2012 Seth Lieberman at RamenCampPresentation Transcript
#RamenCamp Validating Ideas Translating That into a Business Model Translating that into a Sales ModelSeth Liebermane: email@example.com: @sethWlieberman
StartUpFood NO!Pyramid(Paleo) YE$!
You will not be Facebook or Instagram
Rule #1: “Maslow Says”SOLVE AND SELL NEEDS NOT WANTS NO! YE$!
Rule #2 Go Where the Money Is• Big Markets• Clearly defined markets• Established buying paradigms• High growth markets• Markets where you can be disruptive• Markets you think you can win• Markets you care personally about
Better Mouse Traps Are Easier To Sell
Define the Addressable MarketDefine your Sub-Set of the marketIdentify your Target CustomersIdentify the Decision MakersKnow their Purchasing Authorization LevelDetermine how to Reach Them
Rule #3SolveThePennyGap…Free is nota businessmodel
Avoiding False Positives / Negatives What your customers want may not be what YOU want
Rule #4 Find the Scalable Model• Revenue • Technology • Sales Leads • Databases • Sales People • Servers • Land & Expand • Code• Marketing • Team • Viral • Business Process • Self Serve • Communication • Paid • Management • Earned • Capital• Costs • Fulfillment Costs • Hosting • Infrastructure Costs • Staffing Costs
Hunters Kill Deer…
Farmers Feed Civilizations
Move Up Market
Scaling: Marketing + Leads Paid OrganicTraffic Source 16% 84%Paid Costs $6,000 $3,250Visits 5,280 27,720Raw Leads 320 1,183Qualified Leads 12 105Visit to Raw Lead Conversion 6.1% 4.3%Qualified Lead Conversion 3.8% 8.9%CPV (Visits) $1.14 $0.12CPRL (Raw Lead) $18.75 $2.75CPQL (Qualified Lead) $500.00 $30.95Required Visitors Needed 440 264Raw Leads Generated 27 11To get 1 Qualified Lead 1 1
Rule #6 Making a decision TODAY issuperior to making a decision tomorrow.• You will never have enough data• You will always have enough data• You can only make the best decisions you can with the data you have today.
Rule #5 Customer Interviews• How do you personally refer to your category of business? (ie industry)• What are your major business goals & challenges?• How are you measured? What’s your definition of success?• What other tools/software/services do you use (or would like to use) to help address these challenges?• How did you first hear about SnapApp?• What did you think SnapApp would be able to help you solve for?• What were your first impressions about the website, the product? Where these the same?• What was your first “ah-ha” moment or what convinced you that SnapApp might be able to help?• What was the key feature/functionality that made you buy?• Did you evaluate other solutions that could help with (problems mentioned)? If so, who & what differences did you see between those solutions and SnapApp?• Does SnapApp integrate with other tools/systems at your organization? How does it fit in your ecosystem?• How would you describe SnapApp to someone else?• Who else in your organization will use or be aware of SnapApp? If the person is the decision maker, but NOT the user, ask them who the user is and if we can contact them?• How would you rate (on a scale of 1 to 10 – 10 being best) your buying experience with SnapApp? Where could we improve?• Can you explain one campaign or effort you’ve executed or plan to execute using SnapApp? Where do you go for new ideas, information?
“Competition has trumped value-creation. In this and other ways, the competitive arena undermines innovation.”“You know somebody has been sucked into the competitivemyopia when they start using sports or war metaphors. Sportsand war are competitive enterprises. If somebody hits threehome runs against you in the top of the inning, your job is to gohit four home runs in the bottom of the inning.But business, politics, intellectual life and most other realmsare not like that. In most realms, if somebody hits three homeruns against you in one inning, you have the option of pickingup your equipment and inventing a different game. You don’thave to compete; you can invent.” - David Brooks NY Times 4/23/12
You Gotta Have Faith…
Rule #6Make time to think for yourself by yourself.