1

Application WorkshopDecember 3, 2010

Sabin Environmental Prize

2

Sabin Application Info

Letter of Intent due Jan 14Full Application due March 4• Today: Researching your idea• Jan 21st – Financial issues• Feb 11th – Writing &

Presentations

3

Sabin Questions

• Idea (what is it – what is appealing)

• What is original (unique advantage)

• What have you done so far (stage)

• Next steps – what do you need to do?

• What is the environmental benefit?

• Who is on your team?• How much $ do you need? Use

of prize?

4

Judges in 2010

• Andrew Sabin, prize funder & investor

• Rosemary Ripley – NGEN – investor

• Konstantine Drakonakis – Launch Capital - investor

• Sally Fan, Deutsche Bank - investor

• Ralph Earle, Assabet, consultant to investors, investor

5

Judges are Investors by Day

They want to:• Hit a homerun (big financial

upside)• Avoid known losers (high

failure rates)• Minimize risks (pick the surest

thing)• Back winners (proven track

records)

6

Ideal Investor Characteristics

Exciting company• Unique Product / Service • Large potential market• Rapid growth prospects

7

Unattractive Sectors

• Restaurants -- one location

> Too many cooks

> 80% bankruptcy rate

• Retailing -- one location

> Too easy to enter

> 80% bankruptcy

rate

8

More Unattractive Choices

• Consulting

> Not scalable

> No need to raise $ from

others

• Some International Businesses

> Depends on your access

> Also, perspective of the

judges

9

Avoid

Ideas with Large Capital Requirements

Need to buy an island?Need to buy an island?

10

Consider...

Do you have:• The skills to make the venture

happen?• Or, an “in” to acquire those skills?

If not, your application is just creative writing

11

Most Important Question

• If the idea is so great...• Why hasn’t anyone done it

before?

• Might be – Technology didn’t exist before

• Might be – it just won’t work!

12

The Best Ideas

Come from your own experiences

• School, jobs• Hobbies, family• A problem you’ve faced

13

Themes of the Day

You want to communicate an idea that:

• Addresses a big, exciting opportunity

• In a new, unique, innovative way

• That is feasible and believable• With great people on your

team

To Win Contests (or Raise $)

14

Idea: Big, ExcitingOpportunity

1515

The Need or Opportunity

•What is it?•How large is it ? • Is it growing ? By how much ?

1616

Caution: Use Data, Sources!

• Your opinion about a need has little value

• You want to win contests….• Do research! • Industry reports, articles,

interviews, etc.

17

Caution: Look at the Right Market!

GreenCleaning.com will sell all brands of environmentally friendly cleaning products – on one website.

Cleaning product sales in the US were $28 billion in 2009.

18

GreenCleaning’s Market

• Green cleaning products Say, 5% of all cleaning products $1.4 billion

• Sell them (not make them) Say, for a 10% commission

$140 million - not $28 billion!

19

Research the Interest

• Who are the customers?• How many are there?• What do they want?• What can you do for them?

2020

Caution: Don’t Assume!

• Your ideas about customer have little value

• You want to win contests….• Do research! • Do interviews & surveys!• Get someone to sign up!

21

Caution: Get the Customer Right!

GreenCleaning will sell its own brand of environmentally friendly cleaning products – in retail stores.

• Who is the customer?

22

Caution: Get the Customer Right!

• The customer = stores• Stores’ customers = consumer

• You must appeal to the consumers

• But you also must understand customer needs – and meet them

23

Caution: Get the Customer Right

GreenCleaning.com will sell all brands of environmentally friendly cleaning products – on one website – for a commission.

• Who is the customer?• Cleaning product companies

24

Testing Customer Interest

Develop a one page product description

• What does it do ?• How does it work ?• List the main features• List main benefits -- to

customers

25

Use the Product Description to:

• Conduct interviews • Do surveys• Ask customers if they want your

product !

26

Find Out:

> Do they like your product ?

> Will they buy/use it when it is

ready ?

> Will they pay the price you’re

asking?

> Do they have any issues /

concerns ?

27

Surveys

• Survey Monkey = online survey

product Easy, nice looking

Includes analysis tools

Free for short, simple surveys

• Keep your survey short, simple

• Test your survey before sending!

28

For Your Application

• Describe your venture (what will it do)

• Also, the need / opportunity• And the customer (who will pay

for it)• Include secondary research

data• Quote your interviews• Present your survey data

29

Unique: Innovative,Competitive Advantage

3030

What is Innovative?

• How is your idea – unique?• Different from the competition?• Different – from alternatives?

3131

The Competition

• Who are the competitors ?

• How do they compete ?

• How are you different ?

3232

What is Innovative?

• Always more competition - than you think

• Compare major features of your product> To all competitors’ products

> To doing things “the old way”

33

Construct a Competitor Grid

Reason Co. A Co. B Our Co.

Price X X

Reliability X X X

Env Benefit X X

34

Caution: Be Objective!

• You saying you are better = little value

• You want to win contests...!• Why, objectively, are you

better?• Did customers say you were

better?• Admit where you are not better

3535

If your Grid Looks like this….

MadeCompetitor By Us Better Cheaper FasterOur ServiceCompetitor ACompetitor BCompetitor C

MadeCompetitor By Us Better Cheaper FasterOur ServiceCompetitor ACompetitor BCompetitor C

X

X XX

XX X

X

Buyer has no reason to switch -- probably won’t

3636

Beware the Status Quo

• People hate to change• Or to pay -- for what was free

37

Key Avenues For Investigation

• Why has no one done this

before ? Technology didn’t exist?

