2 Business Planning for Inventors Presented byAdrian PelkusNovember 11th, 2010Created by:Adrian PelkusA Squared Technologies, Inc.“Helping Inventors become Entrepreneurs Since 1985”
3 A Squared Technologies, Inc. Adrian Pelkus, CEOA Squared Technologies, Inc.
4 Adrian Pelkus, has 30 years experience developing high technology processes and products and has helped startup several technology companies. Mr. Pelkus has held numerous positions in engineering and senior management including Senior Electronic Tech, Engineering Manager, Director of Biomedical Engineering and CEO.Mr. Pelkus has helped develop over 140 different electronic products and is a named inventor on five issued U.S. Patents including 1994 Fortune magazine’s Product of the Year, “Baby Think it Over”, for a revolutionary “Thin Film Flexible Solar Cell” and has 4 Patents pending.Adrian is CEO & President of A Squared Technologies, Inc. a high-tech product development company he Founded in 1985,Mr. Pelkus is Founder, COO of IYIA Technologies, Inc. the biomedical company he started in 2004 and is the inventor of the FDA cleared O2Misly™ Wound Treatment System.In 2005 Adrian reorganized the UIA registered San Diego Inventors Forum and is currently President of this group to help startup entrepreneurs.In 2007 Mr. Pelkus Co-Founded Hypnoz Therapeutic Devices, Inc. as COO and is co inventor of the JED Jaw Elevation Device.
9 Putting Your Plan Together STEP 1 - RESEARCHFind the Facts to Build your plan withMarket – 1. Who sells what's similar, how & for how much?2. Who wants or needs your basic idea, why and what will they pay?IP – What is patented or otherwise protected in this area? By who?Yourself - SWOT – what resources, talents, connections & time do you have and need – are you building a company or aiming to license your idea?These are three main concerns seasoned investors consider when you first meet:Can this product make money?Does this person own the idea?Does this person know what it takes to make this idea profitable?
10 Putting Your Plan Together STEP 2 - ModelMake the Facts to Build your plan withModel – 1. Sketch, illustrate, make animations, make drawings & specs2. Clay, balsa wood, hobby shop metal & plastic a scale model3. SLA, machine prototype parts to make a working model or expenseTest – 1. Function test in real as possible setting, make improvements2. Measure & record results before & after, collect competitors data3. Capture tests in video, photos and testimonies4. Market survey prototype – will it sell? Collect market research data.Reality checks – Can the final product be made & sold for a profit? At what quality level & quantity can you get the cost where it needs to be?These numbers become the “assumptions” which all the numbers to follow in your business plan are based.When you present your idea as a working model it reduces the “can it be made” concerns an investor usually has.Data to support the claims is always crucial and a video showing a satisfied user is helpful many ways.
11 Putting Your Plan Together STEP 3 - Secure the IPOwn the Facts to Build your plan withCollect – 1. A one paragraph description of the idea - the “Abstract”2. Make Drawings with matching Descriptions of your idea.3. Prior art that you examined.4. Measured & recorded results.5. List Unique features of the idea – the “Claims”Find – 1. Patent agent2. Patent firm / attorney3. USPTO.govFile – 1. Provisional Patent2. Patent Application & assignment3. Trademarks & CopyrightWhen you present your idea as “Patent Pending” it reduces the “is it your idea” concerns an investor usually has.Data to support the claims is helpful because proof of concept is not required to get a patent!
12 Putting Your Plan Together STEP 4 - Plan the presentationOrganize the Facts to Build your plan withDecide – 1. Is the goal a company startup or a license deal?2. Is the plan to raise funds to start the business or make a proof of concept?Collect - For a company startup:1. Market data2. Your claims and assumptions3. How you will make $ where sold4. What are your and your teams talents5. What funds are required run the business to BE or make a proof of concept? When will there be a ROI? What is the exit strategy?For a License agreement :3. How they will make $
13 Putting Your Plan Together STEP 5 - Pick a modelTools to Build your plan withDecide – 1. DIY2. I don’t know enough yet and I need HELP!DIY - Business Plan Pro by PaloAlto Software with 500 sample plansHELP! - SCORE Workshops on writing Business Plans12/1Business Plan 101: How to Develop Your Best Competitive Advantage Pt. Loma Nazarene Univ. - MISSION VALLEY CampusCONNECT SpringboardSpringboard offers free guidance and development to life sciences, clean-tech, high tech and consumer product companies in all stages of development, ranging from concept, technology transfer to start-up. Contact: Ruprecht von Buttlar Springboard Director Phone: (858) Web:
14 Qualifiers for Panel Team Resources Intake Marketing Panel Must complete: marketing plan, financial modelSlides: Pro Forma Profit and Loss, Funding with use of funds, Corporate Development with funding strategyMust identify: customer need, business modelSlides: Market Segmentation, Competitive Analysis, Competitive Differentiation, Go to Market StrategyMust complete: marketing plan, financial modelSlides: IP, Team, TractionQualifiers for PanelMust pass: Dry-Run PanelIntakeMarketing PanelFinance PanelDry-Run PanelFinal PanelExitDeal NetworkVenture Round TableTech Coast AngelsGrant PortalTeamEntrepreneur in Residence (EIR)Marketing Domain ExpertFinancial Domain ExpertMarketing TemplateLegal ResourceMBA students for Market ResearchDomain ExpertsFinancial Modeling ToolMBA students to build financial modelsDomain ExpertsResourcesValuation ToolsDomain Experts
15 Table of Contents EXAMPLE............................................................... 1 II. Executive SummaryOverviewThe Initial Market –Diabetic Foot UlcersVHT* and the O2MislyTM Wound TreatmentClinical InformationSales & MarketingManagement & AdvisorsScientific Advisory BoardIII. The EnterpriseThe CompanyThe FounderThe ProductIntellectual PropertyIV. The MarketMarket Size and GrowthA Large and Growing ProblemCompetitionMarketing StrategySales & DistributionV. Product DevelopmentO2MislyTM Proven System DesignO2MislyTM Market Driven 3rd Generation System DesignManufacturing PlanFacilitiesVI. Key MilestonesVII. AppendicesComparison MatrixO2MislyTM Wound Treatment System“Fee-for-Use” ModelFinancials
16 EXECUTIVE SUMMARY ! EXECUTIVE SUMMARY !! EXECUTIVE SUMMARY !!! When asked at a past SDIF meeting “what's the most important parts of a business plan?” Peter Shaw, Shaw Management and president of the SDVG said:EXECUTIVE SUMMARY !EXECUTIVE SUMMARY !!EXECUTIVE SUMMARY !!!When you meet with investors you usually have 8 – 10 minutes to make your pitch, essentially telling them your executive summary, best accompanied with a PowerPoint presentation – with an embedded video!