LaunchPad

Agenda 10:00 Introduction and assessing your idea 11:00 Value proposition and business planning 12:00 Lunch 12:30 Lean start-up – D4Software 13:30 Brand development – IE Design 15:00 Group work

Aims 1 - to test your idea 2a - if its good, start it 2b – if its bad, start something else

You!

1 minute pitch

What’s the problem? What’s your solution? Why is it different/unique? 1 minute pitch What’s the problem? What’s your solution? Why is it different/unique?

So is it a good idea?

Assessing a new idea No guaranteed way of predicting success Even the most successful serial entrepreneurs make mistakes eg Richard Branson Many unlikely successes eg Facebook

Assessing the odds All you can assess is whether the odds are in the favour of the business but nothing is a 0% or 100% chance 5 star system based on personal experience - one star for each positive answer to 5 questions

1 – Does it meet a real need? ‘Needs’ are better than ‘wants’ as they are more reliable Painkiller vs vitamin = urgent real need vs nice to have that might make you better off ‘Wants’ can succeed (Angry Birds, movies blockbusters) but are more unpredictable Is it a significant problem or a minor irritant

2 – Are customers willing and able to pay for the solution Will customers pay to fix the problem? Does it matter that much to them? Do they have the money to fix the problem i.e. don’t sell to people with no money! You may not know the answer at the start but look to see if there is money in the system generally eg university degrees, investment banking Will they give you enough of it to be profitable?

3 – Does your solution make people go ‘wow that’s clever’? There is always competition – direct or indirect – including doing nothing There is no point being 5 or 10% better than the competition. People need more to switch Needs to be significantly better than competition in some way - needs to have a USP Ideally 80% of people say “what a great idea” when you tell them about it

4 – Have you got a clear and affordable route to market? You can always gain customers if you spend enough on advertising but you need to be able to gain customers cost-effectively Is there a clear way for you to reach your customers within the budget you have eg B2B is there a reasonable number of potential customers to call eg 50-200 not too many or not too little? Can you get their names? B2C can you advertise cost effectively and target a niche

5 – Are you the right person to do this? Do you have the personal qualities to be an entrepreneur? Do you have the technical knowledge and skills you need or can you get them? Will you be credible to your customers and suppliers?

So is yours a five star business? Doesn’t need all five stars but the more the better Real need vs want? Customers willing and able to pay enough? A great solution? Clear and affordable route to market? Are you the right person to do it?

Value Proposition

Pitching Your Value Proposition We pitch to: Customers Lenders Investors Partners But all have different “needs”

Pitching Your Value Proposition They do, however, all have one thing in common, they want to know: “What’s in it for me?” (WIFM) Because we are taking their money/time ...

Features vs benefits Features – what it does or is Factual Objective Inside out Benefits - what it does for your customers What’s in it for me? How will I be better off? Where do ideas come from? Solve a Problem SE need / cause driven - Copy another business and do it better - nursery , Genuine innovation- iPhone ideas- you may see something for sale on holiday which would sell well here. Jewellery Gemma Food- variety on campus burrito Change creates opportunity! What annoys you? Read the financial pages - get used to the language & practices of business May spot trends Read the trade press. What's up/down Local businesses in local papers. Who is doing well.? How did they fund themselves? Look at your interests Passios, hobbies and leisure activities. Listen to your friends. Trouble finding certain clothes? Access to fancy dress gear with a low price tag? Freshly prepared meals on the go? Ideas are cheap. Can't be protected and easily copied. Execution. 1 percent inspiration, 99 percent perspiration.

How do you sell rope to a drowning man?

Features vs benefits Features – what it does or is Factual Objective Inside out Benefits - what it does for your customers What’s in it for me? How will I be better off? Where do ideas come from? Solve a Problem SE need / cause driven - Copy another business and do it better - nursery , Genuine innovation- iPhone ideas- you may see something for sale on holiday which would sell well here. Jewellery Gemma Food- variety on campus burrito Change creates opportunity! What annoys you? Read the financial pages - get used to the language & practices of business May spot trends Read the trade press. What's up/down Local businesses in local papers. Who is doing well.? How did they fund themselves? Look at your interests Passios, hobbies and leisure activities. Listen to your friends. Trouble finding certain clothes? Access to fancy dress gear with a low price tag? Freshly prepared meals on the go? Ideas are cheap. Can't be protected and easily copied. Execution. 1 percent inspiration, 99 percent perspiration.

Business planning

Planning “The nicest thing about not planning is that failure comes as a complete surprise rather than being preceded by a period of worry and depression.” Sir John Harvey Jones

but planning is everything” “Plans are worthless but planning is everything” Gen Eisenhower, Commander Allied Forces D-Day

Benefits of a Business Plan Systematic approach to planning A completed plan will give you greater confidence Will give you an estimate of how much funding is required (but you will need more) Reduce the risk of failure Communicate your ideas to others, e.g. Bank Manager, Potential Investors Controlling and monitoring your business

Reality of business plans Good for: 1- Making you think 2 - Outside investors Two dangers 1 - you spend too much time on the plan 2 - you spend too little time on the plan

Full Business Plan Main benefit is as a marketing communication Who will read it? What are their interests? What outcomes do you seek?

Full Business Plan Equity Investors eg VC/crowdfunding Bankers loan opportunity new account longer term [other bank services, revenue] minimal risk – want their money back Equity Investors eg VC/crowdfunding investment opportunity part of portfolio upside potential acceptable risk and reward

Dangers of business plans

Business model canvas

Agenda 10:00 Introduction and assessing your idea 11:00 Value proposition and business planning 12:00 Lunch 12:30 Lean start-up – D4Software 13:30 Brand development – IE Design 15:00 Group work

Friday Using freelancers Funding options – E- Spark and Catalyst Reflection

Homework Clear value proposition – 1 minute pitch Business model canvas Idea for MVP What is your brand message and name