Bridge into

Plugg CONNECTS entrepreneurs, investors and experts to turn GAME-CHANGING IDEAS into THRIVING ENTERPRISES. To create real, POSITIVE CHANGE in the world for future generations.

Who is plugg?

We work with change makers enabling them to turn the key and kick start the journey of creating a thriving enterprise…

How do you take a really good idea and turn it into a thriving enterprise with a world wide market?

?

The single essential aspect that most business owners don’t know about transforming a good idea into a thriving enterprise is that people who have successfully funded their idea, innovation or start up know…

….you need to

Introduction

Effectively – Powerfully - Efficiently -

Introduction

Effectively – Powerfully - Efficiently

COMMUNICATE

Team – Investors - You

Introduction


COMMUNICATE

Team – Investors - Stakeholder

Introduction


COMMUNICATE

Team – Investors - You

REWARD or OUTCOME

Introduction

Introduction

Many business builders and start-ups seldom go for the outcome (the reward for team and investors) which makes it more difficult for the idea to take off.

That is unfortunate because a lot more good ideas would happen if only more entrepreneurs knew ....

achieve this

adopting this

exit strategy (start with end

in mind)+tive global

impact

Idea

Identifying window of

opportunity

attracting stakeholders to

your idea

using a framework Definitive

4 foundation framework

getting from an idea to a thriving enterprise is a journey.....

sharing this

bring a compass understand and take heed of the road rules

navigate the pot holes and road blocks build vital infrastructure (a framework) to get you to your destination

For this journey of creating an idea to a thriving enterprise we suggest one needs to:

2 Pager’ document

Ideas to Enterprise model

Attracting Team Members

4 Foundations Enterprise Framework

The 6 Planks to build the bridge over the 4 Foundations

Compass: true north

Understanding Road Rules

Navigating Road Blocks

Attracting Investors

2 Pager’ document






Focus of this presentation

Given that the essential aspect to transforming your idea into a successful enterprise is communicating that reward, the place to start is with that end in mind.

In other words, focus on the realization or intended outcome/reward of your idea.

Rewarding team members and investors


What is your outcome?


What is your outcome?

Outcome focus Generating VALUE

...generating VALUE for who????


Generating VALUE

Users Customers Clients Investors Team members Market place


Your focus on intended outcome is about generating value for investors, team members, the market place; those are emerging opportunities where you could build a thriving business.

How do you attract investors and team members to your idea?



Investors and potential team members are time poor, and have an enormous number of opportunities presented to them.

That is why we have developed the “2 pager”.

achieve this

adopting this



impact

Idea


opportunity

Attracting stakeholders to

your idea(“2 pager”)

Using a framework

(4 foundation framework)

sharing this

Developing a two pager and sharing

2 pager

The 2pager is a simple but well

substantiated 2 page document

designed to enable those you wish to

attract to your idea quickly and easily

and identify what their reward will be.

The 2 pager

2 pager

Attracting Team & Investors

It’s about the essential aspects of your idea or enterprise that investors and team members find valuable and will want to be involved.

The 2 pager

2 pager

The 2 pager easily and concisely shows reward or outcome.

Attracting Team & Investors

The 2pager enables entrepreneurs to:

approach team and investors with confidence unlock wealth in idea

2 pager

.....without a 2 pager you could risk never fully realizing the wealth in your idea.

2 pager

To build the 2pager we use our definitive 4 foundations enterprise framework.

The framework can give you the credibility for attracting the people, money and resources needed to carry your idea from just an idea or early stage enterprise to a thriving enterprise, to unlock the wealth in your idea.

4 foundations enterprise framework

achieve this

adopting this



impact

Idea


opportunity

attracting stakeholders to

your idea

using a framework 4 foundation

framework

sharing this

Navigating the journey: building the infrastructure


bring a compass understand and take heed of the road rules

navigate the pot holes and road blocks build vital infrastructure (a framework/bridge) to get you to your destination

Creating an idea to a thriving enterprise one needs to:


you a

nd

team

rew

ard

righ

t m

oney

ag

reed v

alu

e

Constructing a bridge (framework) to get to your destination

You & teamAgreed valueReward / business exit strategyThe right money

........attract team & money to launch, stabilize, expand


you

an

d

team

YOU & TEAM


YOU & TEAM

Management capability

Management is highly valued by potential investors and team members alike.

It is management who can create a return on investment money, time and resources.


YOU & TEAM

Management capability needed

In a recent survey, by Wholesale Investor, it appears that the management team, was arguably the most important investment criteria for over 70% of investors surveyed.


YOU & TEAM

Management capability needed

Consistent vision and clear direction for action.

Be aware of your key strengths and that you need to attract other team members who have other key strengths.


YOU & TEAM

Vital key management capability needed is the to build and involve an inspired team.


REWARD / BUSINESS EXIT STRATEGY


rew

ard


Reward is often called an EXIT or the point of exit from the business.



Reward / Exit

InvestorsTeam members



= 70% investor criteria

When your team members can see their reward, they’ll come on board and if you’ve got a good team, you’ve arguably met 70% of the key criteria that investors are looking for.



Exit plan comes first

It is worth stressing that your exit plan is a key part of the framework because it aligns your team, investors and lays a foundation for many of the planning decisions you will make in the coming months and years.



