Michigan Marketing Minds - February 10, 2015 - Entrepreneur's Workshop
- 1. Michigan Marketing Minds Entrepreneur’s Workshop February 10, 2015
- 2. Michigan Marketing Minds Should Your Idea Become a Business? February 10 @ Spark in Ann Arbor Property of Product and Market Development, LLC. All rights reserved. Michael Suman [email protected] 616-836-7015
- 3. Mike Suman • Engineering at Oldsmobile GM Division • VP New Biz/Sales/Marketing at Prince Corp • Group VP Advanced Sales/PR/IT/Marketing for JCI Automotive • 14 Years ago started Product and Market Development • 54 patents to date • Create products to manufacture and licensing to multiple markets • Starting 4th year of producing and hosting weekly NPR radio show (Innovation Talk) • Authored ‘Should Your Idea Become a Business’ used as a college textbook • Supply products to multiple markets (ex: History Channel Show ‘Pawn Stars’™) • Have licensed products for national sports organization (Major League Baseball) • Advisor and recent board member for Inventor Networks in GR and Muskegon • Guest speaker at national trade shows (The International Home & Housewares show and others) • Advisor for organizations to help accelerate growth though new business development Property of Product and Market Development, LLC. All rights reserved.
- 4. Execution: Property of Product and Market Development, LLC. All rights reserved. Opportunity Ideation Design Prototyping Market Testing Value Story (Biz Case) Engineering Tooling Sales Distribution • Changing something in one area can change everything • When you are a …………….the world looks like a …………… • Must have evidence of a solid market before real spending starts • Evidence of real distribution must be present always • Top three questions are………. Top Challenges
- 5. Property of Product and Market Development, LLC. All rights reserved. • Top five answers to the same question – Why are you doing this • Because it has never been done – Why are you doing this • Because the world will love it – Why are you doing this • So I can work for myself – Why are you doing this • I don’t like my current job – Why are you doing this • I don’t want to be on my deathbed and never have tried Making the transition from Inventor to Entrepreneur What I hope to hear is “We have a committed distribution network”
- 6. Ideation: Property of Product and Market Development, LLC. All rights reserved. • Mock up the idea, the business case, and especially the distribution plan • Is the team open to real critique’s (embracing devils advocates) • Testing the solution before spending (does this thing do what it is suppose to?) • Testing market before patenting (will it sell?) • Testing in the targeted channel with experts in that field • When does NO mean STOP?
- 7. Design: Always makes things better! Property of Product and Market Development, LLC. All rights reserved. • When is a design perfect? Don’t toss out great while waiting for perfect. • Design can easily be the most influential step! • Why build a 3D model to test if a visual story will work? • Give your designer a thumbnail biz case. $59 $89 $79
- 8. Idea Testing: Product and Market Property of Product and Market Development, LLC. All rights reserved. • Unchallenged Inventors can be the best or worst to test their own ideas. • When the product and story is ready it must be tested in the target market. • Personally I have not found great results from focus group testing. • Need to find out if it has been in the market and failed. • Use Google patents as a market research tool. • All “evidence of value” must be third party endorsed or it can lack credibility. • Do early “fake adds” to get directional feedback.
- 9. Fake Advertisements: Always get a response Property of Product and Market Development, LLC. All rights reserved.
- 10. Property of Product and Market Development, LLC. All rights reserved. Testing: Market / Product / Third Party Validation Market Testing Product Testing Third Party Validation
- 11. Value Story: aka Biz Case Property of Product and Market Development, LLC. All rights reserved. • Most are way too complicated. • All are filled with “best guesses” (can be dangerous if owner believes it). • Cannot overstate a total understand of the existing market leadership. • Executive summary's and visuals are key. • Tone must be positive (but not over confident) with clear stage gates. • Must include BFMEA (what could go wrong and if it does we will…….)
- 12. New Opportunity: Testing a new PMD Licensing Process • Small upfront payment (cost recovery) • Small royalty • No min/no max royalty limits • 6 month launch requirement • Multiple market commitment • 8 Year royalty starting at launch • Retailer owns patent OR Property of Product and Market Development, LLC. All rights reserved. $149,970 $12,759,948 Traditional Single Retailer Profit Total Profit from all Retailers $2,742,940 $12,759,948 "Retailer First" Profit Total Profit from all Retailers
- 13. Prototyping: Don’t build your first like it is your last Property of Product and Market Development, LLC. All rights reserved. • Mock ups work if it is software or physical product. • Budget 4 times more than you think you will need. • Can you soft tool to use pre production prototypes to test the market? • Do not have to be perfect. • Inventors fail to include lessons learned in next generation prototypes.
- 14. Property of Product and Market Development, LLC. All rights reserved. Prototype all phases of execution: do it cheap and fast Opportunity Ideation Design Prototyping Market Testing Value Story (Biz Case) Engineering Tooling Sales Distribution
- 15. Engineering: Hire as a service be careful about partnering Property of Product and Market Development, LLC. All rights reserved. • It takes weeks to engineer but years to launch. Trading upfront services for “share of future business” must be well written. • Must have a clear “statement of work” and always include 50% for changes. • Must agree on manufacturing process before engineering starts. • Must have a clear understanding of supplier responsibility for prototypes and production. • Performance target metrics must be included in goals. • Should include stage gate metrics with late penalties. • Every change in assumptions must be documented.
- 16. Tooling: There must be clear evidence of a market Property of Product and Market Development, LLC. All rights reserved. • If possible try soft tool market validation before hard tooling. • Must have eyes on tooling process regardless of where it is built in the world. • Timing metrics with late consequences. • Have the manufacture manage tool build but make it supplier agnostic. • Must have visual quality “go” and “no go” standards with samples if possible. • Tooling quotations must include first run approvals.
- 17. Companies seldom buy concepts: Patent Filing Property of Product and Market Development, LLC. All rights reserved. Property of Product and Market Development, LLC. All rights reserved.
- 18. Sales: The number one place most start ups fail Property of Product and Market Development, LLC. All rights reserved. • Selling Entry Points (on ramps) • Finance – Design – Engineering – Purchasing – Sales – E Suites • Pain Points • Loss of Market Share – Innovators all left – Barrier of Entry gone • Developing Evidence of Value • 3rd Party Endorsement – Test Market Success – Patents - BFMEA • Selling Tools and Styles • Prescriptive Selling – Sell like a 14 year old – Creative Leave Behinds
- 19. Summary: Property of Product and Market Development, LLC. All rights reserved. • Bootstrap – Anything else is too scary. • Test Ideation with mock up parts and distribution plans. • Attend industry shows before you do anything. • Test products and market with industry experts & mock up advertisements. • Prototype fast and cheap. • Don’t hide risk from partners and suppliers (or yourself). • Try not to hard tool until a customer is committed. • Partner with people that have different skills that you do. • Sell like a 14 year old who’s life will end if they don’t get to the mall.
- 20. Entrepreneur Workshops • Scott Taylor – SOLOSHOT • Jeremy Lindlbauer – TurtleCell • Barak Leibovitz – Seat Side Service • Molly McFarland – AdAdapted • Sandy Aldrich – Akability • Mike Suman – Inventor/Entrepreneur
- 21. Next Michigan Marketing Minds: March 10 Field Notes on Brand Positioning