fall 2010 technology entrepreneurship boot camp sponsored by jackson walker

UTSA Colleges of Business and Engineering

TAKE YOUR TECHNOLOGY TO THE LIMIT!

CITE BootCamp January 2010 Slide 1

Dr. Cory R. A. HallamDirector

UTSA Center for Innovation and Technology Entrepreneurship

http://entrepreneur.utsa.edu

Fall 2010 Technology Entrepreneurship Boot Camp

Sponsored by Jackson Walker

http://www.jw.com/




Technology Entrepreneurship

• Technology Entrepreneurship is a major driver of our economy and is growing in San Antonio

U.S. Job Creation by Firm Size

< 100

100 - 499

500+



CITE BootCamp January 2010

So Let’s Play Spot the Entrepreneur

Slide 3



CITE BootCamp January 2010 4

OK, That was easy – let’s make it a little harder




A) Oprah

B) Richard

C) Bill

D) Crazy Scientist




Don’t get confused

Between inventors and entrepreneurs

• Inventors create new technologies (ideas)• Entrepreneurs create new business (money)• Which one has the better ROI?




The former have these

http://www.amazon.com/gp/reader/0471204013/ref=sib_dp_pt%23reader-link

http://www.amazon.com/gp/reader/1413306535/ref=sib_dp_pt%23reader-link




The latter have these




Do You Have The Courage?

Slide 9




Dr. Cory R. A. HallamDirector

UTSA Center for Innovation and Technology Entrepreneurship

http://entrepreneur.utsa.edu

Your Weapons: Elevator Pitch, Slide Deck, and Business Plan




Weapons you need

• Elevator Pitch– 30 Second story that sticks

• Slide Deck– 10-20 Minute story with nice pictures

• Executive Summary– From the business plan, the words that describe your

slide deck in 5 pages• Business Plan

– Detailed financials and answers to every question ever thought of in the entire universe

– Or at least great financials and management

Slide 11




A Checklist for Opportunity Evaluation(J. Picken UTD)

• You must begin by understanding the basic transaction: Why is someone (your customer) going to pay you (substantially) more for the good or service you are providing than it will cost you to produce?

• Opportunities can be evaluated one step at a time – following a Checklist for Opportunity Evaluation




CUSTOMER NEEDS

1. Who is the customers? What are their needs? What are their alternatives? – Who is the target customer? – Can we identify a set of customers by name?– What customer need would be satisfied by

our offering (do they realize they have a need)?

– How important is meeting that need to the customer (a “nice to have” or “essential”)?

– What are the customer’s alternatives (competition, not spending!)?




COMPETITIVE ADVANTAGE

2. Competitive advantage: Why will customers buy this product/service from us rather than from one of our competitors?– Better product at the same price?– Same product at a lower price?– Meets the needs of a particular group of

customers better than any other offering?– Unique technology protected by patents?– Is the competitive advantage sustainable?

How?STOP




The 9X Effect

Consumersare usually:• Skeptical about a new

product’s performance• Unable to see the need

for it• Satisfied with the

existing product• Quick to see what they

already own as the status quo

Entrepreneurs are often:• Convinced the

innovation works• Likely to see the need for

the product • Dissatisfied with the

existing substitute• Set on viewing the

innovation as the benchmark

Consumers overweight the incumbent product’s benefits by a factor of three

Entrepreneursoverweight the new

product’s benefits by a factor of three

3 X 3

9X

From: Gourville, J.T. Eager Sellers, Stony Buyers: Understanding the Psychology of New Product Adoption . (HBR June 2006)

A customer takes on a huge risk in displacing a known solution

with a new and unproven product/technology from a not very well established company

Every entrepreneur’s “baby” is beautiful in his eyes – often

blinding him to the possibility of alternate solutions




VIABILITY

3. Assessing Viability: Is there a business (market) opportunity?– Scope of target market (geographic/demographic)– Potential (how many customers in target market?)

– Market penetration (how many potential customers will buy?)

– Share of market (realized vs. potential)– Competitors (how is the need currently being met?; is

our offering demonstrably better?)




SUCCESS FACTORS AND TIMING

4. Critical success factors– What three or four things must go right in

order to succeed?– Is our management team capable of making it

happen?

5. 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?




BUSINESS MODEL AND PROFIT

5. 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?

6. 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?– Cost/volume relationships? – Breakeven point?




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 viable business plan?

• What could go wrong? (remember Murphy’s Law)




Elevator Pitch

Slide 21

Start with a question to catch someone’s interest?Describe the “market pain”?

i.e. The problem you are trying to solveSay your “value proposition”?

i.e. Why your product is better than othersTell them the market size?Tell them your projected revenues?

You want to catch their attention and get invited to give your pitch…




Slide Deck

• 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

Slide 22




Executive Summary

• 5 Pages – Put your slide deck into words

Slide 23




Business Plan

Slide 24

A business plan is a document that describes the opportunity, product, context, strategy, team, required resources, financial return, and harvest of a business venture.



The Elements of a Business Plan



1. Solutions or technologies looking for a problem2. Unclear or incomplete business model and value proposition3. Incomplete competitor analysis and marketing plan4. Inadequate description of the uncertainties and risks5. Gaps in capabilities required of the team6. Inadequate description of revenue and profit drivers7. Limited or no description of the metrics of the business8. Lack of focus and a sound mission9. Too many top down assumptions like "we will get 1% market share"10.Limited confirmation of customer demand or pain

Top 10 Mistakes in B Plans




Summary

• Entrepreneurial success takes more than a bright idea, luck and hard work. You must also have: – A real customer need (recognized by the customer)– The best solution to meet the need (or close to it)– A viable business model– Timing, resources, management talent, partners and allies

• 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– Opportunities must be evaluated quickly, but carefully and

deliberately to avoid making the most common errors




The Growth “Rule of Ten”

• Who is my first customer – Why will they pay me for my

product/service?– How will I secure the deal?– What resources do I need to

complete the transaction?

Each growth by a factor of ten requires the

entrepreneur to evaluate how they will

do business

Without this vision forget going into business

•Who are my next 10 customers

•Who are my next 100 customers

•Who are my next 1 000 customers

•Who are my next 10 000 customers




TIME TO GET STARTED

Slide 29

UTSA Center for Innovation and Technology Entrepreneurship (CITE)

fall 2010 technology entrepreneurship boot camp sponsored by jackson walker

Documents

managementcite bootcamp

new business moneywhich

san antonio2cite bootcamp

customer needs1

target customer

hallamdirectorutsa center

set of customers

entrepreneurs inventors