New regulations or incentives?

It won’t work for some reason….?

38

Unique, Big Idea: Example

39

40

• Fresh farmed tilapia fillets• Purified and filtered re-

circulated water• “Seafood Safe” and Organic• 100% organic feed

41

Evidence of Opportunity - over 3 years:• US seafood consumption up 12% - $12

billion• US tilapia consumption up 110% - $400

million• Demand for organic meat & fish up

120%

Over 70% of Americans would by organic seafood if available; 60% ‘strongly

prefer’ domestic

42

Customers • Suppliers of restaurants,

grocery & fish stores• Also, Trader Joe’s, Whole Foods

43

Talking to customers:• 450 chefs and 150 retailers

Most prefer environmentally friendly fish

• Local restaurant owner: “customers care”

• Wholesaler: “Not enough good farms”

• EcoFish: I will buy all you have to sell

44

Competition• 96% of tilapia

– imported, mostly frozen, not organic

• Most US farm-raised – small, not organic

The Good Fish tilapia will be more expensive vs. competitors

45

Feasibility: Making it Happen

46

Demonstrate:

• You have a detailed strategy

• You’ve made some moves

• You know what the next ones are

47

Issues to Cover

1. How will you make your product?

2. How will you get customers to buy it?

3. How will you start – and expand?

4. Who will run your business?

48

Make a List

• What are your product “inputs”?

• What kind of facilities do you need?

• What is your production plan? • How will you deliver to

customers?• How will you provide ongoing

service?• How will you handle HR,

finance, legal?

Research the answers!

49

People might be your main “input”

• Skilled managers• Customer service• Engineers, scientists, IT• Support functions

50

People Issues

• What skills should they have?• How many people will you need –

to start?• How many – as you grow?• Where will you find them?

51

Making the Product Feed: Organic vegetarian Staff: Monitor equipment, move, clean,

fillet fish Facilities: series of tanks (“Pod

System”), heating, warehouse space Production planning: 28 week growth

cycle Delivery: Distributors pick up Byproducts: Waste and offal

52

Getting Customers to Buy

• Selling• Advertising• “PR”• Partnerships

Key Challenge

53

Two Main Categories

• In person Sales Force• Direct Marketing

54

How to Decide?

• Complicated or Simple?• Must be “test driven”?• Expensive or Cheap?• Custom or Standard?

What Kind of Sale Are You Making?

55

Sales Force is Probably Necessary

If the Sale:• Involves education• Requires a lot of customization• Is expensive or risky

56

Sales Force

• Door-to-door• In-store• Telesales

• Door-to-door• In-store• Telesales

• Strong track record

• Industry contacts

• Product Expertise

• Strong track record

• Industry contacts

• Product Expertise

57

Sales Tools

• Conferences & Trade Shows• Joining industry

associations• Buying customer lists • Company brochures• Customer specific sales info• Demonstrations

58

Direct Marketing

• Mailings• Yellow Pages• Email• Print Ads• Television

• Mailings• Yellow Pages• Email• Print Ads• Television

• Newspaper inserts

• Coupons• Flyers• Catalogs• Radio

• Newspaper inserts

• Coupons• Flyers• Catalogs• Radio

59

Internet Marketing

• Web Sites• Key word search• Sponsored Links• Ads with online

trade journals• You Tube Ads

• Web Sites• Key word search• Sponsored Links• Ads with online

trade journals• You Tube Ads

• Banner, pop-up ads

• Blogs• Yelp• Groupon• Facebook• Twitter

• Banner, pop-up ads

• Blogs• Yelp• Groupon• Facebook• Twitter

60

Web Sites

• Not a sales tool, on its own• Must drive people to it• Search engine

optimization?• Buying key words?

61

“PR”

“Free” exposure in:• Newspaper reviews• TV stories• Industry publications• Celebrity photos

62

Develop Partnerships

• New homeowners – Real estate agents

• For kids’ programs -- Schools• People with health conditions –

Doctors • Churches, libraries, nonprofits

Keep in Mind:

They will only partner with you if there is something in it for them!

63

Find Out:

• Will they partner with you? • What do they want?

A share of your Sales?

An exclusivedeal?

To do good?

Another servicefor their

customers?

64

Green Brides

“Partnering” with the Wedding Institute

• Green Bride makes online course

• Wedding Institute sells it to students

Wedding Institute getsFree contentHalf the $ from the courses

Green Bride getsExposure to wedding plannersHalf the $ from the course

Wedding Wire agreed to the partnership

It’s clear what both sides get

65

Getting Customers Strategy Hire Sales Force Visit customers, explain the benefits List in organic seafood directories Advertise with trade associations Host events, tours, tastings

66

How will you Start – and Expand?

• Start small• Prove you can do it -- then

expand

CT

67

How will you Start – and Expand?

Start in New Haven then go to Hartford?Start with one product, then add?

Sell in one store, then more?

68

What have you done so far?

• If you’ve done something – risk is lower

• Do you have a sample product?• A first customer?• A potential customer – in

writing?

69

Team (who’ve you got?)

70

Investors will Say: Keys to Success

People People People !

People People People !

More important than everything else -- combined

71

Your Team

• Who are the Yale members?• What roles will they play?• What skills, experience do they

have…• Directly relevant to your

business

72

Management Strategy

• Key management people – skills?

• Who are you missing – but will hire?

• Advisory board or board of directors?

73

Environmental Benefit

74

Final Words of Advice

• Do your homework Use data, research – talk to

customers Not just your opinions

• Try to do something – now - to risk

• Think like an investor!