Global New Venture Challenge Karan Goel, 06 (above), presents at the NVC finals in 2005. He led his team PrepMe Corp. to first place and won the Fortune Small Business b-plan contest. Bob Rosenberg Adjunct Associate Professor and Lecturer, GSB
Global NVC Competition Feeder competition for existing NVC
Global NVC Competition Feeder competition for existing NVC Targeted to XP; teams must include at least one XP student
Global NVC Competition Feeder competition for existing NVC Targeted to XP; teams must include at least one XP student Additional members of the team can include GSB alumni and non-gsb entrepreneurs
Global NVC Competition Feeder competition for existing NVC Targeted to XP; teams must include at least one XP student Additional members of the team can include GSB alumni and non-gsb entrepreneurs All NVC eligibility rules apply. Check www.chicagonvc.com
NVC Company Profile Stage of Business Idea or an existing business that is expanding Up to $500K in outside investment and no institutional investment
NVC Company Profile Stage of Business Idea or an existing business that t is expanding Up to $500K in outside investment and no institutional investment Other Characteristics Not a lifestyle business Scalable Serves a large and growing market Attractive investment opportunity Novel
Schedule September Electives Week Suffer through h lunchtime presentations ti by Rosenberg
Schedule September Electives Week Suffer through h lunchtime presentations ti by Rosenberg Autumn Quarter By Monday of Week 2: Submit business idea and milestones to Kathleen Fitzgerald By Saturday of Week 2: Form your team Kathleen Fitzgerald available to help vet ideas, conduct session on using University s on-line database resources
Schedule Post-Autumn/Pre-Winter Develop business plan Create a 5-minute presentation of idea, key milestones to develop plan, and top-level outline of business plan Semi-finalists announced on December 11 th
Post-Autumn/Pre-Winter Schedule Develop business plan Create a 5-minute presentation of idea, key milestones to develop plan, and top-level outline of business plan Semi-finalists announced on December 11 th Winter Quarter, Week 1 (January 09) Optional: NVC Business Plan B34804; Fitzgerald and Zmijewski EXP Jan 19 and Feb 23; AXP Jan 5 and Feb 9 First two days of classes: Present business idea, key milestones Attend required lectures, research and develop business idea, begin to complete key milestones, begin writing business plan End of week: Present business idea, milestones, and plan outline Class participants, Kathleen Fitzgerald, Mark Zmijewski and others will provide feedback
Schedule Between Class Weeks (Winter Quarter) Complete research and initial iti draft of business plan Winter Quarter, Week 2 First two days of class: Present initial draft of plan During week: Attend required lectures, revise plan, prepare final presentation End of week: Present business plan to panel of experts (as well as other participants in NVC process) for evaluation
Spring Quarter Schedule Top-ranking teams will be invited to participate in Chicago-based NVC class Top-ranking teams will be offered mentorship, other support, opty to revise and re-submit plans with other NVC teams Those selected by GSB faculty and NVC judges will be invited to participate in NVC finals
1. Business Description What is the problem that you solve? Where is the pain? How many share this pain?
1. Business Description What is the problem that you solve? Where is the pain? How many share this pain? How does your business solve this problem? Concept? Product? Service? Software? Other? Be succinct. Use an analogy, example What makes your solution novel? Do you have proprietary technology? If not, why do you win?
2. The Market Who feels the pain? What is your target market? How will it grow over time? Describe demographic and psychographic p characteristics
2. The Market Who feels the pain? What is your target market? How will it grow over time? Describe demographic and psychographic characteristics How big is the addressable market? Top down numbers (next slide) Bottom up numbers identify a finite group of customers and their anticipated spend Do not say: It is a huge market and we only need x% to be successful
Addressable Market for Art Canvas $ 2.8 Billion art supply industry Paint Brushes Frames Surfaces: 21% or $558 Million 75% market is 25% Prof price sensitive artists or $147Million
2. The Market (con t) Will people buy your product/service? Have you surveyed your target customer? What type of proof can you provide? Conduct a limited on-line survey or interview potential customers Find a beta customer Validate, validate, validate
3. Competition Who is your competition? No matter the ideal you have competition Direct competitors, substitutes, copycats, current behavior What is your competitive advantage? What benefits do you offer that are unique or better than your competition? What are your barriers to entry? First-mover advantage is rarely sustainable
4. Business Model How will you generate revenue and profit? How soon? What channels will you use to sell the product? -- Dedicated force, reps, VARs, DTC, other How long is the estimated sales cycle? How does your price compare to the competition? If you are not yet in the market, what is your timeline? What milestones might need to be achieved before you get to market? -- beta testing, POC, prototyping, regulatory approvals
Existing management 5. Management Team Attach resumes (not part of 6 page maximum) Highlight relevant experience and current responsibilities Advisory Board Same as above and how active are they with the venture Gaps in Management Not expected that t an early stage business will have a complete management team Identify the gaps in management
6. Current Status Stage of development Revenue to date (if applicable) Funding to date
Next Steps 1. Vet your idea Talk to industry experts and obtain feedback and referrals Talk to investors (angels, bankers, VCs, etc) We can help you find and reach them 2. Build your team 3. Conduct initial market research
Questions? www.chicagonvc.com rose@uchicago.edu Linda.darragh@chicagogsb.edu d hi d