Article of the Day

The Future of Agriculture – Economist


The seafood counter historically is the only place in the grocery store where we have been hunting and gathering, and that is rapidly changing to a farmed environment. And with the interest in local and domestic production, sustainability, and carbon footprint, the emphasis is now on producing more seafood here in the U.S.
~ Joe Hankins –  Director, Freshwater Institute

Six Reasons Salmon Production in Iowa is Interesting

I am part of a startup business, Inland Sea, that in September publicized for the first time an intention to build a recirculating aquaculture system facility to produce salmon in Iowa, specifically a site in Harlan.  With a two-acre footprint, this large-scale, bio-secure and efficient facility will result in weekly harvest of approximately 100,000 pounds of salmon, 5.3 million pounds annually.

ras-tank-renderingRendering of Salmon Production Tank ~150 feet in Diameter

We believe indoor fish production is the emerging frontier of aquaculture and the most promising systems to emerge for indoor, efficient production are recirculating aquaculture systems (RAS), and it’s been interesting for the last month to get a deeper sense of other people’s thinking on the topic.  As we’ve conducted a series of public meetings about the Inland Sea-Harlan project, a sense of people’s interest in the project has emerged based on the questions they ask.

A common question to the Inland Sea team, however, is why we became interested in this opportunity.  The top six include the following.

  1. The technology model has been proven elsewhere – Multiple RAS salmon production facilities are currently operational in Europe. These European RASs have demonstrated capability as environmentally sustainable and scalable, with the ability to guarantee both the safety and the quality of the fish produced.
  2. Competitive unit economics – The economics of aquaculture starts with feed conversion. One advantage fish have over land animals is feed conversion. Fish need fewer calories, because they’re cold-blooded and due to living in a buoyant environment, they don’t fight gravity as much. It takes roughly a pound of feed to produce a pound of farmed fish; it takes almost two pounds of feed to produce a pound of chicken, about three for a pound of pork, and about seven for a pound of beef. The salmon produced in a model facility in Denmark has demonstrated a feed conversion ratio of approximately 1.10.
  3. Salmon consumption has upside potential – U.S. salmon demand grew rapidly in the 1990s, and has been relatively flat since because of higher prices and constrained supplies. Salmon passed tuna as the second highest consumed seafood in the U.S. in 2013, coming in at 2.7 pounds per capita compared to 3.6 pounds for shrimp and 2.3 pounds for tuna. In addition, salmon is the only seafood consumed primarily as a premium product rather than frozen or canned.  A one pound uptick per capital in U.S. salmon consumption would require about 60 Harlan facilities worth of production to fill.
  4. The next model of salmon production – Due to biological constraints, seawater temperature requirements and other natural constraints, seaside farmed salmon is primarily produced in Norway, Chile, UK, North America, Faroe Islands, Ireland, and New Zealand/ Tasmania. Seaside salmon aquaculture production has reached a level where biological boundaries are being pushed. The Chilean industry, for example, has had significant struggles with disease, sea lice, and algal blooms in recent years. In addition, seaside salmon aquaculture production can occur only in a few areas globally because of water temperature and there is little upside production potential remaining. Future production growth of any significance will need to come from RAS systems.
  5. A fantastic food – A good aim for a food business is to make a fantastic product, and salmon from RAS production fits the bill with great texture, taste and nutrition profile.  And, of course, fresher is better.  Salmon has been termed by nutritionists as a superfood for its health impact. It is one of the best sources of omega-3 fatty acids, particularly EPA and DHA, which are nature’s heart medicines.
  6. Iowa and aquaculture are a fit – The major input for salmon, like any animal protein, is feed. Iowa is one of the lowest cost feed ingredient locations in the world. Another major input for RAS salmon is electricity, and Iowa has one of the lowest kWh prices in the nation. Finally, the salmon you eat in the Midwest travels approximately 4,000 miles from Norway or approximately 5,500 miles from Chile. We anticipate that salmon production in Iowa will have an out-of-the gate transportation cost advantage of approximately $0.50 to $1.00, aside from a freshness advantage.

We know other agricultural entrepreneurs working on aquaculture projects, driven by similar reasons to ours at Inland Sea.  But what other opportunities may be driven by one or more reasons similar to the above?  What opportunities are there for other proteins?  How might technologies deployed in RAS systems (sensors, water treatment, precision feeding, biological controls) be deployed for agricultural production beyond fish?  What opportunities for entrepreneur may emerge as new industries emerge in new areas?

