1. Lessons Learned: Entrepreneurial Ventures & Managerial Attributes
Evaluating an Idea
The Feasibility Study
The Business Plan
A Case Study
Managerial Attributes
David R. Lohr
President & CEO
Navigation Point Advisors
Longwood University MGMT 360 Principles of Management

2. Thoughts on Evaluating a Business Concept
Is this idea my passion?
Could I execute the business idea?
Does this business leverage my strengths?
What’s the compelling unmet need I am solving?
What’s the “Elevator Pitch”
Does it capitalize on new market dynamics?
What’s my competition?
Are there significant barriers to entry?
Can the idea make money? And how fast?
Will I max my credit cards and home equity line to make it happen?

3. Feasibility Analysis: Some Key ?’s
Industry/Market
Financial
Product/Service
How big is the target industry/market? Is it profitable?
What trends are impacting/shaping it?
Will projected ROI be attractive to investors? Is the risk reward tradeoff viable?
What’s the exit strategy?
Will customers purchase the product or service? Are we solving a compelling unmet market need?
Can the venture deliver the product or service profitably?
A Useful Framework: Michael Porter Five Forces Model

4. Why Do a Business Plan? To attract investment capital…
As a roadmap for running your business…
To create a common vision among your stakeholders…
To determine required resource allocations…
To recruit talented employees…
To attract potential strategic partners…

5. Business Plan Do’s & Don’ts
The Do’s
The Don’ts
Recognize form and substance count
Include a compelling executive summary
Treat the business plan as a process
Use plan to communicate goals & milestones
Align plan with your budget financials
Include an IP strategy
Address the competition thoroughly
Articulate the exit strategy
Underestimate value of a good plan
Let it collect dust on the shelf
View as extension of your research plan
Insert the “hockey stick” revenue model
Disclose inventions prematurely
Arrogantly assume success is preordained
Leave your passion out!
Business Plan Do’s & Don’ts

6. Case Studies Company Product or Service Status Today
Medisorb Technologies International
CRO: Bioabsorbable, Polymeric Drug Delivery Systems
Acquired by Alkermes; 3 FDA Approved Products
GyneConcepts
In Home Pap Test Kit
Out of Business
Kaleo Pharma (Intelliject)
Epinephrine Autoinjector
Auvi-Q™ FDA Approved & Marketed by Sanofi Aventis; Second Product Approved Evzio™

7. GyneConcepts Lessons Learned – Flawed Feasibility
Feasibility Study
Business Planning
Home Healthcare Diagnostic Kits were an Emerging Market: Pregnancy Kits
Female Health is a Huge Market with Attractive Margins
Business Concept Resonated with Angel Investors
Market Exclusivity Possible via Patented Tissue Collection Device and Technologies
No Feasibility Study of Reimbursement or Gynecologist’s Support
Pregnancy Test Kit Business Model Applicable
Outsourcing Kit Manufacturing Viable
Healthcare Insurance Companies Refused to Cover Product
Gynecologists Reluctant to Promote the Product – Potentially Harmful Reduction of Patient Visits to the office
GyneConcepts Lessons Learned – Flawed Feasibility

8. Managerial Attributes: 4 Mini Case Studies
MBWA
Celebrating Failures
Managing An Underperformer
Effective Networking
David Lohr
President & CEO
Navigation Point Advisors
@HokieDave76

9. MBWA: Management by Walking Around
Concept started at HP; Popularized in Tom Peters book – In Search of Excellence (1982)
Practiced as President of Medisorb
Unannounced Manufacturing Plant Visits
Coffee & Donuts with the President
Practiced as DuPont Pilot Plant Supervisor
Random off hour visits to the pilot plant

10. Celebrating Failure
The High Pressure Compressor Dilemma

11. Celebrating Failure The High Pressure Compressor Dilemma
It’s OK to make a mistake and learn from it……make the same one twice and I’ll fire your “butt”……….
DuPont Group VP Jack Breckenridge

