LEAP Presentation (dated 12 DEC 2013)

Report
LOCAL ENTERPRISE APPLICATIONS AND PRODUCTS
(LEAP) PROGRAM
Briefing to Potential LEAP Applicants
12th December 2013, Knowledge Hub
But, is it innovative?
WHAT IS INNOVATIVE?
“Being creative is thinking up new things”
“Invention shows it can be made”
“Being innovative is making it commercially valuable”
HOW TO BE INNOVATIVE?
There is no magical formula….
•
•
•
•
•
•
•
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Think in new ways……..
Find new uses for old things…….
Analyse why something is not working……
Find solutions for consumer problems……
Identify a niche market……..
Recognise changes in consumer tastes…….
Analyse the failures of others…..
Apply new technologies in new ways…
PROBLEM SOLVING
• Problems mean opportunities.
• Many good ideas come from finding a solution to a problem.
• Before writing your idea, find out if someone else had done
the same or something similar?
• What causes the problem?
• Identify solutions, prioritise the ideal solution and start
designing the idea.
• Lack of support & expertise? Ask for it!
• Choose your team, set up strict deadlines and take action!
LOCAL ENTERPRISE APPLICATIONS &
PRODUCTS GRANT PROGRAM
BACKGROUND
ABOUT LEAP
CONDITIONAL GRANT
WHO CAN APPLY?
Individuals/ start-ups with INNOVATIVE
ideas but have insufficient funds to realize
their venture
 Local company
Bruneian-owned (Citizens, PR) companies
Partnerships/JV companies with foreign
companies can also apply (At least 50%
local ownership)
No of Employees less than 100
*Individuals need to form a company

