Michigan Business Competitions

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Michigan Business Competitions

• Brought to you by
• The Zell Lurie Institute for Entrepreneurial
  Studies
• The Entrepreneur Venture Capital Club
• and
• The Center for Venture Capital Private Equity

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Agenda

• Opening/introductions
• Overview of the Business Plan Competition process
  
• Review of the opportunities
• how to register
• role of Zell Lurie
• Putting together a team, a plan, and a pitch
• Break/Food
• Pixel Velocity Team Presentation
• Critique and questions      
• Conclusions and Reminders

3
Overview of the Process

• Paul Kirsch
• Zell Lurie Institute

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Key Dates

• December 15 Intent to compete forms
• Submit to ZLI/EVC
• For all competitions
• January 17th
• FuturTech Quick Pitch Competition
• Pryor-Hale Biz Plans due
• later that week, finalists selected by ZLI for
  Pryor Hale
• January 24th - Practice for Pryor-Hale finalists
• February 3rd - Biz plans due for NSVC
• February 7th - Pryor Hale Competition

5
A team, a plan, a pitch

• George Weinmann
• Entrepreneur Venture Capital Club
• Center for Venture Capital Private Equity

6
The Team

• Michigan Students!
• UMBS Students
• Engineering
• Etc.
• Professors

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The Business Plan

• Plan the business
• Write an outline
• Review / discuss
• Write plan
• Review / discuss
• Test and test and test

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Many Resources On-line

• Check Zell Lurie and EVC websites
• www.zli.bus.umich.edu
• www.evc-club.com/
• Check Great Lakes Venture Quest
• www.gleq.org
• www.gleq.org/train_events_calendar

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The Executive Summary

• Overview / Brief company description
• Market / Industry Analysis
• Problem statement
• Potential market segment
• Product/Service Description
• Solution company provides
• Revenue/business model
• Competitive Advantage/Competitors
• Technical Innovations
• Management team
• Finance
• Projected costs
• Financing needs
• Exit strategy (if appropriate)

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Business Concept Paper

• Name!
• Overview
• One paragraph
• Elevator speech!
• Market
• Keep as independent of product idea as possible
• Only a few paragraphs
• Product or Service Concept
• Competitive Advantage
• What advantage your concept offers
• What the competitors or substitutes offer
• Why your idea is still better
• Team
• You
• Who else will you need (describe)

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The Elevator Pitch

• Prepared for that planned or unplanned moment
• Finding yourself on an elevator with your CEO
• Or that introduction to a top VC!
• An Elevator Pitch
• Conveys essential information clearly and
  concisely
• Communicates passion and credibility
• Designed to get attention
• Does not take the place of a business plan
• Gets you an invitation to present your business
  idea on a more in-depth basis.
• Lasts not more than 30-120 seconds
• Is well memorized (and can be said several ways)

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Or put another way

• What is your business idea?
• Why does anyone want it?
• Why do they want it from you?
• Why do they want it now?
• How will you make money?
• Taken from Great Lakes Entrepreneurs Quest
  presentation by IdeaWorks, LLC

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A Pitch in 60 Seconds!

• An example provided by Dr. Lawlor
• ConstructionBoots.com, is an e-commerce website
  that sells construction boots, on a b2c and a b2b
  basis.
• Our primary market consists of construction
  workers, with secondary markets including other
  individuals and companies in the construction
  trade.
• ConstructionBoots.com offers the highest quality
  products and drives traffic to the site by
  linking to other websites related to the
  construction industry.
• We believe that the customer would find
  purchasing and direct delivery of construction
  boots easier through our website, rather than
  purchasing via traditional retail outlets.

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Continued

• We will require 5 million in two rounds of
  funding to reach break-even and the point where
  the company can support itself on our own
  revenues.
• We seek to raise 2 million in the first round of
  funding, with a first round valuation of 5
  million.
• We have an industry insider CEO and will hire a
  CFO and Director of Marketing with our first
  investment round.
• We believe we will be the only pure e-commerce
  construction site and will face indirect
  competition from traditional brick and mortar B2B
  retailers who target the trade as well as
  traditional mass merchandisers.
• If all goes as planned, we would look to sell
  ConstructionBoots.com to an industry retailer who
  sells construction gear.

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How to Get Started

• Talk up your interest your idea
• Find professors and colleagues who are willing to
  listen, help, or team up with you
• Find examples
• See EVC and GLEQ websites
• Build a business concept paper
• Be ready to change/adapt
• Talk up your idea

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Key Dates

• December 15 Intent to compete forms
• Submit to ZLI/EVC
• For all competitions
• January 17th
• FuturTech Quick Pitch Competition
• Pryor-Hale Biz Plans due
• later that week, finalists selected by ZLI for
  Pryor Hale
• January 24th - Practice for Pryor-Hale finalists
• February 3rd - Biz plans due for NSVC
• February 7th - Pryor Hale Competition

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Competitions

• January 17 - University of Michigan - FuturTech
  Quick Pitch
• January 31 - Harvard Business School - AASU 4th
  Annual
• February 7 - University of Michigan - Pryor Hale
  Business Plan Competition
• February 14 - Wake Forest University - KACE
  Competition
• February 21 - Indiana University - Spirit of
  Enterprise
• February 28 - University of Nebraska, Lincoln -
  infoUSA Business Plan Comp.
• March 21 - Wake Forest University - The Elevator
  Competition
• March 21 - Ball State Syracuse Universities -
  Enterprise Creation Comp.
• March 27 - San Diego State University - Venture
  Challenge

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More Competitions

• April 3 - Rice University - Southwest Business
  Plan Competition
• April 10 - University of Oregon - New Venture
  Championship
• April 10 - University of North Carolina - Venture
  Capital Investment Competition
• April 11 - University of California, Berkeley
  Columbia University
• National Social Venture Competition
• April 18 - Colorado State University - Venture
  Adventure
• April 2003 - Business Plan Challenge - MBA Jungle
• April 30 - University of Texas, Austin - MOOT
  CORP. Global Competition
• July 2003 - Stanford University - Global
  Entrepreneurs Challenge