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Startup roadmap
Why? How? What?
Prof. János Vecsenyi
Janos.vecsenyi@uni-corvinus.hu
Contents
1. Why do you want to start a business?
2. Idea generation
3. The buinsess concept
4. The viability test
5. Risk ...
Even though you may be a born
entrepreneur, you can still learn about
entrepreneurship.
Even though you may not be a born
...
If you want to cook, all you have to do is read
cookbooks and practice cooking.
The same can be said for starting a new
ve...
The driving forces of a new business
Startup Roadmap © J. Vecsenyi, 2014. 5
Market
opportunity
External / Internal
resourc...
Idea
generation
Business
concept
definition
Entrepreneurial
team formation
Product
development &
design
Financing
Company
...
WHY DO YOU WANT TO START A
BUSINESS?
Why?
Startup Roadmap © J. Vecsenyi, 2014. 7
Why does anyone want to start a business?
8
Opportunity
To become rich
FameIndependence
Startup Roadmap © J. Vecsenyi, 201...
What kind of business would I like to have?
Startup Roadmap © J. Vecsenyi, 2014.
9
A business that satisfies
local needs w...
SME Entrepreneurship
• Initial focus on addressing local markets
only.
• Innovation is not necessary to SME
establishment ...
Startup Roadmap © J. Vecsenyi, 2014.
Abilityandattitudeto
entrepreneurshipandchange High
Low Business and operational expe...
12
A startup is a human institution designed
to deliver a new product or service under
conditions of extreme uncertainty.
...
13
Do I want to be an entrepreneur?
Commitment
How much I want,
dare?
Lifestyle/ attitude
How would
I like to live?
Abilit...
Before you start your business, make your list….
What can I gain if I
start...
What would I regret
if I don’t start …
What...
THE IDEA GENERATION
What did I find?
Startup Roadmap © J. Vecsenyi, 2014. 15
The business idea
Startup Roadmap © J. Vecsenyi, 2014. 16
The great match
Market fit
Product fit
17
From an idea to a business opportunity
(unique, new) product/service for a
certain or potential need, ifThe idea
Market...
Is your VP fit and sexy?
18Startup Roadmap © J. Vecsenyi, 2014.
Is your offer relevant, unique, credible?
NEED
VALUE
PROPO...
Value proposition: what do I want to offer?
19
ServiceProduct Agency
Startup Roadmap © J. Vecsenyi, 2014.
Resource driven entrepreneurship
Invention/ competence look for market opportunity
Startup Roadmap © J. Vecsenyi, 2014. 20...
Opportunity driven entrepreneurship
Recognized need looks for solution
Startup Roadmap © J. Vecsenyi, 2014. 21
Unsatisfact...
Startup Roadmap © J. Vecsenyi, 2014.
The innovative idea
( Joseph Schumpeter)
22
• New combination (different, better, dif...
What kind of idea?
Startup Roadmap © J. Vecsenyi, 2014. 23
• Established ground rules
• Well known products,
services
• Existing business model
• Low groth potential
• Forseeable ma...
Startup Roadmap © J. Vecsenyi, 2014. 25
Sources of ideas for new ventures:
• Determine customer wants/needs
• Follow previ...
Startup Roadmap © J. Vecsenyi, 2014. 26
Idea-generation tools
1. Searching for shortage, dissatisfaction
 Observing domes...
THE BUSINESS CONCEPT
Can we make business out of it?
27Startup Roadmap © J. Vecsenyi, 2014.
Conscious preparation for starting a new venture
Startup Roadmap © J. Vecsenyi, 2014. 28
Market need
Value
proposition
Ope...
Startup Business Concept Map
Startup Roadmap © J. Vecsenyi, 2014. 29
Market
needs
Value
proposition
Operations
Entrepreneu...
Startup Business Concept Map
Startup Roadmap © J. Vecsenyi, 2014. 30
Customer
segments
Market size and
scalability
THE NEE...
Road on the Startup Business Concept Map
Will we have
market?
Will we have
product?
Willwehaverevenue?
Will the revenue be...
