PREPARING YOUR PITCH Arnold Chen, Managing Director Burton D. Morgan Center for Entrepreneurship
OUTLINE Before your pitch The Pitch After your pitch Fun real examples
WHAT IS YOUR GOAL? WHY ARE YOU MEETING? To get the next meeting!!!
KNOW YOUR AUDIENCE Ask them what they want to hear! Know your time limit Plan your pitch accordingly Who will be attending? What are each of their roles? Who are decision makers? Understand their background/experience Good for anticipating questions Great for small talk. Makes you memorable
PREPARATION Practice your pitch! Watch your time Get to the Q&A. That s where the important part of the meeting happens Proofread your pitch Nothing worsse than having a typo or font issues Distracting Shows you are not detail oriented Be early
DURING THE PITCH Don t get flustered by interruptions and questions Effective communication Listen to questions carefully! Answer succinctly Assign a team member to take notes/action items
1. OPENING SLIDE Company Name Contact info Catch Phrase We are the 10 words or less
TELL YOUR STORY Tell them why this is important to you Why are you doing this? Paint a picture/tell a story
2. PROBLEM STATEMENT What is the problem you are trying to solve Tell a story Give an example Hook them early
3. SOLUTION How are you solving the problem? Not too technical If you can't explain it to a six year old, you don't understand it yourself. -Albert Einstein
4. SHOW IT Bring demo unit Screen shots Picture
5. REVENUE MODEL How are you going to make money?
6. TRACTION How many customers do you have? How many customers have you talked to?
7. MARKET Market Size Addressable Market Size Tops down/bottoms up
8. CUSTOMER REACH How are you going to reach your customers? Hunt vs. fish
9. THE ASK What are you asking for? $, partnership, support Company milestones
10. TEAM Core team Highlight balance/know what s missing
11. CONCLUSION Recap Why you are a good investment
BACKUP INFO Competitive Landscape IP protection Use of funds Financial projections Advisors Product roadmap
AFTERWARDS Email team recap of meeting and action items Follow-up Send out progress updates
PRACTICE, PRACTICE, PRACTICE Pitching is a learned skill Practice at every opportunity Change slides for each pitch
A FEW FUN EXAMPLES
SORRY YOU CANT READ THIS INPUTS SYSTEM SALES FORECAST COUPONS ASSUMPTIONS USERS Input total sales per year Coupon usage 40.90% Number of Students Using App Prior System 1,200.00 per year YEAR SALES Average Students per U (Big 10) 41,255 28.00% Mobile users redeem coupons 2017 0 % of Students go to Rec. Facility 75.00% 2018 3 % Students would use app 30.00% 2019 8 RAMP UP per year starting in year Average Pop using app per U 9,282 2020 12 Penetration 3 5% 2021 18 Reedemption 5% 3 2022 36 QUANTITY 2023 90 PRICES # ads per week 7 RENEW 100% 52 weeks = 1 year RATE System $ 25,000.00 Fee Coupon red. $ 0.30 ADS REVENUE FORECAST FORECAST VISIBILITY PER MONTH An input considering sales per month is more realistic, but also it less conservative SYSTEM SALES 2017 2018 2019 2020 2021 2022 2023 jan feb mar apr may jun jul aug sep oct nov dec TOTAL Total Students Visualization App 7,800 195,404 855,373 2,082,442 4,015,075 