Seeking Funding: Week 2
“The Art of the Start”
RGB
September 15, 2008
“The Art of the Start”
• By Guy Kawasaki
– Managing director of Garage Technology Ventures
– Previous Apple Fellow
– Previous head of Macintosh Division
• Talks of the “microscope” and “telescope” phases of
business cycles.
– Microscopes – level-headed thinking, back to basics, experts
magnify every detail.
– Telescopes – entrepreneurs bring the future closer, dream up
“the next big thing.”
RGB
September 15, 2008
So – let’s look into our telescopes
• “My goal is to help you use your knowledge,
love, and determination to create something
great without getting bogged down in
unnecessary details.”
• “My presumption is that your goal is to change
the world – not study it.”
RGB
September 15, 2008
Today . . .
• . . . think of yourself as an entrepreneur.
• What are you gonna sell?
– Your research idea.
– Your nonprofit.
– Yourself.
RGB
September 15, 2008
GIST
•
1.
2.
3.
4.
5.
Great Ideas for Starting Things
Make meaning
Make mantra
Get going
Define your business model
Weave a MAT (milestones, assumptions, and
tasks)
RGB
September 15, 2008
1 - Make Meaning
“Among the meanings of meaning:
– Make the world a better place.
– Increase the quality of life.
– Right a terrible wrong.
– Prevent the end of something good.”
• Exercise -- Complete this sentence: “If your
organization never existed, the world would be
worse off because _____________________.”
RGB
September 15, 2008
2 - Make Mantra
• “What kind of meaning do you see your
organization making”?
• “Close your eyes and think about how you will
serve your customers.”
• Kawasaki says a mantra is better than a mission
statement.
• Mission statement generator:
http://www.unitedmedia.com/comics/dilbert/g
ames/career/bin/ms.cgi
RGB
September 15, 2008
“A mantra . . .
• . . . is a sacred verbal formula repeated in prayer,
meditation, or incantation, such as an invocation
of a god, a magic spell, or a syllable or portion
of scripture containing mystical potentialities.”
• Good examples:
– Authentic athletic performance (Nike)
– Fun family entertainment (Disney)
– Rewarding everyday moments (Starbucks)
RGB
September 15, 2008
Mantras
• Don’t confuse mantras with tag lines.
• Taglines (e.g., “Just do it”) are for customers;
mantras are for employees.
• Some hypothetical examples from Kawasaki.
• Exercise: Write your organization’s mantra:
___________________.
RGB
September 15, 2008
3 – Get going
• Prototype, build a model, start offering your services, . .
.
• Key principles for getting going:
– Think big.
– Find a few soulmates.
– Polarize people – you don’t have to please EVERYONE. In
seeking funding, it’d be better to be last on ninie lists and 1st
on one list than 2nd on 10 lists.
– Design different
– Use prototypes as market research
RGB
September 15, 2008
GIST (cont’d.)
1.
2.
3.
Make meaning
Make mantra
Get going
4. Define your business model – this will be our
grant/contract application.
5. Weave a MAT (milestones, assumptions, and
tasks)
RGB
September 15, 2008
5 – Weave a MAT
•
1.
2.
3.
4.
5.
6.
7.
Milestones (Kawasaki suggests 7):
Prove your concept
Complete design specifications
Finish a prototype
Raise capital
Ship a testable version to customers
Ship a final version to customers
Achieve breakeven
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September 15, 2008
Assumptions
• Include factors such as:
– Product or service performance metrics
– Market size
– Gross margin
– ROI for the customer
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September 15, 2008
Tasks
• All major tasks – necessary to build an
organization, though not as critical as the 7
milestones:
– Acquire office space
– Find key vendors
– Set up accounting and payroll systems
– File legal documents
– Purchase insurance policies
RGB
September 15, 2008
The Internal Entrepreneur
• “Reboot your brain” handout
RGB
September 15, 2008
Positioning
• “It represents the heart and soul of a new
organization, stating clearly
– Why the founders started the organization
– Why customers should patronize it
– Why good people should work at it.”
• To his list I’d add
– Why people should invest in it.
RGB
September 15, 2008
Positioning: Seize the high ground
• Positive. It’s not a war. You don’t want to bury others.
What are the benefits of working with YOU?
• Customer-centric. Not “the leading company.”
Empowering. Why should people want to work
for/with you?
• Self-explanatory. Save money? Peace of mind?
Specific. Who’s the intended audience?
• Core.
• Relevant.
• Long-lasting.
• Differentiated.
RGB
September 15, 2008
Niche Thyself
• What specifically do you do?
• Make it personal.
– Handout from p. 38.
• Speak English.
– Read two para from p. 39.
• Apply “the opposite test”
– If you claim something, would your competition claim
something different? “High quality”? “Safe.”
– If not, then it’s not meaningful.
– Offer “concrete proof points” (handout)
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September 15, 2008
Positioning Exercise
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September 15, 2008
Positioning Exercise
• Pick your project. The one for which you wrote
a mantra.
• Write a title.
• Write a positioning statement.
– One page.
– Running prose, bullet points, whatever you choose.
– Your niche. Personal. English.
– Positive. Customer-centric. Empowering. Selfexplanatory. Core. Long-lasing. Differentiated.
RGB
September 15, 2008
The Art of Pitching
• In pitching, “get off to a fast start, explain the
relevance of what you do, stay at a high level,
listen to audience reaction, and then pitch over
and over again until you get it right.”
• Explain yourself in the first minute.
• The audience is thinking, “What does his/her
organization do”? Do ‘em a favor – answer that
question in the first minute.
RGB
September 15, 2008
Pitching (cont’d.)
• Establish what you do – make it short and
sweet:
– We sell software.
– We sell hardware.
– We teach underprivileged kids.
– We prevent child abuse.
• “Little Man” story – p. 46.
– “For instance” handout.
– “I’ve seen it done better.”
RGB
September 15, 2008
Know your audience
• “The foundation of a great pitch is the research
you do before the meeting starts.”
• “Learn what’s important to your audience.”
• Some of the information will be in the call for
proposals – there may be other research to be
done about things like what the sponsoring
agency has funded before.
RGB
September 15, 2008
10/20/30 rule
•
•
•
•
10 slides
20 minutes
30-point-font text
Handout – Investor pitch.
RGB
September 15, 2008
Final Exercise
•
•
•
•
Write your “elevator pitch.”
One minute. By the clock.
Be prepared to give it.
Ask your audience to write down one sentence
that explains what your organization does.
• Collect ‘em. Compare. How’d you do?
RGB
September 15, 2008