Got a great idea,.. good. Now the work begins to turn it into a business! This is the workshop we run for aspiring entrepreneurs seeking to commercialise their idea!

1. Pitching Workshop
Presenter: Peter Christo

2. OVERVIEW - Evaluation

3. How does an idea become a
business?
Growth
Startup
Opportunity
Risk
Screen
Idea

4. Three things need to come
together!
?
$ !

5. A Metaphor
 It’s a journey not unlike driving from
Melbourne to Perth at night in the fog
without a GPS or Map. We know
where west is that’s about it. Each
wind in the road appears
unexpectedly, the fog lifts occasionally
then comes down thick as pea soup
and you wonder whether it would be
better to stop and go back. If you keep
going you will get there, but Perth may
have changed in the process!

6. A framework to manage venture
RISK!
EVALUATION EXECUTION EXIT
Register Design Review
Qualify Build Learn
Commit Deploy Archive

7. Idea v Opportunity
 Ideas are not necessarily opportunities
 Opportunities may not be commercial
 Commercial opportunities are relative
to the idea owner (Opportunity Cost)
◦ Skills
◦ Passion
◦ Stage of life
◦ Net worth
◦ Risk tolerance/appetite

8. Key elements of a commercial
idea!
 Taps into demand that is quantified
and understood (what is that?)
 Includes a clear value proposition
(what is that?)
 Has a business model that results in
value being created for the business
($$)
 It is protectable
 Can deliver value to the
investors/shareholders

9. Screening
 “A series of questions that determine
risk and reward!”
 What questions would you ask?
◦ What is the problem/opportunity?
◦ How does this product provide a solution?
◦ What makes this business & team right for
this opportunity?
◦ What will it take to launch it? & is there a
return?

10. Screening categories
 Industry & Market
 Market Structure
 Economics
 Harvest Issues
 Competitive Advantage
 Management Team
 Personal Criteria
 Strategic Differentiation
 Fatal Flaw?

11. A technique

12. A
Let’s go Fishing Technique
Capture Produce Distribute Demand Driver
Subject
Range W/Sale
matter xpt
Timely Equipt Retail
Price OH&S Mktg/Brand
Demographics
Quality Knowledge Service

13. Economics
 A clear demand driver
 A way to drive demands
 A way to deliver quantifiable value
 A sales model
 A margin
 A known break even point

14. Valuations
 The idea
 The opportunity
 The Startup
◦ No revenues
◦ revenue, no B/E
◦ B/E + Full costed
◦ Profit Trajectory
 Going & Growing Concern
 Established Business few growth
prospects

15. PITCHING YOUR IDEA!

16. Concepts around pitching
 Purpose of the Pitch
 Use of aids
 Context
◦ In the lift/BBQ
◦ Informal business
◦ Formal but brief
◦ Full presentation
 Reading from notes
 An idea v’s an opportunity

17. Key Criteria before you can
PITCH
 The problem/opportunity
 Industry and market.
 Economics (Business model)
 Harvesting (can you sell the
business?)
 Competitive Advantage (protect
yourself)
 Who is with you? The Team.
 Any fatal flaws?

18. Audience
 Unsophisticated investors
 Sophisticated Investor/s
 Business Angel/s
 Committees (Govt)
 Venture Capitalists
 Suppliers
 Customers
 Business Partners
 Other stakeholders

19. Objectives
 Getting a meeting
 Getting the second meeting with the
decision makers
 Qualifying that who you are pitching to
is the right target
 Forcing you to be clear and
commercial in your presentation
 Closing the deal and getting the
outcome you want.

20. EXAMPLE of a pitch

21. Dummy Pitch
 You are a seasoned software engineer. You
have come up with a way to quadruple the
efficiency of any solar panel via software and
so supply all the average homes power,
including power up the electric car every
night. You have done your numbers and
believe that an investment of $5Million would
allow you to kick off and is the best way
forward for you from a power of energy
company. On your way to a friends office for
a lunch meeting, James Packer enters the
elevator you are in. You are on the ground
floor, and he is heading to the 22nd. You get
off on the 23rd. You have your business plan
in your bag!

22. Review your own pitches
 Does it cover the key criteria?
 Is it succinct?
 Does it include unnecessary
information?
 Can you cover the key points fast
(elevator pitch)
 Do you have the extended version?
 Other factors?
◦ How you dress
◦ How you communicate verbally
◦ You confident you are

23. Screen your opportunity
 Use a template or tool
 What are the key areas that need
work
 CHECK
◦ Business Model Economics
◦ Demand Drivers
◦ The management team
◦ Validation of assumptions
◦ Actions forward

24. Key things to remember
 What are you pitching for?
◦ Time
◦ Money
◦ Knowledge?
◦ Relationships?
 Is your evaluation rational/sensible
◦ Get a 2nd opinion
◦ Get a 3rd opinion
◦ Keep it simple

25. Screen Tool

26. Questions?
Clarifications?
Challenges?