success formulas workbook_session1

Welcome to…

Success Formulas®!

Session One

Planning for Success

IntroductionsIntroductions

•Name•Company/Idea Name•Brief Description of Function/Idea

© Copyright 2002, Consortium Innovation Centers, LLC

Session One Session One AgendaAgenda• Define Success• Vision and Mission• Image• Successful Presentations• 30-Second Description• Exit Strategy• Executive Summary


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?


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


ImageImageA Vivid or Graphic Representation

or Description.

ImageImage is an Essential Key to the Success of Your Business.


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


Professional DressProfessional DressAn Executive Represents

the Company...

Be Careful What Image You Portray to Others.


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.


Exit StrategyExit Strategy

Begin with The End-Game in Mind and Define an Acceptable Outcome

Why Are You Getting Into Business?


Exit StrategiesExit Strategies

• Lifestyle• Inheritance-Bequest• Sell to a Larger Corporation• Going Public• Shut or Close Down


LifestyleLifestyleEnjoying the profits that fund your

lifestyle.

Ramifications

No investor.

No growth demands except to stay in business.


Inheritance-BequestInheritance-Bequest

Pass the company to your heirs.

Ramifications• Taxes• No Equity Investor


Sell to Larger CorporationSell to Larger Corporation

Pick resource to build:• Employees

• Customers

• Market

• Manufacturing

Ramifications: Focus Resource to Build


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.


Shut DownShut DownDissolve the Company

Ramifications• No Investor• Tax Implications• No Equity• Sell Assets


Exit StrategiesExit Strategies

• Lifestyle• Inheritance-Bequest• Sell to Larger Corporation• Going Public• Shut Down


BreakBreak


Financial ResourcesFinancial Resources• Professional Investors• Local Investors, “Angels”• Bootstrap• Friends and Family (MCI)• Early Entry into Public Stock

Markets


Professional InvestorsProfessional Investors• Venture Capital

– $25M revenues annually

– Future revenue potential

– 40% return

• Banks– Pay P+I from

cash flow– Pledged assets– Personal

guarantee


Local Investors, “AngelsLocal Investors, “Angels””

• Equity• Debt• Equity for

EffortApplicable For:

– $2M to $25M annual revenues


BootstrapBootstrap• Personal Cash• Credit Cards• Mortgage

House Applicable For:– Under $2M annual

revenues (always)– $2M to $10M

(usually)


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)


Going Public Going Public

• Stock Offered to the Public in an Initial Public Offering (IPO)

• Reverse Merger into an Existing Public Shell.


Financial ResourcesFinancial Resources• Professional Investors• Local Investors, “Angels”• Bootstrap• Friends and Family (MCI)• Public Marketplace


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


Homework AssignmentHomework Assignment

• 30-Second Description• Exit Strategy• Executive Summary• Product/Market Grid


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.


Exit StrategyExit Strategy• Lifestyle• Inheritance-Bequest• Sell to Larger Corporation• Initial Public Offering (IPO)• Shut Down: Dissolve the Company


Product/Market MatrixProduct/Market Matrix

1 2 3 4 5 6 7 8 9 10 ABCDEFG


Preview Session Two: Focus

• Feedback on: 30-Second Description, Exit Strategy and Executive Summary

• Tests of a Winner• Product/Market Matrix• The Focus


Success FormulasSuccess Formulas®

You now have the foundation from which to continue developing your business

strategies and exercising your entrepreneurial talents!

success formulas workbook_session1

Business

public marketssell stock

usuallygoing public

existing public shell

business card

family mciemployees

definition of success

unique image

family mciearly entry