Startup Roadmap © J. Vecsenyi, 2014. 32
On-line support software
Startup Roadmap © J. Vecsenyi, 2014. 33
1. Why is there a need and by whom?
Startup Roadmap © J. Vecsenyi, 2014. 34
Customer
segments
Market size and
scalability
...
The need, the problem
Startup Roadmap © J. Vecsenyi, 2014. 35
Dissatisfaction
Shortage,
problem
New need
Hidden need
Dissa...
Hierarchy of Your Customers’Needs
Emotional
benefits
Functional benefits
Product attributes What we build
into the offer
F...
Why is it important?
Family ties
What do your customers need?
Granma’s telephone example
Emotional
benefits
Functional ben...
Who would be our customers?
38
Target group:
the desirable and
reachable segments
According to
behavior
According to
desir...
Who would be our customers?
Startup Roadmap © J. Vecsenyi, 2014. 39
Seller
Free user
Paying customer
Primary income source...
Startup Roadmap © J. Vecsenyi, 2014. 40
Getting to know your customer
Who:
Who would make purchase decision? Focus on targ...
Market size
Startup Roadmap © J. Vecsenyi, 2014. 41
Total
Available
Market
Served
Available
Market
Ideal
Available
Market
...
Window of opportunity
• Growing market need
Window of expansion
• Expanding market reach
Startup Roadmap © J. Vecsenyi, 20...
43
2. What do you want to sell, what is unique in it?
“People don’t buy what you do; people buy why you do it.” Simon Sine...
What do you want to offer?
Startup Roadmap © J. Vecsenyi, 2014. 44
WHAT?
Same
SpecialNew
UNIQUENESS & COMPETIVE ADVANTAGES...
Who would be your competitors and how can you have
competitive advantage?
Startup Roadmap © J. Vecsenyi, 2014. 45
Direct I...
Startup Roadmap © J. Vecsenyi, 2014. 46
Positioning
Quality/
Value
Price
Price/
value
PremiumMediumMass
High
end
Low
end
Startup Roadmap © J. Vecsenyi, 2014. 47
3. What are the preconditions and what would be your core and
distinctive competen...
How do you want to create value?
Startup Roadmap © J. Vecsenyi, 2014. 48
HOW?
SAME
AS OTHERS
BETTER,
THAN OTHERS
DIFFERENT...
49
Operational competencies
Core
competencies
• Development
• „Core activity”
• Marketing and sales
• Finance
• Leadership...
Core functions, core competencies
Core functions and competencies to create and capture
value
 Development
 Production /...
Critical Success Factors(CSFs)
CSFs are those factors which enables a business to be successful in a
particular industry a...
Essential conditions
Essential conditions are those conditions which
are required by law or basics for operations
 Legal ...
53
4. Who would make it happen?
Startup Roadmap © J. Vecsenyi, 2014.
Key internal
people
External partners,
suppliers
FOUN...
Creating an entrepreneurial team
Startup Roadmap © J. Vecsenyi, 2014. 54
Self anaysis
• Purposes
• Abilities
• Competencie...
Roles and responsibilities in the new venture
55Startup Roadmap © J. Vecsenyi, 2014.
Suppliers
External
contributors
Emplo...
Startup Roadmap © J. Vecsenyi, 2014. 56
5. What would be the sources of revenue and
how would we get it?
a) What will be t...
Sources of revenue
Startup Roadmap © J. Vecsenyi, 2014. 57
Asset sale Usage fee Renting fee
Leasing fee License fee Lendin...
The business model
1. The story: For whom,
why, how do you create
value with what?
2. The value chain: How do
you create, ...
The business model
What are we doing for whom and why would anyone pay?
The story
59
Collection and
distribution of
job of...
Sample revenue generation/business models
• Online auction business model
• Online content
• Premium business model
• Prof...
Mission, vison, values: your story.
Startup Roadmap © J. Vecsenyi, 2014. 61
Mission, reason for
your busines exists
VISION...
STP marketing strategy
Startup Roadmap © J. Vecsenyi, 2014. 62
Define market
for the business
Create market
segments
Evalu...
Startup Roadmap © J. Vecsenyi, 2014. 63
6. How will the venture be profitable and how much money
do you need for start and...
How will you make money?
– Costs 2. For what, how much, when do you
need to spend?
