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1 Application Workshop December 3, 2010 Sabin Environmental Prize.

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Presentation on theme: "1 Application Workshop December 3, 2010 Sabin Environmental Prize."— Presentation transcript:

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2 1 Application Workshop December 3, 2010 Sabin Environmental Prize

3 2 Sabin Application Info Letter of Intent due Jan 14 Full Application due March 4 Today: Researching your idea Today: Researching your idea Jan 21 st – Financial issues Jan 21 st – Financial issues Feb 11 th – Writing & Presentations Feb 11 th – Writing & Presentations

4 3 Sabin Questions Idea (what is it – what is appealing) Idea (what is it – what is appealing) What is original (unique advantage) What is original (unique advantage) What have you done so far (stage) What have you done so far (stage) Next steps – what do you need to do? Next steps – what do you need to do? What is the environmental benefit? What is the environmental benefit? Who is on your team? Who is on your team? How much $ do you need? Use of prize? How much $ do you need? Use of prize?

5 4 Judges in 2010 Andrew Sabin, prize funder & investor Andrew Sabin, prize funder & investor Rosemary Ripley – NGEN – investor Rosemary Ripley – NGEN – investor Konstantine Drakonakis – Launch Capital - investor Konstantine Drakonakis – Launch Capital - investor Sally Fan, Deutsche Bank - investor Sally Fan, Deutsche Bank - investor Ralph Earle, Assabet, consultant to investors, investor Ralph Earle, Assabet, consultant to investors, investor

6 5 Judges are Investors by Day They want to: Hit a homerun (big financial upside) Hit a homerun (big financial upside) Avoid known losers (high failure rates) Avoid known losers (high failure rates) Minimize risks (pick the surest thing) Minimize risks (pick the surest thing) Back winners (proven track records) Back winners (proven track records)

7 6 Ideal Investor Characteristics Exciting company Unique Product / Service Unique Product / Service Large potential market Large potential market Rapid growth prospects Rapid growth prospects

8 7 Unattractive Sectors Restaurants -- one location Restaurants -- one location > Too many cooks > Too many cooks > 80% bankruptcy rate > 80% bankruptcy rate Retailing -- one location Retailing -- one location > Too easy to enter > 80% bankruptcy rate > Too easy to enter > 80% bankruptcy rate

9 8 More Unattractive Choices Consulting Consulting > Not scalable > Not scalable > No need to raise $ from others > No need to raise $ from others Some International Businesses Some International Businesses > Depends on your access > Depends on your access > Also, perspective of the judges > Also, perspective of the judges

10 9 Avoid Ideas with Large Capital Requirements Need to buy an island?

11 10 Consider... Do you have: The skills to make the venture happen? The skills to make the venture happen? Or, an in to acquire those skills? Or, an in to acquire those skills? If not, your application is just creative writing

12 11 Most Important Question If the idea is so great... If the idea is so great... Why hasnt anyone done it before? Why hasnt anyone done it before? Might be – Technology didnt exist before Might be – Technology didnt exist before Might be – it just wont work! Might be – it just wont work!

13 12 The Best Ideas Come from your own experiences School, jobs School, jobs Hobbies, family Hobbies, family A problem youve faced A problem youve faced

14 13 Themes of the Day You want to communicate an idea that: Addresses a big, exciting opportunity Addresses a big, exciting opportunity In a new, unique, innovative way In a new, unique, innovative way That is feasible and believable That is feasible and believable With great people on your team With great people on your team To Win Contests (or Raise $)

15 14 Idea: Big, Exciting Opportunity

16 15 The Need or Opportunity What is it? What is it? How large is it ? How large is it ? Is it growing ? By how much ? Is it growing ? By how much ?

17 16 Caution: Use Data, Sources! Your opinion about a need has little value Your opinion about a need has little value You want to win contests…. You want to win contests…. Do research! Do research! Industry reports, articles, interviews, etc. Industry reports, articles, interviews, etc.