IHL(Institute of Higher Learning)
students and staffs
Applications
to be made through the IHL
WHAT ARE WE LOOKING FOR?
Strong business plan with commercial applications in private and/or public sector
Open to all industries - ICT, Bio-technology, High-growth sectors, Agriculture &
Aquaculture, Engineering, Food, Environment, etc.
Locally developed or customized foreign-owned technology but must be technically
viable
Strong business model
Clarity in goals, roles and deliverables. What problems are you addressing? What is its
unique value proposition behind this technology or its application?
Outputs leading to new knowledge with commercial potential, IP generated
Identify Benefits vs. Risks
Competitor analysis
Capitalizing on existing available resources in Brunei is an advantage
WHAT ELSE ARE WE LOOKING FOR?
Committed and qualified team
At
least 10% of knowledge workers are local
Have required expertise
Adequate resources
Development team based in Brunei
Potential end user identified (Public/Private) is an advantage
Committed
client/user (Letter of Intent)
Clear and identifiable target market - clear sustainability plan
Scalability/Export-potential is an advantage
WHAT ARE THE QUALIFYING COSTS?
QUALIFYING COSTS
COVERAGE
Manpower*
Up to 90%
Hardware, software,
equipment, machine
Up to 90%
IP costs
Up to 90%
Consultancy
Up to 50%
Rental on 3rd party premises
Up to 50%
Market research (Desktop)
Up to 50%
*Founder allowance – capped at B$1k/ month
Quantum – maximum B$150,000
ALLOWABLE EXPENSES
• Reasonable salary for the Project Team
• Raw materials, tools, equipment, computer, software.
• Necessary personnel, services & technology needed to produce
prototype
(Example: outsourcing fees, testing)
• Specialised consultants & researchers for project feasibility plan
purposes
• IP search, advisory and basic agreement drafting
• Product testing and certification
• Office/ workshop/ iCentre / lab rentals
• Subscription fees of market research materials
UNALLOWABLE EXPENSES
• Funding companies or for company formation business setup,
operational cash flow expenses, founder’s salary, utilities.
• General use 3rd party IT related equipment / software / accessories/
infrastructure for own company use.
• Office Furniture and fittings
• Office/ lab/ workshop renovation works
• Maintenance costs for office operation – air-conditioner, computer, etc.
• Shipping charges for overseas purchases
• Advertising, marketing costs
• Training fees, travelling costs
WHAT ARE THE QUALIFYING COSTS?
SUBMITTED
COVERAGE
ENTITLEMENT
AMOUNT
Manpower*
50,000.00
Up to 90%
45,000.00
Hardware, software, etc
70,000.00
Up to 90%
63,000.00
IP costs
60,000.00
Up to 90%
54,000.00
-
Up to 50%
-
12,000.00
Up to 50%
6,000.00
-
Up to 50%
-
192,000.00
Total Amount Entitled
168,000.00
QUALIFYING COSTS
Consultancy
Rental on 3rd party premises
Market research
Total Amount Submitted
However, Maximum Amount granted will be
150,000.00
FINANCIAL ASSESSMENTS
• Is there integrity in cost
estimates?
• Is there reasonableness in the
financial assumptions?
• Is there evidence of financial
management
capabilities
resources?
• How healthy is the applicant’s
financial standing?
• Have you identified ways on how
to generate revenue? Do the
numbers look solid/sustainable?
EVALUATION CRITERIA
1. Innovation:
– Stimulate creativity and appetite for innovation.
– Technical quality of the project: we award the innovative merit in the
development of a new idea, or any differentiating factor of an already existing
one. Technological impact is important.
2. Commercialisation Potential:
– Present commercial opportunities, projected sustainability and growth.
– Is there a Market demand for this product? Is there potential for IP to be
generated? Is there a competitive advantage/uniqueness to this product?
– Letter of Intent (if applicable) from a credible source will be highly
advantageous.
– Export potential .
EVALUATION CRITERIA
3.
Business Model:
– Does the company have a clear understanding of the competitive landscape
within their target markets and have they drawn up a credible positioning
strategy for their product in comparisons with competitors? Did the team conduct
their SWOT analysis?
– How does their financial plan look like? Have they identified ways on how they
generate revenue? Do the numbers look solid/sustainable?
– Coherence: adequate relationship between planning, activities of execution and
results.
4.
Team Competencies:
– Appropriateness in the experience, history and background of the applicant in the
market, in terms of competencies for project execution.
– Do the team also appear to understand and designed a good conceptual
framework and methodoly for their business. They need to be comfortable that
the team is also thinking the business feasibility in addition to the technical
feasibility.
UNIQUE SELLING POINT
“In order to be irreplaceable, one must always
be different.”
Coco Chanel
• Make sure your product will appeal to the customer.
Your product must be different to that of your rivals.
WHAT IS YOUR USP?
As such, you need to be innovative...
HOW IS THE REIMBURSEMENT MECHANISM?
25%
Monthly/
Quarterly
Monthly/
Quarterly
10%
• Mobilization Costs
• Reimbursement Schedule
• Reimbursement Schedule
• Final Reimbursement Schedule upon
completion
 In line with other grant schemes
 Funds are not to be used to settle any existing debts nor can such funds be assigned nor
utilized as collateral to obtain or secure existing or future financing from other parties
WHY LEAP?
• A great idea is only really a great idea when it is turned into a business model
that can consistently and repeatedly generate revenues and profits.....
.
Working Prototype
IP Generation
.
Spin-Off
Opportunities
Commercialization
WHAT IS THE APPLICATION PROCESS?
Ongoing
• LEAP Grant
Briefing
• Further meetings/
inquiries with LEAP
Account Manager
Open all year
round
• Submission of
application
2 weeks
• Pre-evaluation
starts either every
6 months or every
5 good proposals
received
2 weeks
• Presentation to
Evaluation
Committee by
shortlisted
applicants
1 month+
• Recommendation
to Program
Committee &
submission for
approval to Higher
Authority
HOW DO WE MONITOR YOUR PROJECTS?
HOW TO APPLY?
1. Application form is downloadable at BEDB website:
www.bedb.com.bn
2. Submit 3 sets of Application form , Business Plan
and necessary documents to LEAP Secretariat
Still not sure? Please contact LEAP Account Manager at:
DIANA RAMLI
Email: [email protected]
Call: 2230111 ext. 146

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