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Ideas to Market Mark Levi 1. Peace and Prosperity Through Science and Collaboration www.crdf.org Outline of the Process 1.Do you have a Marketable Product.

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Presentation on theme: "Ideas to Market Mark Levi 1. Peace and Prosperity Through Science and Collaboration www.crdf.org Outline of the Process 1.Do you have a Marketable Product."— Presentation transcript:

1 Ideas to Market Mark Levi 1

2 Peace and Prosperity Through Science and Collaboration Outline of the Process 1.Do you have a Marketable Product or Service? a.Describing the Product or Service in a succinct way. b.Estimating/Measuring its Market Value. c.When do you kill an idea? 2.Thinking through all of the details and putting them on paper. a.Building a Business Plan and Market Strategy b.Market Research c.Defining Customers, Competition, Channels of Distribution 3.Building awareness, interest, preference and loyalty. (Branding) 4.Taking the product or service to market 2

3 Peace and Prosperity Through Science and Collaboration What is the Business? Clearly describe the business and the customer need that the business fulfills All Investors look for and value a succinct description of a business Elevator Speech Layered Descriptions You may not have time for a long description 3

4 Peace and Prosperity Through Science and Collaboration Estimating Market Value Successful businesses find a market need and fill it. What gives a product value? Features, Advantages, Benefits Sum of Benefits, Advantages over Competition Is the product value something a customer will pay? How do you find out value? MARKET RESEARCH 4

5 Peace and Prosperity Through Science and Collaboration When do you kill an Idea? 50% of all products introduced are failures Early critical thinking can save much money and time Must make a people environment OK to kill projects This discussion should take place at every phase. 5

6 Peace and Prosperity Through Science and Collaboration Uses structured set of questions to finding out how customer values product Requires both knowledge of the process and development of appropriate skill In the ideal situation, the discovery process leads to a discussion of What is/ is not important, Opportunities to understand why which items are key(valuable) through the supply chain Allows tradeoff discussions Competitive threats and directions Discovering Customer Value 6

7 Peace and Prosperity Through Science and Collaboration Background Customers do not buy on product specs alone, ever! Customers buy from vendors who, they believe, understand their needs and their business and will attempt to meet those needs…. Vendors who listen to them. Customers select products and vendors who help solve their problems; technical, social, and business. 7

8 Peace and Prosperity Through Science and Collaboration Discovering The continuous process of interacting with customer decision makers to find out their changing needs, wants, values, timing, expected price, etc. Techniques needed to do it professionally. Must be preceded by relating. Listening is more critical than Advocating. Is the basis for continuous dialog. Properly done gives competitive advantages. 8

9 Peace and Prosperity Through Science and Collaboration Customer Expectations Performance Gap 9

10 Peace and Prosperity Through Science and Collaboration The Gated Phase Review Process Companies with the most successful product introductions use a gated phase review system Breaks Product Development process into logical steps and requires passing a gate to move to next step. Each product/ service requires own gates but typical are: –Idea confirmation (with customers), feasibility (Dev & Mfg) –Agreement to Develop (with Business Plan, Strategy, etc. –Development Phase –Sample Phase –Release to Sales –Release to Production 10

11 Peace and Prosperity Through Science and Collaboration Gated Phase Review Process If process makes sense, –Choose gates, –Choose milestones to pass gates and –People (team) that needs to agree that milestones are met –Note: Works best when all critical vested parties have a say Each gate generally has a checklist to ensure are actions are taken Each Gate also provides opportunity to Kill Product or service 11

12 Peace and Prosperity Through Science and Collaboration Project Risks and Mitigation Identify the market, development, customer, personnel, and any other business risks that might impair project success and what can be done to prevent them happening. I Prob = Probability of Occurrence. Low, Medium, High ii Sev = Severity – impact to project contract –volume, revenue, price, cost, schedule, performance. Low, Medium, High iii What can we do in advance to prevent or minimize this risk. 12

13 Peace and Prosperity Through Science and Collaboration The Business Plan 13

14 Peace and Prosperity Through Science and Collaboration What is a Business Plan It describes the business objectives It describes the market to be served It describes the competitive strategy It describes measurable planned results It describes how results will be achieved It has a matching Financial Plan 14

