Pitch Your Market. What you should know before you pitch. Linda S Plano, PhD

Pitch Your Market What you should know before you pitch Linda S Plano, PhD

How to Participate Today Open and close your panel If you want to TALK or PITCH View, select, and test your audio If you want to TEXT Submit questions If you can hear me, please Raise your hand! 2016 Plano & Simple www.planoandsimple.com 2

About Linda PhD Stanford, BS MIT Career entrepreneur Experienced manager MITEF volunteer, program chair and board member since 2004 2016 Plano & Simple www.planoandsimple.com 4

The point to a pitch Communicate Test your value proposition 2016 Plano & Simple www.planoandsimple.com 5

10 (Plano &) Simple Questions Every Pitch Should Answer 1. Who cares? 2. What do you do (in language I can understand)? 3. Why will you win? 4. How will you stay ahead? 5. Does it work? 6. How will you make money? 7. How much will you make? 8. Why you? 9. What will you do? 10. How much will it cost? 2016 Plano & Simple www.planoandsimple.com 6

Your customer is your most important investor If the customer won t buy, no other investors matter 2016 Plano & Simple www.planoandsimple.com 7

10 (Plano &) Simple Questions Every Pitch Should Answer 1. Who cares? 2. What do you do (in language I can understand)? 3. Why will you win? 4. How will you stay ahead? 5. Does it work? 6. How will you make money? 7. How much will you make? 8. Why you? 9. What will you do? 10. How much will it cost? Customer, market size & pain Business model Financial projections Pitch webinar at 17:00 today http://bit.ly/mitefpoland-web-2016 2016 Plano & Simple www.planoandsimple.com 8

1. Who cares? Is there a big enough market? 1. Who cares? Market pain MUST have Have a problem you can fix Can afford to pay you to fix it NICE to have and KNOW it and are ALREADY paying for A fix Market size Exist in large numbers and can be found EASILY 2016 Plano & Simple www.planoandsimple.com 12

2016 Plano & Simple www.planoandsimple.com 13

Everyone will want one! Who is everyone? Your Mom? A few of your friends? Every Millennial on the planet? & how do you know? 2016 Plano & Simple www.planoandsimple.com 14

The investor has to have confidence that you have enough customers. So do you. 2016 Plano & Simple www.planoandsimple.com 15

Is there a big enough market? Market pull What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? Can you create a solution? How will you find them? How many will buy? Technology push What is your innovation? What problems does it solve? What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? How will you find them? How many will buy? 2016 Plano & Simple www.planoandsimple.com 16

Is there a big enough market? Market pull What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? Can you create a solution? How will you find them? How many will buy? Technology push What is your innovation? What problems does it solve? What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? How will you find them? How many will buy? 2016 Plano & Simple www.planoandsimple.com 17

Market PAIN what is the problem? who has it? 2016 Plano & Simple www.planoandsimple.com 18

? Tip # 1: TALK WITH YOUR CUSTOMERS! Solve the problem they have, not the one you like Bonus: Credibility with investors. 2016 Plano & Simple www.planoandsimple.com 19

Is there a big enough market? Market pull What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? Can you create a solution? How will you find them? How many will buy? Technology push What is your innovation? What problems does it solve? What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? How will you find them? How many will buy? 2016 Plano & Simple www.planoandsimple.com 20

Market SIZE part 1 how much will they pay to fix it? Casual: Nothing I ll use a newspaper. Practical: $20, so I get to my meeting dry. Fashionable: $250, as long as it s unique. Desperate: I just spent $500 getting my hair done I ll pay anything! Casual: Nothing I ll read a newspaper. Practical: $10 for an hour of access to a laptop. Fashionable: $1500, as long as it s unique. Desperate: I have to finish this report I ll pay anything! 2016 Plano & Simple www.planoandsimple.com 21

Tip # 2: TALK WITH YOUR CUSTOMERS! Desperate customers are best. 2016 Plano & Simple www.planoandsimple.com 22

Customer interview tips In person, if possible Phone OK, online poll not OK Talk to decision makers Minimum: 20 interviews Better: 100 interviews A discussion, not a pitch Their opportunity to complain, not your opportunity to sell Avoid discussing your innovation 2016 Plano & Simple www.planoandsimple.com 23

Essential questions Others we ve talked to have this problem. Do you have it as well? Yes! Please tell me more No! That s great! What would you say are the top 3 challenges you do face? What does it cost you to have this problem? Can you reduce the number of people needed? Can you reduce the cost of goods sold (COGS)? How much more can you make if you solve this problem? Can you increase market share? Can you add to their product portfolio and bring in new customers? 2016 Plano & Simple www.planoandsimple.com 24

Is there a big enough market? Market pull What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? Can you create a solution? How will you find them? How many will buy? Technology push What is your innovation? What problems does it solve? What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? How will you find them? How many will buy? 2016 Plano & Simple www.planoandsimple.com 25

Market SIZE part 2 how many of them are there? TOP down BOTTOM up 2016 Plano & Simple www.planoandsimple.com 26

TOP down Breaking news No idea Business networking All Social Media Platforms Friends & family (business) Search optimizers 2016 Plano & Simple www.planoandsimple.com 27

