Presentation on theme: "15-minute presentation template."— Presentation transcript:
115-minute presentation template. A Guide-How to make a15-minute presentation template.Use this as a guide when creating your business presentation for early-stage investors. Each slide has a recommended amount of time to spend on it; there is a built in two-minute buffer in the presentation. Not all slides may fit your business model while others may need to be expanded to best communicate the business and strategy.Suggestions/comments are included on several slides. Remember to delete comments, time estimates and other misc items. Additional comments are on some of the “Note pages” for each slide.<estimated time to spend on slide>
3Presentation suggestions: Not all slides may be applicable to your business model.Keep in mind the time allotments for each section, don’t over/under emphasize key points of the business. Many entrepreneurs spend too much time explaining their technology, science or product and not enough time explaining how they will make money.Keep slides simple and uncluttered, use as few words as possible—just bullet point the general idea you are addressing, leaving the in-depth explanation to the presenter.The main goal of the presentation is to communicate your vision and strategy enough to capture the investors’ attention and interest. There will be a number of follow-up meetings and information requests, but only if the investors are first excited and motivated by you, the business and strategy.
4Short Positioning Statement Company Name/LogoShort Positioning StatementYour NameTitleGive the audience a short explanation of the company’s main objective and who you are. Only include a “positioning statement” if it is very short, 3-5 words.<15 seconds>
5Business Overview and Strategy What do you do - what is your product/service/technology/science?What makes it different?What problem(s) are you solving?Give a road map of the business: we’re here now and are going in this direction.By end of slide your audience should know what you are selling and why people will buy it. Do not go into a lot of detail—this is a “bite-sized” overview.Keep in mind that you are setting the stage for the rest of the presentation.<30 seconds>
6The Market – Our Solution Description of Current Market, Customer NeedsProblem to Be Solved, what is creating the demand for your solutionKey Feature – Solution to ProblemHow will the customer use your solutionWhat is the economic benefit your offering delivers?Describe the customers’ needs for your product/service. What is the “problem” with the market as it is and how are you fixing that problem.Be clear and concise, this is a critical part of your business proposition and must grab an investor’s attention.Give just enough of an overview to build up to the next slide, which describes the Product/Service. This will give the investor-audience a general understanding of the market and why the product was created.<90 seconds>
7Product/Service Product/Service Description 1 What is the product/serviceKey Feature – Value PropositionScience and technology behind the product/serviceDefensibility: IP protection/Patents, Barriers to entryProduct/Service Description 2 (if needed)…Describe your product/service; what is your customer buying?Focus on what attributes make your product/service better and different than alternatives, even if there is not a direct comparable product/service.Defensibility may require its own slide.Many entrepreneurs focus too long on the product, especially if it is a technology or based on scientific data. Keep the science and technology light and easy—most investors are not PhD’s and will lose interest if the presentation gets too technical.<2 minutes>Too much early detail that isn’t more than an idea can get you into a corner. The investor wants to know what you’re thinking and why your product/service is exciting—stay away from making it seem you are further along that you really are, for example making a prototype appear to be a final product.
8Market Opportunity Target customer profile Market size Describe the targeted customersMarket sizeQuantify the target market through sizing the servable market by applying the above profile to the relevant market/segmentsIf the market will be growing/expanding, explainExplain the size of the market that you are targeting.Remember to build your credibility – how do you know the market?Take care not to erode your credibility by overstating the market.Use good sources of information and statistics, such as trade organizations and marketing studies.Describe how your product/service fits into the market and what share of the market you will capture from launch through the first several years of business.If necessary, segment the market. Segmenting the market means you identify the specific portion of the market that contains those buyers that meet your targeted customer profile.If you have multiple market segments or targeted customers, repeat this slide as necessary.<90 seconds>Who is the new venture’s customer? Define this tightly. (As an example: University biology labs in predominantly undergrad only schools that do not have the broad and deep lab capabilities of large research institutions.)