15 Peace and Prosperity Through Science and Collaboration Why write a Business Plan? It is a planning and operating tool It forces you to think through what you are doing It is a tool to share your thoughts with others It is a benchmark for tracking business Lenders and others require it It is the tool used to measure progress against a plan 15

16 Peace and Prosperity Through Science and Collaboration Key Elements of a Good Plan Clearly describes the business and the customer need that the business fulfills Demonstrates market demand exists Shows a competitive strategy Has a clear and focused marketing plan Realistic management plan Realistic Financial plan 16

17 Peace and Prosperity Through Science and Collaboration Business Planning Process Gather data to to fill in questions in Business Plan Use primary and secondary research Use a good outline to document plan details Free business plan outlines are available Have your plan reviewed by (critical) others 17

18 Peace and Prosperity Through Science and Collaboration Business Plan Sections Executive Summary Description of Business Service or Product Market Strategy Location Competition Management Personnel Financial Plan 18

19 Peace and Prosperity Through Science and Collaboration Executive Summary It is a brief but very concise overview of the entire plan It is best written last It is often the only part of the plan read by a lender It must highlight the key points of the plan and why the business will be successful 19

20 Peace and Prosperity Through Science and Collaboration White Knight Carpet Cleaners Executive Summary A carpet and upholstery cleaning business Operated by husband and wife Sole proprietorship Target market – Silicon Valley upscale homeowners High end pricing strategy One percent market share will make business profitable Operating from home Owners are experienced 20

21 Peace and Prosperity Through Science and Collaboration White Knight Carpet Cleaners Executive Summary (cont.) Seeking a $30,000 short term loan Investing $20,000 of their own money Expect profitability within six months Anticipate net profit after taxes of $90,000 per year Will repay loan after three years 21

22 Peace and Prosperity Through Science and Collaboration Description of Business Type of business Status of business Ownership type Vision Why this business will be successful? Why this business will be profitable? Your experience in this business area 22

23 Peace and Prosperity Through Science and Collaboration What is business? What is status? Ownership form? Why will it succeed? Carpet & upholstery cleaning business Start up business Sole Proprietorship Only need small market share Low overhead Much experience White Knight Case Study Description of Business 23

24 Peace and Prosperity Through Science and Collaboration White Knight Carpet Cleaners Description of the Business Do work at customers location Only a small home office is required Only one equipped van is required Operate six days per week 40% of capacity will make business profitable Sam Taylor has 9 years experience Susan Taylor has 5 years related experience 24

25 Peace and Prosperity Through Science and Collaboration Services Offered Description of services to be offered Benefit and value to the customer How will this service compare to that of the competition? Why will the customer come to you instead of the competition? What, if anything, is included with the product or service, in your price 25

26 Peace and Prosperity Through Science and Collaboration Products Offered Description of products Benefit and value to the customer How does this product compare to that of competing ones? Product lifetime and future product plan Why will the customer leave his current supplier and buy your product? 26

27 Peace and Prosperity Through Science and Collaboration White Knight Case Study The Service or Product What is specific service? What specific market is satisfied? What are benefits to customer? How does service differ from competition? Carpet & upholstery cleaning Upper income homeowners Quality, trustworthy & dependable service Emphasis on quality rather than speed 27

28 Peace and Prosperity Through Science and Collaboration Market Strategy The specific market and market status Target market segment and customers Values to be provided to customers Marketing plan Promotional plan Plans for sales and distribution Pricing strategy Major financial milestones planned 28

29 Peace and Prosperity Through Science and Collaboration White Knight Case Study The Market Strategy Target Market is Upscale South Bay Communities Customers may want both carpet and upholstery cleaning There are 50,000 single family homes in our market Why Customers Will Come = Customer Satisfaction –Owners do the cleaning –not hired help –Better cleaning job with superior equipment –Advice on carpet & upholstery replacement issues Services priced at upper end of the range Promote using local advertising and directly thru friends and acquaintances Attract & Keep Customers through Customer Satisfaction 29

