success formulas workbook_session1
TRANSCRIPT
Welcome to…
Success Formulas®!
Session One
Planning for Success
IntroductionsIntroductions
•Name•Company/Idea Name•Brief Description of Function/Idea
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Session One Session One AgendaAgenda• Define Success• Vision and Mission• Image• Successful Presentations• 30-Second Description• Exit Strategy• Executive Summary
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What is Success?What is Success?
Defined As...
The Achievement of Something Desired, Planned, or Attempted.
- The American Heritage Dictionary
What is YOUR Definition What is YOUR Definition of Success?of Success?
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Vision and MissionVision and Mission• VISION is an Ideal and Unique Image
of the Future.
• MISSION is the Purpose of or Reason for the Organization’s Existence.
Source: The Leadership Challenge - Kouzes & Posner
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ImageImageA Vivid or Graphic Representation
or Description.
ImageImage is an Essential Key to the Success of Your Business.
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Successful PresentationsSuccessful Presentations
• Plan• Practice• Present
“You can have brilliant ideas but if you can’t get them across, your ideas won’t get you anywhere.” - Lee Iacocca
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Professional DressProfessional DressAn Executive Represents
the Company...
Be Careful What Image You Portray to Others.
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30-Second Description30-Second Description• Concise Statement Describing Your
Company.• Contents: Introduction, Interest Generating
Idea, Two Key Points, and a Probe For Need or Opportunity.
• Like a Business Card.• Change Periodically to Keep it Fresh.• Rehearse it so it Sounds Natural.
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Exit StrategyExit Strategy
Begin with The End-Game in Mind and Define an Acceptable Outcome
Why Are You Getting Into Business?
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Exit StrategiesExit Strategies
• Lifestyle• Inheritance-Bequest• Sell to a Larger Corporation• Going Public• Shut or Close Down
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LifestyleLifestyleEnjoying the profits that fund your
lifestyle.
Ramifications
No investor.
No growth demands except to stay in business.
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Inheritance-BequestInheritance-Bequest
Pass the company to your heirs.
Ramifications• Taxes• No Equity Investor
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Sell to Larger CorporationSell to Larger Corporation
Pick resource to build:• Employees
• Customers
• Market
• Manufacturing
Ramifications: Focus Resource to Build
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Going Into Public MarketsGoing Into Public Markets
Sell Stock to The Public
Ramifications• Aggressively Build Revenue and Growth.• Loss of Personal Control.• Dependence on volatile market conditions.
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Shut DownShut DownDissolve the Company
Ramifications• No Investor• Tax Implications• No Equity• Sell Assets
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Exit StrategiesExit Strategies
• Lifestyle• Inheritance-Bequest• Sell to Larger Corporation• Going Public• Shut Down
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BreakBreak
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Financial ResourcesFinancial Resources• Professional Investors• Local Investors, “Angels”• Bootstrap• Friends and Family (MCI)• Early Entry into Public Stock
Markets
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Professional InvestorsProfessional Investors• Venture Capital
– $25M revenues annually
– Future revenue potential
– 40% return
• Banks– Pay P+I from
cash flow– Pledged assets– Personal
guarantee
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Local Investors, “AngelsLocal Investors, “Angels””
• Equity• Debt• Equity for
EffortApplicable For:
– $2M to $25M annual revenues
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BootstrapBootstrap• Personal Cash• Credit Cards• Mortgage
House Applicable For:– Under $2M annual
revenues (always)– $2M to $10M
(usually)
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Friends and Family (MCI)Friends and Family (MCI)
• Employees at a reduced salary
• Customer-prepay• Vendor-slow pay
Applicable For:– Under $2M
annual revenues (always)
– $2M to $10M (usually)
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Going Public Going Public
• Stock Offered to the Public in an Initial Public Offering (IPO)
• Reverse Merger into an Existing Public Shell.
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Financial ResourcesFinancial Resources• Professional Investors• Local Investors, “Angels”• Bootstrap• Friends and Family (MCI)• Public Marketplace
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Executive SummaryExecutive SummaryIn 2-3 Pages, Briefly Describe the highlights of…• Elevator Speech• Industry• Vision• Mission• Corporate Legal Description• Product/Service - What it does, how much it sells for,
proprietary position• Market - Who’s going to buy, what is the sales channel.• Operations• Management Team• Investment Required• Financial Proforma• Note: Develop each topic for five years
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Homework AssignmentHomework Assignment
• 30-Second Description• Exit Strategy• Executive Summary• Product/Market Grid
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30-Second Description• Concise Statement Describing Your
Company.• Contents: Introduction, Interest Generating
Idea, Two Key Points, and a Probe For Need or Opportunity.
• Like a Business Card.• Change Periodically to Keep it Fresh.• Rehearse it so it Sounds Natural.
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Exit StrategyExit Strategy• Lifestyle• Inheritance-Bequest• Sell to Larger Corporation• Initial Public Offering (IPO)• Shut Down: Dissolve the Company
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Product/Market MatrixProduct/Market Matrix
1 2 3 4 5 6 7 8 9 10 ABCDEFG
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Preview Session Two: Focus
• Feedback on: 30-Second Description, Exit Strategy and Executive Summary
• Tests of a Winner• Product/Market Matrix• The Focus
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Success FormulasSuccess Formulas®
You now have the foundation from which to continue developing your business
strategies and exercising your entrepreneurial talents!