m fajrin - startup lokal- suitmedia [runner up]
DESCRIPTION
Slides from the #StartupLokal Presentation Idol 2 at #StartupLokal Meetup v.26TRANSCRIPT
Lean and Profitable Startup Presented by M Fajrin Rasyid (CEO of Suitmedia)
Do you know...
Source: HBR
Among 10-20 startups...
...only 1 succeeds?
Main reasons why they fail?
Premature Scaling!
Sounds familiar?
• Hire big team very fast because tons of
plans you want to do
• High burning rate for unproven and undone
business model
• Put a lot of marketing effort to gain strong
user base with questionable ARPU
Why premature scaling cause failure?
Use up your cash
Difficult to change
Now what do successful online
companies have? Either ...
Big capital
First comer
Costless
Source: A survey in Japan
Key 1: They are Lean
Key 2: They are
profitable
Key 3 : Sometimes, they do Pivoting
Examples? • 1995, Started with Web
Development, 8 people, 800K
USD revenue
• 1997, Pivoted to Magazine,
Collapse
• 1998, Pivoted to online portal
only with 3 reporters since then
• 2011, Detik.com has 200
people with IDR 100 billion
revenue and IDR 30 billion
profit
Examples?
• Started with 3 people
• Almost no cost from 2000
to 2008
• Profitable since 2008
• Largest Indonesia internet
web with IDR 48 billion
revenue
Examples?
• Dinar (4.25 grams gold
based coin) commerce
• Daily transactions ~600
dinars (IDR 1.2 Bn)
• Daily profit IDR 50 Mn
(with 4% margin)
• Operational? Only 4
employees
Examples?
• Started in last
Ramadan and it’s
profitable since its first
month
• Having thousands of
loyal and repeat
customers
• Operational: 3 people
Thank You
• Be lean, always pursue
profitability, and never fear to
pivot