how to play with opm (other people’s money). cantilever background & timeline 1st business...
Post on 18-Dec-2015
223 views
TRANSCRIPT
![Page 1: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/1.jpg)
How to Play With OPM(OTHER PEOPLE’S MONEY)
![Page 2: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/2.jpg)
Cantilever Background & Timeline• 1st business plan written by founders in
1997– Financial models reviewed by outside
accountant– Major analysis of competitive threats– Tremendous focus on addressable market
space– Vetted by experienced business people prior
to release– Initial investment dollars by founders &
business leaders committed prior to VC commitment
![Page 3: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/3.jpg)
Cantilever Background & Timeline• VC committed in 1998
– Founders resign positions to eliminate any conflict issues
– Business plan re-written
• Company Started in 1999– Located in Purdue Research Park
• Company sold in 2005
![Page 4: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/4.jpg)
What does Cantilever do?
![Page 5: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/5.jpg)
Cantilever Readiness Engine®
Sales Manager
AR Analyst
Marketing
Sales Rep. Customer
Contracts
Shipping
ComplexProblem
Patent Pending Software Tool that Speeds Up Business Decision Making and Problem Solving.ComplimentarySingle Bolt-On to Existing Systems.
ROI: in as little as 90 Days
![Page 6: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/6.jpg)
Sales Manager
AR Analyst
Marketing
Sales Rep. Customer
Contracts
Shipping
ComplexProblem
Software Tool that Speeds Up BusinessDecision Making andProblem Solving.
ROI: in as little as 90 days
Cantilever Readiness Engine®
![Page 7: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/7.jpg)
Proven Results with Fortune 300
“The Readiness Engine [solves]
problems never before solved with
software.”John Crowther, Former CIO Cummins Inc.
![Page 8: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/8.jpg)
Competitive Landscape
Lotus Notes
Collaboration
Bu
sine
ssP
roce
ss W
orkf
low
Ant
icip
ated
Una
ntic
ipat
ed
Flexible Structured
Readiness Engine
MySAP
ERP
e-Room
CRM PLCMPDM
Report Generators
Instant Messaging
Business Intelligence
Portals Corticon Lombardi Software
![Page 9: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/9.jpg)
Key Focus Areas•Locate Office Space
•Incubators are key
•Define Cash tracking and financial reporting
•Hire Key employees
•Build Scaleable Infrastructure
•Build product
•Revenue generating customers
•Implementation methodology-Repeatable revenue model
•Prove ROI
•System use expanding/Sell One sell many
•Break even
![Page 10: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/10.jpg)
VC Expectations
• Phase I– Tight financial controls – monitor cash– Build product– Sales reporting– Revenue/Revenue/Revenue– Weekly/monthly meetings
• Phase II– Repeatable sales model– Sell one – sell many– Market focus & migration
![Page 11: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/11.jpg)
Representative Case Study
0
500
1000
1500
2000
2500
3000
3500
2000 2001 2002 2003 2004
PilotPilot
RevenuesIn
$,000
RevenuesIn
$,000
Pricing Methodology:- Expanding License
Fees- Professional Fees
Per Project
![Page 12: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/12.jpg)
How Will You Grow the Business …Market Focus & Migration
Early Adopters
Warranty
Aftermarket
New ProductIntroduction
Engineering &Obsolescence
Accounts Receivable
Recurring Failures
Sales Force PerformanceManagement
Accounts Payable
DiscreteManufacturing
Proven “Off theShelf” Solutions
ExpandedApplications
IndustryVerticals
Aero Space
Automotive
WIP and Finished GoodsInventory Minimization
![Page 13: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/13.jpg)
If You Need More Money
• Good news:– Sales and growth are exceeding expectations
• Bad news:– Estimates low
• Product development longer• Sales slower
• Communicate early & often – no surprises• Your relationship with the VC & the Board is key• Warning – Some VCs operate on the “One Miss
You Are Out” model
![Page 14: How to Play With OPM (OTHER PEOPLE’S MONEY). Cantilever Background & Timeline 1st business plan written by founders in 1997 –Financial models reviewed](https://reader038.vdocument.in/reader038/viewer/2022102808/56649d235503460f949fa01b/html5/thumbnails/14.jpg)
Exit Strategy
• Exiting is hard work– VC may drive timing of exit– Due diligence is really tough– Going public with SOX is a new game