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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)
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Ideal Investor Characteristics
Exciting company• Unique Product / Service • Large potential market• Rapid growth prospects
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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.
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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!
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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?
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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
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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
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Use the Product Description to:
• Conduct interviews • Do surveys• Ask customers if they want your
product !
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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!