Notre Dame Business Plan Competitions Training Session 1312006

1
Notre DameBusiness Plan CompetitionsTraining
Session 1/31/2006

2
Agenda

• Elements of a Business Plan
• Mentor Contacts
• Second Round Submission Details

3
David Brenner

• ND alum, parent of two current ND students
• Adjunct Instructor
• IrishAngels network member
• Managing Partner, IdeaWorks
• Business incubator and accelerator in Grand
  Rapids
• Reviews hundreds of business ideas each year
• McCloskey competition judge, 2001 present
• Has reviewed approximately 500 McCloskey
  competition entries

4
Business Concept

• Questions to Answer
• What is your business idea/venture? Give a
  general non-technical overview of what the
  idea/venture is and what it does. Why should
  people be interested in this?
• What Judges Consider
• Uniqueness/freshness of idea. Is it the logical
  next step to satisfy customer needs in this
  market?
• Best Answer
• Plausible new way to address a meaningful market
  issue for a profit

5
Customer Problem

• Questions to Answer
• What are the current unmet needs does your
  idea/venture address? What does the customer
  want and why do they want it?
• What Judges Consider
• Is the problem real or transitory?
• Best Answer
• Significant, growing problem that customers have
  shown a willingness to pay to solve.

6
Your Solution

• Questions to Answer
• What current unmet needs does your idea/venture
  address? What does the customer want and why do
  they want it? How do you solve their need?
• What Judges Consider
• Is the proposed solution disruptive or
  evolutionary?
• Best Answer
• Significant, growing problem that customers have
  shown a willingness to pay to solve.

7
Target Customer

• Questions to Answer
• Who is the customer that is going to be attracted
  to your product? How much does your
  product/service mean to them? What is the size of
  your customer base?
• What Judges Consider
• Potential size of market being addressed niche
  or mass market? Quick to accept new solutions, or
  not? Based on what?
• Best Answer
• Sizable market with clear, rationale reasons to
  consider new ways to solve problems.

8
Primary Competitors

• Questions to Answer
• Discuss your competition who is in this market
  space? What prevents them from blocking your
  entry into the market? Have you considered the
  competition? If there is no direct competition,
  what are target customers doing now in the
  absence of your product/service?
• What Judges Consider
• How is the company positioned vis-a'-vis known
  competition? How can a start-up win in this
  environment?
• Best Answer
• Major competitors are not focused on this
  opportunity for obvious reasons under-served
  market demanding a unique solution.

9
Competitive Advantage

• Questions to Answer
• What advantages do you have over your competition
  that will allow you to succeed? What will
  prevent the competition from stepping in and
  forcing you out of the space?
• What Judges Consider
• How sustainable is the business? Any reasonable
  barrier to entry?
• Best Answer
• A strong set of advantages that will offer some
  protection to this company moving forward.

10
Current Status

• Questions to Answer
• What stage is your technology and/or business at?
  What has been done to this point? Any customers?
• What Judges Consider
• How far along is this business? Has the venture
  taken its first steps?
• Best Answer
• A venture not waiting for approval but has
  already begun finding proof of concept.

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Go To Market Strategy

• Questions to Answer
• Is there a channel that can allow this company to
  get its solution to target customers profitably?
  What are the channel's requirements and is the
  company prepared to meet these requirements?
• What Judges Consider
• What has changed to allow a startup to enter?
  Does this channel accept startups? How and why?
• Best Answer
• Clear indicators of past channel acceptance of
  start-ups.

12
Milestones

• Questions to Answer
• What are key milestones that will need to be met
  for your venture to be successful?
• What Judges Consider
• What are the next steps and what will they
  require?
• Best Answer
• Next steps are thought out and achievable.

13
Management Credentials and Involvement

• Questions to Answer
• What experience do you have in this area? Why are
  you interested in this idea/venture? Is there
  anything unique about your involvement in this
  project or can anyone pull this off?
• What Judges Consider
• Who leads? Past experience or plans to supplement
  with outside mentors or advisors?
• Best Answer
• A realistic appraisal of team skill set no
  oversell -- honest reflection of strengths and
  weaknesses.

14
Business Model

• Questions to Answer
• Financial benefits, how much are people going to
  be willing to pay for this product/service? Do
  you save them money or create additional value,
  or both? How do you capitalize on this added
  value?
• What Judges Consider
• Reasonable business growth plans significant
  margins that should improve through expansion.
• Best Answer
• Demonstrated commercial traction customers have
  already paid for this solution from this company.

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Financials

• Questions to Answer
• What do you expect the financial results to be
  going forward? Estimate up to 5 years of
  financial data and provide some basis for the
  estimates.
• What Judges Consider
• How quickly will this venture be profitable? How
  valid are the assumptions used to create these
  numbers?
• Best Answer
• Transparent numbers that reflect optimism a
  quick turnaround from an investment standpoint.

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Mentors

• Be respectful of your mentors time
• Plan your communication and be focused
• Understand your mentors role

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Important Dates

• February 8th Rich Linting Financials Training
  Session
• 630pm, Room 116 DeBartolo
• February 17th Social Venture Training Session\
• with David Murphy
• February 24th Second Round Submission deadline
• April 21st Final Event (Social Venture final
  judging on April 19th and McCloskey final
  judging on April 20th)

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Second Round Submission Requirements

• 10 15 slide PowerPoint presentation
• Business Plan
• Plan not to exceed 25 pages with no more than 15
  pages of appendices (40 page maximum submission)
• Submission Guidelines posted at
  http//gigot.nd.edu

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Helpful Resources

• First Round judges feedback and contact
  opportunities
• Mentors
• Participants Area for Competition
• http//www.nd.edu/entrep/mccloskeyBPC.html
• Participants username 2006mccloskey password
  gigot)
• Business Plan Pro software

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Next Steps

• Review first round evaluations and make contact
  with judges who provided contact information
• Make contact with your mentor early and often
• Prepare your second round submissions
• Contact Theresa Sedlack or Melissa Paulsen with
  any questions or additional competition support
  needs
• tsedlack_at_nd.edu 574.631.3809
• paulsen.5_at_nd.edu 574.631.7568