The insiders guide to creating a great first pitch. Topics covered: A brief introduction to the Business Model Canvas, a short how-to craft your brand story, building a basic financial model and tips for designing your visual deck. Remember, your goal isn't to answer every question, it's to inspire your audience and leave them filled with insightful curiosity.

1. Remarkable Ideas
Business Model Canvas
Crafting your Brand
Financial Models
How-to Pitch
Bradford M. Wason, Tim McIntosh & Sara Fabryka | ©2014

2. Meet Brad
• Started 3 businesses – so far, only 1 successful exit.
• Failed at Pre-Calculus and abandoned all dreams of a career in
Architecture, but luckily found design.
• Started working at 17 as a freelancer designer for AOL Time
Warner (When that was a thing).
• Holds a degree in Fine Art from DCAD & Interactive Media
from Wilmington University
• Has 14 years experience in advertising, branding and digital
media design

3. Meet Tim
Yet2Ventures
• Analyzed over 1000 businesses
• Made investments in 45
• Made money on 4
• Lost money on 17
• TBD on 24
• Our IRR is about ~20% (unrealized)
!
Personal
• Started 6 businesses – lost money on everyone
• Degree in Innovation and Entrepreneurship from the
University of Richmond

4. Meet Sara
DMG Marketing
• Designer, copywriter, studio guru
• 0 start ups under my belt, but on my way
• Freelanced for numerous local businesses and non-profits
!
Personal
• Nickname: TL (Team Leader), I keep these guys on track
• BFA in Visual Communications from the University of Delaware

5. The Startup Industry

6. 514,000
NEW BUSINESS OWNERS IN 2012
Source: Harvard Business School

7. Source: Harvard Business School

8. Source: Harvard Business School

9. Source: Harvard Business School

10. Social Business

11. “Why do we turn to nonprofits, NGOs and governments to
solve society’s biggest problems? Michael Porter admits
he’s biased, as a business school professor, but he wants
you to hear his case for letting business try to solve
massive problems like climate change and access to
water. Why? Because when business solves a problem, it
makes a profit — which lets that solution grow.”
Michael Porter, Harvard Business School

13. “Why aren’t we as an industry front-and-center in
working on the great, wicked issues of our day?”
Deborah Morrison, PhD, is the Chambers Distinguished Professor of Advertising
University of Oregon’s School of Journalism and Communication

14. “The purpose of the corporation must be redefined as
creating shared value, not just profit per se. This will
drive the next wave of innovation and productivity
growth in the global economy. It will also reshape
capitalism and its relationship to society. Perhaps most
important of all, learning how to create shared value is
our best chance to legitimize business again.”
Michael Porter, Harvard Business School

15. TRENDS
2013 IN REVIEW. FAST FORWARD TO 2014.

16. $291
BILLION DOLLARS WAS SPENT IN 2013 ON E-COMMERCE.

17. $370 IS THE EXPECTED SPEND BY 2017.
!
THAT’S AN AVERAGE OF $1,950/CONSUMER/YR.

18. $45
BILLION WAS SPENT VIA MOBILE DEVICES IN 2013
26%
OF ONLINE PURCHASES WERE MADE ON A MOBILE DEVICE

19. 43%
OF ALL DIGITAL SALES WILL BE MADE BY MOBILE DEVICES IN 2017.

20. MOBILE USERS WILL DO ANYTHING
AND EVERYTHING DESKTOP USERS
WILL DO, PROVIDED IT’S PRESENTED
IN A USABLE WAY.
Brad Frost

21. 30% OF MOBILE SHOPPERS WILL ABANDON A
PURCHASE WHEN THE EXPERIENCE FAILS THEM.

22. 79%
OF ALL DIGITAL RETAILERS SAY THEY ARE NOT READY FOR MOBILE.

23. Business Model Canvas

28. Value Proposition
What makes us unique?

29. Customer Segments
Who are our customers?

30. Customer Relationship
How are we connected to them?

31. Channels
How do reach our customer?

32. Revenue Stream
Where does your money come from?

33. Types of Revenue Streams
• Asset Sale
• Usage fee
• Subscription fee
• Leading/Renting/Leasing
• Brokerage fees
• Advertising

34. Key Activities
What you do to create your
Product or Service.

35. Categories of Key Activities
• Production
• Problem Solving
• Platform/Network

36. Key Partners
Who can supplement and benefit
what we make.

37. Key Partners
• Who are our Key Partners?
• Who are key suppliers?
• Which Key Resources are we acquiring from partners?
• Which Key Activities do partners perform?

38. Motivations for partnership
• Optimization and economy
• Reduction of risk and uncertainty
• Acquisition of particular resources and activities

39. Key Resources
What must we have to succeed.

40. Key Resources
• What Key Resources do our Value Propositions require?
• Our Distribution Channels? Customer Relationships?
• Revenue Streams?

