          Semi-final Round - teams present 3-minute elevator pitch +
Apr. 21   7 minutes Q&A and finalists announced at end of day


May 12    Final Round consisting of finalist teams giving a 15 minute
          presentation + 15 minutes of Q&A & Gala
      NU Venture Challenge Timeline

• Disclaimer
  – This presentation is based on HBS Note 9-802-
     222 “Developing an Elevator Pitch for a New
     Venture” by Lynda M. Applegate and Susan
     Saltrick

								
To top