Article of the Day

Why Grass-Fed Beef is on a Roll – Wall Street Journal

Supermarkets Make Stars Out of Weird Apples, Knobbled Carrots and ‘Spuglies’ – Wall Street Journal


This magical, marvelous food on our plate, this sustenance we absorb, has a story to tell. It has a journey. It leaves a footprint. It leaves a legacy. To eat with reckless abandon, without conscience, without knowledge; folks, this ain’t normal.
~ Joel Salatin, farmer and author of Folks, This Ain’t Normal; You Can Farm

Food as a Lifestyle Purchase

A megatrend I see underlying change in agriculture and the food industry is a switch from food purchases for taste and convenience to a lifestyle item.  This megatrend expresses itself in all kinds of ways, but it presents both challenges and opportunities to agricultural entrepreneurs.  The ugly fruit and vegetable campaign, growth in grass-fed beef, the bigger organic aisle at your grocery store, local food fans.  All these are indications of changes in U.S. food markets that are being driven by our customers.


Case – Whole Foods. Whole Foods Market Inc. is the grocery store chain featuring foods without artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats.  It is the United States’ first certified organic grocer.  It started in 1980 in Austin, Texas and now has more than 400 stores and 90,000 employees. On a trip to Austin last summer, I spent three hours in the first Whole Foods store.  I talked with staff and customers and checked out products and produce.  Austin is certainly not Ames from a cultural perspective, but I came from that tour with an even stronger sense of the underlying shifts in consumer preferences for food. Consumers interest in the health characteristics, production methods, source, and environment impact of what they eat is increasing, and it’s not a fad that will run its course.   You may or may not be a fan of items in the organic aisle, but its become almost 4 percent of U.S. food purchases, approaching a $40 billion market.


Case – Sawmill Hollow Family Farms. Sawmill Hollow Family Farms in western Iowa is a great example of a farm-to-table business riding the megatrend wave.  Andrew Pittz pioneered growing aronia berries, a native superfood with polyphonolic compounds, including: antioxidants, anthocyanins, resveratrol, proanthocyanins, now considered to be one of the most nutritionally dense fruits on the planet. He evangelized the products made from aronia berries, and has forged a place in the market for a growing array of superfood products.  From an entrepreneurial perspective, consider the boxes he’s checked in developing his business.  Crop/product with an intriguing story – check.  Product traceable to farm – check. Product with unique and marketable nutrition and health traits – check.

Case – Blue Apron.  Blue Apron is a meal kit business founded in 2012 that now delivers more than 5 million meals monthly.  Blue Apron’s approach, the meal kit, offers the convenience of delivery while keeping home cooks in the kitchen. The precisely portioned dinners minimize waste and allow consumers to try ingredients they might not otherwise buy, at a price they’d have trouble matching–roughly $10 per meal per person.  And many of the ingredients are sourced directly from farms.  Is this sort of service just for people in cities?  I heard about Blue Apron from a student who’s parents live in rural Iowa.  Both are busy so they enjoyed the convenience, the quality of the ingredients and meals, and the introduction to new food ideas.

What does food as a lifestyle purchase mean for opportunities for agricultural entrepreneurs?  That’s difficult to forecast, but it’s safe to say that there has never been a better time for the imagination of entrepreneurs to define the future of food and agriculture.  Emergent sweet spots will continue to emerge for entrepreneurs who can reduce transportation costs, have fewer levels between farm and consumer, and create novel products and experiences.

What opportunities do you find most interesting that may be driven by tomorrow’s food consumers?  How will those opportunities shape agriculture and the food industry?

Article of the Day

Idea Evaluation Checklist – Entrepreneur


“Every problem has a solution.  You just have to be creative enough to find it.”
Travis Kalanick, Uber

Evaluating Early Stage Ideas for Startups

The beginning idea for a startup business is only part of what’s necessary to get to a viable business, but it certainly helps to start with a quality idea.  So how should aspiring entrepreneurs both come up with and evaluate the potential of new business ideas?

A tool I’ve developed to help students evaluate their own and other student startup ideas is the Startup Evaluation Matrix.  It also serves as the rubric by which I formally evaluate and grade new startup business concept papers.  In addition, I increasingly use it when speaking to aspiring entrepreneurs from outside the course who are looking for feedback on their ideas.

Startup Evaluation Matrix - Kevin Kimle - Iowa State University

Each of the elements of the Startup Evaluation Matrix reflects a yin and yang relationship; complementary, interconnected, and interdependent forces that shape its attractiveness. This balance in a startup business idea is difficult to shape, yet one that consistently comes through in the most attractive startup concepts.

