Revenue and Customers
Development Approach
The Founder Institute
1 Oct ’13
by Raphael Costa (@raphacosta)
Revenue & Customers
The Startup Culture
Steps To Develop Your Revenue Model
Cash Creation vs. Value Creation
Your Customer...
Background
A family man
A software developer by trade
A startup enthusiast
Co-Founder & Director of Hashtag Consulting
Co-...
Up Next
Startup Culture
The Startup Culture
Why a Startup?
Why you should be a Startup Founder?
Why you shouldn’t be a Startup Founder?
What could...
Up Next
Why do Most Startups Fail?
Why Do Most Startups Fail?
Business Model based on Assumptions
Lack of Effective Marketing Strategies
Lack of Investment
L...
Up Next
Your Customers & Your Startup
Your Customers & Your Startup
Knowledge of your customer base
Knowledge of the Market
Where is the GAP?
What is the NEED?
...
Your Customers & Your Startup
Supporting Tools for Discovery
Analytics
Split Tests (A/B)
Knowledge of your Product
Strengt...
Up Next
Reality Check (CHASM)
Reality Check (Chasm)
What do your customers expect from you?
What do you expect from your customers?
What do investors ex...
Reality Check (Chasm)
Reality Check (Chasm)
Reality Check (Customers)
INNOVATORS
They are willing to take a risk on a good idea.
EARLY ADOPTERS
They wait to hear a fe...
Up Next
Cash Creation vs. Value
Creation
Cash Creation vs. Value Creation
Pressure
Quality Decline
Cash over Innovation
Up Next
Steps To Develop Your Revenue
Model
Steps To Develop Your Revenue Model
Steps To Develop Your Revenue Model
"In the absence of revenue, there can be no profit...
and many other things." 
Choose a...
Steps To Develop Your Revenue Model
DISCOVERY QUESTIONS
What revenue model do your competitors use? 
How do your customers...
Thanks!
@raphacosta
http://za.linkedin.com/in/raphacosta
https://www.facebook.com/raphael.costa
Revenue and Customers
Deve...
Background
The Founder Institute - 1st Oct 2013 - Revenue and customers
The Founder Institute - 1st Oct 2013 - Revenue and customers
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The Founder Institute - 1st Oct 2013 - Revenue and customers

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The Founder Institute - 1st Oct 2013 - Revenue and customers

  1. 1. Revenue and Customers Development Approach The Founder Institute 1 Oct ’13 by Raphael Costa (@raphacosta)
  2. 2. Revenue & Customers The Startup Culture Steps To Develop Your Revenue Model Cash Creation vs. Value Creation Your Customers & Your Startup Reality Check Background Q & A Why do most Startups fail?
  3. 3. Background A family man A software developer by trade A startup enthusiast Co-Founder & Director of Hashtag Consulting Co-Founder & CEO of AdTangerine @raphacosta http://za.linkedin.com/in/raphacosta https://www.facebook.com/raphael.costa
  4. 4. Up Next Startup Culture
  5. 5. The Startup Culture Why a Startup? Why you should be a Startup Founder? Why you shouldn’t be a Startup Founder? What could we expect from a Startup? What are the needs of a Startup? How can a Startup raise funds?
  6. 6. Up Next Why do Most Startups Fail?
  7. 7. Why Do Most Startups Fail? Business Model based on Assumptions Lack of Effective Marketing Strategies Lack of Investment Lack of Mentorship Lack of Vision Stupid Idea built in isolation It’s no longer fun or driven by passion
  8. 8. Up Next Your Customers & Your Startup
  9. 9. Your Customers & Your Startup Knowledge of your customer base Knowledge of the Market Where is the GAP? What is the NEED? How things are done? (Processes) Who are they? What they do? What is their context? How much do competitors charge for similar products? How does your product fit in? What do they need?
  10. 10. Your Customers & Your Startup Supporting Tools for Discovery Analytics Split Tests (A/B) Knowledge of your Product Strengths Weaknesses Cost of Production Cost to Market Cost to Maintain Others What makes your product unique?
  11. 11. Up Next Reality Check (CHASM)
  12. 12. Reality Check (Chasm) What do your customers expect from you? What do you expect from your customers? What do investors expect from you? What do you need to survive? Customer: “Your idea is awesome, but it just doesn’t work for me. I’m sorry.” Investor: “I like the concept, but I don’t see how I can make money here?” You: “What’s my real cost here? How long can we survive?”
  13. 13. Reality Check (Chasm)
  14. 14. Reality Check (Chasm)
  15. 15. Reality Check (Customers) INNOVATORS They are willing to take a risk on a good idea. EARLY ADOPTERS They wait to hear a few good stories EARLY MAJORITY They need solid evidence LATE MAJORITY They want to see at least 3 product success stories. LAGGARDS They wants solid proof that it works Customer Classification Short CLV, Low CAC Medium CLV, Low CAC Medium CLV, Medium CAC High CLV, Medium CAC High CLV, High CAC CLV = Customer Lifetime Value CAC = Customer Acquisition Cost
  16. 16. Up Next Cash Creation vs. Value Creation
  17. 17. Cash Creation vs. Value Creation Pressure Quality Decline Cash over Innovation
  18. 18. Up Next Steps To Develop Your Revenue Model
  19. 19. Steps To Develop Your Revenue Model
  20. 20. Steps To Develop Your Revenue Model "In the absence of revenue, there can be no profit... and many other things."  Choose a revenue model approach that is best for your company and background. Your revenue model should allow you to communicate your value. Identify potential investors strategically based on your revenue model. Project out into the foreseeable future. Understand that your revenue model is always evolving. Identify the key variables for your company. Mitigate for variables
  21. 21. Steps To Develop Your Revenue Model DISCOVERY QUESTIONS What revenue model do your competitors use?  How do your customers like to pay for a solution like yours? What are your costs and at what frequency? (Monthly, Weekly, Annually)
  22. 22. Thanks! @raphacosta http://za.linkedin.com/in/raphacosta https://www.facebook.com/raphael.costa Revenue and Customers Development Approach QA
  23. 23. Background

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