Instructions for Feasibility

Report and Pitch Presentation

Entrepreneurship & Creativity
Prof. Lennertz
 Instructions for Feasibility Report and Pitch
Presentation
Big picture. Imagine you have a great idea for a business.
You have a product or service that people are willing to buy
You have researched the market and it is favorable for entry
You have made financial projections and you believe it can be profitable
You have assembled a team of people who can help you build this venture
The only thing you are missing is money. You need cash to help you scale your
company. You have already borrowed money from family and friends to help you
validate your concept.
But now you want investors. This Feasibility Report and Pitch Presentation is what
you will use to recruit investors.
 Instructions for Feasibility Report and Pitch
Presentation

Feasibility Report (25% of grade) Pitch Presentation (10% of grade)

• “Feasibility” – the possibility of • 5-minute PowerPoint presentation
working delivered to entire class
• Formal, written report • Summarizes the Feasibility Report
approximately 8-10 pages long • It is a persuasive, sales pitch to
• Detailed examination of the potential investors, like “Shark
product, market, financial, Tank”!
organizational feasibility • Due on the date assigned to you
• Submitted to Canvas on Nov. 9th. • A sample Pitch Presentation is
located in Canvas.
 Instructions for Feasibility Report and Pitch
Presentation
• You will come up with an original product or service idea – something that does not
already exist.
• It can’t just be different – it has to be better than the existing options
• Focus on smaller problems – be incremental; don’t shoot for radical improvement
• You don’t actually have to make it – it is a hypothetical scenario – but it should be
possible to make it (sorry, no time machines)
• This product should not take a lot of money to start – no luxury yachts
• It should not be so complicated that you can’t figure out how much it would cost to
manufacture it
• It cannot be an app! Your product may have an app associated with it, but the app
can be the product
 Instructions for Feasibility Report and Pitch
Presentation
• You should have an idea picked out by Oct. 1st If you don’t have one
by then, we must meet after class or via Zoom to brainstorm and
discuss ideas
• The Feasibility Report serves as the basis for the Pitch Presentation,
not the other way around
 Instructions for Feasibility Report and Pitch
Presentation
• Starting today, if you do not have an idea yet, you should do the
following: in your everyday life, look for pains, gains, and developing
trends
Approaches:
1. Start an “opportunity journal” – keep this with you at all times to
keep track of life’s annoyances, aggravations, and pains. Is there a
product or service that would “relieve” this pain?
2. Interview people, like friends, family and coworkers. Would pains do
they experience? Caution: if you can’t relate to the pain, this may
be more challenging to write
 Instructions for Feasibility Report and Pitch
Presentation
Approaches, continued:
3. Ask “Why?” a lot
• Why can’t this be easier to use?
• Why can’t this be made of different material?
• Why can’t this be done faster
4. “Slice of Life”
• Examine all the activities you do during a specific time of the day
• 3- 5pm workout
• 6-7am wakeup and get ready to start your day
• 6-7pm home from work and preparing to eat dinner
 The following is a
demonstration on how to build
your Feasibility Report
This is based on an idea my son and I had for a fishing backpack
The Feasibility Report should examine your
venture ideas along four dimensions:
1. Product feasibility – can it be done and does it create value - solve a
problem or address a gap in the marketplace
2. Market feasibility – is the market large enough to sustain growth, is
the timing good, do you know who your customers are
3. Financial feasibility – will it make a profit
4. Organizational feasibility - Can you and the team you assembled
execute on this idea
 Feasibility Report
Product Feasibility Sections 1-4
1. Company name, slogan, and logo
2. Customer Value Proposition statement
3. The Problem
4. The Solution
 Section 1: Company name, slogan, and logo

The Mobile Angler Fishing

Backpack

“Spend more time fishing and less

time tripping.”
 Section 2: Value Proposition Statement

The Mobile Angler is in all-in-one fishing backpack for avid fishers who
want a convenient way to carry all their equipment on their back.
 Section 3: The Problem

Carrying all your fishing gear while

riding a bike is very difficult!
Last week my friend got his rod
stuck in his spokes – ruined the $75
rod and he fell off his bike, spraining
his wrist!
Section 4: The Solution
Our unique all-in-one design makes it
easy for you to store and carry all your
fishing equipment and accessories.
No more worrying how you are going
to carry everything, especially while
riding a bike.
It’s lightweight, durable, comfortable,
and waterproof, perfect for the fisher
on the go!
I have set up an assembly station in my
garage for retrofitting the backpacks.
 Feasibility Report:
Marketing Section 5 - 8
5. Market Analysis
6. Market Research/Customer Discovery
7. Competitor Analysis
8. Getting Customers
 Section 5 – Market Analysis
Product: The Mobile Angler Fishing
Backpack
A. What is the market size? How did you calculate it?
Option #1 – Use IBISWORLD in FGCU Library databases
Unfortunately it may not be specific enough, like below:
 Section 5 – Market Analysis
Product: The Mobile Angler Fishing
Backpack
A. What is the market size? How did you calculate it?
Option #2 – Google it – “fishing gear”
Unfortunately it may not be specific enough, like below:
 Section 5 – Market Analysis
Product: The Mobile Angler Fishing
Backpack
A. What is the market size? How My market is Florida:
did you calculate it? 3,120,483 kids x 23.6% = 736,434
Option #3 – Calculate it
Obviously not all kids will be
interested in fishing are going to
buy this, but based on my
customer feedback, 1 in 10 will.
That’s 73,643.
73,643 x $50 = $3,682,150
 Section 5 – Market Analysis
Product: The Mobile Angler Fishing
Backpack
B. Why is this a good time to
enter the market? Trends!!!

