fall 2010 technology entrepreneurship boot camp sponsored by jackson walker
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Fall 2010 Technology Entrepreneurship Boot Camp Sponsored by Jackson Walker . Dr. Cory R. A. Hallam Director UTSA Center for Innovation and Technology Entrepreneurship http:// entrepreneur.utsa.edu. Technology Entrepreneurship. - PowerPoint PPT PresentationTRANSCRIPT
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
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 2
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+
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010
So Let’s Play Spot the Entrepreneur
Slide 3
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 4
OK, That was easy – let’s make it a little harder
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 5
A) Oprah
B) Richard
C) Bill
D) Crazy Scientist
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 6
Don’t get confused
Between inventors and entrepreneurs
• Inventors create new technologies (ideas)• Entrepreneurs create new business (money)• Which one has the better ROI?
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 7
The former have these
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 8
The latter have these
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010
Do You Have The Courage?
Slide 9
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 10
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
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010
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
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 12
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
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 13
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!)?
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 14
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
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 15
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
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 16
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?)
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 17
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?
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 18
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?
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 19
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)
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010
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…
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010
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
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010
Executive Summary
• 5 Pages – Put your slide deck into words
Slide 23
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010
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.
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
The Elements of a Business Plan
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
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
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 27
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
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010 Slide 28
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
UTSA Colleges of Business and Engineering
TAKE YOUR TECHNOLOGY TO THE LIMIT!
CITE BootCamp January 2010
TIME TO GET STARTED
Slide 29
UTSA Center for Innovation and Technology Entrepreneurship (CITE)