= Profit
3. How much profit can you mak...
What dou you need money for?
• Seed money
• Operational expenses
• Personal expenses
• Safety reserve
65Startup Roadmap © ...
Sources of entrepreneurial financing
Startup Roadmap © J. Vecsenyi, 2014. 66
Founder
Bootstrapping
3Fs
(Family, Fiends,
Fo...
VIABILITY TEST
Are you sure it’s a good idea?
Startup Roadmap © J. Vecsenyi, 2014. 67
Startup Roadmap © J. Vecsenyi, 2014. 68
5+2 initial questions before starting a new
venture
1. Is there a real need/demand...
Is your business idea viable?
1. Would it be marketable?
2. Would it be competitive?
3. Would it be feasible?
4. Would it ...
Profitable
A viable business concept
Startup Roadmap © J. Vecsenyi, 2014. 70
with a competent and
committed team
Marketabl...
RISK MANAGEMENT
How can you improve your chances?
Startup Roadmap © J. Vecsenyi, 2014. 71
Startup decision analysis
Startup Roadmap © J. Vecsenyi, 2014. 72
Risk and
strength
management
Strategy and
action plan
De...
Startup decision
Startup Roadmap © J. Vecsenyi, 2014. 73
Why will it be fine to start?
Why do we wait to start?
Why do we ...
ENTREPRENURIAL TEAM FORMATION
With whom do we want to make it?
Startup Roadmap © J. Vecsenyi, 2014. 74
Creating the entrepreneurial team
Startup Roadmap © J. Vecsenyi, 2014. 75
Self
assessment
• Attitudes
• Abilities
• Compet...
Startup Roadmap © J. Vecsenyi, 2014. 76
‘Must haves’ to become an entrepreneur?
Network
Whom we know
Who knows me
Personal...
Startup Roadmap © J. Vecsenyi, 2014. 78
Where is your strength?
Entrepreneur- expert
– Working in her/his business
– Execu...
Whom do you need for your technology start-up?
Startup Roadmap © J. Vecsenyi, 2014. 79
Hackers
(experts in
technology)
Hip...
Early stage personal decisions
• Alone or with others?
• With family, friends, associates?
• Investors?
Founder
• Employee...
81
Key roles at the beginning
CEO
CTO
- Staffing, motivating,
accessing people
- Managing Finances
- Executing business
st...
Startup Roadmap © J. Vecsenyi, 2014. 82
The role of the board of directors
• Involvement of external people
• Mentoring
• ...
What do you need to clarify with co-owners and
employees?
83
Goals
Roles &
responsibilities
Processes
Interpersonal relati...
PRODUCT DEVELOPMENT & DESIGN
What the product will be like?
Startup Roadmap © J. Vecsenyi, 2014. 84
How to create product from the idea?
Startup Roadmap © J. Vecsenyi, 2014. 85
Source: http://www.innecs.com/html/Product%20...
LEAN STARTUP
ACCELERATING MARKET PENETRATION
How can we create value faster and better?
Startup Roadmap © J. Vecsenyi, 201...
87Startup Roadmap © J. Vecsenyi, 2014.
The lean startup methodology for product
development
Ideas
Build
Product
Measure
Data
Learn
88Startup Roadmap © J. Vecseny...
Minimal viable product (MVP)
1. Helps entrepreneurs start the process of learning as quickly
as possible
2. The goal is to...
Startup Roadmap © J. Vecsenyi, 2014. 90
Source: http://huitale.blogspot.hu/2010/12/
More startup failed because of
lack of customers than failures
of product development
Steve Blank
Startup Roadmap © J. Vec...
FINANCING
For what, how much, from where?
Startup Roadmap © J. Vecsenyi, 2014. 92
Startup Roadmap © J. Vecsenyi, 2014. 93
• Entrepreneurship:
Pursuing an opportunity beyond the
resources currently control...
Startup Roadmap © J. Vecsenyi, 2014. 94
Why
For what
From where
How
When
you need
How much
money
at the early phase of you...
Financing categories
Equity financing
Investing
• Creates ownership
• Provides control and insight
• Equity increase expec...
What financing do you need for?