Examples of attracting right team with exit plan when you don’t have the money to pay them.

Microsoft multi millionaires staff.



It’s well known that Microsoft has created numerous multi millionaires of staff who’s wealth was derived from company stock options in the early days. When Microsoft was initially taking off they were paid partly in money and partly in equity.



Craig West an Australian business exit expert had advised a client to develop the right exit plan from the beginning. In fact they unlocked the full value of their business of many millions of dollars above what they initially expected by selling to a public company who paid them 9.5 times their earnings where as the average of a private company is 2.5 to 3.2 times earnings.



With an exit plan you can involve right team members when you don’t have the money to pay them.



Without an exit plan

Not get the team members you wantGet the wrong team membersConflict with team members


Pic of bridge second foundation


rig

ht

m

on

ey

MONEY

Monica

pic of brigde with foundation

MONEY

Money is a key foundation of the enterprise framework... some people regard the ability to raise money or attract capital to your enterprise as the most important skill of a founder or key team member.


MONEY

Only after your reward is defined you are able to ask for money... and know what sort of money to ask for ... and which type of investor to ask it from ... and when to ask for it.

Why is MONEY one of the 4 Foundations?


MONEY

Attracting money affords your enterprise advantages such as having .....

.... a strong enough cash position for your enterprise to stabilise and expand and...


MONEY

the ability to attract good people on your team

better equipment and technologybetter access to education and training the ability to get to and more quickly penetrate markets

more capability to serve customers faster the ability to achieve greater scale i.e. to plan and execute long-term


MONEY

Attracting money though not at all easy is possible.

There are a large number of sources of money and funds available.


MONEY

Your confidence about asking for money emerges primarily out of…

…business models and revenue models. Does your idea have legs?

…selling the exit. Investors and team members knowing how they get their reward.


MONEY

What are the potential sources of investment and when are they most appropriate as a start-up and as an established enterprise?


MONEY


Who is funding entrepreneurial start-up companies?

MONEY


Founders

Family and friends

Incubators

Angel Investors

Venture Capital

Trade Sales

IPO’s

The following diagram depicts a financing model for start-ups

Adapted from “successful Angel Investing’, Indiana Venture Center, March 2008

AGREED VALUE


ag

reed

valu

e

AGREED VALUE

What we’ve found is that many people are either over optimistic about the prospects of their idea and do not know how to substantiate their claims about its value or they under value their idea ...


... either way they lose credibility!

AGREED VALUE

Do you know the value of your

idea/enterprise? Has your business been valued by

one of the accepted methods?

4 foundations enterprise

framework

AGREED VALUE

Key elements of agreed value

Attracting team

Negotiate with investors & team

Establishing the value of your sweat equity

Keeping your fair share of control and exit and any windfall profits.


AGREED VALUE

Agreed value …

...agreed value of what?


AGREED VALUE

Agreed value of (1) your products or services, For example, what people will pay in the market place..

How your users and buyers regard the value of your offering.


AGREED VALUE

..agreed value of (2) intellectual

property.

Includes patent, trademark, design trademark, copyright and unique knowledge.


AGREED VALUE

...agreed value of (3) intellectual capital

Description very often given to the value of the team members knowledge and experience and their capacity to operate as a team.


AGREED VALUE

...agreed value of (4) company sharese.g., in the shareholders agreement each shareholder will know the value of the shares at the start of the enterprise that they have acquired as founding shareholders.


AGREED VALUE

... agreed value of any (5) profit share and bonus systems

These have become key methods of attracting, rewarding and retaining team members.

4 foundations enterprise

framework

AGREED VALUE

Only after knowing the agreed value of your products or services and the intellectual property and intellectual capital can you work out your agreed value of company shares and the agreed value of any profit share and bonus systems.


AGREED VALUE

Agreed Value emerges primarily out of:

Investor ValueSelling an idea – monetizing your ‘blue strategy’ vision, valuation methodologies essential in targeting buyers

Selling the Exit Importance of investors and team members knowing how they get their reward


4. AGREED VALUE

When you’ve got your agreed values you can then work out what your rewards and exit strategy are going to be...

With this clearly and easily communicated, your team members & investors feel more comfortable about coming on board.


AGREED VALUE

This is vital when you are approaching your key sources of money for start ups and early stage enterprises.


In summary….

We trust that now you can see that the key aspect to attracting money and a team is to and launch your idea powerfully & successfully is to….

…communicate the reward to team members & investors.

Summary

It is more effective to build your powerful communication if you base it on the 4 Foundations Enterprise framework.

Without understanding the 4 foundations enterprise framework the large amount of information needed to manage to communicate effectively can tend to overwhelm many people or they may not be as well organized and presented as they need to be.

Summary

Quite possibly you will enthuse potential team members but be unable to really convince them of how and when they’re going to be rewarded.

Summary

It is essential to communicate effectively with your potential investors as they’re the last group of people you do not want to lose credibility with.

Summary

That is the very reason why we have developed a program to assist you in utilizing the 4 Foundations Enterprise framework to compose your 2 pager to greatest effect.

Summary

2 Pager’ document





Compass: true north

Understanding Road Rules

Navigating Road Blocks


To learn more about plugg services including our enterprise accelerator and board room visit us on:

plugg.com.au

Business

Bridge into