30 Peace and Prosperity Through Science and Collaboration Business location Where will business be located? Does it satisfy all business objectives? Form of occupancy Risks and risk mitigation plans What are the rules and regulations for this business? 30

31 Peace and Prosperity Through Science and Collaboration The Competition The key competitors in this business segment Their strength and weakness Competitors business strategy How will your strategy succeed 31

32 Peace and Prosperity Through Science and Collaboration Management What are the key job functions Who will fill these positions What are their qualifications Plans for use of expert help from outside (if needed) 32

33 Peace and Prosperity Through Science and Collaboration Personnel Personnel plan Strategy issues: experienced, or inexperienced and trained on the job Strategy issues: employee, or contractor Retention and incentive plan 33

34 Peace and Prosperity Through Science and Collaboration Market Research Market Research is an organized way of finding out the answers to the critical questions you need to answer to complete a business plan It involves primary and secondary research It focuses on the market for your product or service, competition, potential customers and differentiation 34

35 Peace and Prosperity Through Science and Collaboration Market Research Primary Research Techniques Phone/ Live Interviews – customers, distributors, sales teams of your competitors Trade shows – conferences Focus Groups – customers, distributors 35

36 Peace and Prosperity Through Science and Collaboration Market Research Secondary Research Techniques Web searches; competitor websites, (public company financials, annual reports) Professional Research Reports Competitor s catalogs and product literature Library searches –Magazines, reports –Sales and Marketing Management Magazines US Government Pubs Trade, Professional and Industry Associations Always read the publications your target customers read, including the ads 36

37 Peace and Prosperity Through Science and Collaboration Not Rocket Science or Brain Surgery Market Research It is a straight forward process with 3 steps: –Find people (primary) and data sources (secondary) who know something about your potential business, –ask them prepared questions and –record the information in an organized fashion Incorporate information learned into Business Plan 37

38 Peace and Prosperity Through Science and Collaboration Prepared Questions? Make a list of the things that you need to know to complete your Business Plan For each thing you need to know, make a list of questions, the answers to which, will give you the information for which youre looking. –Make some fact questions, some feeling questions, some open ended, some closed. –Use the same list of questions repeatedly so you can compare answers. –Modify question list as needed. 38

39 Peace and Prosperity Through Science and Collaboration Marketing Research Questions WHOWHO will be your customers WHEREWHERE are they located WHENWHEN do they decide to buy your product or service? WHYWHY do they need your product or service? HOWHOW will you find them or they find you? WHATWHAT is your product or service worth? HOW MUCHHOW MUCH can they afford to pay? 39

40 Peace and Prosperity Through Science and Collaboration Market Research What are you trying to learn? Is the market clearly identifiable? What exactly is it? What COULD it be? How large is the currently served market? How fast is it growing? Or not? Who are you competitors? How large, growing, etc.? How will you be different from the competitors? Current trends in the industry Regulations to operate in this business Why are competitors customer loyal? (Are they?) What are competitors sales, profits and growth trends? 40

41 Peace and Prosperity Through Science and Collaboration The Financial Plan Be consistent with descriptive part Show reaching profitability Realistically show all expenses Show adequate capital for surviving the start up cycle Show how any loan will be paid back 41

42 Peace and Prosperity Through Science and Collaboration Financial Statements Projections for at least two years –Use of Loan Statement –Monthly/Quarterly Cash Flow Projections –By year two, Profit & Loss Statement and Balance Sheet 42

43 Peace and Prosperity Through Science and Collaboration Cash Flow Projection Time phased tables of projected –Cash receipts & cash disbursements –Net cash flow –Ending & beginning cash balances –Shows status of working capital –Tool for estimating startup expenses Tool for planning & managing cash flow Updated easily in spread sheet format Most important financial statement 43

44 Peace and Prosperity Through Science and Collaboration 44

45 Peace and Prosperity Through Science and Collaboration Profit and Loss Statement It shows the results for a period of time e.g. month, quarter or year It must be looked at along with the Balance Sheet and Cash Flow Statement 45

46 Peace and Prosperity Through Science and Collaboration 46

47 Peace and Prosperity Through Science and Collaboration 47

48 Peace and Prosperity Through Science and Collaboration Balance Sheet Table that shows assets and liabilities It is a snapshot of a single point in time, often the end of a financial period or year Prepared for an individual, or business –Assets - liabilities = net worth Often required by lenders 48

