Executive Summary Tips

As a guide to developing the executive summary, contestants should consider the questions shown below. A persuasive presentation will answer the investor's key question "What's in this for me?"

Elevator Pitch

In a few sentences, explain the business opportunity and what your new firm will do to capitalize on that opportunity. Make your funding pitch clear, simple, and compelling. Providing a few key numbers, names, and facts will make your story more compelling. Telling investor's why they will benefit from funding your firm is even more compelling. Remain at a high level in your pitch, but use specific facts to make your ideas come to life.

Product/ Service

1. What do you plan to sell?
• Be clear and specific. Avoid buzzwords, fluffy generalizations, and meaningless phrases like "we will make the leading end-to-end solution to reduce energy demand". Ask yourself, "Will my mother, father, or spouse understand what I plan to sell?"
2. Why do customers need your product/service now?
• What macroeconomic change, regulatory/legal change, environmental change, or customer attitude change will drive customers to realize they need this new solution now? If not now, then when?
3. What are the benefits to customers of your new product/service?
• Distinguish between features and benefits - focusing only on the benefits. A feature is the hybrid engine in a new Prius. A benefit is that customers will cut their gasoline bill by more than half. Another benefit is that the Prius drives similarly to a regular car, and does not need to be plugged into an electrical outlet and recharged each day. Start by identifying the customer problems that you are solving, and then convert the solutions into benefits.
4. What are the competitive advantages of your new product/service?
• Identify the customers' choices. Why will the customer choose your new idea over current solutions or competitors? Name the competitors and compare the competitive position of your product alternatives.
5. Is the new product or technology patented or can it be patented?
• Does the technology contain unique intellectual property?
6. Are there follow-on products and services that will generate future revenues?

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Marketing

1. Who are your target customers?
• Identify the specific customers that need your product/service. Be specific. What are buyer's characteristics - income, lifestyle, or age - if the buyer is a consumer? If the buyer is a corporation, who is the champion for pushing the purchase through the corporate channels (title and duties), and who are the people (titles) that must approve the purchase order? If the buyer is a government agency, what is the budget and policy driving the contracting agent to choose your business in a solicitation?
2. How big is your addressable market?
• How many target customers are in your geographic market? What is the likely customer adoption rate (for example, 1% of the target market will adopt in year 1, 2% in year 2, 4% in year 3, 6% in year five, and so on)?
3. How will you reach these target customers?
• Will you spend millions on advertising? If yes, where will you spend the money? Will you find a few strategic OEM (original equipment manufacturing) partners to distribute your product in their product? Will you sell through utility programs? Will you sell to the military? And, how will you sell these groups, both the selling process and the resources required.
4. How will you test market the company's new product and service?
• Will you conduct focus group meetings? Will you call a group of target customers and survey their interest? Will you test market your idea by selling in a small, but representative geographic market?
5. Who will be your first customers?
• First customers provide validation, cash flow, and valuable advice. Who are these first customers and how will you reach them?

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Team

1. Who is on your management team?
• Who are the founding people, their roles; and their special qualifications? Ideal teams will have a diverse group of leaders, such as one technology expert, one marketing expert, one financial expert, and one business leader.

Financial Plan

1. How will your business make money?
• What is your forecast of revenues and expenses for the next two years? When will your business generate positive cash flows? What is the price of the product/service? What are the fixed and variable costs on a per unit basis? How many units will be sold in the first and second years? How many units must be sold to breakeven?
2. How much capital do you need to get started (two year estimate)?
• What will you do with the money? What are the milestone dates and events that trigger additional funding requirements? What are the expected deliverables (results) at each milestone stage?
3. Why should investors put capital into your business?
• How will the investors make money from your business? Do the founders expect an IPO or a sale to strategic corporate buyer? If a strategic buyer is expected to purchase the company, provide some names of target acquirers and propose why the corporate executives would make the purchase?
• How much money could investors make? Research to find valuations of comparable companies. Show the numbers and justify the key assumptions. If investors put in $10 million - $1 million in year one, $3 million in year 3, and $7 million in year five - and the business sells for $100 million in year seven, and the investors own 65% of the company, then calculate the return realized by the investors (refer to the Palo Alto Software in the Resources section).
• What year can the investor expect to cash out of the business? Why?

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Investor Presentation Tips

Each round of judging will be conducted by prominent experts from Massachusetts universities, experienced entrepreneurs, venture capital and angel investors, business analysts, and legal professionals. The general criteria for these judges will include:

• Viability: (30%) Can this team create a profitable business? Viability includes:
• Feasibility of the financial business model: What is the probability that this business can grow and survive within the next five years? (Bonus points will be awarded to the teams that include a contingency section in the executive summary, briefly discussing execution risks and their plans to mitigate those risks);
• Marketability: Is there a clear market need and customer demand for this idea? Does the team have a feasible strategy to acquire customers? (Bonus points will be awarded to teams that conducted primary market research of target customers);
• Management team strength: Is the team diverse with people who bring complimentary skills and knowledge?
• Realistic and achievable milestones. Are the financing milestones and deliverables reasonable for the team?
• Compelling Case: (40%) Has the team made a clear, convincing argument for why their business will please customers and investors?
• Aha! Factor: (20%) Does the presentation frame a clear story that excites listeners, leaving the audience through a series of "Aha! I get it. What a great idea!" statements spurring members of the audience to invest money, submit a resume, or volunteer to mentor the founders.
• Clean-Energy Factor: (10%) Will the business idea make a difference - increasing renewable resources, increasing energy efficiency, reducing emissions, or reducing peak demands?

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