International University of Management

International university of Management

Business information system

Entrepreneurial Studies & Leadership (bis)

Assignment 2

Ndumba Jonas Student no: 11023880

Facilitator: MR. Due date: 28 Feb 2013

Table of contents

1. Introduction

2. Identifying the problems of Bardow's presentation

3.

4. Conclusion

Identifying the possible problems with Dick Bardow's presentation:

o Dick Bardow is passionate about his field and the uniqueness of his product. As it says in the above article, he has earned quite a reputation among his fellow enthusiasts and colleagues from his ability to explain complex ideas.

o However, when it comes to a business presentation to venture capitalists who are primarily concerned with the Return on Investment, the emphasis needs to be placed on the information relevant to the monetizing side of the product.

o His experience presenting to those who are of similar technical backgrounds would not have aided him here as based on the information provided, he spent the majority of the time discussing the complexity of the product itself.

o More attention should have been paid to the buyer demographic, scope for profitability, and other monetary aspects of bringing the product to market.

Should potential lenders and investors evaluate new ventures that are based on cutting edge technology differently from other business ventures? Explain.

Yes, they should evaluate those new ventures differently than those products which present no significant advances to products that already exist on the market. However, this is not to say they should ignore the underlying fundamentals with respect to returns and profitability. Many products are revolutionary and for one reason or another are either ahead of their time with respect to market potential or simply too costly to package and make available to potential buyers.Medical products especially, as was presented by Mr. Bardow, may present significant challenges to entry into the market as they are often littered with health and safety concerns for which there are numerous bodies responsible for overseeing their use. The Food & Drug Administration (FDA), one such renown organization in the United States, is often linked with ordering companies to become compliant by having their products thoroughly tested in controlled laboratory environments with increasingly larger test samples. These tests generally migrate from testing those products on animals that have similar characteristics to humans in order to render more predictable results while minimizing the potential for exposing human test subjects to adverse reactions. When this is coupled with the use of new technologies, more stringent testing would need to be conducted which might incur m.

1. IDENTIFY THE PROBLEM OR CUSTOMER PAIN POINT:

* Clearly define the PAIN that your product/service is addressing in

such a way that the audience READILY identifies with the PAIN.

* Make sure that you present convincing outside data that confirms that

the problem/pain is huge and specifically what attempts have been

made by others in eliminating the PAIN. If others are trying to solve

the problem, that may support your position that there IS a problem.

* Nice-to-haves or products/services that are easily replicated or

problems/pain that can be eliminated by a broad range of

products/services are less attractive from the point of view of the

angel investor.

2. IDENTIFY THE MARKET SIZE AND GROWTH:

* Size the potential specific market clearly relative to the identified

problem/pain and use specific outside validation and data.

* Make sure that you clearly define who is the buyer(s). They will be on

the list of people who we would call during due diligence.

* Be very clear about competitors and potential competitors. Be specific.

Know your landscape well. Don't let the audience catch you with a

competitor that you don't know about. "No competition", while heard

often, is not realistic. Focus on the verticals.

* Is there an opportunity for FAST growth and adoption within the

market?

* Is there an opportunity to "own" a large part of the particular market

and is the market growing?

3. DESCRIBE SPECIFICALLY THE BUSINESS, WHAT THE COMPANY

DOES AND WHAT THE PRODUCTS/SERVICES ARE:

* Specifically how does your product/service actually solve the problem

(eliminate the pain) in the most efficient, cost effective and faster

manner than anyone else.

* The audience does not include 100% technical or subject matter

experts. The CEO/FOUNDER's presentation and materials must

clearly translate from technology or science to the business value

proposition.