Posts Tagged audience
Address the Executive Summary to the Audience: The Investor
In this series of installments I am discussing the executive summary and how to make it stand out. The executive summary should present the compelling reason for the investor to buy into the company.
The primary audience of the executive summary is the potential investors. Their primary concern is what do you want, and how do I benefit?
First consider how you address the question: “What do you want?” Essentially, you want money from the investors. More importantly, they want to know how much, when, and how does this money IN translate into money OUT. This can be broken down into several key issues:
- How much money will you need from the investor?
- Over what time period will you use this money?
- How many months from the time you get this money, or part of this money, until you start making money?
- When do you expect to start making money?
- What are the total revenues in the first year, first three years, and expected lifetime (and how long)? If you are using NPV calculations, what is your cost of capital?
- Where is this revenue coming from?
- What other revenue sources could there be, that you are not including in the dollar value?
Although you can also get guidance, key barriers dropped, potential customers, key members of management, and myriad of other things. What makes an investor the investor is their infusion of money.
Using Social sites to generate awareness for your company
Posted by Steve in Customers, For Job Seekers, Plan on April 30, 2009
More people are finding the numerous social networks online a valuable tool in generating awareness. They are very low cost and can have a high impact…if they get the following they want.
MySpace was one of the first social networks to hit it HUGE. Started a few years ago, it stays small until over a period of three months it explodes in users. Finally, the owners sell to NewsCorp for a lot of money and enjoy their windfall. MySpace remains one of the most popular social networks. Its primary demographic is the teenager, and person involved with/interested in entertainment.
Facebook is rapidly becoming more popular in the mainstream. Instead of just teenagers, the mainstream adult population is embracing it. Why? It looks more “average” so appeals to the average person.
Twitter just recently exploded with users. Instead of having a space, it provides a real-time channel directly between people. Limited to 140 characters you have to be concise. The problem with this, is that any busy entrepreneur, investor, (or anyone else for that matter) really does not have time to engage in a Twitter. Makes me wonder what all that wasted time could be turned to… but I digress.
How can you take advantage of social sites? When looking at how you use a social network, consider the stakeholders: the company (and the entrepreneurs), customers, stockholders, investors, and people affected by the customer’s use of the products/services. We should also include the potentials of each of those categories and those the “affected” people are usually the customers of the customers. Remember, why does a company buy your stuff? The answer is to make more money selling their stuff to someone (maybe you!).
Who is your primary audience, and what would they like to see, do, or say? Answer this question, and you will figure out how to use it. One technique to use is Voice of Customer, VOC. More on that in a later post.
I found a link to an article written Nov 27, 2006 by Eileen Cruz Coleman on techsoup.
http://www.techsoup.org/learningcenter/internet/archives/page9173.cfm
The article talks about how certain non-profits take advantage of MySpace. To summarize:
- Raise awareness about their cause, product, or service.
- Keep people informed on the current status of their company or activities.
- Engage an audience and create a two-way dialogue with their stakeholders.
- Offer tools that enable a stakeholder to participate online and offline.
- Direct people to their own website and to take action, becoming “customers”, “users” and overall lending more credibility to the company’s program.
The two biggest concerns were time (resources) and monitoring content to keep it on message. They welcome dissent and discussion of differences of opinions, but have to be watchful to stop flamers (people that start arguments for no purpose other than to gain attention) and inappropriate material (not just off-topic but truly inappropriate for that audience).
Their recommendations center around marketing your site, making regular updates and involving the audience:
- Ask people to take action by subscribing, creating links, etc.
- After writing entries, invite people to comment. Market your site via word of mouth and other media. Write articles, give lectures/presentations, and get people to go to your site.
- Add other media like images and video to make the space more interesting.
- Keep it current.
- Match the look and feel to that of your brand.
- Reach out to other companies and people. Make alliances to spread your word.
- Add your URL to all your collateral (web sites, business cards, email signature, etc.)
Bottom line, it is a product you are creating around yourself or your company. Choose a social site that fits your target, your brand, and that you can make a commitment. Then market it. If you are a job seeker, do the same thing. Treat yourself like a product and market it.
How can studying about investors and entrepreneurs be used?
Posted by Steve in Execution, Introduction, Pitch, Plan on April 13, 2009
Part 3 of 3.
Two weeks ago (Monday March 30, 2009), Bart Kemper asked how he could use this blog if he was not seeking investments or investors. Then and last week I pointed out:
1. I strive to provide information that in the right setting can open up more opportunities leading to more clients.
2. The information can be used to prepare the company for a merger, acquisition, sales, or other type of owner exit. All these elements make the company better and look better.
The third and final point is even simpler.
Just because you are not looking for investors does not mean you should forget about a business plan, or not have a good pitch, or not have a good strategy.
The idea is not to make the company just look better. It point is make the company actually be better, and to be able to effectively communicate that to outsiders. The 14 points are there to provide a guideline on the real qualities of a business that makes the business successful.
Each of these 14 points is not just useful for getting investors, but they are useful for growing the company. I will be writing not just about the high level stuff but also the low level details. How do you write a business plan? How do you write an executive summary? What are good interview questions?
For example, how could you use a well designed elevator pitch?
- Get investors.
- Get clients.
- Get a job.
Everyone at some point has been in a room where the audience is asked to each stand up and say something themselves. Most people are unprepared and give a rambling 20 seconds. There is nothing like standing up in this crowded environment and delivering a very clear, concise, and punchy elevator pitch. People will remember you. It will open up doors.
Exit Plan for this Blog
Practice what we believe.
Years ago, in business school, I participated in the mentor program. A local business person would meet with the student and talk about whatever was on their mind. The idea was that the student would learn from the experience about running a business.
I met Cliff Marquart in the meet-and-greet. I asked him what he did: I buy companies, turn them around, and sell them for a profit. Very succinct (and as we will see later in Pitch, a very good Pitch). I said that I wanted to learn that.
Cliff and I only met a couple of times. In our first meeting, I reiterated his statement; and that I wanted to learn how he did that. His reply, I will never forget: Before you buy, before you get involved and devote your life to it, determine your exit plan. You must have an exit plan.
I do have an exit plan for this blog.
1. Produce material for a book. Publishing a book might mean I keep this blog and address more questions; however, when the book gets published will be the decision time on what to do next with this blog. FYI, I am seeking stories from you, the audience, on how you met some of the elements or did not meet them. We can change the names if you like.
2. Discover the next part of my career. By providing information and serving investors and entrepreneurs I hope to increase my understanding and gain some wisdom. Through continuous growth, I hope we open new doors, to realize the maximum of our potential. When I discover that next phase, l will decide what to do next with this blog.
Have an exit plan. The exit plan for this blog is a book and/or the next phase of a career.