1. Business Plan Preparation
Frank Moyes Leeds College of Business
University of Colorado Boulder, Colorado
Product & Service, Elevator Speech

2. Tonight’s Agenda Topics Read BP pp 6-7 Practice Elevator Speech
Features & Benefits
Margins
Elevator Speech
Investor Presentations
Read BP pp 6-7
Practice Elevator Speech
In the Fire – team meetings, last hour
Preliminary Market & Industry Analysis Results
Preliminary Interview Results
Product & Service, Elevator Speech

3. Next Week Marketing Plan Revenue Model Customer Surveys
Read BP pp 14-18
In the Fire
Prelim Industry Analysis
Model company description
Hand in
10 Call Reports
Preliminary Competitive Matrix
Model company
Product & Service, Elevator Speech

4. In the Fire Grading

5. Business Plan Elements
Executive Summary
Company Overview
Market & Industry Analysis
Product/Service Description
Marketing Plan
Operations Plan
Development Plan
Management
Competitive Advantage
Financial Plan
Funding
Product & Service, Elevator Speech

6. Product/Service Sections
Features
Benefits
Proprietary Rights
Stage of Development
Product & Service, Elevator Speech

7. Features Detailed description What is unique?
Attributes
Environment
What is unique?
What is evidence that customers want these features?
How produce & deliver – systems approach
Don’t assume people know or understand your product/service
Description
Specifications
Drawings
Photographs
Rendering
Other Product Issues
Customer support
Warranty
Repair service
Training
Technical Support
Product & Service, Elevator Speech

8. Attributes
Performance: durability, quality of materials, defect levels, tolerances, construction, dependability, functional performance (acceleration, nutrition, taste), efficiency, safety, styling, packaging, etc.
Cost: purchase price, quantity discounts, operating costs, repair costs, cost of extras or options, cost of installation, trade in allowance, likely resale value, etc.
Availability: carried by local stores, credit terms, quality of service available from local dealer, delivery time, credit card, on-line transactions, etc.
Service: hours, warrant, guarantee, return/replacement policy, upgrades, maintenance, training, installation, repair service, spare parts, customer support, tech support, training, product design, make to order, level of inventory, quotation response time, lead time, quality certification, employee capabilities, etc.
Environment: location, atmosphere, layout, fixtures, aesthetics, style, sound, lighting, color, etc.
Bad Slide
Product & Service, Elevator Speech

9. Benefits Describe major benefits - be specific
What is the evidence that benefits are understood by the market?
Product & Service, Elevator Speech

10. Benefits
Emotional: ambition, power, independence, achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self Improvement, etc.
Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc.
Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc.
Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc.
Convenience?
Objective is distinguish between benefits and features, not put into categories
Product & Service, Elevator Speech

11. Feature vs. Benefits
Product & Service, Elevator Speech

12. Net Dog
Product & Service, Elevator Speech

13. NetDog Feature Benefit Adaptable to new network threats
Protection without a reduction in user productivity
Modular rules based system
Adaptable to new business requirement and new threats
Guaranteed zero packet loss
Eliminates the risk of false negatives
Intelligent network adaptation
Protection is provided regardless of the network topology
Ships with a standard rule set
Provides out of the box protection from common attacks
Scripting language and API
Customers can develop their own powerful rules
Web based reporting system
Improves forensics and visibility into the security of the network
Web based interface
Makes administration of the system easy

14. Features
DUO
Benefits
Ergonomic design
Eliminates back and shoulder pain so parents feel more comfortable while carrying their baby.
Cocoons
Allow parents to more easily attach and detach baby from harness, eliminating fear of straining arms, dropping or tightly squeezing baby.
Multiple Cocoons
Parents maintain a look that can be seasonally updated to provide the feeling that they are on the leading edge of fashion. Babies are happier and more comfortable in Cocoons specifically designed to fit their current developmental stage.
Unexpected Attributes
Convenient features allow parents to keep important items, like keys, easily accessible. This saves time and energy spent preparing to get out the door.

15. Product & Service Conclusions
Make it real
Photo, rendering, specs
Prototype
Evocative description
Make it exciting
Sell your concept
Product & Service, Elevator Speech

16. Product/Service Competitive Matrix
Product/Service offering – breadth and depth
Quality (define the type quality)
Detailed analysis of the key features
Obtain samples of the competitor’s products, specifications & drawings
Retail go to competitor’s locations, observe the environment and how customers interact with the business.
Internet businesses evaluate the websites.
Strengths and weaknesses
Location
Product & Service, Elevator Speech

17. Product/Service Competitive Matrix
Attribute 1
Attribute 2
Attribute 3
Price
Style
Availability
Crocs
$29
One style, multiple colors
Everywhere!
Tevas
$45+
Multiples styles, colors
Athletic/comfort shoe stores
Reef
$20
Thongs, multiple colors
Skate shops, dept stores
Hoz Sandals ?
Product & Service, Elevator Speech

