Ramada Hotel Digital Circle 19.08.09 V2

All-island Seedcorn Business Competition 2009

Ramada Hotel, Belfast, 19 August 2009

Gráinne Lennon, InterTradeIreland

www.seedcorncompetition.com


Agenda• Previous winners & finalists

• Why enter?

• Eligibility & selection criteria

• Which Region & Category?

• Prize money split

• The road map

• The business plan

• Common mistakes


So is the competition all about the money?

€360,000!


“The competition attempts to re-createthe investment process and stimulate

investment activity….we need your business plan”


2008 Overall Emerging International Company winnersMcor Technologies


2008 Overall Emerging Company winnersMedia Light Box


Sectors – 2008 regional finalists

Region International EmergingDublin Medical Devices ICT

Dublin Energy & Technology ICT

Dublin Consumables Online Florist

C&L Manufacturing and Industrial ICT

C&L Food ICT

C&L Entertainment Medical Devices

NI Software Digital media & Web 2.0

NI ICT Manufacturing & Industrial

NI Food Digital media & Web 2.0

Munster Medical Devices Digital media & Web 2.0

Munster Software Digital Media & Web 2.0

Munster Energy Software


2008 Business Plans - International/High Growth

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5

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Connacht & LeinsterDublinMunsterNI


2008 Business Plans - Emerging

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5

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Connacht & LeinsterDublinMunsterNI


Why enter?

• Improve your cash flow !

• Validate your business plan

• Improve your ‘investor readiness’ (master classes)

• Make contacts, gain exposure to investors, alumni association

• Leverage the prize/opportunity to raise new equity

• PR/increased profile/video clip

• Feedback available on business plan


Eligibility• Have you raised < €1million in equity?• Is your company incorporated?• Have you a new equity requirement in excess of:

•At least €500k – High Growth Category•At least €100k – Emerging Category

Selection Criteria• Select region• Select category

•High Growth Company – Previously ‘Emerging International’•Emerging Company

• Select university spin-out or platform programme


Which region?• Northern Ireland• Dublin (city & county)• Munster• Connacht & Leinster

Which Category?• High Growth Company Category

-Less than 5 years old at 25 September 2009-Sales targets in excess of €5m*

• Emerging Company Category - Less than 3 years old at 25 September 2009 - Sales targets less than €5m*

* Please note that criteria has changed


New Prize fund - €360,000!

Best High Growth Company €100,000

Best Emerging Company €100,000

6 Regional prizes (3 in each category) €25,000 each

€150,000

Best University spin-out or platform programme €10,000

Total prize fund €360,000


Roadmap No. of Companies

26 November – Overall final

16/17 November – Master Classes

Mid November – regional finals

End October – top plans selected

Submit business plan by 1pm 25 September

Register for competition

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In the Investor’s Mind

Is this the right team?What’s the entrepreneur’s motivation?Is this a billion dollar opportunity?Is it a game changer?How competitive is the space?How defensible is the product?How much is this thing going to take?How long to maximise value and exit?


Business Plan objectives

Plan Objective: Convince a potential investor that the business is a worthwhile investment

Plan must:• Attract the investor's interest• Emphasise the strengths of the business and its position in the market, especially compared with competition• Convince the investor that management has the

expertise and commitment to realise the potential • Recognise the risks• Project the development of the business (milestones)• Demonstrate exit opportunity


The Business Cube

- can be applied to any stage of a company’s development

Marketing Plan

Management Team

Market Opportunity

Industry&

Competition

FundingKey

Risks

Operations & Legal

Product/ Service

Proposition

FinancialPlan


Business Plan structureRegardless of stage of evolution, all key components should be

addressed in a business plan

1. Executive Summary 9. Key risks2. Business Overview 10. Financial plan3. Market Opportunity 11. Funding4. Industry & Competition 12. Exit strategy5. Product Proposition 13. Summary6. Marketing Plan 14. Appendices7. Management Team8. Operations

Tailor the content to your business and sector


Executive Summary

• Most important part of the plan

Objectives:• Convey the main points of the investment proposal to

the potential investor• Attract his attention and encourage him/her to read on• Answer the potential investor's basic questions• Typically 2-3 pages in length (maximum 4-5 pages) • Must have verve, punch and passion • Stick to the hard facts

Marketing Plan

Management Team

Market Opportunity

Industry&

Competition

FundingKey

Risks

Operations & Legal

Product/ Service

Proposition

FinancialPlan

Market Opportunity

Who are the potential customers we are going to sell to?

What defines customer segments?

What needs does the idea satisfy?

How do customers currently satisfy this need?

How many customers are in this market?

What is the projected growth in this market?

What is the proposition for customers?

Why is this approach innovative and compelling?

What are the implications to the customers of buying from us?

What do we need to do to confirm the size of this market?

How fragmented is this market ?

KEY QUESTIONS

Marketing Plan

Management Team

Market Opportunity

Industry&

Competition

FundingKey

Risks

Operations & Legal

Product/ Service

Proposition

FinancialPlan

Industry &

Competition

Which competitors are there in this market?

What are your competitors market share and finance?

Their strengths and weaknesses?

Who else is working on these solutions?

Why is your approach better than our competitors?

What is your source of competitor advantage e.g. IP?

Are distribution channels are available?

How long can we stay ahead of the competition?

