PRESENTATION PRESENTATION

THE BASICS

Banking Panel presentation format: 10 minutes to present your business 5 minutes of answering the banker’s questions A minute or so to wrap up

You are welcome to bring an example of your product, create

handouts, or bring other props to enhance your presentation. HOWEVER, you will have one minute to set up your presentation/distribute

handouts Neither a computer, projector, or screen will be available You have to make copies of your materials before the event

BANKING PANEL PRESENTATION FORMAT

Review your business plan and complete the SME Live Banking Forum Screening Forms before starting on your presentation

Think of examples and stories that really communicate why your business is special and how it create values for its customers

Know your facts - Your credibility will be determined largely by the rigor of your research

PREPARATION IS KEY

THE PITCH

1. The problem – describe the “pain” in the market 2. Your product/service solution – your “pain killer” 3. Business model – how you make money and deliver value 4. Market description – who and how many will you help? 5. Sales & distribution plan – your “go to market” strategy 6. Competitor description – how are you dif ferent? 7. Management team – your “walking assets” 8. Financial projections – the investor's bottom line 9. Status and timeline – where are you, how long to profits 10. Summary and call to action – time to make your “ask”

THE ELEMENTS

"Pain” as a useful metaphor: Describe the need/want (pain) you seek to address Who/how many feel this pain (refer to research)? How motivated are people to address the problem? How much and how often does it hurt?

How do people currently address this pain? Assuming current solutions are lacking, this serves as a

natural transition to speaking about your solution

Use a story or an example as a “hook”

1: DESCRIBING THE PROBLEM

Describe benefits – be specific about how your solution addresses the problems you described previously

Business benefits are commonly framed with respect to increasing revenue, lowering costs, and/or reducing risk

Do NOT describe technology details – people want your solution to works, but typically don’t care HOW it works

Avoid technical jargon and marketing exaggerations Analogies speed understanding – compare (and dif ferentiate)

your solution with familiar solutions A brief success story might build interest

2: DESCRIBING YOUR SOLUTION

Offers a description of the processes used to capture revenue and deliver value

Important points to address:

Who pays you, and how much (revenue streams)?

What activities and resources will you require?

What channels will you use to deliver your solution?

What partnerships or alliances do you require?

How will you sustain and grow the business?

What is your unique value proposition?

3: DESCRIBING YOUR BUSINESS MODEL

This is where you get more specific about those who share the problem you are addressing How would you characterize them (e.g., gender, age, interests)? How many people have this problem? Where are these people located? How motivated are they? How much will they pay?

Use secondary data from trusted sources (e.g., from databases licensed by the library) to support your claims

Use primary data (that you collect from REAL PEOPLE) to further support that people like those you’ve described are genuinely interested in your solution

4: DESCRIBING YOUR MARKET

Describe how people will hear about, find, and purchase your solution

Important points to address include: Promotion strategies (tradeshows, samples, coupons, ads) Branding strategies (logos, mission, web, print, social media) Distribution channels (web, stores, B2B) Pricing strategies (tiers, subscriptions, volume discounts) Sales strategy (hire, outsource, license)

This topic may be incorporated into your market description (i.e., “Marketing & Sales)

5: DESCRIBING SALES & DISTRIBUTION

Who are your relevant competitors? Firms offering the same solution (direct competition) Firms that offer alternative means of addressing the problem you

seek to address (indirect competition)

Also consider the extent to which you are competing with consumers’ status quo (i.e., doing nothing)

Always respect your competition Successful competitors offer proof of a market for your solution Acknowledge competitors’ strengths, but differentiate yourself with

“Yeah-But” statements like “Yeah, our competitor is great at X, but we offer the best Y in the market” (this is another way of dramatizing your unique value proposition)

6: DESCRIBING YOUR COMPETITION

Investors know that executing a plan is much more difficult than creating one, and that unexpected events will require the management team to improvise

Thus, it's important to instill confidence by discussing: Relevant education and work experience

Track record of successes demonstrating ability to execute

Influential supporters (advisory board, mentors)

External endorsements (client or alliance partner endorsement)

7: DESCRIBING MANAGEMENT TEAM

Describe your revenue and cost estimates, and use these to describe profit potential and the value of your business

Describe startup costs and necessary investment

Describe how funds will be spent

Provide an estimate of business valuation based on profit (revenue-cost) projections (e.g., net present value of cash flows)

Explain how investors will get their money back (the "exit strategy") and characterize the return on investment (usually expressed as a multiple of initial investment)

8: DESCRIBING FINANCIAL POTENTIAL

Describe the current status of your business

How soon will your product/service be ready to sell?

How far are you in creating your organization (e.g., team and advisors, manufacturing, sales and distribution channels, etc.)

What resources have you accumulated so far?

Describe your timeline for meeting milestones

Creating and testing prototypes

Making first sale

Breaking even (revenue exceeds expenses)

Making an exit (e.g., selling business, taking new investment)

9: DESCRIBING STATUS & TIMELINE

Offer a summary of unique value proposition

Describe what help you seek from those listening to your presentation

Advice or mentorship

Introductions to potential customers, partners or investors

Investment (be sure to characterize what they are likely to get in return for their investment, and when they will receive it)