49 Peace and Prosperity Through Science and Collaboration 49

50 Peace and Prosperity Through Science and Collaboration Summary A business plan is really necessary if you are serious about your business Dont expect it to be perfect or static; it is a repetitive, iterative process Your research and planning are the most important elements They give you the knowledge and confidence to positively sell the advantages of your business to a funder or customer 50

51 Peace and Prosperity Through Science and Collaboration Marketing Strategy Targeted Customers: Identify target lead partners and their applications At what price? (ball park) We have met with Key Customers and they say…... Identify their competitors for the application What market share will they capture and what is the likelihood of doing so? What are the important point in the supply chain? 51

52 Peace and Prosperity Through Science and Collaboration Marketing Strategy Product Strategy How do you plan to build market awareness for this product? After alpha and beta sites, how will this product be taken to market? Will this product obsolete any current products? How will this product be positioned vs. competitive products? 52

53 Peace and Prosperity Through Science and Collaboration Marketing Strategy Channel Strategy Will you promote the product in all regions? How? What is the customary channel strategy for this product? Does this product fit into companys selling strategy? What are your plans for Distributors Will you use Reps? 53

54 Peace and Prosperity Through Science and Collaboration Marketing Strategy Promotional Strategy How will you build awareness interest, preference and loyalty? Do you have a Brand strategy? How are you going to launch this product or service Ads Collateral Road shows Eval Kit/Board/ etc. 54

55 Peace and Prosperity Through Science and Collaboration Pricing: How much do I charge? How much value does the customer perceive? Why do you need a price schedule? What about payment terms? Up front charge? Guarantees, policies on returns Discounts, sales, introductory offers? Lowering your price is always easier than raising it! Warning: Price may define value in customers mind 55

56 Peace and Prosperity Through Science and Collaboration Direct Sales Force Distributors, Retail outlets Catalogs alliances, Mailers, Brochures, Business cards, Web site Advertisements, Telephone Book Public Relations (Press Releases) How will you reach your customers? 56

57 Peace and Prosperity Through Science and Collaboration A Useful Communications Model Attention Interest Preference Loyalty Advertising Billboards Handbills Samples 57

58 Peace and Prosperity Through Science and Collaboration Finally The act of doing a thorough Business Plan gives you the knowledge and confidence to speak with authority about your business A successful business needs many parts working well together: –Product Development –Manufacturing –Marketing –Sales That needs a well integrated, inter-dependent team And good leadership to orchestrate the total process Remember that you need to fill a market need 58

59 Peace and Prosperity Through Science and Collaboration Interesting Web Sites –www.smallbusiness.yahoo.com (Yahoo Small Business)www.smallbusiness.yahoo.com –www.bizstats.com (Small Business Profitability)www.bizstats.com –www.sba.gov (free statistics, business plans)www.sba.gov –www.smallbizbooks.com (guide book by business type)www.smallbizbooks.com –www.entreworld.org. (quick facts, resources)www.entreworld.org –www.entrepreneur.com (Entrepreneur Ideas)www.entrepreneur.com –www.calgold.ca.gov (Permits & Licenses in California)www.calgold.ca.gov –www.business.gov (U.S. Business Advisor)www.business.gov –www.toolkit.cch.com (Business Owners Tool Kit)www.toolkit.cch.com – 59

60 Peace and Prosperity Through Science and Collaboration –www.score.org (small business information)www.score.org –www.uspto.com (US Patent & Trademark Office)www.uspto.com –www.businessplans.org (Center for Business Planning)www.businessplans.org –www.nolo.com (Self Help Law Center)www.nolo.com –www.vfinance.com (venture capital resource library)www.vfinance.com –www.bizmove.com (small business knowledge base)www.bizmove.com –www.oraclesmallbusiness.com (Oracle Small Business Site)www.oraclesmallbusiness.com –www.startupjournal.com (Wall Street Journal Small Business Site)www.startupjournal.com –www.thomasregister.com (Products Mfg in North America)www.thomasregister.com Interesting Web Sites 60