18 17 Caution: Look at the Right Market! GreenCleaning.com will sell all brands of environmentally friendly cleaning products – on one website. GreenCleaning.com will sell all brands of environmentally friendly cleaning products – on one website. Cleaning product sales in the US were $28 billion in 2009.

19 18 GreenCleanings Market Green cleaning products Green cleaning products Say, 5% of all cleaning products Say, 5% of all cleaning products $1.4 billion $1.4 billion Sell them (not make them) Sell them (not make them) Say, for a 10% commission Say, for a 10% commission $140 million - not $28 billion!

20 19 Research the Interest Who are the customers? Who are the customers? How many are there? How many are there? What do they want? What do they want? What can you do for them? What can you do for them?

21 20 Caution: Dont Assume! Your ideas about customer have little value Your ideas about customer have little value You want to win contests…. You want to win contests…. Do research! Do research! Do interviews & surveys! Do interviews & surveys! Get someone to sign up! Get someone to sign up!

22 21 Caution: Get the Customer Right! GreenCleaning will sell its own brand of environmentally friendly cleaning products – in retail stores. GreenCleaning will sell its own brand of environmentally friendly cleaning products – in retail stores. Who is the customer? Who is the customer?

23 22 Caution: Get the Customer Right! The customer = stores The customer = stores Stores customers = consumer Stores customers = consumer You must appeal to the consumers You must appeal to the consumers But you also must understand customer needs – and meet them But you also must understand customer needs – and meet them

24 23 Caution: Get the Customer Right GreenCleaning.com will sell all brands of environmentally friendly cleaning products – on one website – for a commission. GreenCleaning.com will sell all brands of environmentally friendly cleaning products – on one website – for a commission. Who is the customer? Who is the customer? Cleaning product companies Cleaning product companies

25 24 Testing Customer Interest Develop a one page product description Develop a one page product description What does it do ? What does it do ? How does it work ? How does it work ? List the main features List the main features List main benefits -- to customers List main benefits -- to customers

26 25 Use the Product Description to: Conduct interviews Conduct interviews Do surveys Do surveys Ask customers if they want your product ! Ask customers if they want your product !

27 26 Find Out: > Do they like your product ? > Do they like your product ? > Will they buy/use it when it is ready ? > Will they buy/use it when it is ready ? > Will they pay the price youre asking? > Will they pay the price youre asking? > Do they have any issues / concerns ? > Do they have any issues / concerns ?

28 27 Surveys Survey Monkey = online survey product Survey Monkey = online survey product Easy, nice looking Easy, nice looking Includes analysis tools Includes analysis tools Free for short, simple surveys Free for short, simple surveys Keep your survey short, simple Keep your survey short, simple Test your survey before sending! Test your survey before sending!

29 28 For Your Application Describe your venture (what will it do) Describe your venture (what will it do) Also, the need / opportunity Also, the need / opportunity And the customer (who will pay for it) And the customer (who will pay for it) Include secondary research data Include secondary research data Quote yourinterviews Quote your interviews Present your survey data Present your survey data

30 29 Unique: Innovative, Competitive Advantage

31 30 What is Innovative? How is your idea – unique? How is your idea – unique? Different from the competition? Different from the competition? Different – from alternatives? Different – from alternatives?

32 31 The Competition Who are the competitors ? Who are the competitors ? How do they compete ? How do they compete ? How are you different ? How are you different ?

33 32 What is Innovative? Always more competition - than you think Always more competition - than you think Compare major features of your product Compare major features of your product > To all competitors products > To doing things the old way > To doing things the old way

34 33 Construct a Competitor Grid

35 34 Caution: Be Objective! You saying you are better = little value You saying you are better = little value You want to win contests...! You want to win contests...! Why, objectively, are you better? Why, objectively, are you better? Did customers say you were better? Did customers say you were better? Admit where you are not better Admit where you are not better

36 35 If your Grid Looks like this…. X XX X X XX X Buyer has no reason to switch -- probably wont

37 36 Beware the Status Quo People hate to change People hate to change Or to pay -- for what was free Or to pay -- for what was free

38 37 Key Avenues For Investigation Why has no one done this before ? Why has no one done this before ? Technology didnt exist? Technology didnt exist? New regulations or incentives? New regulations or incentives? It wont work for some reason….? It wont work for some reason….?