Migraine Problem/Value to Customer – I use Diana Kander’s all in startup book’s notion of a problem that represents a significant opportunity, a migraine problem. A business needs to solve a problem so significant that customers will do whatever it takes to solve it, including paying someone else for a solution.  Envision the problem as a migraine headache.  The flip side of the problem is the value of the solution to the customer.  Does the solution have a clear and significant advantage?  Does it hit the ‘homerun’ of being better, faster, and cheaper?  Does the solution deliver value while making life simpler for customers?  So many technology startups miss this mark in that they may be able to solve a problem, but they are so complex or require such significant changes in behavior that they simply will never be considered viable by most prospective customers.

Niche Now/Big Market Potential – Peter Thiel in Zero to One writes that entrepreneurs need to look for ‘monopoly’ opportunities; markets where they can shield their businesses through various means from competition that will bid their profits to zero.  I think of attractive market opportunities for startups as being markets that are niches currently, but with the potential of big growth.  When we started E-Markets in 1996, there was not really a market for Internet-based electronic applications in the agribusiness space.  However, the Internet was new as a platform, and clearly had significant growth potential as a better, faster, cheaper platform for e-business.  Today I see agricultural entrepreneurs working on indoor aquaculture, robotics, diagnostic software, and other areas that have an undefinable market opportunity today, but huge potential in tomorrow’s market.

Doable Now/Unique Solution Long Term – Rarely is their something completely new, whether a technology, production system, product, service, or method.  Rather, entrepreneurs combine old things in new ways, and new places to create new solutions to new audiences.  New ideas build on old ones and combine them in unique, new ways. Quality startup ideas balance the do-ability of a new solution near-term with its long-term uniqueness.  A startup that will truly scale can’t be a copycat, it must aim to solutions that are unique and represent the target for which copycats aim.

Contrarian/Surprise Element – An attractive startup idea has some element that is contrarian.  It is treading left while everything else is treading right.  Perhaps that arises from the independent-minded nature of entrepreneurs who chart their own course.  The contrarian nature of interesting new business ideas also lends an degree of surprise or unexpectedness.  The highest impact startups will be something that could not be predicted by most people in advance.  The innovations that disrupt an established market will be initially dismissed by businesses that will eventually be put out of business.  In 1996, I was involved in a consulting project for Kodak.  The Senior VP we worked with dismissed the strategic threat of digital cameras.  Kodak was the first company to market a digital camera in the 1990s, but largely ignored the opportunity. Kodak filed for bankruptcy in 2012.

Deciding the quality of a startup business idea is more art than science.  Malcolm Gladwell’s Blink explains that choices that seem to be made in an instant-in the blink of an eye-actually aren’t as simple as they seem.  I know great investors and entrepreneurs that very quickly assess a startup idea, a business plan, or the viability of a new product or service.  I suspect that they have some kind of internal matrix-like structure that enables them to make snap judgements that are most often on-target.  Their mental matrix has been developed based on experience, but I’ve found that the Startup Evaluation Matrix is a means to embed a beginning way of thinking for less experienced entrepreneurs too.

How would you apply the Startup Evaluation Matrix to the following early stage agricultural businesses?  Which of these business concepts holds the most promise?  Why?

FarmStockNY, LLC – FarmstockNY is a New York based vertical farm delivering locally grown, premium quality produce using only the best organic practices. We use substantially less resources and can produce 10 times more yield (utilizing patented growing towers) than traditional farming methods. With our proprietary greenhouse and business model we can offer a large array of produce in an ecologically and economically sustainable way at very competitive prices.

EndoBiome – Current agricultural practices will be challenged to safely meet the nutritional needs of future populations. EndoBiome was founded to to tap the diversity of the plant microbiome to produce microbial products that increase agriculture. yield and sustainability. Endobiome is differentiated by a proprietary isolation process that yields beneficial microbes and a high-throughput bioassay to identify microbial products that improve root systems.

FarmShots, LLC – FarmShots automates the detection of diseases, pests, and poor plant nutrition on farms. We’ve grown rapidly over the past two years- scaling from small farms to more than 300,000 acres across the United States. We’re excited to be changing the face of agriculture as we know it.

Farb Guidance Systems – Formed with the purpose of developing, manufacturing, and marketing the next generation of machine guidance technology for agriculture: agricultural machinery that drives itself and can be guided and controlled from anywhere in the world. The technology, in conjunction with the equipment, will increase production and profits, decrease accidents, and help develop regions of the planet un-farmable today.

