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the SMTEC venture
development process
The Business Plan
…or plan C, D,E, F….


“perfection comes from
 rapid cycles of ‘good
 enough’ “
   Steve Hane – CEO Ampulse
5.   Business model
     the business model
A Framework for creating value


Infrastructure         Partner                Offer               Customer          Customer


                 {                                          {
   Core
                       Network       {        Value
                                                                 Relationship   {    Target
 Capability                                 Proposition                             Customer
                         Value                                   Distribution
                     Configuration                                Channel


   Direct              Operations           Working                         Revenue
   Costs                 Cost                Capital       Finances          Model



  Personal                                             Funding
                       Debt              Equity
 Investment
                                                        Model




       How you make MONEY!
Offer

       Value
     Proposition




“For People who        (problem)       ,

we offer           (solution)          ,

and we’re different because        .
1. talk to them!
2. develop a profile
Customer
                  Customer
                 Relationship   {    Target
                                    Customer

                 Distribution
                  Channel




3. count them!
4. build out the value chain


Infrastructure         Partner             Offer            Customer          Customer


                 {                                     {
   Core
                       Network       {     Value
                                                           Relationship   {    Target
 Capability                              Proposition                          Customer
                         Value                             Distribution
                     Configuration                          Channel
“it’s fine to question your assumptions…

              …not your strategy.”


 Direct   Operations   Working               Revenue
 Costs      Cost        Capital   Finances    Model




5. the pro forma
6. the strategy
                                                                  Key hire of
                                           Contract with
                     Finish                                       consumer
                                           5 beta facilities
 Peer Reviewed Development of 2nd                                 marketing
Article Publication Product                                        executive




  4th Qtr     4th Qtr   4th Qtr      4th Qtr      1st Qtr        2nd Qtr
   2009        2009      2009         2009         2010           2010




        Close Seed Round          Partnership                  Attract 25,000
                                  with Training                 visitors per
                                   Company                     month to site
Personal                    Funding
                     Debt   Equity
        Investment
                                      Model




7. how much?

        money?              equity?
the mind of the investor
8. tell the story
pat metheny
“telling a good story is
 about communicating an
 emotion…

    … it’s the listener that
             gets to judge.”
mentoring ties it all together
?
Growth   Business Model
The Stages
              Idea      Pre-revenue
Idea



       technology identified
       ip available
       engaged researcher
       market identified
champion identified
              scaleable product idea
              company formed
              prototype development
Pre-revenue




              market validation
              seed funding
first customers
business model execution
funding plan execution




                                  Business Model
company strategic plan in place
cash flow!
Growth
series A funding
cash flow break even
management team in place
predictable sales process
$2 - 3 million annual sales

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SMTEC accelerator process

  • 3. …or plan C, D,E, F…. “perfection comes from rapid cycles of ‘good enough’ “ Steve Hane – CEO Ampulse
  • 4. 5. Business model the business model
  • 5. A Framework for creating value Infrastructure Partner Offer Customer Customer { { Core Network { Value Relationship { Target Capability Proposition Customer Value Distribution Configuration Channel Direct Operations Working Revenue Costs Cost Capital Finances Model Personal Funding Debt Equity Investment Model How you make MONEY!
  • 6. Offer Value Proposition “For People who (problem) , we offer (solution) , and we’re different because .
  • 7. 1. talk to them!
  • 8. 2. develop a profile
  • 9. Customer Customer Relationship { Target Customer Distribution Channel 3. count them!
  • 10. 4. build out the value chain Infrastructure Partner Offer Customer Customer { { Core Network { Value Relationship { Target Capability Proposition Customer Value Distribution Configuration Channel
  • 11. “it’s fine to question your assumptions… …not your strategy.” Direct Operations Working Revenue Costs Cost Capital Finances Model 5. the pro forma
  • 12. 6. the strategy Key hire of Contract with Finish consumer 5 beta facilities Peer Reviewed Development of 2nd marketing Article Publication Product executive 4th Qtr 4th Qtr 4th Qtr 4th Qtr 1st Qtr 2nd Qtr 2009 2009 2009 2009 2010 2010 Close Seed Round Partnership Attract 25,000 with Training visitors per Company month to site
  • 13. Personal Funding Debt Equity Investment Model 7. how much? money? equity?
  • 14. the mind of the investor
  • 15. 8. tell the story
  • 16.
  • 17.
  • 19. “telling a good story is about communicating an emotion… … it’s the listener that gets to judge.”
  • 20. mentoring ties it all together
  • 21. ?
  • 22. Growth Business Model The Stages Idea Pre-revenue
  • 23. Idea technology identified ip available engaged researcher market identified
  • 24. champion identified scaleable product idea company formed prototype development Pre-revenue market validation seed funding
  • 25. first customers business model execution funding plan execution Business Model company strategic plan in place cash flow!
  • 26. Growth series A funding cash flow break even management team in place predictable sales process $2 - 3 million annual sales

Hinweis der Redaktion

  1. Well, the name of this session is “Business Models” and we have yet to even talk about what a business model is. It is one of the questions you will get most often when promoting your company to investors and you will have to communicate your business model quickly and clearly. {click} Here’s the formal definition. A business model is a framework fro creating value. {click} It starts with your technology or service which represents your core capability. You have to develop that capability so that it can be priced and packaged for sale and you have to develop a network of service providers and manufacturing partners… {click} … which altogether, represents your value proposition. {click} From there you have to develop a relationship with your customers, sometimes directly but also through distribution channels which gets your product or service into the hands of the customer. {click} The foundation of the model is your financial infrastructure which insures your costs are less than your revenue stream which eventually leads to profits. {click} Another way of defining a business model is simply, how you make money. It’s very important that you learn to describe your business model in a way that people unfamiliar with your technology or service will understand quickly. If your business model is complicated, it will be judged to be risky and you will have to defend your ability to manage that risk. If you can’t describe clearly how you will make money, you will lose credibility. {click} Here are some tips to consider as you learn how to communicate your business model. Describe clearly how your company will do business. Your description should consider these elements: First, keep it simple. You should be able to describe it in a few words. If written, it should fit neatly on one page or slide, preferably on a simple diagram. You should clearly describe who the customer is And you should be able to identify your market segment. Then you should describe how you will generate revenue and finally, A view of how you will compete and win. {next slide}