Startup Roadmap © J. Vecsenyi, 2014. 97
Seed capital
for development
Startup capital
for q...
Startup Roadmap © J. Vecsenyi, 2014. 98
What does the venture need the money for?
1. How much money do you have and how
mu...
What does the venture need the money for?
Startup Roadmap © J. Vecsenyi, 2014. 99
Development, startup costs Operational e...
Startup Roadmap © J. Vecsenyi, 2014. 100
The Business model: Making money
– Cost 2. Spending on what, how much,
when?
Prof...
Startup Roadmap © J. Vecsenyi, 2014. 101
Money
Fix cost
Volume/Time
Break-even analysis
Fix
cost
Variable
cost
Profit
Brea...
Sources of entrepreneurial financing
Startup Roadmap © J. Vecsenyi, 2014. 102
Founder(s)
Bootstrapping
3F
(Family,
Fiends,...
How can we get out from the Valley of Death?
Startup Roadmap © J. Vecsenyi, 2014. 103
Valley of
Death
Source:
Startup Roadmap © J. Vecsenyi, 2014. 104
Return
1. When will the operation become profitable?
– Operating break-even
2. Wh...
Two pitches for two kinds of audience
• Investment pitch wants to
convince investors to give
money to your business
• Sale...
Elevator pitch for investors
Startup Roadmap © J. Vecsenyi, 2014. 106
1. What is the
problem/ need?
2. What is the
solutio...
Preparation for the elevator pitch
1. Define your business concept
2. Define why do you want to pitch, what do you want to...
CREATING YOUR BUSINESS PLAN
How can you convince the investors?
Startup Roadmap © J. Vecsenyi, 2014. 108
www.startmybusines
s123.com
Self confident
Profound
Concious
Execution
Why do you need a business plan?
Startup Roadmap © ...
Startup Roadmap © J. Vecsenyi, 2014. 110
A business plan for a new venture is
… a convincing and credible document for sta...
Startup Roadmap © J. Vecsenyi, 2014. 111
A business plan is…
when the founder
 Analyzed the market and
industry
 Planned...
Startup Roadmap © J. Vecsenyi, 2014. 112
Content of a business plan
1. Cover sheet
2. Executive summary
3. Introducing the...
Analyzing business environment
Startup Roadmap © J. Vecsenyi, 2014. 113
Industry
Industry trends
Growth potential
Market s...
How much money will your startup make?
114
Income statement
Income statement
Sales
- Costs
Net income
Balance sheet
Debt
A...
FOUNDATION STEPS
How to start?
Startup Roadmap © J. Vecsenyi, 2014. 115
Business conditions
116
Startup Roadmap © J. Vecsenyi, 2014.
Tax
regulations
Legal
form
People
Organization
Core activitie...
MARKET ENTRY
How do we start selling?
Startup Roadmap © J. Vecsenyi, 2014. 117
Steps to the market
1. Who would be our
customers, what do
we know about their
buying behavior?
(Segmenting)
2. What are t...
CLOSING REMARKS
Do you still want to start a business?
Startup Roadmap © J. Vecsenyi, 2014. 119
Instinct can never replace knowledge,
but perfectly complement it.
Kristina Ohlsson, 2012
Startup Roadmap © J. Vecsenyi, 2...
Startup Roadmap © J. Vecsenyi, 2014. 121
Staircase of entrepreneurial success
Technical
success You can make it
Sales
succ...
Enjoy the journey
not just the
destination!
122Startup Roadmap © J. Vecsenyi, 2014.