Due to COVID 19, the following trends have started to

appear:
More people spending time outdoors in low-density
activities
Families spending more time together
Renewed interest in the simple things
Kids not attending summer camps, but still want to
recreate
Section 6 – Market Research Customer Discovery
Product: The Mobile Angler Fishing Backpack
A. Who is your primary customer?
Provide a detailed customer
archetype with relevant
demographic and psychographic
information, and a photo.
This is Carter, 13 years old, lives in
North Naples with proximity to
ponds and lakes, gets around by
bike, fishes 3 times per week.
 Thoughts on customer discovery

The Mobile Angler Fishing Backpack idea is LOADED with assumptions!

1. That Carter has a problem transporting all his fishing gear on his bike.
2. That Carter cares enough to try and fix it.
3. They Carter doesn’t already have a solution.
4. That your solution will work for Carter.
5. That Carter will pay for your solution.
So, you need to use empathy and see the world through carter’s eyes.
 Thoughts on customer discovery

You don’t have to talk to EVERY 13 year fisher in North Naples.

 Thoughts on customer discovery
1. Stop – hypothesis not validated. Don’t spend any more time on this
now. Search for another idea.
2. Pivot – don’t spend any more time ON THIS IDEA, but pivot to a new
idea based on what you learned in your customer discovery
3. Pursue this idea – hypothesis validated! Design some prototypes.
Once you have the design close , create an MVP to show your
customer archetype for more feedback/validation
Section 6 – Market Research Customer Discovery
Product: The Mobile Angler Fishing Backpack
B. What have you done so far to
validate your idea?
Went to a popular fishing spot and
talked to 20 kids about what they are
currently using to carry their fishing
stuff.
Showed them a prototype and asked
for feedback.
Spoke to 30 parents and asked if they
would consider buying it as a gift for
kids.
Other ways to validate your idea
 Section 7 – Competitor Analysis and differentiation (grid)
Product: The Mobile Angler Fishing Backpack
Under
Offerings Mobile Angler Armour Wild River Motivatysa
Rod holder X   X X
Tackle Box X   X X
Cooler X   X  
Sunscreen X      

Insect repellant X      
Water bottle X      
COVID kit X      
Under $50 X X    
 Section 8 – Getting Customers

1. How will you introduce this idea to Launching in North Naples using word
the market of mouth and social media
 Feasibility Report:
Section 9 Financial Feasibility

• Calculate the one-time start-up costs you will incur in creating your
product/service.
• At a minimum, you will have a Filing fee for State of Florida - $138.75
• For the Mobile Angler backpack – 5 large plastic bins,
some tools (saw, vise, pliers) = $450
If you need more than $1,000, you must ask for that
money in your “call to action.”
 Feasibility Report:
Section 9 Financial Feasibility
Building a Pro Forma Income Statement

• An income statement shows the financial

performance of the firm, typically measured over a
period of time (month, quarter, year).
• A “pro forma” income statement is a projection of
future performance. This is what you will include
in your Feasibility Report.
 Step 1 - Calculate cost of goods sold

Backpack $8 •Cost of goods sold includes the

Tackle box $5
materials and labor in
Cooler $2
manufacturing the product
Flashlight $2

Insect repellant $5 •It requires $25 in materials and

Water bottle $2
one hour of labor to retrofit the
PVC, ties, etc. $1
backpack with all the features. I will
Total cost of materials $25 be paying myself $10/ hour.
•COGS: Cost of materials ($25) +
Labor ($10) = $35 per unit
 Step 2 – Determine pricing strategy
• The average high-quality backpack retails for $50, so I did not
want to price it any higher. With a $50 price, I will be able to
generate $15 profit on each unit. That profit will help offset
other SG&A expense incurred each year, as well as provide
an immediate cash flow to meet pre-paid expenses for
purchasing materials
 Step 3 - Estimate Sales to calculate revenue projections

We have, at least initially, very conservative sales projections.