41. Types of Key Resources
• Physical
• Intellectual (Brand patents, copyrights, data)
• Human
• Financial

42. Cost Structure
What are our primary costs for
doing business?

43. Cost Structure
• What are the most important costs inherent in our business model?
• Which Key Resources are most expensive?
• Which Key Activities are most expensive?
• Is your business more Cost Driven?
(leanest cost structure, low price value proposition, max.
automation, extensive outsourcing)
• Is your business more Value Driven?
(focused on value creation, premium value proposition)

44. Branding 101
DEFINING & CRAFTING AN EXPERIENCE.

45. WHAT IS A BRAND?
A brand is not a logo, not an
identity, not a product.
A brand is a person’s gut
feeling about a product,
service, or organization.

46. A GREAT BRAND TELLS A GREAT STORY
And luckily we all make great stories.
!
Marina Willer of Wolff Olins London declared, “It’s not about
consistency, it’s about creating stories that make sense.”
!
Stories are the way we connect with people and create
relationships. If we think of brands as people or personalities,
they need to be magical storytellers. As humans, we thrive on
all of the emotional connections we have. We get passionate
about them. It’s the stories we tell and hear that trigger those
connections.

47. Crafting your story.
1.) Be Real & Don’t Lie.
!
2.) Write down what has made an impact on you, and why
it’s important.
!
3.) Go back to those 5 things you LOVE to do. What are they?
!
4.) Be Clear & Concise. A story has a beginning, a middle
and an end.
!
5.) Leave out the sales copy, and focus on you. We’ll get to what
you’ve done soon enough.

48. EAT branding
wilmington
newark
lancaster
etc.

49. don’t lie be real and

50. Date nights, drink specials, hot foodie
happenings and insider tips.
EAT is built by people who love food,
great experiences and a great deal.

51. love what do we

52. food
Source: Ezra Gregg

53. DRINKS
Source: Kent Wang

54. PEOPLE
Source: Matthias Ripp

55. PLACES
Source: Matthias Ripp

56. experiences
Source: Kent Wang

57. story create a great

58. EAT is where food, drinks, places,
experiences and great people converge.
!
Foodies seeking the next hot thing,
couples looking for the perfect date
restaurant, or folks looking for the
best drink special on a workday, EAT will
happily point them in the right direction.

59. Financial Models
AN INSIDE LOOK FROM A ANALYSTS VIEW

60. What I Look for
Solid Management team with a
defensible business model that
makes money
Nice to haves are a Scalable Business Model and a Large
and Growing Market

61. Solid Management Team
• Industry Experts: Substantial experience in the space
• Deep Team: More than one strong player
• Experience with startups or prior business experience
• Listens to other people: Knows how and when to pivot

62. Defensible Business Model
• High Barriers to Entry: Basically your idea can’t be built in a
weekend. Or it’s easily replicated.
• Specialized Knowledge: Spent the past 20 years working on
developing a speciality chemical, which is really hard to reproduce.
• Intellectual Property Protection: Patents & Trademarks, which
are actually valuable.

63. Makes Money
Has the potential to have earnings: there is money left over after
expenses, interest, taxes, depreciation, and amortization.

64. Nice to Haves
• Scalable Business Model: Increased revenues cost less to deliver
than current revenues.
• Large and Growing Market: A rising tide raises all boats.

65. Basic Financial Model
The Most Important and Least Accurate Part of the pitch: The basic
financial model has three elements:
• Profit & Loss
• Balance Sheet
• Statement of Cash Flow

66. Profit and Loss

67. Balance Sheet

68. Statement of Cash Flows

69. Basic Financial Model
Wrong Right
12
10
8
6
4
2
0
Revenue Projections
2014 2015 2016 2017 2018
250
200
150
100
50
0
Revenue Projections
2014 2015 2016 2017 2018

70. Basic Financial Terms
• Revenue: The amount of money that a company actually receives during a specific
period, including discounts and deductions for returned merchandise. It is the "top line"
or "gross income" figure from which costs are subtracted to determine net income.
• Gross Margin: A company's total sales revenue minus its cost of goods sold, divided by
the total sales revenue, expressed as a percentage. The gross margin represents the
percent of total sales revenue that the company retains after incurring the direct costs
associated with producing the goods and services sold by a company. The higher the
percentage, the more the company retains on each dollar of sales to service its other
costs and obligations.
• EBITDA: A financial ratio that measures a company's return on investment. The
EBITDA/EV ratio may be preferred over other measures of return because it is
normalized for differences between companies. Using EBITDA normalizes for
differences in capital structure, taxation and fixed asset accounting. Meanwhile, using
enterprise value also normalizes for differences in a company's capital structure.

