Transcript 2015 How to Write a Concept Paper

How to Develop a Winning Concept
Paper
Charlie Baecker, Administrative Director
January 20, 2015
Agenda
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Welcome, Introductions and Background
What You Will Learn
Purpose of a Concept Paper
Planning Methodology and Challenges
Judging Criteria
Concept Paper Format
Suggested Approach
Q and A
My Background
• First peer-to-peer MS Windows networking solution, installed on
over 1 billion desktops worldwide.
• First 128 bit symbolic processor, the InferStar, adapted for use by
NASA as the primary CPU for the Space Station robotic arm
control system.
• First X11 server for MS Windows, X11/AT by Integrated Inference
Machines.
• First process manufacturing Man-Machine Interface (MMI) for MS
Windows, InTouch, from Wonderware Software.
• First digital PBX exchange with integrated voicemail capabilities,
the Delta 1, from Delphi Division of Exxon Enterprises.
What You Will Learn
• The basic process to be discussed:
– Provide evidence of a market
– Provide evidence of a solution
– Management team
• A fundamental ingredient is passion
Purpose of a Concept Paper
• Used in the competition to select semi-finalists through offering
evidence of a market and evidence of a solution
• It is a sales document; it is an exciting story
• It’s purpose is not to demonstrate how much you know
• Subset of full business plan for a company investment
– Provides evidence of a market
– Provides evidence of a solution
– Management team
• Concept paper describes the “point of pain” and value
proposition minus the financial projections section
• Organize your team’s thoughts, help you identify roles
Generic Planning Methodologies
Waterfall Process
Model
Spiral Process
Model
Business Concept Planning
Market Need
Product/Service
Financial Projections
Management Team
Typical Concept Paper Challenges
• Assigning roles
– “Getter, Doer, Counter” and Leader
• Collecting market data
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Talk to prospective customers!!
Size, Growth rates
Segmenting Market
Identifying Competitors
Key differentiators for competitors
Identifying market gap
Fitting product to the gap
• Maintaining internal consistency in paper
• Deciding what are key differentiators
• Appealing to both the head and the heart
Judging Guidelines
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Is there a large, growing market
Is the market opportunity compelling
Is there a clear target customer?
Is the solution realistic?
Is the business proposition well thought-out?
Can the business become a market leader?
Is there proprietary technology?
Is there team expertise?
Evidence of a
Market
Evidence
of a
Solution
Concept Paper Format
• Length – maximum of three pages plus cover page
• Cover page – company name, team member names,
school affiliations, and graduate/undergraduate status
• Due date – Feb 2, 2015, 11:59 pm via iStart.org
• www.meragebpc2015.istart.org
Concept
Paper
Approach
Basic Team Approach
1. Read Sahlman, How to Write a
Great Business Plan
2. Team discussions focusing on
the “nine questions” on page
102
3. Develop alternative business
models using the Business
Model Canvas
4. Write concept paper covering:
• Evidence of a market
• Evidence of a solution
• Management team
• The context
Market
Solution
Sahlman’s Nine Questions
1. Who is the venture’s customer?
2. How does the customer make decisions about buying this product
or service?
3. To what degree is the product or service a compelling purchase for
the customer?
4. How will the product or service be priced?
5. How will the venture reach all the identified customer segments?
6. How much does it cost (in time and resources) to acquire a
customer?
7. How much does it cost to produce and deliver the product or
service?
8. How much does it cost to support a customer?
9. How easy is it to retain a customer?
Concept Paper Components
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Overview/Introduction to grab attention
Market Need to create urgency
Product or Service to develop interest
Market Potential to substantiate claims
Competitive Advantages to validate approach
Management to provide confidence
Company Overview / Introduction
• What is your business proposition for
solving the problem?
• Who will be your customers?
Company Overview Example
Jeff Smith has a problem: for the last seven months, Jeff has attempted to
contact qualified investors interested in funding his web services startup. After
meeting over 150 contacts, he has made only 15 investment pitches and
received only 2 offers; both of which were insufficient to meet his needs. After
seven months and 150 meetings, Jeff is thinking there has to be a better way.
SeekingCapital.com is an exciting new company that offers both entrepreneurs
and investors a powerful and efficient web-based service for matching
investors with pre-IPO companies.
Market Need
• Goal: offer evidence of a market
• Magnitude of the pain: vitamin or pain killer?
• What specific aspects or changes in the market have
created the problem you are solving?
• How will your product or service take advantage of this
opportunity?
• Who are your customers and what are their attributes?
• How well defined are your potential customers and why
should they pay for your product?
Product or Service
• Goal: begin offering evidence of a solution.
• What is the problem you are solving, need you are satisfying
or pain you are addressing?
• What is the product or service?
• Examples:
– Software that enables…
– A medical diagnostic device used for…
– An automotive aftermarket accessory appealing to…
– A programmable chip for the telecom market that…
– Specialized business services targeted to…
– An innovative beverage container that…
• What are its attributes, advantages?
• What is innovative about your product or service and how
does it differ from the competition?
• Any “secret sauce” or intellectual protections
Market Potential
• What are the market characteristics?
• How big is the market – number of potential
customers and annual sales
• Growth
• Segments
• What will be your niche in the market and why?
• How will dominate your market niche?
• How will you identify customers?
• How will you reach your market?
• How will you make money?
Competitive Advantage
• Who are your competitors?
• Segments they occupy
• What are their advantages and
weaknesses/vulnerabilities?
• Why they can’t close the gap?
Management
• Maximum one paragraph
• Key members of the team – name, role,
background, education, experience
• Emphasis on previous success working
together in another company or context
Summary Advice:
1. Read Sahlman, How to Write a
Great Business Plan
2. Team discussions focusing on
the “nine questions” on page
102
3. Develop alternative business
models using the Business
Model Canvas
4. Write concept paper covering:
• Evidence of a market
• Evidence of a solution
• Management team
• The context
Tips:
• Use charts as “eye candy”
• Address only topics that are most
relevant to your company
• Be concise and to the point
($5.00/word rule)
• Highlight your strengths
Where to Get Information
Find rules and regulations at: www.merage.uci.edu/go/bpc
Charlie Baecker, Administrative Director
Don Beall Center for Innovation & Entrepreneurship
949-824-1172
[email protected]
Breanna Bremer
Beall Center Program Manager
949-690-2733
[email protected]
Q&A
Thank You and Good Luck!