39 38 Unique, Big Idea: Example

40 39

41 40 Fresh farmed tilapia fillets Fresh farmed tilapia fillets Purified and filtered re-circulated water Purified and filtered re-circulated water Seafood Safe and Organic Seafood Safe and Organic 100% organic feed 100% organic feed

42 41 Evidence of Opportunity - over 3 years: US seafood consumption up 12% - $12 billion US seafood consumption up 12% - $12 billion US tilapia consumption up 110% - $400 million US tilapia consumption up 110% - $400 million Demand for organic meat & fish up 120% Demand for organic meat & fish up 120% Over 70% of Americans would by organic seafood if available; 60% strongly prefer domestic

43 42 Customers Suppliers of restaurants, grocery & fish stores Suppliers of restaurants, grocery & fish stores Also, Trader Joes, Whole Foods Also, Trader Joes, Whole Foods

44 43 Talking to customers: 450 chefs and 150 retailers 450 chefs and 150 retailers Most prefer environmentally friendly fish Most prefer environmentally friendly fish Local restaurant owner: customers care Local restaurant owner: customers care Wholesaler: Not enough good farms Wholesaler: Not enough good farms EcoFish: I will buy all you have to sell EcoFish: I will buy all you have to sell

45 44 Competition 96% of tilapia 96% of tilapia – imported, mostly frozen, not organic Most US farm-raised Most US farm-raised – small, not organic The Good Fish tilapia will be more expensive vs. competitors

46 45 Feasibility: Making it Happen

47 46 Demonstrate: You have a detailed strategy You have a detailed strategy Youve made some moves Youve made some moves You know what the next ones are You know what the next ones are

48 47 Issues to Cover 1. How will you make your product? 2. How will you get customers to buy it? 3. How will you start – and expand? 4. Who will run your business?

49 48 Make a List What are your product inputs? What are your product inputs? What kind of facilities do you need? What kind of facilities do you need? What is your production plan? What is your production plan? How will you deliver to customers? How will you deliver to customers? How will you provide ongoing service? How will you provide ongoing service? How will you handle HR, finance, legal? How will you handle HR, finance, legal? Research the answers!

50 49 People might be your main input Skilled managers Skilled managers Customer service Customer service Engineers, scientists, IT Engineers, scientists, IT Support functions Support functions

51 50 People Issues What skills should they have? What skills should they have? How many people will you need – to start? How many people will you need – to start? How many – as you grow? How many – as you grow? Where will you find them? Where will you find them?

52 51 Making the Product Feed: Organic vegetarian Feed: Organic vegetarian Staff: Monitor equipment, move, clean, fillet fish Staff: Monitor equipment, move, clean, fillet fish Facilities: series of tanks (Pod System), heating, warehouse space Facilities: series of tanks (Pod System), heating, warehouse space Production planning: 28 week growth cycle Production planning: 28 week growth cycle Delivery: Distributors pick up Delivery: Distributors pick up Byproducts: Waste and offal Byproducts: Waste and offal

53 52 Getting Customers to Buy Selling Selling Advertising Advertising PR PR Partnerships Partnerships Key Challenge

54 53 Two Main Categories In person Sales Force In person Sales Force Direct Marketing Direct Marketing

55 54 How to Decide? Complicated or Simple? Complicated or Simple? Must be test driven? Must be test driven? Expensive or Cheap? Expensive or Cheap? Custom or Standard? Custom or Standard? What Kind of Sale Are You Making?