18. Quality Dimensions I
Performance - the primary operating characteristics of the product or service
Features - the characteristics that supplement the basic functioning of the product or service
Reliability - probability of the product or service failing within a specified period of time
Conformance - the degree to which a product or service meets acknowledged standards
Product & Service, Elevator Speech

19. Quality Dimensions II
Durability - a measure of product life (both technical and economic)
Serviceability - the speed, courtesy, competence, and ease of repair or recovery
Aesthetics - how a product or service looks, feels, sounds, tastes, or smells
Perceived Quality - various tangible and intangible aspects of the product from which quality is inferred
Product & Service, Elevator Speech

20. Service Quality Dimensions
Reliability - ability to perform service dependably & accurately
Responsiveness - willingness to help customers & provide prompt service
Assurance - knowledge & courtesy of employees and ability to convey trust and confidence
Empathy - provision of caring, individualized attention to customer
Tangibles - appearance of physical facilities, equipment personnel and communication material
Product & Service, Elevator Speech

21. Financial Dynamics Every entrepreneur must know – part of your DNA
All your decisions have a financial impact
Not accounting
Language of business
Product & Service, Elevator Speech

22. Financial Dynamics 4 Key Elements
Revenue
Margins
Assets
Cash Flow
Product & Service, Elevator Speech

23. Margins % Gross Profit Margin % Contribution Margin
Revenue – COG’s Revenue
% Gross Profit Margin
% Contribution Margin
% Net Profit Margin
% Operating Expenses
Revenue – Variable Costs
Revenue
Net Earnings Revenue
Sales, General & Admin Revenue
Product & Service, Elevator Speech

24. Margins %

25. The Elevator Pitch Based on material developed by:
9:50
Before we get started, let me give some background on the examples that we will be using in the following segment:
These examples are taken from various companies that have been funded over the past year, including ones that obtained funding using the models and best practices from this workshop. To preserve confidentiality, the name Acme was used for all companies.
We would like to acknowledge the support of Strategic Design Group in SF for assistance in assembling the slide examples for this presentation. Cameron Kane and his team are experts in graphic design and presentation development for groups including investor audiences. (RECOGNIZE CAMERON, IF IN THE AUDIENCE or REFER TO ONE PAGER INCLUDED IN THE COLLATERAL MATERIALS). Strategic Design Group will provide copies of the one pager to National. Contact Dina Oki with the number of copies you would like for your workshop.
As we go through the materials, we will show you slides from these presentations to translate theory into specifics.
Any questions???
Product & Service, Elevator Speech

26. Elevator Pitch What is the objective?
Elevator Pitch
What is the objective?
Who are you talking to? What motivates them?
Must be exciting and compelling
This is a conversation, not a speech
Product & Service, Elevator Speech

27. The Elevator Pitch Goal: Buy-in Critical Attribute: Focus
Investors
Employees
Customers and partners
Critical Attribute: Focus
What do you want remembered?
Result: Motivate
Listener wants to hear more
Product & Service, Elevator Speech

28. The Elevator Pitch What market are you in?
What urgent problem are you solving?
What is the size of the opportunity?
Value proposition
Why will you win?
Where is the validation (customers, investors, etc.)?
The order is flexible
Product & Service, Elevator Speech

29. Elevator Pitch Communication Imperatives
Show passion, energy, and enthusiasm
Use appropriate eye contact when face-to-face
Slow down and speak clearly
Be brief (target 30 seconds)
Be confident
Use understandable vocabulary
Product & Service, Elevator Speech

30. Elevator Pitch – Example
P1 Diamond develops proprietary thin film diamond products and equipment that dramatically improve heat dissipation on microprocessors, solving one of the highest priority pain points in the industry.
We address growing markets that will exceed $1.5B by 2006 and will become the dominant supplier with the best team having the most comprehensive patent position in the industry. Intel is our largest current investor, and we are actively engaged with other top target customers and partners who provide very strong references.
Product & Service, Elevator Speech

31. How Do You Get Immediate Attention?
Reduce to one sentence or question what is unusual, interesting, exciting or dramatic.
Product & Service, Elevator Speech

32. Elevator Pitch http://www.youtube.com/watch?v=Tq0tan49rmc
Product & Service, Elevator Speech

33. Elevator Pitch Exercise
Your name and the name of your firm
Your pitch
Evaluation by class on a scale of 1 to 10
Urgent pain
Large growing market
Unique, defensible position
Validation
Communication skills
Desire to hear more
ESTIMATED TIME – START FROM 9:05 – 9:35
Describe exercise:
Each person compose in writing elevator pitch elements (5 minutes)
Form small groups (2-3 people)
Each person presents and others provide written (see other materials for template) or verbal feedback and rank against criteria. (Ranking 1 to 10 with 1= Poor and 10 = Excellent). Instruct against using a rating of 5 as its middle of the road. (5 minutes per person including elevator pitch and feedback – total 15 minutes).
Reconvene
Discuss / list best practices as a group (10 minutes)
Product & Service, Elevator Speech

34. Be Prepared to Answer Questions About
Product and technology
Marketing strategy
Market research
Revenue and profitability
Funds required
Valuation
Product & Service, Elevator Speech