startup talk @ jcu
DESCRIPTION
Talk to the Business and IT Interface class at JCU a couple weeks ago. The presentation covers these topics: - What is a Startup? - Search x Execution - Speed of Change: faster than ever! - What people think is important for a startup - What really matters - Starting points: Idea x Market Need - Two Main Hypotheses: Value and Growth Engine - Tool: Value Proposition Canvas - Customer Segment - Value Proposition - Revenue Model (Monetisation) - Tool: Business Model Canvas - Tool: Experiment Board (Javelin) - Case 1: Wannadoo (Brazil) - Case 2: JESI (Australia) - VCs: Most important factors for raising capital - Pitch Deck Template - Further reading - Townsville Startup WeekendTRANSCRIPT
Startup Talk @ JCU Everyone can do it - but how?
Heroku - SF
A bit about me
#3 Amazon (Portuguese)
That any good?
Yeah! Don’t you speak
Portuguese?
Search x Execution
$ Bi - from IBM to Instagram
1911 1975 1998 2004 2010
Acquired by Facebook
for $19 Bi!!!
But then, Kickstarter gave us…
2012 CROWDFUNDING PROJECTS:Oculus Rift
Acquired by Facebook for $2 Bi!!!
What people think is important
What really matters
Idea• Too many ideas, challenge is focus
• No ideas, challenge is creativity
• How to turn creativity into innovation: The Inventure Cycle
• Imagination is envisioning things that do not exist
• Creativity is applying imagination to address a challenge
• Innovation is applying creativity to generate unique solutions
• Entrepreneurship is applying innovation, bringing ideas to fruition, by inspiring others’ imagination
• Getting personal - best ideas involve emotion: love or hate
X
Market Need
• Most startups fail due to market risk, not technical risk
• Many entrepreneurs are moved by solving problems
• So instead of pivoting the Customer Segment to fit your idea, you pivot the Value Proposition until you find one that solves a market need
• Niche markets are prolific sources of unserviced needs
• Niches became global!
Whatever the Case, Two Main Hypotheses
Growth (Engine) • Paid • Sticky • Viral
Value Minimum Viable Product
What next? The Value Proposition Canvas. http://businessmodelgeneration.com/canvas/vpc
Customer Segment
• Get Out Of The Building and interview 50-100 customers
I. Customer Discovery
1. Three-Point Interview:
• Have you ever had [problem]?
• Tell me a story about the last time you had [this problem]
• For you, what is the ideal solution for that situation?
2. Create a Persona
• Gather both quantitative data and qualitative insights
Value Proposition
No product development, yet we’re still GOOB
II. Pitch: try to sell* the product / service (*only as validation)
III. Concierge of Oz: deliver the product as a service, in person, in a manual or "fake" manner
• Focus and empathy are key
• Less is more
• Always define the VP from the customer perspective
The Business Model
Revenue Model (Monetisation)
• Simple & Straightforward
• Focus on 1 revenue source, even if there may be others
• Revenue model heavily dependant on Growth Engine
• Paid
• Sticky
• Viral
• Multi-sided markets = complex
• Experiment with price points
Get Out of The Building - The Experiment Board
CASE: Wannadoo (opusphere.com)
CASE: JESI Management Solutions (jesims.com.au)
What Investors Are Looking For
Most Important Factors
1. MKT Size: TAM / SAM / Target Market
2. Product (P/M Fit) - demo if possible
3. Team (Bio, Skills, Execution Capacity)
4. Progress: Validated Learning / Evidence-BasedTM
5. Scalability & Traction • Growth Engines: Paid / Sticky / Viral
• Know thy metrics!
Pitch Deck
1. The Market Need
2. Product-Market Fit
3. Product Demo
4. TAM / SAM / Target Market
5. Revenue / Monetization Model
6. Growth Strategy
7. Traction / Biz Development
8. The Team (who will execute)
9. Call to action: Investment needs
10. <More details as requested>
Further reading
• Lean Thinking - Daniel T. Jones, James P. Womack • The Lean Startup - Eric Ries • The Four Steps to The Epiphany & The Startup Owner's Manual -
Steve Blank (& Bob Dorf) • Business Model Generation & Value Proposition Design - Alexander
Osterwalder • Lean Software Development (& sequel) - Mary & Tom Poppendieck • Rework - Jason Fried & David Heinemeier Hansson • Seth Godin on community marketing & doing things that matter • Like a Virgin - Richard Branson • And so much more!
Townsville Startup Weekend: 21st-23rd November 2014 Website: http://goo.gl/uptrwp + FB: http://fb.me/TSVSW
Questions?
Sara Hughes, Download, 2005, acrylic on linen, Wallace Trust Collection
Richard Sazima meetup.com/Townsville-
Startups-Meetup
au.theleanstartup.org
linkedin.com/in/rsazima