Tips for Innovators and Entrepreneurs

1. Be passionate about everything you do.
2. Proactively seek new opportunities.
3. Stay alert.

Venture Plan Presentation Outline

1. Opening Billboard Slide: Company name, company location, contact information, legal statements (proprietary information, copyright, etc.) ...
2. Problem / Opportunity: The problem your venture will solve, the significance of the problem, the opportunity this offers your venture, quality of the opportunity, growth potential ...
3. Product and/or Service Solution Description: Essential product/service idea, category of product/service, proprietary protection, entry strategies ...
4. Customers and Target Markets: Target market characteristics, size, why this market is the best for your venture, market validation research ...
5. Business Model: How your venture will earn a profit, expected margins, sources of recurring revenue ...
6. Environment and Context: Industry overview, research results and analysis, major competitors, benchmark ventures, timeliness, regulations ...
7. Competitive Advantages: Market focus, value proposition, core competencies, barriers to entry, competitive validation, how your venture will position itself to meet the competition, ...
8. Marketing and Sales Strategies: Pricing strategies, distribution model, partnering, promotional strategies ...
9. Technology Strategies: Technology, product development ...
10. Operational Strategies: Production methodologies, manpower requirements, equipment requirements, material management, flow diagram of key processes ...
11. Intellectual Property and Legal Issues Strategies: Patents, trademarks, trade names, copyrights, trade secrets, operating and other agreements, legal structure ...
    
12. Organization: Management team, relevant domain knowledge of the team, commitment, advisers, directors, management to be added, culture, talent ...
13. Development Plan: Current company status, number of employees, development stage, early revenue, number of customers, relevant historical information, long-term venture goals, growth strategies, timeline ...
14. Risks and Contingencies: Downside risks and contingency plans, upside risks and expansion plans ...
15. Financial Projections: Key assumptions, historical financial statements, pro forma statements, return on investment ...
16. Investment Funds Sought, Use of Proceeds, and Harvest Strategy: Total investment funding being sought, use of funds in 4 or 5 general categories, any unusual use of funds, return of cash to investors and entrepreneurs .. ...
17. Summary: Vision; mission; goals; a brief who, what, where, when, why, and how of your venture ...
18. Closing Billboard Slide: Company name, company location, contact information ...
19. Variety of support slides keyed to most-likely-to-be-asked questions
    

Recommendations: presenter's name on each slide, company logo on each slide.

AIDA

AIDA is an acronym for Attention, Interest, Desire, Action ... every ad or promotional activity should have these four elements. (Of course, there are exceptions to every rule!) ...

1. Does the ad grab viewer/reader/listener attention?
2. Does the ad hold viewer/reader/listener interest?
3. Does the ad develop viewer/reader/listener desire to do something?
4. Does the ad provide a clear path to action by the viewer/reader/listener?

(Note: a business plan or executive summary or proposal is a form of advertising ... it is intended to "sell" the reader on the viability of the concept.)

