TELLING YOUR STORY IDEA Competition Finalists March 15, 2010

Introductory Issues What IDEA is looking for Review components of your “pitch” Discuss critical issues – (business & presentation-related) Please… Feel free to ask questions during the presentation What we’ll do today

IDEA Criteria Unique Innovation That matters to customer and has realistic “path to market” Commercial ValueInvestment PotentialGood TeamQuality Presentation

IDEA Mission “…to assist the most promising local entrepreneurs in the commercialization of innovative products, processes and deliveries by connecting them to the best resources available, along with access to the capital it takes to launch a successful venture.”

What IDEA isn’t looking for Fancy “exit” strategies Promises of significant new jobs People that are trying to be someone they aren’t just to “get the money”

Acknowledgments Portions of this presentation taken from: “Art of the Start” Guy Kawasaki “Preparing Effective Business Plans” Bruce Barringer

11-7 Sample Presentation Sequence 1. Title Slide 2. Quick overview 3. What we do – problem we solve 4. Opportunity and target market 5. Technology/Business Model

Competition 8. Marketing & sales 9. Management team 10. Financial projections 11. Current status 12. Financing sought 13. Summary & Questions Sample Presentation Template

11-9 Title Page Company name/logo Name of founder(s) contact info Who the presentation is being made to Date

Beginning Your “Pitch” Do Provide simple explanation Its relevance (why it matters) Help people “get it” Don’t Tell your life story Go into minute detail Assume your idea is obvious

11-11 What is the issue? Explain the issue What’s the pain? Why current solutions are unsatisfactory Validate the problem How significant is the issue? How bad is the pain?

Your Solution Discuss your solution How is it better than the alternatives in a meaningful way to customers? Benefits (hopefully self- evident) Remember, don’t go “geeky”

Helping People “Get it” YOU SAY…Little Man SaysYou ReplyYou Then Explain “We use digital processing in our hearing aids” “So What!?” “Our product increases the clarity of sounds” “For instance, if you’re at a party where lots of people are talking, you’ll be able to hear what people are saying to you” “We provide 128- bit encryption in a portable device” “So What?!” “It’s harder than hell to break into our system” “For example, if you’re in a hotel room and want to have a secure telephone conversation with your headquarters” “Ask the Little Man”

Technology (Secret Sauce) Talk about your technology, or unique aspects of your product or service, if appropriate Don’t go “Geek” Show pictures of your product or prototype If possible show a “demo” Talk about any intellectual property issues involved

Opportunity & Likely Market Discuss likely target market Relevant trends, issues Show, visually if possible, size of market, projected sales (3-5 years) Explain estimates & assumptions

11-16 Competition Discuss direct, indirect, and future competitors There is competition, even if you don’t think so. Where are these $’s being spent now? Talk about your points of competitive advantage Side-by-Side Comparison is helpful (visual aids)

Marketing & Sales Product/business positioning Pricing strategy Sales process Buyer purchase factors How you create awareness & reach end users Channels of distribution Who are your customers? Length of sales cycle

A Little Perspective B1-B: 30,000 feet & $200 million $200 million “Lingo” rich Not specific enough Navy Seals: bits, bites, nits, nats Geeky, too “in-detail” A-10 Warthog: 1,000 feet & $13 million Provides appropriate detail Shows market savvy

Management Team Discuss the following: Management team Personal/professional backgrounds and role in the project Any gaps in management team and how they will be addressed Board of directors and/or advisors (if applicable)

Current Status Discuss accomplishments to date Investments made to date and by whom How funds have been spent Current ownership structure of the firm Describe the firm’s form of business ownership (i.e., LLC, Subchapter S Corporation, C Corporation) Show that you have traction

Next Steps…. Our near-term objectives 1. Yadda 2. Yadda 3. Yadda

Financials Break-even cash-flow Break-even unit sales Summary of income & cash flow projections for the first 3 to 5 years Shows scalability

Financing Needs Sources & Uses table Identify development and marketing costs necessary to reach a major milestone The sources of funding and corresponding amounts

In Conclusion… Summarize the strongest points about your venture & team Solicit feedback Set up a follow-up meeting if possible

10/20/30 Presentation Rule Actually more of a guideline slides (no more than 15) Provide “enough” info “Lead” not “Read” 20 minutes (tops) 30 point font Easier to read

POWERPOINT “Pointers” Dark background Substantive & professional Add logo to master page Use basic fonts Don’t go “whiz-bang”

Use Bulleted Lists (preferably one level) Use diagrams & graphs (but not cheap graphics) Make printable slides Ask judges to not “skip ahead”

My Contact Info Kevin Cooper 2900 University Avenue 148 Dowell Annex Crookston, MN Office: