How to communicate your value proposition

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    Putting Your Best Foot Forward How to communicate your value proposition

    Rohit ShuklaFounder & CEO, Larta Institute

  • What We Wont Cover*Your specific work plan or roadmap

    But, you need a clear, concise, short- and long-term planPlease work closely with your PA and LM to develop this

    The specifics of YOUR challenge The competitive landscape in YOUR sub-sector

    Where YOUR investment is likely to come fromAs we have discussed, there are many more funding sources available today

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    * These may be discussed in the one-on-one mentoring

  • What We Will CoverThe business landscape as it affects emerging companies

    IT/Web/Software, Design, Materials, etc.How to read the market, what signals do you send?

    Before approval, pre-revenue, and post-revenuePreparing yourself for success

    Design Thinking: an integrated viewDeveloping and communicating your value proposition

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  • Key Principles What global issue / trend are you addressing?

    A time of peril and promise

    Minimize the technological

    Science only gets you in the door baseline credibility

    Focus on the solution, not on the details of your

    technology (cost / performance)

    Does you know what needs exist?

    If not, will you be able to discuss these without a

    conversation about a transaction?

    WHY do you think YOU can do this? (team, history etc.)

    WHEN are you likely to achieve milestones?

    Establish achievable targets while showing how these targets will help the vision for your internal team!

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  • The realities of life

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  • The Business Landscape

    Nothing is as it seems: unpredictable is here to stay

    Skepticism around new inventions, pressure around

    execution

    Hunger for innovations that improve the human condition

    Appetite for risk is diminishing

    Shifts burden of proof to smaller company, but willingness to

    engage externally is higher than ever before

    For innovators:

    Science gets you in the door but not much farther

    Start-ups: realism is key

    More advanced companies: credibility based on past

    performance

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  • In general

    Credibility is built over time: commit to simple, achievable targets Show that you want to crawl before you walk, and walk

    before you run (if you exceed this in reality, youre a superstar!)

    Offer a vision, not hype; show commitment, not expectation Instead of saying We expect say, We are committed to a

    goal of

    Then show HOW you plan on doing so

    Make it realistic, and dont use terms like we estimate very conservatively

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  • Keep Your Integrity Intact

    Lower barriers to entry means confusing claims

    Make clear distinctions between you and what exists: focus on solutions, not on technology (cost/performance)

    Establish a vision and communicate the objective and the pain

    Keep expectations low the vision is where you want the focus to be

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  • Building the Value Proposition

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  • It Start with the Vision

    Where is the pain? (the big problem)

    What is the objective? (the big picture)

    What are the current solutions? (the state of the art)

    What makes your solution special? (the big answer)

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  • And It Includes YOU

    Why YOU? (the entrepreneur's story)

    Why did you start to do this?

    What motivated you, your passion, intellectual curiosity, sheer

    opportunism, happenstance, etc.?

    What do you want to achieve (personal, professional, etc.)?

    Where are you heading? (Growth and excitement)

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  • Value Proposition

    What is the Market Pain or Problem?

    (Problem /Opportunity)

    How does your product address the Market Pain?

    (characteristics, features / benefits)

    What is different about your product?

    (vs. the Competition)

    Why would a customer buy from you?

    (Differentiation / competitive advantage)

    Integration with what they currently do (Ease of adoption)

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    The Heart & Soul

  • Expressing the Value(Who and what we do)

    Catwalk is a social network-based solution focused on fashion advice to millennials. It is designed as a bi-directional channel, and is integrated in a mobile app that helps users get instant fashion advice and style inspiration in a "safe haven" environment. We target a generation that has diverse tastes, multiple choices, and little time.

    (Where we are in the development process)

    We launched our proof-of-concept in September 2014 and our IOS app in March 2015. We have seen user engagement go from 0 to 100 users and a few thousand actions in the app.

    We seek to capitalize on our success, finalize our revenue model and validate user acquisition strategies.

    (Where are we going, what do we want)

    We seek to capitalize on user stickiness and feedback gained from their experience to finalize our revenue model and validate user acquisition strategies.

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  • Dont Ignore Your Competition

    Who are your competitors (now and potential)?

    Be specific

    Be generous (Direct & Indirect)

    Remember the addressable market and the served market

    share (TAM & SAM)

    Will your intellectual property help you attain market

    share? (Better, more targeted, more attuned to

    customers)

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  • Tout the Management Team

    Attention follows people (Bet on the jockey, not the

    horse)

    Who are you working with?

    Establish their credentials and experience

    What are the roles of key team members

    Who are you talking to/consulting with (Advisory Board,

    research collaborators, investors, etc.)

    Focus on how this team will execute

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  • Business Model

    Considerations for every company (in developing

    your value proposition):

    Who are your customers and why will they pay for your

    product?

    What is your strategy? (How will you get to them?)

    What is the revenue model? (How will you make money?)

    Make a credible presentation of your addressable

    market

    Revenue, cash flow, profitability

    How do you plan to grow your company?

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  • Present Your Financials

    Present your financials briefly and simply

    Use graphics as much as possible

    Make them CREDIBLE!!!

    Know that detailed pro formas WILL follow in

    detailed meeting

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  • Step 1: Do Your Research

    How do you intend to enter/address/conquer the

    market? Understand the target!

    Strategic Partner to do what?

    Marketing, distributing, manufacturing?

    What is their pattern of collaboration or partnership?

    Why would they be interested?

    Licensing, collaborative research, buy product, acquire

    your company

    Investor sweet spot, track record, alignment on

    fundamentals

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  • Step 2: Seek to Build a Brand

    Brands build trust, loyalty, attention

    Stand for something tangible, an expression of identity

    Stand out in the crowd

    Become the visible expert (blogs, Web, news, etc.)

    Develop consistency: graphics, color schemes, collateral,

    typestyles, fonts

    Remember everything you do should be done to represent

    and enhance the brand

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  • Step 3: Communicating the Go To Market Strategy What is your plan to market, sell and service?

    Strategic partner?

    Global prospects?

    Business Model: How is the enterprise sustainable?

    When will rollout begin, what is the schedule?

    Projects: Revenue, margins

    Management & Board: remember the jockeys!

    Summary: Crisp end to a beautiful story!

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  • Step 4: Master the Art of Presenting Presentation = Performance

    Ensure that the message is concise and progressive

    (forward motion)

    Tell a story (remember: hearts and minds)

    Act, dont react. Move with purpose

    Maintain eye contact practice doing this

    Breathe; Change pace (pitch, volume, speed)

    Goal: Make people want to know more about your

    company/technology

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  • Putting Your Best Foot Forward It is a world of Internet Attention Deficit Disorder (IADD):

    Be memorable

    Bring out your passion (the entrepreneurs story is always

    welcome)

    Get attention, and keep it

    Create an identity derived from the vision

    Presentations master PowerPoint

    Know your customer, and focus on their needs, cost and value

    issues

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  • Thought for Today And Always

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    Twenty years from now, you will be more

    disappointed by the things that you didnt do than by

    the things that you did do. So, throw off the

    bowlines. Sail away from the safe harbor. Catch the

    trade winds in your sails. Explore. Dream. Discover.

    - Mark Twain

  • Thank you!

    Questions?

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