Tips for Selling

1. People make decisions emotionally. They decide based on a feeling, need, or emotion, not though a logical thought process. That’s why intangible benefits are the keys to persuasion. When you’re writing, you should ask yourself, “What is the emotional hot button here?”
2. People justify decisions with facts. Example: a man sees an advertisement with a photo of a sports car and instantly falls in love. However, he can’t bring himself to buy the car based on a feeling, so he reads the copy for technical details about the powerful engine, safety features, and low maintenance. He wants the car because it makes him feel good. But he buys it only when he can justify the purchase rationally.
3. People are egocentric. The word “egocentric” means centered around the ego or self. We all see the world in terms of how it relates to us personally. So when your copy asks someone to do something, it must also answer the unspoken question, “What’s in it for me?” On a deeper level, the question might be “How does this give me feelings of personal worth?”
4. People look for value. Value is not a fixed number. Value is relative to what you’re selling, what others charge, what the prospect is used to paying, how badly the prospect wants it, and how the prospect perceives the difference between your offer and others. You must demonstrate a value that seems to be equal to or greater than the asking price. The greater the value relative to the price, the more likely people are to buy.
5. People think in terms of people. The human brain is not a computer, calculator, or information processor. Scientists have shown that its primary function is to deal with social interactions. Remember how some mathematical questions in high school were stated as real-life situations? They were always easier to understand and solve than abstract problems. Your copy, therefore, should feature people through names, personal pronouns, quotes, testimonials, stories, photos of satisfied customers, etc.
6. You can’t force people to do anything. When people buy, it’s not because you wield some magical power over them. You can urge. You can push. You can entice. But ultimately, people do what they want to do. This means your job is to show how what you’re offering meets your prospect’s needs.
7. People love to buy. Some say people don’t like to be “sold.” Not true. People love to be sold. They love to discover wonderful new products and experiences. What people don’t love is to be cheated or tricked. Therefore, it can be helpful to change your analogy of the marketing process. Instead of “selling” to people, try to “help” them. Sell good products, make appealing offers, and treat people fairly. That’s a surefire formula for success.
8. People are naturally suspicious. It’s true that there’s a sucker born every minute, but most people are moderately skeptical of any offer. They seek to avoid risk. You can never predict the level of suspicion any particular person has, so it’s usually best to back up all claims with evidence, such as testimonials, survey results, authoritative endorsements, test results, and scientific data.
9. People are always looking for something. Love. Wealth. Glory. Comfort. Safety. People are naturally dissatisfied and spend their lives searching for intangibles. At its simplest, writing good copy is a matter of showing people how a particular product, service, or cause fulfills one or more of their needs.
10. People buy “direct” because of convenience and exclusivity. If people could easily find the things you offer at a nearby store, that’s probably where many would buy them. So if they are not buying from you directly for sheer convenience, they’re doing it because they can’t find the item elsewhere (or just don’t know where to look). That’s why it’s wise to emphasize the convenience and exclusivity of what you wish to sell.
11. People like to see it, hear it, touch it, taste it, or smell it before they buy it. Some people never buy online because they can’t examine the merchandise. Some items, such as books and CDs, are tangible and familiar enough to sell easily online because there is little doubt about the physical quality. Other items, such as clothing or food, may be a harder sell — at least until people have a satisfactory buying experience — because quality may be variable. Think about how people buy things in stores and ask yourself if there is some element of that sensory experience that is missing from your sales message.
12. Most people follow the crowd. Most of us are imitators. We look to others for guidance, especially when we are uncertain about something. We ask, “What do others think about this? What do others feel? What do others do?” Then we act accordingly. This is why testimonials and case histories are so influential.

[Thank you, Dean Rieck]

The Five (or Six) Forces That Define an Industry

According to Harvard Business School professor Dr. Michael Porter, there are five forces that define an industry ...

• Supplier power
• Buyer power
• The barriers to entry
• The threats of substitution
• The degree of rivalry

Andy Grove, former CEO of Intel, is credited with identifying a sixth force, Complementer Power.

Types of Entrepreneurship

1. Spontaneous ... trying to sell snacks in class
2. Small business ... “mom & pop” sandwich shop
3. Conventional ... software development firm
4. Corporate ... internal venture, spin-off
5. Acquisition ... merge strengths ... example: Disney; Pixar
6. Transformational ... “change the way” pizza is delivered ... example: Domino’s Pizza
7. Visionary ... “change the way” people use computers ... example: Microsoft, Apple, Amazon

Give It a Good SWOTT

SWOTT is a research, analysis, and planning tool used to evaluate the Strengths, Weaknesses, Opportunities, Threats, and Trends that affect a project or business venture. SWOTT involves defining the key objectives of a business venture or project, then identifying the internal and external factors that are favorable or unfavorable to achieving that objective ...

Venture Plan Legal Notice Example

Confidentiality Notice: This Venture Plan is confidential and contains proprietary information and intellectual property of NEWCO. Neither this Venture Plan nor any of the information contained herein may be reproduced or disclosed under any circumstances without the express written permission of NEWCO. This Venture Plan does not constitute an offer to sell or solicitation of an offer to buy securities of NEWCO. Any such offers and sales will be made only to “Accredited Investors,” as defined in Regulation D under the Securities Act of 1933, as amended, pursuant to separate agreements to be negotiated by the parties.

© 2019 by NEWCO. All rights reserved. Confidential.

[NEWCO is the example venture.]

10 Tips for Launching a New Venture

1. Don't wait for a revolutionary idea ... it will never happen ... just focus on a simple, exciting, empty space and execute as fast as possible.
2. Share your idea ... the more you share, the more you get advice and the more you learn ... meet and talk to your competitors.
3. Build a community ... use blogging and social software to make sure people hear about you.
4. Listen to your community ... answer questions and build your product with their feedback.
5. Gather a great team ... select those with very different skills from you ... look for people who are better than you.
6. Be the first to recognize a problem ... everyone makes mistakes ... address the issue in public, learn about and correct it.
7. Don't spend time on market research ... rather, launch test versions as early as possible ... keep improving the product in the open.
8. Don't obsess over spreadsheet business plans ... they are not going to turn out as you predict, in any case.
9. Don't plan a big marketing effort ... it's much more important and powerful that your community loves the product.
10. Don't focus on getting rich ... focus on your users ... money is a consequence of success, not a goal.

[Thank you, Loic Le Meur]