1. Aulet (2013) Disciplined Entrepreneurship
2. Blank, Steve (2013) The Four Steps to the
Epiphany
3. Béza és társai (2013...
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Startup roadmap 2014 vecsenyi

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Transcript of "Startup roadmap 2014 vecsenyi"

  1. 1. Startup roadmap Why? How? What? Prof. János Vecsenyi Janos.vecsenyi@uni-corvinus.hu
  2. 2. Contents 1. Why do you want to start a business? 2. Idea generation 3. The buinsess concept 4. The viability test 5. Risk management 6. Building your entrepereneurial team 7. Product development 8. Financing and Pitching 9. Business Plan 10. Foundation 11. Lean startup: Accelerating market entry 12. Market launch 13. Closing remarks 14. References Startup Roadmap © J. Vecsenyi, 2014. 2
  3. 3. Even though you may be a born entrepreneur, you can still learn about entrepreneurship. Even though you may not be a born entrepreneur, you can still learn to become one…. If you want. Even if you don’t want to become an entrepreneur now, you can still be a good person. Startup Roadmap © J. Vecsenyi, 2014. 3
  4. 4. If you want to cook, all you have to do is read cookbooks and practice cooking. The same can be said for starting a new venture. Having instincts is simply a plus. 4Startup Roadmap © J. Vecsenyi, 2014. INGREDIENTS
  5. 5. The driving forces of a new business Startup Roadmap © J. Vecsenyi, 2014. 5 Market opportunity External / Internal resources Entrepreneurial team Source: Timmons (1990) New venture creation (3rd edition) Opportunity driven Competency, technology driven
  6. 6. Idea generation Business concept definition Entrepreneurial team formation Product development & design Financing Company foundation Market entry A startup roadmap Startup Roadmap © J. Vecsenyi, 2014. 6 Lean startup
  7. 7. WHY DO YOU WANT TO START A BUSINESS? Why? Startup Roadmap © J. Vecsenyi, 2014. 7
  8. 8. Why does anyone want to start a business? 8 Opportunity To become rich FameIndependence Startup Roadmap © J. Vecsenyi, 2014. To make a livingGeneration change It is better to be a job creator than a job seeker Unemployement
  9. 9. What kind of business would I like to have? Startup Roadmap © J. Vecsenyi, 2014. 9 A business that satisfies local needs with typically traditional products and provides a moderate living for its founder and its employees. It has moderate growth potential and cannot operate without its founder in the long run, like most SMEs. E.g., Pop&Mom’s Kitchen, T.J. The plumber A business built on innovation based products for global markets with scalablility and high financing needs. Once turned into a structured company, it can function without its founder and can be sold off, like most Innovation Driven Entreprises (IDEs). E.g., Prezi, Solvo, Ustream Indextools A temporary business to utilize a relatively short window of opportunity with traditional or innovative products to gain short term profit as soon as possible. E.g,. selling an invention or a seasonal service Scalable & sellable Temporary Project Provides a Living Source: Timmons (2003)
  10. 10. SME Entrepreneurship • Initial focus on addressing local markets only. • Innovation is not necessary to SME establishment and growth, nor is competitive advantage . • “Non-tradable jobs”—jobs that must be performed locally (e.g. restaurants, dry cleaners, and service industry). • Most often family businesses or businesses with very little external capital. • People who start them seek to maintain control, not to create high growth. The company typically grows at a linear rate. • When you put money into the company, the system (revenue, cash flow, jobs, etc.) will respond quickly in a positive manner. IDE Entrepreneurship • Focus on global/regional markets. • The company is based on some sort of innovation (tech, business process, model) where they can go global or across regions. • “Tradable jobs”—jobs that do not have to be performed locally. • More diverse ownership base as the focus of founders is on high growth and creating company market value. • The company starts by losing money, but if successful will have exponential growth. Requires investment. • When you put money into the company, the revenue/cash flow/jobs numbers do not respond quickly. Startup Roadmap © J. Vecsenyi, 2014. 10 What kind of business do we want to create? Source: Aulet (2013)
  11. 11. Startup Roadmap © J. Vecsenyi, 2014. Abilityandattitudeto entrepreneurshipandchange High Low Business and operational experience High Dinosaurs Traditional, large, bureaucratic ventures Ants Traditional small ventures Gazelles Fast growing. high potential new ventures Where do your venture want to fit? Tigers Dynamic, large, expanding ventures Source: Vecsenyi (1995) 11
  12. 12. 12 A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. (Ries, 2010) A startup enterprise is a baby gazelle venture with scalable market potential combined with growth ambition and global vision of the entrepreneur(s). (Vecsenyi, 2013) Startup Roadmap © J. Vecsenyi, 2014.