56 55 Sales Force is Probably Necessary If the Sale: Involves education Involves education Requires a lot of customization Requires a lot of customization Is expensive or risky Is expensive or risky

57 56 Sales Force Door-to-door In-store Telesales Door-to-door In-store Telesales Strong track record Industry contacts Product Expertise Strong track record Industry contacts Product Expertise

58 57 Sales Tools Conferences & Trade Shows Conferences & Trade Shows Joining industry associations Joining industry associations Buying customer lists Buying customer lists Company brochures Company brochures Customer specific sales info Customer specific sales info Demonstrations Demonstrations

59 58 Direct Marketing Mailings Yellow Pages Print Ads Television Mailings Yellow Pages Print Ads Television Newspaper inserts Coupons Flyers Catalogs Radio Newspaper inserts Coupons Flyers Catalogs Radio

60 59 Internet Marketing Web Sites Key word search Sponsored Links Ads with online trade journals You Tube Ads Web Sites Key word search Sponsored Links Ads with online trade journals You Tube Ads Banner, pop-up ads Blogs Yelp Groupon Facebook Twitter Banner, pop-up ads Blogs Yelp Groupon Facebook Twitter

61 60 Web Sites Not a sales tool, on its own Not a sales tool, on its own Must drive people to it Must drive people to it Search engine optimization? Search engine optimization? Buying key words? Buying key words?

62 61 PR Free exposure in: Newspaper reviews Newspaper reviews TV stories TV stories Industry publications Industry publications Celebrity photos Celebrity photos

63 62 Develop Partnerships New homeowners – Real estate agents New homeowners – Real estate agents For kids programs -- Schools For kids programs -- Schools People with health conditions – Doctors People with health conditions – Doctors Churches, libraries, nonprofits Churches, libraries, nonprofits Keep in Mind: They will only partner with you if there is something in it for them!

64 63 Find Out: Will they partner with you? Will they partner with you? What do they want? What do they want? A share of your Sales? An exclusive deal? To do good? Another service for their customers?

65 64 Green Brides Partnering with the Wedding Institute Green Bride makes online course Green Bride makes online course Wedding Institute sells it to students Wedding Institute sells it to students Wedding Institute gets Free content Half the $ from the courses Green Bride gets Exposure to wedding planners Half the $ from the course Wedding Wire agreed to the partnership Its clear what both sides get

66 65 Getting Customers Strategy Hire Sales Force Hire Sales Force Visit customers, explain the benefits Visit customers, explain the benefits List in organic seafood directories List in organic seafood directories Advertise with trade associations Advertise with trade associations Host events, tours, tastings Host events, tours, tastings

67 66 How will you Start – and Expand? Start small Start small Prove you can do it -- then expand Prove you can do it -- then expand CT

68 67 How will you Start – and Expand? Start in New Haven Start in New Haven then go to Hartford? then go to Hartford? Start with one product, then add? Start with one product, then add? Sell in one store, then more? Sell in one store, then more?

69 68 What have you done so far? If youve done something – risk is lower If youve done something – risk is lower Do you have a sample product? Do you have a sample product? A first customer? A first customer? A potential customer – in writing? A potential customer – in writing?

70 69 Team (whove you got?)

71 70 Investors will Say: Keys to Success Œ Œ People   People Ž Ž People ! Œ Œ People   People Ž Ž People ! More important than everything else -- combined

72 71 Your Team Who are the Yale members? Who are the Yale members? What roles will they play? What roles will they play? What skills, experience do they have… What skills, experience do they have… Directly relevant to your business Directly relevant to your business

73 72 Management Strategy Key management people – skills? Key management people – skills? Who are you missing – but will hire? Who are you missing – but will hire? Advisory board or board of directors? Advisory board or board of directors?

74 73 Environmental Benefit

75 74 Final Words of Advice Do your homework Do your homework Use data, research – talk to customers Use data, research – talk to customers Not just your opinions Not just your opinions Try to do something – now - to risk Try to do something – now - to risk Think like an investor! Think like an investor!


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