= * BOTTOM up 2016 Plano & Simple www.planoandsimple.com 28

Market SIZE part 2 how many of them are there? TOP down Which is better? Yes. BOTTOM up 2016 Plano & Simple www.planoandsimple.com 29

Places to get numbers Data sources www.data.gov http://www.cdiaonline.org/ http://www.census.gov/ http://www.nielsen.com/us/en.html D&B Hoovers Factiva LexisNexis Charles Schwab News sources CB Insights Crunchbase Techcrunch Mashable Mercurynews.com/vc Venturebeat Biography analysis sources Boardex Klout LinkedIn Salesforce data.com Pipl ZoomInfo Online analytics tools www.bottlenose.com www.reportbrain.com Tools for tracking competitors Attaain Compete Rivalmap Spyfu Most data services are expensive! 2016 Plano & Simple www.planoandsimple.com 30

Biz speak Total Addressable Market (TAM) Serviceable Addressable Market (SAM) Serviceable Obtainable Market (SOM) 2016 Plano & Simple www.planoandsimple.com 31

TAM SAM SOM Beachhead 2016 Plano & Simple www.planoandsimple.com 32

Tip # 3: Perform multiple analyses Make sure they are consistent to validate assumptions 2016 Plano & Simple www.planoandsimple.com 33

6. How will you make money? How many people will buy? MUST have 6. How will you make money? Customer acquisition Are open to innovation Know about your innovation NICE to have and are EXCITED about being early adopters and are EXCITED about having it Value chain Have the authority to buy it and are EXCITED to buy it 2016 Plano & Simple www.planoandsimple.com 34

If you build it, he will come Mysterious voice in Field of Dreams Don t count on it. 2016 Plano & Simple www.planoandsimple.com 35

Is there a big enough market? Market pull What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? Can you create a solution? How will you find them? How many will buy? Technology push What is your innovation? What problems does it solve? What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? How will you find them? How many will buy? 2016 Plano & Simple www.planoandsimple.com 36

Our product will go viral! 2016 Plano & Simple www.planoandsimple.com 37

The Buy Side of the value chain Influencers YourCo Distributor(s) Buyers End User(s) 2016 Plano & Simple www.planoandsimple.com 38

More customer questions What is your buying process? Who makes the buying decision? What do they care about? When does the budget get set? PLUS study your competitors. How do I find more people like you? What online groups do you participate in regularly? What are the important conferences or trade shows? What are your must-read items? Journals Bloggers Etc. 2016 Plano & Simple www.planoandsimple.com 39

Places to learn about the value chain Data sources www.data.gov http://www.cdiaonline.org/ http://www.census.gov/ http://www.nielsen.com/us/en.html D&B Hoovers Factiva LexisNexis Charles Schwab News sources CB Insights Crunchbase Techcrunch Mashable Mercurynews.com/vc Venturebeat Biography analysis sources Boardex Klout LinkedIn Salesforce data.com Pipl ZoomInfo Online analytics tools www.bottlenose.com www.reportbrain.com Tools for tracking competitors Attaain Compete Rivalmap Spyfu 2016 Plano & Simple www.planoandsimple.com 40

Tip # 4: Talk to all stakeholders Decision makers are most important. 2016 Plano & Simple www.planoandsimple.com 41

Is there a big enough market? Market pull What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? Can you create a solution? How will you find them? How many will buy? Technology push What is your innovation? What problems does it solve? What is THE problem? Who has the problem? What will they pay to resolve it? How many people have it? How will you find them? How many will buy? 2016 Plano & Simple www.planoandsimple.com 42

7. How much will you make? How fast will they adopt? MUST have NICE to have 7. How much will you make? Segmentation Want your product and are DESPERATE for it Penetration Want your product and are DESPERATE for it 2016 Plano & Simple www.planoandsimple.com 43

95% of dentists do not attempt implants 2016 Plano & Simple www.planoandsimple.com 44

Tip # 5: Segment your markets for success Target low-hanging fruit first 2016 Plano & Simple www.planoandsimple.com 45

2 components of market penetration How fast can you make it? How quickly will they adopt it? 2016 Plano & Simple www.planoandsimple.com 46

2012 Plano & Simple www.planoandsimple.com Crossing The Chasm by Geoffrey Moore 47

Tip # 6: Conservative estimates aren t. Investors are looking for big wins. 2016 Plano & Simple www.planoandsimple.com 48

1. Who cares? Market pain MUST have Have a problem you can fix Can afford to pay you to fix it NICE to have and KNOW it and are ALREADY paying for A fix Market size Exist in large numbers and can be found EASILY 6. How will you make money? Customer acquisition Are open to innovation Know about your innovation and are EXCITED about being early adopters and are EXCITED about having it Value chain Have the authority to buy it and are EXCITED to buy it 7. How much will you make? Segmentation Want your product and are DESPERATE for it Margins Want your product and are DESPERATE for it 2016 Plano & Simple www.planoandsimple.com 49

Pitch webinar at 17:00 today http://bit.ly/mitefpoland-web-2016 2016 Plano & Simple http://mitefpoland.org/applications/ 50

www.planoandsimple.com Best of luck and success! 2016 Plano & Simple www.planoandsimple.com 51