How are competitors likely to respond?

What will they do to prices?

How much room is there in this market for competitors?

What barriers will you face or can you create?

KEY QUESTIONS

Marketing Plan

Management Team

Market Opportunity

Industry&

Competition

FundingKey

Risks

Operations & Legal

Product/ Service

Proposition

FinancialPlan

Product/ Service

Proposition

Why is this the right proposition?

How is it different from existing products/services?

Will it become obsolete and how it may change?

Why is now the right time?

Why is it unique and what is the USP?

Is the business protected to have a ‘virtual monopoly’?

What stage is the product in development e.g. trails?

What regulatory and technology proving is needed?

How will this solution take advantage of existing

distribution channels?

KEY QUESTIONS

Marketing Plan

Management Team

Market Opportunity

Industry&

Competition

FundingKey

Risks

Operations & Legal

Product/ Service

Proposition

FinancialPlan

How will you win the initial customers, pilots and sales?

What is the business model e.g. B2C, B2B etc

Which distribution channels will you use?

Promotional strategy that will be used?

Who will be the key customers?

What is the approach to distribution and channels?

What is your pricing and discount approach?

How will you structure the sales team and process?

Which markets could you address first to gain revenue?

What is the current sales and order book?

KEY QUESTIONS

Marketing Plan&

Route to Market

Marketing Plan

Management Team

Market Opportunity

Industry&

Competition

FundingKey

Risks

Operations & Legal

Product/ Service

Proposition

FinancialPlan

Management Team and Partners

Is this the right executive and board team to deliver the

venture?

Can you show the experience and achievements to deliver

the new business?

How is the team motivated and working together?

Does the team have the energy to make this venture

happen?

Can you outline the skill gaps and how they will be filled?

Have the stakeholders been identified?

What capabilities are required from partners?

Have we identified the right partners?

Key Questions

Marketing Plan

Management Team

Market Opportunity

Industry&

Competition

FundingKey

Risks

Operations & Legal

Product/ Service

Proposition

FinancialPlan

Operations &Legal

Is the venture proposition based on proven technology?

Will the proposed technology work?

Is the technology and / or process protected by patents?

Is there a reliable source of materials and critical inputs

e.g. raw materials and skilled staff?

Can you effectively produce and deliver the product or

service?

Can we maintain/repair and/or support the new business?

Is the business liable to any litigation risks on use of

technology or operational issues?

KEYQUESTIONS

Marketing Plan

Management Team

Market Opportunity

Industry&

Competition

FundingKey

Risks

Operations & Legal

Product/ Service

Proposition

FinancialPlan

Are key risks understood?

Has the risk of market adoption been recognised?

What is the competitor reaction?

Delay effect of getting regulatory approval?

Are key market risks for this venture acceptable?

Are the key technical risks for this venture acceptable?

What constraints must be challenged to launch this

venture?

Are the risks and constraints reflected in the financial

models?

Key risks & Constraints

KEYQUESTIONS

Marketing Plan

Management Team

Market Opportunity

Industry&

Competition

FundingKey

Risks

Operations & Legal

Product/ Service

Proposition

FinancialPlan

Financial Plan

What is the financial history?

Have the financial models used a range of assumptions?

Are the revenues significant and are drivers understood?

What are the one-off and ongoing operating costs?

What are the one-off and ongoing capex costs?

What are the key P&L numbers?

What percentage of available funds will this require?

Are pricing and margin projections realistic?

What are the cash and finance projections?

KEY QUESTIONS

Marketing Plan

Management Team

Market Opportunity

Industry&

Competition

FundingKey

Risks

Operations & Legal

Product/ Service

Proposition

FinancialPlan

Funding&

Exit

What is the requirement and approach to funding?Are the funds being looked for sufficient? Equity investment and loans that are currently utilised?

Sources and approach to funding rounds over three

years?

What commitment is being made by management time to

funding?

What are the milestones and potential phasing of the

release of funds?

Who are the advisors to gain more information or make an

offer?

What is the potential exit route e.g. trade sale, IPO?

KEYQUESTIONS


Financial Schedules* should include:

Detailed financial history covering 3 to 5 yearsDetailed financial projections for the next 3 years, phased monthlyfor at least the first yearMonthly cash flow projections up to maximum requirementPrincipal assumptions underpinning the projections (e.g. pricing,market share, product launch dates, capital expenditure, utilisationof capacity, interest rates, exchange rates, collection of debtors and payment of suppliers)

*P&L / Balance Sheets / Cash flow Statements


•


Business Plan mistakes• Use the ‘old’ nuggets e.g. ‘we have no competition’, ‘we will

achieve 5% of the global market’

• Restrict your market (export sales are usually required)

• Too long (aim for 25 pages max, 40 pages incl. appendices)

• Forget how to spell, present clearly, address it for the reader

• Exhaustive detail, too much jargon…focus on the key areas of interest to the investor e.g. the market; the product; the distribution channels; the management team

• Lack realism, especially in financials and valuations

• Funding requirements and proposals not clear in the plan


Give your business lift off by entering the Seedcorn Competition!


Thank you

Any Questions?

http://www.seedcorncompetition.com/

Date post:	14-Jan-2015
Category:	Investor Relations
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Ramada Hotel Digital Circle 19.08.09 V2

Investor Relations