Show appreciation (their time is valuable!) and ask if there are any questions

10: SUMMARY & CALL TO ACTION

Stand at a comfortable distance Eye contact - Don't surf the audience with your eyes. Rather,

make eye contact with one person at a time Appear confident: Shoulders back Arms at your sides or held in front of your body when making

gestures with hands open or only slightly closed Smile slightly or keep your face neutral Take long strides Make every movement purposeful and decided Treat props (like your resume or a handout) as though they are of

value. Don't let a paper in your hand flap back and forth carelessly

BODY LANGUAGE

WHAT BANKS WILL LOOK FOR: BUSINESS PLAN

C a s h F l o w B a n k s n e e d t o s e e t h a t e n o u g h m o n e y i s c o m i n g i n a n d g o i n g o u t o f y o u r b u s i n e s s t o s u p p o r t i t . T h e y ’ r e

l o o k i n g f o r p o s i t i v e c a s h f l o w a n d t h e r e v e n u e y o u e x p e c t t o m a k e . P r o v i d e p r o j e c t e d r e v e n u e s a n d e x p e n s e s , a n d t h e n u m b e r o f s a l e s y o u n e e d t o m a k e o r h o w m u c h b u s i n e s s y o u n e e d t o b r i n g i n t o m a k e a p r o f i t . L e n d e r s w a n t t o s e e y o u r p r o j e c t e d n e t p r o f i t .

A s s e t s L e n d e r s w a n t t o s e e t h e v a l u e o f t h e i t e m s y o u c o u l d s e l l i n t h e e v e n t t h a t y o u r b u s i n e s s f a i l s . “ I f t h e

b u s i n e s s w e r e t o s h u t d o w n t o m o r r o w , w h a t ’ s t h e r e ? ” D e t e r m i n e t h e v a l u e o f f u r n i t u r e , f i x t u r e s a n d e q u i p m e n t , a n d c a l c u l a t e t h e i r d e p r e c i a t i o n o v e r t i m e . Y o u ’ l l n e e d t o p r o v i d e a f i v e - y e a r p r o f i t - a n d - l o s s p r o j e c t i o n i n t h e p l a n .

M o n e y D o w n T h e p l a n s h o u l d i n c l u d e a s t a t e m e n t o n t h e l e v e l o f m o n e t a r y i n v e s t m e n t i n t h e b u s i n e s s o n t h e p a r t o f

t h e o w n e r , s i n c e l e n d e r s d o n ’ t w a n t t h e b u s i n e s s t o b e c o m p l e t e l y e n c u m b e r e d w i t h d e b t . Y o u ’ l l h a v e t o d o c u m e n t t h e s o u r c e o f y o u r m o n e y a n d h o w y o u p l a n t o u s e i t . I t s h o w s y o u ’ r e c o m m i t t e d t o d o i n g w h a t y o u n e e d t o d o t o r u n y o u r b u s i n e s s .

T a r g e t M a r k e t L e n d e r s w a n t t o s e e t h a t y o u r t a r g e t m a r k e t i s l a r g e e n o u g h t o s u s t a i n y o u r b u s i n e s s , b u t s m a l l e n o u g h

f o r y o u t o b e c o m e a n i c h e . I d e n t i f y a n d e x p l a i n y o u r t a r g e t m a r k e t a n d i t s n e e d s . P r o v e t h a t y o u r c o m p a n y m e e t s n e e d s t h a t a r e u n i q u e — a n d c a n d o s o p r o f i t a b l y . T o s h o w t h i s , b a c k u p y o u r p l a n w i t h s t a t i s t i c s —l i k e t h e d e m o g r a p h i c s w i t h i n a f i v e - m i l e r a d i u s o f y o u r b u s i n e s s . “ T h e y ’ r e l o o k i n g a t h o w m u c h c r e d i b i l i t y a p l a n h a s , ” M i r a u s a y s . “ S t a t s g i v e y o u r p l a n a t o n o f c r e d i b i l i t y a n d s h o w t h a t y o u ’ v e d o n e y o u r h o m e w o r k . ”

L e a d e r s h i p T e a m I f y o u ’ r e a s o l e p r o p r i e t o r , l e n d e r s w a n t t o s e e y o u h a v e t h e b a c k g r o u n d a n d e x p e r i e n c e t o r u n a b u s i n e s s

o n y o u r o w n . F o r l a r g e r b u s i n e s s e s , t h e y a l s o w a n t t o s e e t h a t y o u h a v e t h e a b i l i t y t o a t t r a c t a n d r e t a i n t o p t a l e n t . P r o v i d e a r e s u m e a s w e l l a s a p l a n f o r h o w y o u p l a n t o s t a f f t h e b u s i n e s s . I f y o u d o n ’ t h a v e t h e e x p e r t i s e , t o , s a y , p r o v i d e p l u m b i n g s e r v i c e s w h e n y o u r c o m p a n y p l a n s t o o f f e r t h e m , d e m o n s t r a t e h o w y o u p l a n t o r u n i t b y b r i n g i n g i n m a s t e r p l u m b e r s w h i l e y o u m a n a g e t h e b u s i n e s s . “ I f y o u d o n ’ t h a v e t h e e x p e r t i s e , a r e y o u a l i g n i n g w i t h a p r o c e s s o r a s y s t e m t h a t w i l l h e l p y o u g e t t h e r e ? ” M i r a u a s k s .

Offer a compelling fact or story to generate interest in the problem you’re addressing

Compare and contrast your proposal to existing alternatives (use “yeah – but” statements)

Provide a thorough description of your business model – revenue inputs, conversion and distribution costs, and financial outcomes

Use pictures and graphs to summarize/crystallize descriptions of benefits, revenues, etc.

Express enthusiasm and confidence, but also a willingness to learn (never argue with questioners)

TIPS

Start-ups can earn bank financing, but it is more difficult

Key things a start-up must communicate to a banker: Management experience Value proposition and business

model (what are you selling, how are you going make money, and when?) Deep understanding of the market Founders have committed significant

amounts of their own capital

A NOTE FOR START-UPS…

THE ASK

Q&A WITH THE BANKING PANEL

WRAPPING-UP

FOLLOWING-UP