Developing Your Pitch Sponsored by The Wharton Business Plan - - PDF document

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Sponsored by The Wharton Business Plan Competition Committee Glenn Rockefeller Lecturer, Wharton Communication Program April 5, 2005 Developing Your Pitch

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You’ve got 30 seconds to explain your business proposition to a potential investor (elevator pitch), you better be prepared…. This workshop will help you identify the most important issues to communicate… It will focus on developing memorable taglines and delivering them effectively… Participants should come prepared with a business idea so that they can work

• n the pitch that they actually want to present.

Elevator Pitch Workshop Objective

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Elevator Pitch Components

What is the

• pportunity or problem

you want to solve? What is your approach to the opportunity or solution to the problem? What are the expected benefits to the initial users? What is the size

• f the opportunity?

What are the key activities and milestones to launch the business? What resources are required and do you have them? What is the expected returns for investors What are the key risks/challenges and how will they be managed?

Most Important

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Sponsored by The Wharton Business Plan Competition Committee Glenn Rockefeller Lecturer, Wharton Communication Program April 5, 2005

Developing Your Presentation

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Workshop Objective

• Discuss the critical elements that should be included in a 10-15

minute overview presentation of your business plan.

• This workshop is open to the public, but specifically targeted at

helping the Great 8 begin to develop their slide deck for the Venture Finals.

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Awareness Structure/Content Persuasion Dialogue Delivery

Building Blocks for Excellent Communications

Focus of discussion

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Business Plan Pitches Contain:

• Description of your business

– Problem you’re solving – Your solution – Value proposition

• Components of your business concept; order depends on your plan

– Market – Attainable Market – Competitors – Unique, novel or proprietary element to withstand competition – Management Team (actual; or characteristics of executives you would like to hire) – Financial Projections – Funding needs

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Objectives for the 10 minute Venture Pitch

• Communicate high level information about your venture

– Resist temptation to give too much detail about any one component of the plan

• Pique the interest of the panelists/investors to request further

information and to get to another meeting

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Three Common Mistakes of Short Pitches:

• FORGET OBJECTIVE
• GET BOGGED DOWN IN TECHNICAL DETAILS
• INEFFECTIVE USE OF Q&A

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Other Common Pitfalls

• Misallocation of time, often due to too much detail

– Too much detail on technology, financials, etc. – Opportunity to clarify technical issues may come in Q&A period or in future meeting

• Too much text/hard to understand slides

– Slide should enhance, not detract from the speaker’s message

• Use of jargon

– Assumption that audience members are experts in your field

• Failure to build credibility

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Most Common Delivery Mistakes

• READ SLIDES
• LOSE ADVANTAGE OF A SPEAKING OPPORTUNITY
• FORGET BASICS OF PRESENTATION SKILLS

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Communication Basics That Drive Every Presentation

• Ensure compelling content: sound logic, well-

supported arguments, persuasive structure

• Keep language simple, sentences relatively short
• Rely on conversational, not written word patterns
• Use words that visualize ideas
• Avoid jargon and filler words

Element Comments

• Use clear articulation and proper pronunciation
• Vary volume level
• Vary rate of speech
• Use pauses and keep them free of filler words
• Breathe while you pause
• Avoid “uptalk” if not asking a question
• Stand tall and move naturally
• Maintain eye contact with the audience; glance at

slides and monitors only when necessary

• Avoid pacing and shifting weight
• Avoid crossing arms/legs
• Use gestures to emphasize words
• Avoid letting your slides overpower you

Verbal Visual Vocal

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PowerPoint Basics

• Chart should support you, not visa versa

− Convey ideas and facts…not details − Keep simple/easy to understand − Minimum number of words − Use similar font throughout

• Use graphs and charts where possible to support key ideas

− Label axes − Clear, uncomplicated

• Dark background (blue or black) with light lettering (yellow or white)

for high contrast

• Talk to the audience, not the screen

− Form triangle between screen, audience, and presenter − Refocus attention to presenter

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How To Improve Three Common Types of Slides

• TEXT
• DATA
• VISUAL – TELLING THE STORY

• Reduce Direct Labor Costs- Reduce the amount of clerk staff previously required to

prep and manage paper-based medical record. Centralized data center model offers flexibility and experience to staff to the changing demand across multiple client

• hospitals. More importantly, any authorized user can simultaneously access the digital

medical record, which eliminates process flow problems associated with working with

• nly one paper document
• Reduce Punitive Indirect Labor Costs- Authorized personnel within the client hospital

can access digital records quickly from any PC terminal

• Lower Accounts Receivable Balances- Reduce prep work and automatically prioritize

the oldest, un-coded records to coders to optimize workflow

• Reduce Implementation, Switching and Administration Costs for an Electronic

Medical Records System- Serve multiple clients to leverage economies of scale for back-end data storage and systems administration and high cost of investing in and managing their own electronic medical records systems.

