Some things to consider for you business plan and pitch.

Source:  The Air Guitar Shark Tank Pitch. Come on now, I know I did that sort of thing. How about you?

Shark Tank Tips

1. What makes a good business idea great? 



A good idea must meet numerous criteria.  I’ve listed some of those I’ve considered while participating in the Full Sail University program. 

Is there a need or pain that my business clearly identifies?  Yes there is.  Through promoting my CD/DVD, books, cabaret live performance, and workshops that target emerging talent I 1) entertain my audience, 2) provide them with a wide range of music and images through various genres that will expose and expand their musical horizons, 3) by coordinating live performance, CD/DVDs and books I provide emerging talent with highly effective ways of generating income at an affordable price that is in sync with current secondary education institutions.  Further, I improve the overall quality of the arts first regionally in Boston, and nationally. 

2. What do you think are the traits of a great entrepreneur?


A great entrepreneur recognizes opportunity in what first appear to be obstacles.  He/she adapts to changing environments and creates a business plan that allows for fluctuations in their environment.  I great entrepreneur is one who listens to the market and measures their products likelihood of success—in quantifiable terms—of success.  A good entrepreneur clearly understands notions of PEST and SWOT analysis and creates responses to these considerations.  A great entrepreneur respects and listens to their team, their consumers, and their investors.  They pay their bills and they throw in more opportunities to their investors.  They live by a code of integrity that is on the level of both personal and professional standards.




3. How do I know if there's a real need for my product or service?



Listen to the pulse of the market.  When someone writes or says something that resonates amongst the larger audience ask yourself, “What is their pain?  How can I help?  And how can I relieve that pain while making my project profitable so that obligations to investors will not only be met but will exceed.

4. What are the most important first steps a new entrepreneur should take?



Observe.  Listen.  Analyze what opportunities exist and then consider what you are good at and what sort of product that would be most likely to succeed in the market.  Selling snowshoes in FLA is probably not a real good idea. 

Once you have the product and the need—market demand—in alignment start building a business plan that clearly identifies the opportunity.  Then run the plan through any contacts you may have before pitching it to major investors.  Know the financials.  Know how much you need, how you are going to spend it, how much ROI you will realize and how much ROI your investors will realize. 

Know your audience.  I am pitching to investors, producers, and educational institutions at different points of my strategy.  I will ensure that each pitch is tailored according to circumstances.

Research my investors past behaviors.  Who do they give money to?  How much is typical?  Are they potential strategic partners?  I constantly ask myself questions such as these.

When you make the pitch answer the questions concisely.  Don’t drone on and on.  Don’t give them the whole book so to speak.  Make them want to know more.  Perhaps if you are not sure of an answer you might honestly admit that you have thought about the question but need more research time and ask if they would have any ideas.  This is not the greatest idea.  It shows you have not prepared properly.  But if you get in this jam above all:  Don’t make something up just to fill in the gap.  Chances are they will admire the fact that you have to say ‘I’m not say’ and they will appreciate the fact that you asked them for a bit of wisdom.  Never outshine the master.

5. How do you create a business plan that works?



Think it through before writing it down.  Once you got the basic concepts of the plan start filling in the standard parts that have been addressed in our professional experience and academic experience such as that offered at Full Sail University.  Watch for any trends in business plans standards.  Change is changeless.

Make sure the information that you provide is easily understood and concise.  Don’t give them the details so much as provide details that will leave them wanting more.  That’s for the second go around.  Use charts and diagrams and provide some background on you analysis and criteria. 

If you have aligned with an individual or entity with higher visibility and better reputation makes sure the investors are aware of it.

Watch you sales and related financial numbers.  Make sure they are realistic.  Showing a short time when profits may even be in the negative in regard to projections is better than creating an overtly optimistic future scenario.    Investors understand this and most will see that you’re plan reflects sound business acumen and common sense.

Make it look good but don’t get clever with the final document.  This sometimes reflects a sense that you are trying to get something past them by altering format.  They’ll figure that out and be even more suspicious.

Get the final plan reviewed by a professional who will objectively suggest strengths and weaknesses.

6. Where can I get help creating a business plan?

Obviously, we have had ample exposure through practical theory and utility through a common sense academic program.  It shouldn’t stop there.  There are any numbers of books on the subject that are affordable and provide great insights.  Small Business organizations often offer ‘coaches’ for this kind of thing.  Watch the shark tank show.  This is always an interesting experience.  Go to blogs on the subject.  Experiment a bit in the beginning.  Make it your own and then see what others are doing. 





