Marketing Brochure Prototype

A prototype marketing brochure is a good tool for "testing the waters" with prospective customers.

1. Easy way to test a new product, service, solution idea
2. Easy to iterate a concept
3. Easy to put in front of prospective customers for feedback: test, measure, learn
4. Customer can become part of the design process ... pencil and paper and eraser
5. Inexpensive ... time, money, resources
6. Works for most any idea concept
7. Flexible "size" (number of pages) although the fewer the better 
8. Can incorporate in the venture business plan, summary
9. Can use to design and develop a product and/or service based on prospective customer reactions to the product and/or service describe in the prototype brochure

Here's a "pencil sketch" of a marketing brochure template:

Starter Toolbox for Innovators and Entrepreneurs

Let's get ourselves some SPLUCK!

SPLUCK: an acronym for Skills, Passion, and Luck … traits shared by every successful Innovator and Entrepreneur. 

SKILLS can be learned. There certainly are a basic set of skills that most every innovator and entrepreneur must have ... but, they aren't necessarily the same set of skills for all.

PASSION is something internal to every individual … some have lots of it, others don’t. We can try to motivate passion in others, but it can’t be forced upon them. They either are, or they aren’t. Heredity versus Environment?  Closely related to Passion is Persistence ... someone passionate is usually someone persistent, too.

And then there's LUCK ... serendipity! Win the lottery!! YeeHaa.  So many folks wait for luck to change their lives. But the Innovator and Entrepreneur ... they don't wait for change to happen to them. Nope! They are the change they want to see in the world! They make their own luck!

SPLUCK: Skills, Passion, and LUCK! 

[Jim's TooSense: I was looking for word that would summarize the key traits of successful innovators and entrepreneurs. Many articles written about why they are good at what they do, and there is a diversity of other characteristics, too. But put them all in a big pot, and the big three that surface are Skills, Passion, and Luck. So I just slammed them all together into SPLUCK. And now you know the rest of the story!]

How Much Money Do We Need?

Q: How much money do we really need to get this new venture concept up and running?

A: It is usually not a fixed dollar amount ... most often, it's a range of desired funding versus the time for the venture to become stable (that is, consistently break-even). Too little money and the venture will not survive, too much money and some will likely be wasted.

The optimal amount is a trade-off with the length of time it will take for the venture to become stable (that is, consistently break-even week after week). The management team needs to know what results they can deliver if the investors do pony up the requested level of funding ... and what could happen with less money raised, or more money raised. The results are usually, but not always, a change in the time to become a stable company.

There are a variety of tools, spreadsheets, and more to assist in making financial projections and setting objectives. Here's a good one from SCORE: https://www.score.org/resource/financial-projections-template

A "lean" startup is a special case ... the venture is basically trying to launch and operate below the minimum level of funding need to become stable. Think of it as an experiment. There are things to be learned in a lean venture, and often the most important lesson is that the venture just isn't going to make it without a critical mass of resources. Another lesson is that money isn't the only answer. Too much money can actually be a bad thing, but usually not as bad as too little!

In general, the more money raised for a new venture, the faster that venture can become stable up to a point. Investors will often ask the range of funding the venture is seeking. What's the minimum level of funding to get it going and sustainable, and how long will it take? What's the minimum time to become stable, and how much funding will it take? And finally,  ... what does the venture team believe is the optimal trade-off between time and money?

A little humor: I once made a presentation to a group of "friendly" investors. Call them "friendly" because they already knew us (the management team). The investors had put a good deal of money into our venture, and were (currently) satisfied with the results. Now, we were seeking to raise new money for a spin-off.

In my presentation, I said we needed to raise $x million and it would take us about y months to get the new venture stable (consistently break-even) and sustainable. One of the investors asked what could happen if they put in half the money we were seeking. I said the venture could still probably make it but it would take so many months longer to stabilize, but that level of funding was still above the failure threshold.

The same investor then asked what could happen if we were able to raise three times the money we were seeking. The "wise guy" in me came to the surface. I said that level of funding was way above the amount needed to make it to the shortest possible time to stability, and that the management team would take the excess funds and all buy Porsches because the venture didn't need the money!  I point out again that these were "friendly" investors and I knew they had a sense of humor! They didn't throw me out the door. Rather, they had a good laugh and said those were exactly the "right" answers ... they were just testing the management team to make sure we knew where the end-caps really were!

--Jim

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Innovation Hot Spots

While innovation is often associated with new products, new gizmogadgets, a broader perspective shows innovation occurring in many areas of a business and often has little or nothing to do with products.

Here are some key areas of innovation opportunity for a business venture ...

1. Products (yes, still high on the list, of course!)
2. Services
3. Processes
4. Business methods
5. Business model
6. Revenue model
7. Positioning (relative to the competition)
8. Paradigm (a combination of several innovation areas)

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