Video of the Week

What do you know that no one else understands? – Peter Thiel


“Try your hardest to combat atrophy and routine. To question the obvious and the given is an essential element of the maxim ‘de omnius dubitandum’ [All is to be doubted].”
~ Christopher Hitchens, Letters to a Young Contrarian

Contrarian Agriculture

          Opposite in nature, direction, or meaning.

The entrepreneurial paths with the most upside potential are those that are new and untried.  Identifying those paths comes, at least in part, from the way the entrepreneur looks at and interacts with the world around him or her.  While pleasing other people is not a bad habit, agreeing too quickly with others on the way the world works today dampens one’s ability to identify interesting opportunities.

In addition, being willing to try new things that may invite questions or even ridicule.  It is difficult if professional acquaintances  have doubts about something you’re working on, but how much harder is it if the doubts come from family and friends?  Courage is a great word for behavior in extreme circumstances, but what about behavior in more day-to-day circumstances?

My contention is that entrepreneurs find ways to be contrarian.  In doing so they uncover ideas, pathways, and ultimately businesses that are trail-blazing.  Peter Thiel gets at this in interviews and his book Zero to One by asking ‘what truth do few people agree with you on?’

One method I suggest to students for putting your inner contrarian to work is to capture it in a persona.  In my case, I envision a neighbor of my grandfather named Vladi.  Vlcdi was dead before I was even born, but I still recall Grandpa’s tales about the sheer orneriness of Vladi, and some of the funny reactions to his behaviors.  So my inner contrarian takes the form in my mind of a German-accented farmer in 1930s bib overalls growling disagreement at those people and situations he encounters, just for the amusement of it really.

Another means of honing your contrarian skills is to examine bits of conventional wisdom and where you may differ from it.  Conventional wisdom is the body of ideas or explanations generally accepted as true by the public or by experts in a field.

Conventional wisdom, to be fair, is conventional because it has some element of truth.  Thinking in a contrarian way about it, therefore, is more an exercise in critical thinking and reasoning than in mere disagreement.

Five examples of what may be taken as conventional wisdom about entrepreneurship includes the following.

  1. Successful entrepreneurs love big risks.
  2. A well-written business plan is the first outcome of the entrepreneur who is starting a new business.
  3. Marketing of a new product trumps the actual functionality of the product itself.
  4. The past experience of an entrepreneur is the best predictor of whether his or her startup will succeed.
  5. Breakthrough, disruptive, innovative new products and services are usually completely new to the world and can be patented.

What does your inner (or outer!) contrarian tell you about any one of these five examples of conventional wisdom about entrepreneurship?  Reply to this post.  In addition, reply not only to this post but to those of other respondents.  Do you disagree with any of these examples of conventional wisdom?

Unleash your inner contrarian!

Article of the Day

In divisive election year, voters agree: Infrastructure needs fixing – Agri-Pulse

“Economic development provided the basis; Lincoln said much later, that would allow every American ‘an unfettered start, and a fair chance, in the race of life.” – From Team of Rivals, Deloris Kearns Goodwin’s book on President Abraham Lincoln and his cabinet.

Key Infrastructure for Disruptive Agricultural Technologies

Sara Wyant from Agri-Pulse asked me to participate in a forum this week on rural infrastructure.  Roads, railroads, locks, roads are each examples of infrastructure important to agriculture and rural economies.

The middle part of the U.S. produces a high proportion of U.S. ag output, much of it big and bulky, but efficiently ships those products to customers on the coasts and around the world.  In many ways it was the transportation ability of the Mississippi and associated rivers that enabled the economic development of the U.S. beyond the east coast. and the ability to ship products efficiently has remained part of the competitive advantage of the U.S. even as other modes of transport have developed.

As part of a panel asked to address disruptive innovation and agricultural infrastructure, I identified four key inputs for disruptive agricultural technologies.