7. How do you compete against the big guys? 



You compete against the big guys by first understanding that they are the big guys.  And so taking on the big guys really doesn’t work if for no other reason they have more resources.  But learn from the big guys.  Watch how they are adapting to fluctuations in their market and apply some of that wisdom.  I read Warner Brothers yearly financial statements and discovered that they—like many—are adjusting to shifts in downloadable music.  They report that they have also cut down and—in some cases—wrote off advance funding to artists.  They also are more careful and have developed a much more stringent criteria for signing artists.  It is interesting to note that hard copies are still being sold but falling quickly.  Additionally, the hand held devices is growing but hardly bulky enough to bolster sales throughout my campaign.  In some ways this is a wait and see situation that requires following the metrics.  This tells me much.  And so the numbers doesn’t overwhelm me.  I look at the strategies and apply them.

8. How do you build a great team? 



You build a team by first identifying your needs.  What are your strengths?  What can you do in those areas?  Identify your ‘weaknesses’ and look for team members that can enhance that particular area of your endeavor.  Check out business and personal attributes.  I don’t care how knowledgeable a potential is.  If you will not get along well or have alternative end goals in mind think carefully about this.  Perhaps that individual can be useful in a position that is unique to their abilities without necessarily impacting overall all business goals.  For instance, if someone has strong financial skills that coincide with your goals but varying notions of your goals this individual may be appropriate for an administrative or accounting position where they are responsible for specific tasks related to those particular needs.

9. What makes an investor put their money into a deal?



Vision tempered with common sense.  Experience.  Education.  Presentation.  Are you the sort of person that will meet their obligations and will it be a positive experience?  Having a well-tuned business plan goes a long way.  Investors want to work with new businesses that identify and minimize the risks.  This is particularly true for equity investors.

10. How do I find investors and business partners and what's most important in my presentation?

Research today’s investors through journals and trade sites.  Look for related blogs.  Read the financial papers.  Ask around and make sure you are ready with your elevator pitch.  Follow the latest developments in venture capitalism.  What are they investing in?  Is it similar to yours?  What is their success rate?  Also make sure that you understand what you bring to the table.  In my case, I bring $25,000 and my long-term experience in entertainment while keeping up with the industry through practical education.

Why should I give you the money? You have no proven track record. I can go out and find someone who has already done this and has proven that they can do it.

You should invest in me because I will work harder and smarter, because I know my audience through practical experience and metrics.  I’ll not only pay you back with good ROI but also provide you with greater opportunities to make money as my project grows.  I have a diversified line of products that work in an integral fashion meaning my chances of higher return increase exponentially.  In the case where one product slacks for reasons, I can hedge my financial situation through the other product lines.

How do I know you are not going to lose interest?

I’ve committed the last five years to this project.  I’ve retired from teaching so that I can turn this vision into reality.  Because I love the notion of doing business in the entertainment arts and look forward to sharing the benefit of my total experiences with others whether it is through recorded music, live performance, or education.

Projections indicate 2012 downloads at $8.5 billion.  Break that down to an average of $1 per download (single) and this suggests that approximately means 8.5 billion units are being distributed.  If I assume a very conservative number of the market share (.0015) suggests potential unit sales at 127,500 possible or potential conversions at .65 net minus fixed costs.  I onsider .15 represents the unit share of fixed costs and this leaves .50 per unit.  This realizes a potential $63,750 projected sales over three years. I then factor into this calculation that some sources are projecting $15 billion in sales by 2015.  Consider the shift towards streaming royalties that are significantly less than down loading and I still realize a significant cash flow and profit.  The exact amounts of monies earned from streaming are still unclear although present returns suggests that 15K units must be streamed before the artist reaches breakeven.  However, one must also consider the branding value in streaming that—properly handled—can increase the number of downloads.   While these numbers and statistics must allow for forecasts corrections, the overall future for financial gain even in a troubled economic market means exponential growth and future capitol for expanding my projects.  This should keep my interest, don’t you think?

What are you going to do when a competitor sees how successful you are and starts doing exactly the same thing?

One specific method I will use is by first making sure all my legal and contractual areas are in order.  I will also encourage potential competitors to form strategic alliances.  Keep your friends close.  And keep your enemies closer.  I will constantly monitor my product line and identify areas where they can be improved and made unique within the market.  I have put my own money to the tune of $25,000 into this effort.  I am in a sense my own closest investor.  Finally, I want to create something that will be passed down to others, to make a genuine difference to the global community.