71. • Operating Income: The amount of profit realized from a business's
operations after taking out operating expenses - such as cost of goods
sold (COGS) or wages - and depreciation. Operating income takes the
gross income (revenue minus COGS) and subtracts other operating
expenses and then removes depreciation. These operating expenses are
costs which are incurred from operating activities and include things such
as office supplies and heat and power. Operating Income is typically a
synonym for earnings before interest and taxes (EBIT) and is also
commonly referred to as "operating profit" or "recurring profit."
• Net Income: A company's total earnings (or profit). Net income is
calculated by taking revenues and adjusting for the cost of doing
business, depreciation, interest, taxes and other expenses. This number is
found on a company's income statement and is an important measure of
how profitable the company is over a period of time. Often referred to as
"the bottom line" since net income is listed at the bottom of the income
statement.

72. • Acquisition Cost: The cost of a business to acquire a new customer. The
company recognizes costs, including marketing and incentives, to introduce
new customers to the company's products and services. The customer
acquisition cost is calculated by dividing total acquisition costs by total new
customers over a set period of time.
• Lifetime Value: In marketing, customer lifetime value (CLV) (or often CLTV),
lifetime customer value (LCV), or user lifetime value (LTV) is a prediction of
the net profit attributed to the entire future relationship with a customer.
• Growth Rate: The amount of increase that a specific variable has gained
within a specific period and context. For investors, this typically represents the
compounded annualized rate of growth of a company's revenues, earnings,
dividends and even macro concepts - such as the economy as a whole.
Expected forward-looking or trailing growth rates are two common kinds of
growth rates used for analysis.

73. What kind of questions can you
expect from a judge?
• Why are you going to win?
• Why are you the team to do this?
• Who is your competition? Both direct and indirect.
• What is your value proposition?
• How do you make money?
• What is your gross margin?
• Why does anyone care?
• What is success?
• Tell me about your traction.
• How are you going to acquire customers

74. A crash course in a simple model:
www.asimplemodel.com

75. The Pitch

76. Slide Order
• 0:00 – 0:59: The foundation. What is the problem you’re solving?
• 1:00 – 1:59: What is your solution? And, why is it better?
• 2:00 – 2:59: Who is your team? What is your experience?
• 3:00 – 3:59: How are you going to make money? Future plans?
• 4:00 – 4:59: Recap: Problem, Solution, Contact.
• 5:00 – 7:00: Q & A

77. Slide Design 101
• Keep it simple: Consistency is your greatest tool. Colors, type, etc.
• Less is more: Don’t try to accomplish too much! Use bullets
sparingly, people are more likely to remember visual content.
• Inspire us, but make it quick: Your goal should be to leave the
judges stunned, and the room filled with questions. You want to be
the team EVERYONE is talking to after, no matter the results.

78. An example: EAT Wilmington

79. wilmington

80. EAT What do you want to
tonight?
the problem:

81. EAT What do you want to
tonight?
what are you
in the mood
for?
who has
specials
tonight?
what’s
happening
around town?
where is
everyone
else going?

83. the solution:
E A T wilmington

84. E A T wilmington
Date nights, drink specials, hot foodie
happenings and insider tips.
EAT is built by people who love food,
great experiences and a great deal.

85. food
Source: Ezra Gregg

86. DRINKS
Source: Kent Wang

87. PEOPLE
Source: Matthias Ripp

88. PLACES
Source: Matthias Ripp

89. experiences
Source: Kent Wang

90. the eat team:
Brad
founder, CEO
tim sara
founder,CFO founder,CMO

91. the numbers:
EAT FINANCIAL MODEL
$ 1,800,000
$ 1,350,000
$ 900,000
$ 450,000
$ -00
$ (450,000)
Year 1 Year 2 Year 3 Year 4 Year 5

92. the numbers:
EAT FINANCIAL MODEL
$ 1,800,000
$ 1,350,000
$ 900,000
$ 450,000
$ -00
$ (450,000)
Year 1 Year 2 Year 3 Year 4 Year 5

93. the MARKET:
WILMINGTON
!
WEST CHESTER
!
LANCASTER
!
KENNETT SQUARE
NEWARK
!
REHOBOTH BEACH
!
LEWES
!
BROOKLYN
AND OTHER SMALL NEIGHBORHOODS AND CITIES…

94. OUR COMPETITORS:
GOOGLE
!
YELP
!
OPENTABLE
LOCAL WEBSITES
!
Zagat
!
urbanspoon
BUT NONE OF THEM HAVE GOTTEN IT RIGHT.

95. E A T wilmington
coming soon

96. Questions? Let us know.

97. Remarkable Ideas
Thank you!
Bradford M. Wason, Tim McIntosh & Sara Fabryka | ©2014