How to communicate your value proposition

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0 Putting Your Best Foot Forward How to communicate your value proposition Rohit Shukla Founder & CEO, Larta Institute

Transcript of 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 Won’t 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, you’re 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 don’t 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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Don’t 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, don’t 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 entrepreneur’s 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 didn’t 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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