Transcript LEAP Presentation (dated 12 DEC 2013)
LOCAL ENTERPRISE APPLICATIONS AND PRODUCTS (LEAP) PROGRAM
Briefing to Potential LEAP Applicants 12 th December 2013, Knowledge Hub
But, is it innovative?
WHAT IS INNOVATIVE?
“Being creative is thinking up new things” “Invention shows it can be made”
“Being innovative is making it commercially valuable”
HOW TO BE INNOVATIVE?
There is no magical formula….
• • • • • • • • Think in new ways……..
Find new uses for old things…….
Analyse why something is not working…… Find solutions for consumer problems…… Identify a niche market……..
Recognise changes in consumer tastes…….
Analyse the failures of others…..
Apply new technologies in new ways…
PROBLEM SOLVING • • • • • • • Problems mean opportunities.
Many good ideas come from finding a solution to a problem.
Before writing your idea, find out if someone else had done the same or something similar?
What causes the problem?
Identify solutions, prioritise the ideal solution and start designing the idea.
Lack of support & expertise? Ask for it!
Choose your team, set up strict deadlines and take action!
LOCAL ENTERPRISE APPLICATIONS & PRODUCTS GRANT PROGRAM
Individuals/ start-ups with INNOVATIVE ideas but have insufficient funds to realize their venture
Bruneian-owned (Citizens, PR) companies Partnerships/JV companies with foreign companies can also apply (At least 50% local ownership) No of Employees less than 100
*Individuals need to form a company
IHL(Institute of Higher Learning) students and staffs
Applications to be made through the IHL WHO CAN APPLY?
WHAT ARE WE LOOKING FOR?
Strong business plan with commercial applications in private and/or public sector
Open to all industries - ICT, Bio-technology, High-growth sectors, Agriculture & Aquaculture, Engineering, Food, Environment, etc.
Locally developed or customized foreign-owned technology but must be technically viable Strong business model Clarity in goals, roles and deliverables. What problems are you addressing? What is its unique value proposition behind this technology or its application?
Outputs leading to new knowledge with commercial potential, IP generated Identify Benefits vs. Risks Competitor analysis Capitalizing on existing available resources in Brunei is an advantage
WHAT ELSE ARE WE LOOKING FOR?
Committed and qualified team
At least 10% of knowledge workers are local Have required expertise Adequate resources Development team based in Brunei
Potential end user identified (Public/Private) is an advantage
Committed client/user (Letter of Intent) Clear and identifiable target market - clear sustainability plan
Scalability/Export-potential is an advantage
WHAT ARE THE QUALIFYING COSTS?
Manpower* Hardware, software, equipment, machine IP costs Consultancy Rental on 3 rd party premises Market research (Desktop)
Up to 90% Up to 90% Up to 90% Up to 50% Up to 50% Up to 50%
*Founder allowance – capped at B$1k/ month Quantum – maximum B$150,000
ALLOWABLE EXPENSES • • • • • • • • Reasonable salary for the Project Team Raw materials, tools, equipment, computer, software.
Necessary personnel, services & technology needed to produce prototype (Example: outsourcing fees, testing) Specialised consultants & researchers for project feasibility plan purposes IP search, advisory and basic agreement drafting Product testing and certification Office/ workshop/ iCentre / lab rentals Subscription fees of market research materials
UNALLOWABLE EXPENSES • • • • • • • • Funding companies or for company formation business setup, operational cash flow expenses, founder’s salary, utilities.
General use 3rd party IT related equipment / software / accessories/ infrastructure for own company use.
Office Furniture and fittings Office/ lab/ workshop renovation works Maintenance costs for office operation – air-conditioner, computer, etc.
Shipping charges for overseas purchases Advertising, marketing costs Training fees, travelling costs
WHAT ARE THE QUALIFYING COSTS?
QUALIFYING COSTS SUBMITTED COVERAGE
Manpower* Hardware, software, etc IP costs Consultancy Rental on 3 rd party premises Market research Total Amount Submitted 50,000.00
Up to 90% Up to 90% Up to 90% Up to 50% 12,000.00
Up to 50% Up to 50% 192,000.00
Total Amount Entitled
However, Maximum Amount granted will be ENTITLEMENT AMOUNT
FINANCIAL ASSESSMENTS • • • • • Is there estimates?
integrity in cost Is there reasonableness in the financial assumptions?
Is there evidence of financial management capabilities resources?
How healthy is the applicant’s financial standing?
Have you identified ways on how to generate revenue? Do the numbers look solid/sustainable?
– Stimulate creativity and appetite for innovation.
– Technical quality of the project: we award the innovative merit in the development of a new idea, or any differentiating factor of an already existing one. Technological impact is important.
2. Commercialisation Potential:
– Present commercial opportunities, projected sustainability and growth.
– Is there a Market demand for this product? Is there potential for IP to be generated? Is there a competitive advantage/uniqueness to this product?
– Letter of Intent (if applicable) from a credible source will be highly advantageous.
– Export potential .
EVALUATION CRITERIA –
Does the company have a clear understanding of the competitive landscape within their target markets and have they drawn up a credible positioning strategy for their product in comparisons with competitors? Did the team conduct their SWOT analysis?
– How does their financial plan look like? Have they identified ways on how they generate revenue? Do the numbers look solid/sustainable?
– Coherence: adequate relationship between planning, activities of execution and results.
Appropriateness in the experience, history and background of the applicant in the market, in terms of competencies for project execution.
– Do the team also appear to understand and designed a good conceptual framework and methodoly for their business. They need to be comfortable that the team is also thinking the business feasibility in addition to the technical feasibility.
UNIQUE SELLING POINT
“In order to be irreplaceable, one must always be different.”
Make sure your product will appeal to the customer. Your product must be different to that of your rivals.
WHAT IS YOUR USP?
As such, you need to be innovative...
• Mobilization Costs HOW IS THE REIMBURSEMENT MECHANISM?
• Reimbursement Schedule
• Reimbursement Schedule
• Final Reimbursement Schedule upon completion In line with other grant schemes Funds are not to be used to settle any existing debts nor can such funds be assigned nor utilized as collateral to obtain or secure existing or future financing from other parties
• WHY LEAP?
A great idea is only really a great idea when it is turned into a business model that can consistently and repeatedly generate revenues and profits..... .
IP Generation Working Prototype Spin-Off
WHAT IS THE APPLICATION PROCESS?
Ongoing • LEAP Grant Briefing • Further meetings/ inquiries with LEAP Account Manager Open all year round • Submission of application 2 weeks 2 weeks • Pre-evaluation starts either every 6 months or every 5 good proposals received • Presentation to Evaluation Committee by shortlisted applicants 1 month+ • Recommendation to Program Committee & submission for approval to Higher Authority
HOW DO WE MONITOR YOUR PROJECTS?
HOW TO APPLY?
1. Application form is downloadable at BEDB website: www.bedb.com.bn
2. Submit 3 sets of Application form , Business Plan and necessary documents to LEAP Secretariat Still not sure? Please contact LEAP Account Manager at:
Email: [email protected]
Call: 2230111 ext. 146