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How to Develop a Winning Concept Paper

Charlie Baecker, Administrative Director


January 20, 2015

Agenda

Welcome, Introductions and Background


What You Will Learn
Purpose of a Concept Paper
Planning Methodology and Challenges
Judging Criteria
Concept Paper Format
Suggested Approach
Q and A

My Background
First peer-to-peer MS Windows networking solution, installed on
over 1 billion desktops worldwide.
First 128 bit symbolic processor, the InferStar, adapted for use by
NASA as the primary CPU for the Space Station robotic arm control
system.
First X11 server for MS Windows, X11/AT by Integrated Inference
Machines.
First process manufacturing Man-Machine Interface (MMI) for MS
Windows, InTouch, from Wonderware Software.
First digital PBX exchange with integrated voicemail capabilities,
the Delta 1, from Delphi Division of Exxon Enterprises.

What You Will Learn


The basic process to be discussed:
Provide evidence of a market
Provide evidence of a solution
Management team

A fundamental ingredient is passion

Purpose of a Concept Paper


Used in the competition to select semi-finalists through offering
evidence of a market and evidence of a solution
It is a sales document; it is an exciting story
Its purpose is not to demonstrate how much you know
Subset of full business plan for a company investment
Provides evidence of a market
Provides evidence of a solution
Management team

Concept paper describes the point of pain and value


proposition minus the financial projections section
Organize your teams thoughts, help you identify roles

Generic Planning Methodologies


Waterfall Process
Model
Spiral Process
Model

Business Concept Planning


Market Need

Product/Service

Financial Projections

Management Team

Typical Concept Paper Challenges


Assigning roles
Getter, Doer, Counter and Leader

Collecting market data

Talk to prospective customers!!


Size, Growth rates
Segmenting Market
Identifying Competitors
Key differentiators for competitors
Identifying market gap
Fitting product to the gap

Maintaining internal consistency in paper


Deciding what are key differentiators
Appealing to both the head and the heart

Judging Guidelines
Is there a large, growing market
Evidence of a
Is the market opportunity compelling Market
Is there a clear target customer?
Is the solution realistic?
Is the business proposition well thoughtout?
Evidence
of a
Can the business become a market
Solution
leader?
Is there proprietary technology?
Is there team expertise?

Concept Paper Format


Length maximum of three pages plus cover page
Cover page company name, team member names,
school affiliations, and graduate/undergraduate status
Due date Feb 2, 2015, 11:59 pm via iStart.org
www.meragebpc2015.istart.org

Concept
Paper
Approach

Basic Team Approach


1. Read Sahlman, How to Write a
Great Business Plan
2. Team discussions focusing on
the nine questions on page
102
3. Develop alternative business
models using the Business
Model Canvas
4. Write concept paper covering:
Evidence of a market
Evidence of a solution
Management team
The context

Market

Solution

Sahlmans Nine Questions


1. Who is the ventures customer?
2. How does the customer make decisions about buying this product
or service?
3. To what degree is the product or service a compelling purchase for
the customer?
4. How will the product or service be priced?
5. How will the venture reach all the identified customer segments?
6. How much does it cost (in time and resources) to acquire a
customer?
7. How much does it cost to produce and deliver the product or
service?
8. How much does it cost to support a customer?
9. How easy is it to retain a customer?

Concept Paper Components

Overview/Introduction to grab attention


Market Need to create urgency
Product or Service to develop interest
Market Potential to substantiate claims
Competitive Advantages to validate approach
Management to provide confidence

Company Overview / Introduction


What is your business proposition for
solving the problem?
Who will be your customers?

Company Overview Example


Jeff Smith has a problem: for the last seven months, Jeff has attempted to
contact qualified investors interested in funding his web services startup. After
meeting over 150 contacts, he has made only 15 investment pitches and
received only 2 offers; both of which were insufficient to meet his needs. After
seven months and 150 meetings, Jeff is thinking there has to be a better way.
SeekingCapital.com is an exciting new company that offers both entrepreneurs
and investors a powerful and efficient web-based service for matching
investors with pre-IPO companies.

Market Need
Goal: offer evidence of a market
Magnitude of the pain: vitamin or pain killer?
What specific aspects or changes in the market have
created the problem you are solving?
How will your product or service take advantage of this
opportunity?
Who are your customers and what are their attributes?
How well defined are your potential customers and why
should they pay for your product?

Product or Service
Goal: begin offering evidence of a solution.
What is the problem you are solving, need you are satisfying
or pain you are addressing?
What is the product or service?
Examples:
Software that enables
A medical diagnostic device used for
An automotive aftermarket accessory appealing to
A programmable chip for the telecom market that
Specialized business services targeted to
An innovative beverage container that

What are its attributes, advantages?


What is innovative about your product or service and how
does it differ from the competition?
Any secret sauce or intellectual protections

Market Potential
What are the market characteristics?
How big is the market number of potential
customers and annual sales
Growth
Segments
What will be your niche in the market and why?
How will dominate your market niche?
How will you identify customers?
How will you reach your market?
How will you make money?

Competitive Advantage
Who are your competitors?
Segments they occupy
What are their advantages and
weaknesses/vulnerabilities?
Why they cant close the gap?

Management
Maximum one paragraph
Key members of the team name, role,
background, education, experience
Emphasis on previous success working
together in another company or context

Summary Advice:
1. Read Sahlman, How to Write a
Great Business Plan
2. Team discussions focusing on
the nine questions on page
102
3. Develop alternative business
models using the Business
Model Canvas
4. Write concept paper covering:
Evidence of a market
Evidence of a solution
Management team
The context

Tips:
Use charts as eye candy
Address only topics that are most
relevant to your company
Be concise and to the point
($5.00/word rule)
Highlight your strengths

Where to Get Information


Find rules and regulations at: www.merage.uci.edu/go/bpc

Charlie Baecker, Administrative Director


Don Beall Center for Innovation & Entrepreneurship
949-824-1172
cbaecker@uci.edu
Breanna Bremer
Beall Center Program Manager
949-690-2733
bremerb@uci.edu

Q&A

Thank You and Good Luck!

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