1. CNVC Intro: Thinking about Your Business Bob Rosenberg October 21, 2013 1

2. Developing an Idea There are no bad ideas. But there is -- Bad timing (1988/RJ Reynolds smokeless cigs; 1993/Newton) Competition (Betamax and VCR) Poor market identification (Harley Davidson perfume; New Coke) Poor execution (Ford Edsel; Microsoft Vista) Product not living up to hype (Segway; Star Wars trilogy 2) Lack of focus, differentiation (Zune; Satisfries?) 2

3. Developing an Idea Sometimes you have to discover your own product (pivot): Michael Faraday developed compressed ammonia (1820) Ford introduced the Falcon (1960) Avon Skin So Soft (1961) 3

4. Developing an Idea 1. Be brave 2. Focus on pain 3. Test idea with others and listen 4. Evolve, change, pivot 5. Wash, rinse, repeat 4

5. Building a Team Focus on diversity What core competencies will you need? Flexibility – teams grow, shrink, change players Focus on honesty and building good working relationships 5

6. Elements of Business Pitch (Feasibility) 1. Introduction: Product, what does it do, how it solves the problem 2. Value proposition: Target customers, why you win against competition 3. Revenue model: who pays, how you maintain margins 4. Cost to make, market, sell, service, upgrade 5. Market size 6. Marketing: who are the buyers, how will you reach them, and how will you get them to buy 7. Partner strategy 8. Team: explain why your team can implement the opportunity 9. Financial analysis 10. Funding : How much money do you need now, how you will use it, what you will achieve? 6

7. Final Slide Questions? 7