9Sales Model Distribution Channels Sales cycle Channel 1 to market Channel 2 to market (if needed)…Sales cycleWhat are the general steps in the sales processHow long does it takeDescribe how these channels successfully get your product into the hands of your customers—if necessary, describe for each segment.If possible/helpful, include an illustrationHow long is the sales cycle for your products)—being able to describe the sales cycle emphasizes your understanding of making the sale.<45 seconds>How does the customer make decisions about buying this product or service? This is a tough, tricky question. If it is “a new idea” product then the real answer is “I don’t know.” And the correct follow-on is “here’s how we will find out,” which is going to involve a lot of testing and hypothesizing. The cost and timing of this is a must for factoring into the Business Plan.To what degree is the product or service a compelling purchase for the customer? Simpler, easier, cheaper, not now available, etc.How will you price this and why? What’s the value logic?How will the venture reach all of the identified customers? Where is the list? Is this a large consumer market or a market that can be easily identified (all NFL head coaches; undergrad biology dept’s in the US, etc.) How will we experiment with contact methods to determine what works?Who is the head of sales? A hint here - if it isn’t the CEO that’s a bad sign. Often entrepreneurs want money to hire sales people and do not understand the iterative process that proceeds from sales info, and miss huge opportunities because they don’t get to know their target market.How much is it going to cost to acquire a customer?What will cause customer attrition?
10You vs. the Competition Product 1 Product 2 (if needed) … Your competitive advantageCompetitorsCompetition’s responseProduct 2 (if needed)…Explain why your product(s) will succeed in the market place. What is your competitive advantage?List your competition; if numerous pick the top companies you compete against. Explain their products, market share, and how each one does not meet the needs that your product does—hit the same points as those for existing market alternatives in the “Product or Service Description” that explained why your product/service is better than these alternatives.How will your competitors react to your entering the market?Your competition might not be obvious, such as supplemental products or customer inaction.<1 minute>This is opportunity analysis at its core. When you ask what the compelling idea is and why customers will want it, by implication you ask the competition question.If the investors can find competition with a Google search that the company does not “know” - that’s a total turnoff.
11Management Team Existing team and relevant experiences Include business and start-up experienceGaps in team experience and how being filledMany investors believe the management team is more important than the technology/product or the market opportunity.Explain how the management team’s experience and expertise is key to the company’s success.This slide can be moved to the front of the presentation, explain how the team’s experiences are relevant to the company and its strategy.<1 minute>Where are the founders from? Previous history? Schools? Who have they worked for?What have they accomplished in the past?What is their reputation?What direct experience do they have here?What skills, abilities, knowledge do they have?Who else needs to be on this team to fill-in the gapsHow will they respond to adversity?What are their motivations, to be a king or rich?
12Advisors/Professionals Advisory Board (or Board of Directors)Short Description of Positions and Industry ExperienceProfessional TeamAttorneyAccountantBanker<30 seconds>
13Milestones accomplished Past Milestone 1Past Milestone 2…What have you accomplished so far? Brag a bit if you can—this could be stages of product development, major or pending sales, completing regulatory requirements, etc.The next slide covers the $ you are asking for, try to build up momentum for the “ask” by showing the company has already accomplished some goals.<30 seconds>
14Financing Funding Sought - $X Use of Funds 1 Use of Funds 2 … Explain in general terms what the funding will be used for, examples are: sales and marketing, inventory, R&D, general and administrative, regulatory requirements, etc.<30 seconds>
15Milestones after Funding Development PlanMilestone 1DetailMilestone 2...Critical Success FactorsCritical Success Factor 1What must happen for MS1Critical Success Factor 2…Nothing ever proceeds as planned and investors know that. When an entrepreneur mentally commits to a plan, they often over commit scarce resources. Then, when it is evident (too late) that the market is changed or the product needs adjusting or the opportunity is substantial but elsewhere, a re-tooling of the business plan is needed and that often costs scare money.The interesting planning problem is to construct testing that answers all the questions quick enough for the company to modify its strategy in time, saving resources. This is a rare skill and something investors like to see.What progress will investors see for their investment?What must go right to be successful?If this financing round gets you to cash flow positive, mention that as a milestone or in conjunction with a milestone.Are there any contingency plans if a Critical Success Factor does not happen?<1 minute>
16Future Financing Future Funding Round 1 Future Funding Round 2 Expected ValuationFuture Funding Round 2Milestones that must be completed to achieve expected valuation in FFR1Milestones that must be completed to achieve expected valuation in FFR2Describe the projected funding rounds with the expected valuations.Include milestones that must be completed to achieve expected valuations.This will give investors a sense of value creation and if/how much dilution they should expect in future rounds.<<Use this slide if you anticipate needing future funding rounds.>><30 seconds>If you anticipate needing it, show the internal rate of return calculations that will support you getting it and from whom and why.This all leads back to opportunity assessment and trying to figure out the market structure, the interest of future funders, the competitive situation, and the eventual harvest which all needs to come together by the end of the presentation.