  13. 13. 13 Do I want to be an entrepreneur? Commitment How much I want, dare? Lifestyle/ attitude How would I like to live? Abilities Who am I? Competenecies What do I know? Aspirations, motivations Why do I want to become an entrepreneur? Connections Whom do I know, who knows me? ? Startup Roadmap © J. Vecsenyi, 2014.
  14. 14. Before you start your business, make your list…. What can I gain if I start... What would I regret if I don’t start … What would I lose, if I start… Pros Cons Which is stronger? 14Startup Roadmap © J. Vecsenyi, 2014.
  15. 15. THE IDEA GENERATION What did I find? Startup Roadmap © J. Vecsenyi, 2014. 15
  16. 16. The business idea Startup Roadmap © J. Vecsenyi, 2014. 16 The great match Market fit Product fit
  17. 17. 17 From an idea to a business opportunity (unique, new) product/service for a certain or potential need, ifThe idea Market opportunity Business opportunity + there is repeatable, growing buying potential and + capable to create profit + socially acceptable + worth to start a new venture on it + + Startup Roadmap © J. Vecsenyi, 2014.
  18. 18. Is your VP fit and sexy? 18Startup Roadmap © J. Vecsenyi, 2014. Is your offer relevant, unique, credible? NEED VALUE PROPOSITION
  19. 19. Value proposition: what do I want to offer? 19 ServiceProduct Agency Startup Roadmap © J. Vecsenyi, 2014.
  20. 20. Resource driven entrepreneurship Invention/ competence look for market opportunity Startup Roadmap © J. Vecsenyi, 2014. 20 Invention Idea Competence WHERE can it be used? WHO could use it? WHY Would anyone use it?Accountancy competence Inventing heath protection material Accounting services Covering household appliances
  21. 21. Opportunity driven entrepreneurship Recognized need looks for solution Startup Roadmap © J. Vecsenyi, 2014. 21 Unsatisfaction Shortage, problem New need Invention idea Competence Hidden need Frames for the paintings Cordon for the qeue
  22. 22. Startup Roadmap © J. Vecsenyi, 2014. The innovative idea ( Joseph Schumpeter) 22 • New combination (different, better, different way on the target market) • Innovation= invention * commercialization 5 + 1 forms of innovation of 1.new goods 2.new methods of production 3.the opening of new markets 4. the conquest of new sources of supply 5. the carrying out of a new organization of any industry 6.New business model (making money in a different way)
  23. 23. What kind of idea? Startup Roadmap © J. Vecsenyi, 2014. 23
  24. 24. • Established ground rules • Well known products, services • Existing business model • Low groth potential • Forseeable market • Market niche for new innovations In which industry is it worth starting your startup? Traditional industries Creative industries • No ground rules • New, mostly knowledge based creative products • Mostly new business model • High growth potential • Very uncertain market • The industry niche Startup Roadmap © J. Vecsenyi, 2014. 24 Startups can be launched in all industries
  25. 25. Startup Roadmap © J. Vecsenyi, 2014. 25 Sources of ideas for new ventures: • Determine customer wants/needs • Follow previous job(s) experience • Improve products and services already on the market • Be open on foreign trips • Elicit suggestions from channel members • Check the Patent Office files • Conduct your own research & development • Surf on internet
  26. 26. Startup Roadmap © J. Vecsenyi, 2014. 26 Idea-generation tools 1. Searching for shortage, dissatisfaction  Observing domestic and foreign markets (open eyes)  Idea notebook  Brain storming  Read newspapers, leaflets, brochures  Internet surfing 2. Recognizing mistakes, failures  From failure to the solution  Penicillin, Teflon, Viagra 3. Finding market niche, blue ocean  Where is a need for new invention with low competition  iPod, iPhone, Body Shop 4. Studying trends  Political, economic, social, ecological, legal trends  Industry reports, trends
  27. 27. THE BUSINESS CONCEPT Can we make business out of it? 27Startup Roadmap © J. Vecsenyi, 2014.