7,719,007 16,883,338 2017 0 0 0 0 0 0 0 0 0 0 0 0 0 Redeem Coupons 27,095 678,790 3,501,974 9,817,477 21,419,314 45,966,996 111,013,969 2018 0 0 0 0 0 0 0 0 0 0 0 0 3 Accumulated 27,095 705,885 4,207,859 14,025,336 35,444,649 81,411,645 192,425,614 2019 1 1 1 1 1 1 1 1 1 1 1 1 8 Revenue per Redemption $ 8,128.63 $ 203,636.89 $ 1,050,592.19 $ 2,945,243.07 $ 6,425,794.07 $ 13,790,098.72 $ 33,304,190.63 2020 1 1 1 1 1 1 1 1 1 1 1 1 12 Accumulated Revenue $ 8,128.63 $ 211,765.51 $ 1,262,357.71 $ 4,207,600.78 $ 10,633,394.85 $ 24,423,493.56 $ 57,727,684.19 2021 2 2 2 2 2 2 2 2 2 2 2 2 18 2022 3 3 3 3 3 3 3 3 3 3 3 3 36 2023 8 8 8 8 8 8 8 8 8 8 8 8 90 HEADCOUNT RATIOS OVERHEAD COSTS for ONE professional Input employees per year Value Months SYSTEM SELLER ADV SELLER DEVELOPER MKT GENERAL ADM OWNER/FOUNDER SCHOOLS PROFESSIONAL YEAR Implementation $ 600,000.00 15 Number of schools (system clients) 2017 0 1 1 0 0 0 10 1 2018 1 1 1 0 0 0 Expenses 2019 1 2 2 0 1 0.5 OVERHEAD 2x 2020 2 2 2 1 1 0.5 MERCHANTS PROFESSIONAL Number of ads (week) 2021 2 3 3 1 1 1 50 1 2022 4 6 3 1 1 1 2023 9 13 4 1 1 1 SALARY $ 60,000.00 $ 60,000.00 $ 80,000.00 $ 65,000.00 $ 30,000.00 $ 100,000.00
ü Low pressure prototype: suitable in automotive (lube pump, LP injection pump) and fluid transport systems. Reduces the fuel consumption up to 30%. TOO MUCH TEXT ü A working concept for VD-EGM was formulated. The unit design consists of asymmetric gears and a slider, whose position determines the instantaneous flow ü The design was defined on a basis of a numerical procedure developed at Maha Fluid Power Research Center of Purdue, the largest academic fluid power lab in US ü A flow variation range of 65% - 100% was demonstrated on a high pressure prototype, able to operate up to 250 bar outlet pressure ü High volumetric and torque efficiency were measured on a prototype, showing the validity of the concept ü A low pressure prototype (up to 30 bar pressure) is on development. The low pressure prototype is based on a extremely low cost solution ü High pressure prototype: suitable for hydrostatic drive applications in aerospace, construction, agriculture, manufacturing applications, where current units are either expensive or not capable of offering flow on demand features (low efficiency)
TOO TECHNICAL 25 Flow Rate: 2000 rpm 20 Flow Rate: 1500 rpm 10 Flow Rate: 1000 rpm Flow Rate [lpm] 20 15 10 5 Exp. - 100% [lpm] Exp. - 84% [lpm] Flow Rate [lpm] 15 10 5 Exp. - 100% [lpm] Exp. - 84% [lpm] Flow Rate [lpm] 8 6 4 2 Exp. - 100% [lpm] Exp. - 84% [lpm] 0 Exp. - 68% [lpm] 20 30 40 50 60 70 80 90 100 110 Pressure [bar] 0 Exp. - 68% [lpm] 20 30 40 50 60 70 80 90 100 110 Pressure [bar] 0 Exp. - 68% [lpm] 20 30 40 50 60 70 80 90 100 110 Pressure [bar] Torque [Nm] 25 20 15 10 5 Exp. - 100% [Nm] Exp. - 84% [Nm] Torque: 2000rpm Torque [Nm] 25 20 15 10 5 Exp. - 100% [Nm] Exp. - 84% [Nm] Torque: 1500rpm Torque [Nm] 25 20 15 10 5 Exp. - 100% [Nm] Exp. - 84% [Nm] Torque: 1000rpm 0 30 40 50 60 70 80 90 100 Pressure [bar] 0 30 40 50 60 70 80 90 100 Pressure [bar] 0 30 40 50 60 70 80 90 100 Pressure [bar]
TOO FANCY
HOMEWORK Go watch a few episodes of Shark Tank Watch the entrepreneurs pitch