17Cash Flow Projections Table of Cash Flow Projections, example below <30 seconds>How to determine and explain when your company will “turn the corner” to cash flow breakeven:What is the expected profit from each customer over what period of time? (What does the product cost, the support cost, etc. )By implication, how long to breakeven on a customer basis?Then what is the contribution margin from each customer that will contribute to fixed costs, and voila - a detailed assumption of cash flow breakeven with underlying facts -> a very good thing to give potential investors.
18Ownership - Valuation Current ownership Debt structure Owners and their equity %Current valuation (Pre-money Valuation)Debt structureOutstanding balance and terms (time and interest)Post investment ownershipValuation (Post-money Valuation)If you have a current capitalization table, use that instead of this slide.Who/what are the current sources of funds?How much are the founders in the game? “Not at all” is typically taken as a bad sign by investors. If an entrepreneur really is confident in their business plan, they need to have enough “skin in the game” to show they are committed.An Illustration of “Commitment” vs. “Interest” using a breakfast of ham and eggs: A chicken has an “interest” in the breakfast, the pig is “committed” -> investors want to see entrepreneurs who are committed.NOTE: Valuation is a dangerous topic. An entrepreneur that doesn’t understand valuation may propose a “price” from the point of view of selling a stake for an amount - as in “I’ll sell 10% for $1M” thinking this is fair. “Ten percent is a lot, isn’t it? Just think what 10% of Microsoft is worth, etc.” They may not realize this is a $10M pre-money valuation and an unreasonable amount in most cases. Or they may realize it and somehow think it’s justified.The best option is to be prepared to discuss valuation with justifications.Investors often perform internal rate of return calculations, backing out from what a future valuation needs to be to come to a current valuation. If you don’t feel confident in how to back up your valuation, go out and ask for assistance from people who can help, such as an CPA/accountant before settling on an amount.Valuation is often one of the most contentious discussions an entrepreneur will have with potential investors. It’s best to be prepared to discuss; however, only discuss Valuation if you are ready and can back up your assumptions. Many investors do not expect an entrepreneur to discuss valuation during their presentation, though it often comes up during the question and answer session afterwards. A back-up answer, if investors are pushing for one, could be to suggest a range the valuation could fall within, though that can result with investors focusing on the low-end of the range given.<30 seconds>
19Exit Strategy Exit Strategy When/How can your investors cash out Expected valuation<15 seconds>Most typical exits are IPO, strategic acquisition by a larger firm, or financial acquisition by a fund.Many investors like to have an explanation of why the exit given is realistic. For example, if it is a strategic acquisition, what specific actions will make the company most attractive to an acquirer, aside from market dynamics?Whatever exit method is used, previous slides/information in the presentation should support the reason why that exit is most likely.
20Short Positioning Statement Company Name/LogoShort Positioning StatementContact Name, TitleAddressPhone NumberWrap up by restating the company’s main objective.<15 seconds>