  28. 28. Conscious preparation for starting a new venture Startup Roadmap © J. Vecsenyi, 2014. 28 Market need Value proposition Operation Entrepreneurial team Business model Financial model Defining the business concept Testing the viability of the business concept Risk and strength management Strategy and action plan Decision on the start Deciding on starting the new venture www.startmybusiness123.com
  29. 29. Startup Business Concept Map Startup Roadmap © J. Vecsenyi, 2014. 29 Market needs Value proposition Operations Entrepreneurial team Business model Financial model Marketneed WHY? FORWHOM? Opereations HOW? Businessmodel FROMWHAT? HOWMUCH? Entrepreneurial team WITHWHOM? Solution,offer WHAT? Financialmodel FORWHAT? HOWMUCH?
  30. 30. Startup Business Concept Map Startup Roadmap © J. Vecsenyi, 2014. 30 Customer segments Market size and scalability THE NEED, PROBLEM OF THE CUSTOMERS Distinctive competencies CSFs Basic conditions CORE FUNCTIONS, COMPETENCIES Competitive advantage, Uniquness Positioning, pricing VALUE PROPOSITION (PRODUCT/SERVICE ) Key internal people External partners, suppliers FOUNDERS/OWNERS/ OWNER MANAGERS Mission, vision values Sales strategy and channels REVENUE STREAMS COST STRUCTURE Financing needs Financing sources and methods Marketneed WHY? FORWHOM? Operations HOW? Businessmodel FROMWHAT? HOWMUCH? Entrepreneurial team WITHWHOM? Solution, offer WHAT? Financialmodel FORWHAT? HOWMUCH?
  31. 31. Road on the Startup Business Concept Map Will we have market? Will we have product? Willwehaverevenue? Will the revenue be enough? How much will it cost? 4.TEAM3. OPERATION Recognized need Recognized solution Will we have the right people? 31Startup Roadmap © J. Vecsenyi, 2014. You may want to repeat the circle whenever you have new data
  32. 32. Startup Roadmap © J. Vecsenyi, 2014. 32
  33. 33. On-line support software Startup Roadmap © J. Vecsenyi, 2014. 33
  34. 34. 1. Why is there a need and by whom? Startup Roadmap © J. Vecsenyi, 2014. 34 Customer segments Market size and scalability THE NEED, PROBLEM OF THE CUSTOMERS Market need WHY? FOR WHOM? a) What is the need, the problem and why does this need exist? b) Who are our customers and what are their specific needs? c) What is the size of the market and its growth potential?
  35. 35. The need, the problem Startup Roadmap © J. Vecsenyi, 2014. 35 Dissatisfaction Shortage, problem New need Hidden need Dissatisfaction with current offers regarding quality, style, price, availability, assortment Locally not available or achievable offer, solution Unmet need Traditional bakery, fast food, mobile application These are issues and problems that customers face but have not yet realised Drinking water, tapwater, alternative energy Mobile phone, alternative energy Smart phone, Rubik’s cube
  36. 36. Hierarchy of Your Customers’Needs Emotional benefits Functional benefits Product attributes What we build into the offer Functional benefits sought from any company Psycho-social benefits sought from any company Customers’ Values Copyright © 2007 Impact Planning Group LLC. To look for functional and emotional benefits vs. just product attributes or features
  37. 37. Why is it important? Family ties What do your customers need? Granma’s telephone example Emotional benefits Functional benefits Product attributes Customers’ Values Copyright © 2007 Impact Planning Group LLC. Granma’s telephone? Why whould she like it? Easy to use and pleasant experience How can we make it for her? • Big, sharp screen • Big keyboard • Fast dialing • Big icons • Few functions • High voice • Wireless How?