  1. Electricity – Electricity is a key input to agricultural technologies involving microchips, controller, sensors, and a range of technologies that will form the basis of robotics and artificial intelligence taking root in agriculture.  Hydroponic and aquaponic technologies are now being used to grow vegetables and deliver them locally twelve months per year.   Use of software and drones is playing an increasing role in crop scouting.  Microchips are being placed in many traditional pieces of agricultural machinery, enabling them to connect to other devices and enabling better decision making based on new streams of data.  In Iowa and most of the Midwest, electricity infrastructure and cost levels are quite good.  Iowa, for example, has a strong group of rural electric cooperatives that are poised to play a key role in emergence of agricultural technologies.  Grade: A.
  2. Water – The FAO estimates that only 0.003% of earth’s water is available for human use.  Yet it takes a lot of water to produce agricultural products.  Water use and water quality are huge issues for agriculture and certainly a key input for disruptive agricultural technologies.  Indoor aquaculture systems are  a key emerging example of technologies that involve water.  Can we produce fish in a sustainable way and relieve pressure on wild catch and environmental issues related to sea and pond-based aquaculture production systems?  Can we use technology to improve water quality in agricultural production systems?  Water in the rural Midwest is largely available, but water quality in streams related to agricultural production is a challenge.  In addition, the water treatment infrastructure of many rural communities could be challenged by both emerging regulatory and consumer issues. Grade: B.
  3. Bandwidth – The Internet of Things has many possibilities for agricultural technologies, with devices, machines, and even crops and livestock connected to the cloud for sensing, monitoring, analysis and intervention.  The possibilities, however, are limited in broad swaths of rural America for lack of bandwidth/cell phone signal.  Given a geographic footprint that’s big and population that’s small, there are inherent constraints to investment in significant infrastructure for rural areas, but clearly there needs to be some sort of breakthrough in wireless technology for agricultural technologies that find value through connecting to the cloud in rural areas.  Grade: C.
  4. Human Talent – The core input for disruptive technologies in agriculture is people.  Whether entrepreneurs who invent and commercialize technologies, or the people that work with them, human talent is key.  The potential for technology is unlimited because it is linked to human imagination, which has no boundaries.  The Agricultural Entrepreneurship Initiative and Iowa State Univeristy has impact in this through the work our graduates do in rural communities, as well as other higher education institutions.  But that’s only part of the population.  I fear our public schools, especially at the high school level, are not preparing rural young men and women as well as they could for careers of impact in their communities.  Grade: ?.

What do you think are the key pieces of infrastructure for agriculture’s future?  Which parts of that infrastructure do you anticipate will be important for your career and entrepreneurial aspirations?

Article of the Day

The 10 Rules For Successful Entrepreneurs – Forbes

Economics aside, this is what underpins entrepreneurship for me: freedom, independence and the ability to choose.

~ Luke Johnson at the UK launch of Global Entrepreneurship Week, 2013

Entrepreneurship. So What?

Does entrepreneurship matter?  I ask this question of students the first day of class each semester.

The first answers to this questions are usually about the big picture.

Entrepreneurship matters because it creates jobs.  Quite true.  Kauffman Foundation research shows that if startups were removed from the U.S. since the 1970s, there would have been non net job growth since then, even as the workforce has grown substantially.  Small businesses employ 80 percent of workers in the U.S., so take them out of the equation and there are serious problems.  Large businesses are important and garner the bulk of publicity, but the real horsepower and dynamic for change in the economy comes from entrepreneurs and small businesses.


Entrepreneurship matters because it drives innovation. The innovations that define the modern world came from entrepreneurs and entrepreneurial organizations.  I type this post on a Macbook Air (Apple founded by Steve Jobs, Steve Wozniak, and Ronald Wayne, 1976), using a WordPress application (WordPress founded by Matt Mullenweg and Mike Little, 2004), seated at HON desk and chair (HON founded by C. Maxwell Stanley in 1944), in my home that is heated and cooled by Lennox equipment (Lennox founded by David Lennox, 1895).

Entrepreneurship matters because it creates wealth. Entrepreneurs create the machines, methods, and systems that make us more productive, thus more wealthy.  New businesses exhibit a ‘churn’ dynamic where  innovative and successful firms grow rapidly and become a wellspring of jobs and economic growth, or quickly fail and exit the market, allowing capital to be put to more productive uses.  Those with a mis-informed view of failure view the churn of startup firms as negative, but in fact this is the dynamic that represents progress in wealth creations.

Leaving the big picture behind, I ask students if entrepreneurship is important to them.  Why might a university student care?

Typical answers from students include the attractiveness of being their own boss, the ability to earn more money if successful, the ability to design a lifestyle of their choosing, and the freedom to make an impact in markets they care about.

These answers are all good, but it draws them toward the idea that entrepreneurship may matter to them as young professionals because they should strive to live a professional life of impact and meaning.

Depending upon the source, more than one-half of Americans respond to surveys that they are not satisfied with their job.  How bad is it that more than one-half of people report that they are unsatisfied with something that occupies the majority of their waking hours?  At some point a person needs to take command of their professional life and make a change that positively impacts their satisfaction.  Anything else is just excuse making.