We anticipate selling 10 backpacks our first year. As are
marketing and outreach efforts start to gain traction and word
of mouth spreads, we project selling 100 units in Year 2. These
are all to direct-to-consumer sales. By Year 3, however, if we
are able to fortify our distribution channel and secure retail
accounts, we project sales increasing to 1,500 units.
 Income Statement

 The Mobile Angler Year 1 Year 2 Year 3

Revenue $500 $5,000 $75,000

Cost of Good Sold      

Gross Profit      

SG & A Expenses      

Net Profit      

Notes:
Product price: $50
Sales per year: Year 1 - 10, Year 2 - 100, Year 3 - 1,500
 Income Statement
  Year 1 Year 2 Year 3 Gross profit calculation:
Revenue $500 $5,000 $75,000
Cost of Good Sold $350 $3,500 $37,500 Revenue – Cost of good sold =
Gross Profit $150 $1,500 $37,500
SG & A Expenses       GROSS PROFIT
Net Profit      
The spreadsheet in Canvas
Notes:
COGS: $25 per unit: $15 materials, $10 labor calculates that automatically for
First year Start up costs: purchase of production equipment: $250
you
 Step 3 - Calculate sales, general and administrative expenses:

Remember, there is A LOT you can get for free: website, social media
for marketing, Excel for accounting, etc.
• Filing Annual report - $138.75
• Misc. office supplies - Print cartridge for printer ($40), paper ($8), etc.

Total S,G, & A Expenses = $350 for the first year and a little bit more
each year as I sell more product.
 Step 4: 3-Year Pro Forma Income Statement
  Year 1 Year 2 Year 3 Calculations:
Revenue $500 $5,000 $75,000 • Gross Profit is calculated by
Cost of Good Sold ($350) ($3,500) ($37,500) subtracting COGS from revenue
Gross Profit $150 $1,500 $37,500 • Net profit is calculated by
SG & A Expenses ($350) ($500) ($750) subtracting SG&A expenses from
Net Profit -$200 $1,000 $36,750
gross profit
• Net profit margin = net
profit/revenue
Notes:
Price per unit - $50
Sales by Year: 1 – 10, 2 – 100, 3 – 1,500
Cost of good sold: $35 per unit
By year 3, cost of materials to decrease by $10 per unit as a
result of bulk discounts and labor efficiencies
Profit margins: Year 2 – 20%; Year 3 – 49%
 Feasibility Report:
Section 10 Organizational Feasibility
Building a Team

• You have a product or service people want, a favorable market in

which to sell it, and a business model that suggests you will make a
profit.
• Now you need to convince potential investors that you have
assembled the team that can execute on this idea.
• NOBODY does it alone!
• So who do you need on your “start-up team”? Incidentally, this is all
hypothetical for the purposes of this assignment.
 Section 10: The Team
Do you need subject matter experts? For example, if you are launching
an innovative ladies apparel brand, you are going to need an
experienced garment buyer. Maybe you are creating a football helmet
that can identify concussion-level impact. You are going to need an
industrial designer. (Use Google images.)
 You may also have “business advisors”
Perhaps it is a family member or • You need to give everyone on
friend with lots of business your team a name, title, what
experience. You can use an actual they will be doing, and what
picture of this person or Google expertise they bring to the team.
images. Example:
• “My sister Jennifer Jones is a
sales manager for a Fortune 500
company and has an MBA from
Duke. She will be advising me on
marketing strategy.”
The Mobile Angler Fishing Backpack Team

Prof. Lennertz – President Harrison Smith – Sales Grant Lennertz – Chief Innovation Officer
 Section 11: The Call to Action
Remember, this is a presentation to potential investors.
You want them to give you cash in exchange for equity (ownership) in your
company.
Calculating the value of your company is difficult for the following reasons:
• Since it is a hypothetical situation, coming up with realistic financial
calculations are challenging.
• Determining the value of a company can be done in several ways, but it is
beyond the scope of what we are learning in this class.
• Consequently, just “ballpark” some figures
 Section 11: The Call to Action
Try it out!
Investors Spend more time fishing and less time tripping!

10% equity for $10,000

Funds will be used to buy raw
materials in bulk, which will lower
the unit cost of production.
For investors, this is a great opportunity
to make money - I’ll do all the work so
you can go fishing!
 Section 12: References
• You do not need this for the Pitch PowerPoint, but it should be
included in your Feasibility Report.
• Use APA citation and reference listing
 Tips for the Pitch Presentation
• PowerPoint should have lots of images and very limited text. The
details can be found in the Feasibility report.
• Style counts. PowerPoint should be visually appealing.
• This should be a high-energy presentation! DO NOT just read off your
slides. You should have practiced this presentation and can deliver it
naturally and confidently. (I suggest standing but it is up to you.)
• You should dress nicely!
• Start strong – ask a question or tell a compelling story
• Finish strong – leave them with something to think about
 Entrepreneurship & Creativity - Scoring Rubric for Presentations 1 - 12.5
1 Enthusiasm - volume, pace, energy, hooks
2 Articulation - clear, confident voice, no filler words
3 Presence - professional manner, eye contact, smile, appropriate dress
4 Clarity - logical, clear descriptions
5 Structure - follows 11 slide format, correct sequence
6 Subject Knowledge - addresses all sections completely, uses correct terminlogy
7 Slide Templates - limited text, use of images, creative
8 Time - stays within time frame

Total score 0