• Reduce Waiting Times for Request of Information- Release of Information (ROI)

Clerks can quickly disseminate medical records to requestors via fax-modem.

• Reduce Compliance Risk- Authorized physicians will be able to log on to MedInfo

system to finish incomplete medical records from any location and Compliance/Quality Control Clerks can easily monitor physician compliance through a decision support tool

• Mitigate HIPAA Risk- MedInfo database administrators can monitor the access to and

distribution of medical records and regularly audit who is accessing medical information

PRODUCTS & SERVICES: Value Proposition PRODUCTS & SERVICES: Value Proposition

• Reduce Direct Labor Costs
• Reduce Punitive Indirect Labor Costs
• Lower Accounts Receivable Balances
• Reduce Implementation, Switching and Administration Costs for an

Electronic Medical Records System

• Reduce Waiting Times for Request of Information
• Reduce Compliance Risk
• Mitigate HIPAA Risk

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Our Service Reduces:

• Labor Costs
• Accounts Receivable Balances
• Implementation, Switching and Admin Cost
• Waiting Times for Information Requests

Compliance Risk Mitigate HIPAA Risk Benefits Begin with Cost Containment

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iPremier Will Continue Showing Strong Growth in Sales & Profits

$0 $5 $10 $15 $20 $25 $30 $35 $40 1999 2000 2001 2002 Sales Profits $3.5MM $2.1MM $32MM $40MM

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Cost Effective, Mobile Medical Imaging System For Detecting Brain Hematomas

Wharton Business Plan Competition 26th April 2004

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1 2 3 4 1 5 2, 3, 4 1 5

Pre – Hospital Monitoring Hospital Monitoring Post-Hospital Monitoring

The application will create value at multiple points in the TBI clinical chain and be used extensively by different members

• f the physician community

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Presenting to Angels/VCs – Communications Tips

• Use desktop publishing if possible – look professional but not slick
• Keep talk to a maximum, handouts to a minimum
• Never leave proprietary materials behind – especially after initial

meeting

• Demonstrate good teamwork with your management team members

that are present

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Issues VCs Are Sensitive To

Team

• CEO’s credentials
• Caliber of the founders
• Completeness of the management team
• Degree of drive of the core team

Product/Market

• How revolutionary/unique?
• Will the competitive advantage be sustainable?
• Does the company have a nifty product or is this a business?
• Size of the market, revenue potential
• Potential customers (names and phone numbers)

Structure

• Pricing of the finance round
• Control
• Vesting terms of the employee shares

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Angel/VC Ghostpack

Title slide Purpose/introduction

• Purpose of discussion/

meeting

• Provide relevant context

(let them know who you know)

• May also include desired
• utcome

Big idea

• Elevator speech in

summary bullet points

• Maybe picture of product
• r prototype
• Possible to switch 2. and 3.

1. 2. 3. 5. 4.

Problem Market Your solution

• Size
• Growth
• Segmentation
• Use graphic/chart
• Problem your business

solves, and/or

• Customer your

business will target, and/or

• Opportunity your

business will capture

• Focus on what is unique,

novel, or proprietary

• State benefits
• State why it is sustainable
• Include logo
• Personalize
• Professional but not

flashy

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Angel/VC Ghostpack (Cont’d.)

Value proposition Competitors/key challenges Development plan

• Process graphic or

Gantt chart

• Should include timeline

and key milestones (date

• f first customer)

7. 8. 9. 11. 10.

Marketing strategy Management team Financial projections

• Core – include brief bios
• Emphasize experience if

management team has worked together previously

• Advisors
• Line or bar chart
• Include scenarios/

sensitivities

6.

• How does the business

create or capture value (margin)…convenience premium…cost savings …etc.

• Could be waterfall

graphic

• Primary channel
• Distribution
• Initial customer

segments

• Stick to the most

significant

• Include how you will
• vercome key challenges

and competitors

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VC Ghostpack (Cont’d.)

Capital plan Close

13. 12.

• Uses and timing
• Could be waterfall chart
• Summary
• Potential next steps