12. Managing An Underperformer
Underperforming DuPont female engineer – One of the early hires into the company
Situation: First time R&D manager inherits the problem
Abdication by several prior supervisors;
The effective managerial attribute: honesty, respect & a structured mentoring/performance improvement plan
A surprising outcome: The Thank You Hug

13. Effective Networking
Building internal & external personal relationships is essential for an effective manager at any level;
Networking is a 2-way street;
How can a colleague help you?
What can you do to enhance your relationship with that colleague?
Two examples:
The job interview….. Rick Perdue
The meeting invite……..Joe Sprangel

14. Questions & Discussion
David Lohr
President & CEO
Navigation Point Advisors
@HokieDave76

15. Appendix David Lohr President & CEO Navigation Point Advisors
@HokieDave76

16. Feasibility Analysis: Key ?’s
Industry/Market
Financial
Product/Service
How big is the target industry/market?
Is it profitable?
What trends are impacting/shaping it?
Any threats to the market?
What’s the competitor landscape look like?
Are there potential major barriers to entry?
What stage is the market: emerging, growth, mature?
Are their new opportunities/unmet needs in the market?
Are the market’s products essential or discretionary to consumers?
A Useful Framework: Michael Porter Five Forces Model

17. Feasibility Analysis: Key ?’s
Industry/Market
Financial
Product/Service
What is the market size for your product or service? Is it large enough to support a new venture?
What’s the growth rate of the market?
Can new entrants extract a premium margin?
How much capital will entry require?
What are realistic 5 to 10 year financial projections for the new venture?
Will projected ROI be attractive to investors? Is the risk reward tradeoff viable?
What’s the exit strategy?

18. Feasibility Analysis: Key ?’s
Industry/Market
Financial
Product/Service
Will customers purchase the product or service? Are we solving a compelling unmet market need?
Can the venture deliver the product or service profitably?
Tools: Primary & Secondary Research
Focus Groups
Customer Surveys
Published Demographic Data
Census Data
Global Forecasts
Business Articles
Market Research Reports
Trade Association Lists

19. The Business Plan Outline
Executive Summary
Company Overview
Products & Services
Markets
Marketing, Sales & Distribution
Competition
Company Assets
Legal/Regulatory/Rei mbursement
Corporate Structure
Capitalization
Financial Projections
Appendix

20. Medisorb Lessons Learned
Feasibility Study
Business Planning
Drug Delivery an Emerging Trend in Pharma/Biotech
Unmet Need: Polymer Supplier with Formulation Capability
Strategic Partnership Created a Powerful First Mover with the Medisorb Venture (Stolle R&D & DuPont)
Research Feasibility Studies Behaved like a Retail Model “Loss Leader”
FDA Regulated Product Development Costs 2-3x Your Best Guess!
CRO/CMO Business Model is Industry Viable
“Real” Competitive Advantage was Capital Avoidance for Big Pharma & Biotech
Under Estimating Capital Requirements Forced an Accelerated Exit Strategy
Medisorb Lessons Learned

21. Kaleo Pharma Lessons Learned
Feasibility Study
Business Planning
Drug Delivery an Emerging Industry Trend
Unmet Need: Improved Form Factor with Ease of Use for Anaphylaxis Allergies
Growing Market for Food Allergies
Manageable FDA Approval Pathway
Opportunity to Combine Technologies: Autoinjector Form Factor plus AED Technology (Automated External Defibrillator)
10 Year Financial Projections Defined Capital & Timeline
Aligned Fundraising Strategy with Capital Needs
Identified Importance of Aggressively IP Protection
Long Term: Leverage “Epi-Card” FDA Approval into Branded Next Generation Products - Evzio™
Twin Co-Founder’s Passion Sold this Venture
Recruiting “Bankable” CEO and Strong Management Team was Critical
Kaleo Pharma Lessons Learned