UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Rudy W. De La Garza ENTREPRENEUR WEAPONS First Dominion FINANCIAL CITE BootCamp January 2011Slide 1

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! WEAPONS What is a Business Plan A Business Plan is a clearly defined management discussion of the operation of the business with projections of future values under certain assumptions.  Executive Summary  Elevator Pitch  Slide Deck CITE BootCamp January 2011Slide 2

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! OPPORTUNITIES Look around you! Is there a problem that needs a solution? Is your solution; –At a Better price –With a Better device –In a Better technology –A Better way of Communicating We can built it greener, better, faster, smarter and cheaper. CITE BootCamp January 2011Slide 3

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! What Kinds of Opportunities to Pursue? Prospective entrepreneurs should look for: –Markets that are easy to articulate –Industries with low startup capital requirements –Markets where inventories are low –Products or services where the units can be offered on the internet An entrepreneur pursues the challenge for the excitement of the win/loss prospect. CITE BootCamp January 2011Slide 4

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! FEASIBILITY  Opportunity? –Scope of target market Geographic and Demographic –Potential market size –Market penetration –Share of market (realized vs. potential) –Competitors and market shares  Can we do better?If so how? CITE BootCamp January 2011Slide 5

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! DEFINE THE CUSTOMER Know your customer GenderAgeLocationIncomeNeeds CITE BootCamp January 2011Slide 6

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! COMPETITIVE ADVANTAGE Why will they buy: a. Is it at a Better price? b. Is it a Better device? c. Is the technology Better? d. Will it communicate Better? e. Will they make the change? CITE BootCamp January 2011Slide 7

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! SUCCESS FACTORS AND TIMING Critical success factors –What three or four things must go right in order to succeed, and in what order? –Is our management team capable of making it happen? Timing considerations –Is the window of opportunity broad or narrow? –Is timing critical to capturing market share? –Who else is trying to get there first? CITE BootCamp January 2011Slide 8

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! BUSINESS MODEL AND PROFIT Do we have a viable Business Model? –How will we reach our customer (sales & distribution)? –How will we produce the product? –How will we price the product? –How will we support the product after the sale? Can the business be profitable? –Selling price (to achieve target volume goals) –Cost to manufacture (function of volume)? –Cost to distribute, sell, service, & support? –Other costs? –Breakeven point? CITE BootCamp January 2011Slide 9

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Projection Financials Pro forma 1.Month to month for 12 months 2.3 year projection 3.Percentage of market reach 4.Growth 5.Cost of goods 6.Operating cost a. Salaries 7.Equipment cost 8.Gross Profit 9.Net profit CITE BootCamp January 2011Slide 10

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Managing Risks Technical risk – will it work? Market risk – will they buy? Competitive risk – can we sustain a competitive advantage? Implementation risk –Leadership –Resources –A convincing Business Plan What could go wrong? Everything CITE BootCamp January 2011Slide 11

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Elevator Pitch CITE BootCamp January 2011Slide 12 Start with a question to catch someone’s interest? Describe the “market pain”? i.e. The problem you are trying to solve Say your “value proposition”? i.e. Why your product is better than others Tell them the market size? Tell them your projected revenues? You want to catch their attention and get invited to give your pitch… K I S S

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Slide Deck K I S S Guy Kawasaki – The Art of the Start 10 slides –Title –Problem –Solution –Business model –Underlying magic –Marketing and sales –Competition –Team –Financial Projections –Status and timeline 10 slides, 20 minutes, 30 point font CITE BootCamp January 2011Slide 13

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Executive Summary 3-5 Pages –Put your slide deck into words CITE BootCamp January 2011Slide 14

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! 1.Solutions or technologies are stuck in R & D. 2.Unclear business model 3.Incomplete competitor analysis 4.Marketing plan not thought out 5.Inadequate description of the uncertainties and risks 6.Gaps in capabilities required of the team 7.Inadequate description of revenue and profit drivers 8.Lack of focus and a sound mission 9.Never sold the market size & % of market unrealistic 10.Limited confirmation of customer demand Top 10 Mistakes CITE BootCamp January 2011Slide 15

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! QUESTION ? What is the one single biggest mistake made? CITE BootCamp January 2011Slide 16

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Most missed question What is the one single biggest mistake made? Never trying! CITE BootCamp January 2011Slide 17

UTSA Colleges of Business and Engineering TAKE YOUR TECHNOLOGY TO THE LIMIT! Summary Entrepreneurial success takes more than a bright idea, luck and hard work. You must also have: –The courage to fail –The flexibility to change –The fortitude to listen to others “MENTORS” –And the means to make a decision Too many would-be entrepreneurs start with a clever technology or a bright idea and assume that the world will beat a path to their doorstep –Unfortunately, it rarely works that way Are you ready for the greatest adventure of your life, then become an Entrepreneur. CITE BootCamp January 2011Slide 18