Being an entrepreneur, starting a business, is indeed a powerful professional choice.  Deciding to be entrepreneurial, however, is even a bigger one.  It implies dedicating yourself to making an impact whether at your own business, someone else’s business, or even in a non-business setting.

Being entrepreneurial implies development of life skills.

  • Critical thinking – The ability to ask the right questions.  Knowledge and experience is valuable, but even more important is the ability to ask the right questions at the right time.
  • Creative problem solving – A natural instinct is to avoid problems.  An entrepreneurial instinct is to seek deeper understanding of problems and then search for solutions.
  • Communication – The ability to persuade is the ability to lead.  The two most powerful words in English: “Follow me.”
  • Teamwork and networking – A fundamental part of the entrepreneurship process is organization building.  If a business is to achieve any scale and long-lasting sustainability, it needs to build a winning culture, team, and network of supporters, customers, and stakeholders.
  • Persistance – The value of an enterprise is related to its knowledge, and that knowledge builds through overcoming mistakes, learning from them, and doing things better as time goes on.  It’s a process that never stops, so persistence through the inevitable ups and downs involved in anything of consequence is key.

Why does entrepreneurship matter to you?  What is your vision for building your skills to be entrepreneurial?

Article of the Day

In Defense of the Deck – Bill Gurley, Above the Crowd

Video of the Day

The Benefits of Mapping Plan A – Randy Komisar, Kleiner Perkins


Investors are not solely evaluating your company’s story. They are also evaluating your ability to convey that story.
~ Bill Gurley, Benchmark Capital

Designing a Killer Business Plan Presentation

Elevator pitch competitions are a great means for an entrepreneur to polish their skills in communicating a business idea as well as their ability to persuade.  There is a distinct difference between an elevator pitch and a business plan presentation, however, and I fear that many entrepreneurs fail to recognize it.  Instead they turn an ninety second pitch into twenty minute pitch and fail to connect with prospective investors, partners, and supporters.

A killer business plan presentation is not just a pitch.  It’s not just a slide deck.  It’s not just a recitation of projected financials.  Rather, it’s an experience that will energize an audience about a business and the team that’s a part of it.

A killer business plan presentation is designed, not prepared.  It’s a dialogue where a problem is resolved using a creative solution and the improved future result is described in glorious detail.

Here are some tips for designing that killer business plan presentation.

Tell your audience stories – People learn and remember in story form.  You want the audience to be curious to turn the page.  They wan to know what comes next.  To Bill Gurley’s point above, you also need to sell yourself as part of the stories, but the form is the narrative around the problem your business solves, how it solves it, and how your business will carve out a place in a market are key.  In one of our early, early presentations on E-Markets, I recall a listener remarking that we had our ‘story down.’  I didn’t really get what he meant a the time, but he was a more experienced entrepreneur and he appreciated the narrative we’d created on why the business was needed.

Create a dialogue with your audience – Your aim with a business plan presentation to engage the audience by creating a real back-and-forth dialogue.  As you structure your presentation, deliberately leave out important bits of information that will elicit questions from your audience.  Ask your audience questions and ask for feedback.  In our investor presentations at E-Markets, myself and the two members of the team that were always with me had a certainly rhythm for the presentations.  I was the front guy.  We knew (after many presentations) the questions that would come up and at what point they would come up.  My teammates would take turns answering those questions.  In effect what we were able to do was to create a dynamic conversation on the business and demonstrate that each of the three of us on the management team brought strengths to the business.

Understand the financials and the economics of the business – A discussion of the financial performance and projections of the business is certainly expected in a business plan presentation.  A common mistake is that the entrepreneurs fail to understand the financial economics of the business.  I was at a business plan presentation where an entrepreneur pitched their business and had a fairly good grasp of the financials on top of a really well prepared financial plan.  A question from a potential investor that completely tripped up the entrepreneur, however, was about the unit economics of the business.  “What are the projected costs per pound?”  The investor later told me that he wouldn’t invest in any business where the entrepreneur didn’t have a firm grasp of his or her unit economics.

Tie the audience into the plan – If there isn’t some way for you to tie your audience into your plan, then perhaps you shouldn’t be presenting to them.  Can you energize them to be an investor or customer of the business?  Is there a means of making their personal involvement seem like an exciting and interesting prospect?   You will know you’ve done well in this respect after the presentation is done if a member of the audience approaches you for a more private conversation.

What are the stories about your business that will engage audiences?  How do you create not just a presentation, but a dialogue with audiences?