61 Peace and Prosperity Through Science and Collaboration (Access to Govt Sites)www.firstgov.com –www.gsa.gov (Selling to the Govt)www.gsa.gov –www.foreignborn.com (Guide for Foreign Born)www.foreignborn.com –www.smalltownmarketing.com (Marketing Plans)www.smalltownmarketing.com –www.myexports.com (Export Regulations)www.myexports.com –www.fita.org/webindex (International Trade)www.fita.org/webindex –www.aafd.org (Franchises)www.aafd.org Interesting Web Sites (cont.) 61

62 Peace and Prosperity Through Science and Collaboration Facts & Information Sources Trade Associations (Google) International Association of Consultants Entrepreneur Magazine Various Chambers of Commerce Dun & Bradstreet (Financial Condition) Better Business Bureau 62

63 Peace and Prosperity Through Science and Collaboration A Partial list of Products derived from the Space Program 360 Degree Camera Advanced Hydrogen Sensors Advanced Welding Torch Aerodynamic Bicycle Wheels Air Catalysts for Carbon Monoxide Poisoning Aircraft Collision Avoidance Aircraft Design Analysis Airline Wheelchairs Airliner TV Transmission Via Satellite Anthrax Smoke Detector Arteriosclerosis Detection Artificial Heart Audiometric System for Hearing Assessment Automated Urinalysis Automatic Insulin Pump Automotive Design BAFCO Linear Actuators Balance Evaluation System Biomass Production System for Education Bioreactor Demonstration System Bioreactor Human Tissue Growth Bone Analyzer Breast Biopsy Breast Cancer Screening Bridge Safety Improvements Cabin Pressure Altitude Monitor and Warning System Camera on a Chip Cardiac Pacemaker Cataract Surgery Tools Chemical Warfare Hood Chromosome Analysis Clean Room Apparel Clean Water for Homes Coastal Zone Color Scanner Compact Blood Diagnostic Equipment Compact Fire and Rescue Extraction Devices Composite Forceps Composite Materials Development - Golf Clubs Computer Joysticks Bioreactor Human Tissue Growth Bone Analyzer Breast Biopsy Breast Cancer Screening Bridge Safety Improvements Cabin Pressure Altitude Monitor and Warning System Camera on a Chip Cardiac Pacemaker Cataract Surgery Tools Chemical Warfare Hood Chromosome Analysis Clean Room Apparel Clean Water for Homes Coastal Zone Color Scanner Compact Blood Diagnostic Equipment Compact Fire and Rescue Extraction Devices Composite Forceps Composite Materials Development - Golf Clubs Computer Joysticks Computer-Aided Tomography (CAT Scanner) Convection Oven Cool Vest Therapeutic Suits Cordless Power Tools and Appliances Corporate Jet Wing Designs Corrosion Protection Coating Crop Dusting Improvements Crop Growing Improvements DeBakey Heart Pump Dental Arch Wire Digital Mammography Diving Optical Profiler DMI Remote Sensing Fish-Finding Service Doppler Radar Ear Thermometer Edible Toothpaste Electric Car Emission Testing Emulsified Zero-Valent Iron Remediation Energy Storage Systems Engine Coatings Engine Design Engine Lubricant Failsafe Flashlight Fetal Heart Monitor Fire Detection Systems Firefighter Breathing System Firefighter Radios Firefighting Equipment Firemans Air Tanks Fitness Equipment Flame Detector Foam-In-Place Seating Technology Freeze Drying Technologies Gas Detector Gasoline Vapor Recovery Geosynchronous Orbiting Golf Ball Aerodynamics GPS Navigation Helmet Padding High Temperature Soldering Blocks High-Pressure Waterstripping Historical Document Condition Analysis Home Insulation Human Tissue Stimulator Implantable Heart Aid Improved Aircraft Engines Inertial Motion-Tracking for Virtual Reality Infrared Camera Infrared Thermometer Insulation Insulin Pumps Interactive Computer Training InTime Agricultural Remote Sensing Invisible Braces Kidney Dialysis cfm?aid=14 63

64 Thank You for your kind attention 64


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