  38. 38. Who would be our customers? 38 Target group: the desirable and reachable segments According to behavior According to desirability Which is the ideal spaghetti sauce? B2C B2B B2A According to decison making Startup Roadmap © J. Vecsenyi, 2014. Segments: Groups with similar behavior pattern
  39. 39. Who would be our customers? Startup Roadmap © J. Vecsenyi, 2014. 39 Seller Free user Paying customer Primary income sources Secondary income sources Consumer / end user who eats it Customer who buys it Buyer (Distributor) who purchases it Seller (Factory) who manufactures the chocolate
  40. 40. Startup Roadmap © J. Vecsenyi, 2014. 40 Getting to know your customer Who: Who would make purchase decision? Focus on target market, segments: the industry, location, buying behavior, direct and indirect competitors, customer profile What: Exactly what are you selling from your perspective? Factors that you try to sell and you should emphasize When: Time of the day, seasonality, frequency. Adjust to existing habits Where: Location, location, location. Focus on habits of your customer, offer your product that is convenient to the customer Why: From the customer’s perspective, the specific reasons the customer purchases your product. Understand primary reason or create a reason How: Purchasing for cash, credit, barter? Customer’s preferred purchasing method, technology. Source: E. Solymossy, 2007
  41. 41. Market size Startup Roadmap © J. Vecsenyi, 2014. 41 Total Available Market Served Available Market Ideal Available Market Serviceable Obtainable Market TAM: population of 30- 50 age group SAM: Population of 30-50 age group with diabetes 2 IAM: Population of 30-50 age group with diabetes 2 and smart phone SOM: Population of 30-50 age group with diabetes 2 and smart phone, ready to change lifestyle
  42. 42. Window of opportunity • Growing market need Window of expansion • Expanding market reach Startup Roadmap © J. Vecsenyi, 2014. 42 Scalability potential
  43. 43. 43 2. What do you want to sell, what is unique in it? “People don’t buy what you do; people buy why you do it.” Simon Sinek Startup Roadmap © J. Vecsenyi, 2014. a) What is your value proposition product/ service you offer? b) What is unique about your product, the competitive advantage your customers would buy? c) Where will you position your offer on the value-price range?
  44. 44. What do you want to offer? Startup Roadmap © J. Vecsenyi, 2014. 44 WHAT? Same SpecialNew UNIQUENESS & COMPETIVE ADVANTAGES perceived by customers
  45. 45. Who would be your competitors and how can you have competitive advantage? Startup Roadmap © J. Vecsenyi, 2014. 45 Direct Indirect Substitute ACTUALPOTENTIAL © 2007 Impact Planning Group LLC. What and how do they offer? Where do we want to be better, different?
  46. 46. Startup Roadmap © J. Vecsenyi, 2014. 46 Positioning Quality/ Value Price Price/ value PremiumMediumMass High end Low end
  47. 47. Startup Roadmap © J. Vecsenyi, 2014. 47 3. What are the preconditions and what would be your core and distinctive competencies to start and operate? a) What core competencies do you have to have to provide your Value Proposition?What do you want to do on your own and what will be outsourced? b) What are your distinctive competencies and Critical Success Factors (CSFs) which enable you to provide competitive advantages? c) What are the basic legal, official, physical, human conditions to start your operation?
  48. 48. How do you want to create value? Startup Roadmap © J. Vecsenyi, 2014. 48 HOW? SAME AS OTHERS BETTER, THAN OTHERS DIFFERENT THAN OTHERS COMPETETIVECOMPETENCIESto providecompetetiveadvantages
  49. 49. 49 Operational competencies Core competencies • Development • „Core activity” • Marketing and sales • Finance • Leadership and management Distinctive competencies • Human • Phisical • Economic • Technological • Marketing • Legal Creating Value proposition Creating competitive advantage Basic conditions • Legal condition • Official licences • Phisical and equipment conditions Startup Roadmap © J. Vecsenyi, 2014. Conditions to start and operate
  50. 50. Core functions, core competencies Core functions and competencies to create and capture value  Development  Production / operations  Marketing and sales  Financial management  Leadership and business administration  Info-communication management Startup Roadmap © J. Vecsenyi, 2014. 50
  51. 51. Critical Success Factors(CSFs) CSFs are those factors which enables a business to be successful in a particular industry and make the business capable to win the competition. These are: • Human CSFs: special knowledge or skills (e.g., an outstanding chef, PhD, world class designer, a great team) • Phisical CSFs: manufacturing, logistical capacity, machines, equipments, location, sourcing reach, distribution channel (e.g., special, unique machine, equipment, facility, App store, iTunes) • Business CSFs: access to resources, economy of sale, economy of distribution • Technological CSFs: unique or proprietary technology, special method, process, IT system • Marketing CSFs: Innovation, customer intimacy, operational excellence • Legal CSFs: patents, copyrights, franchises Startup Roadmap © J. Vecsenyi, 2014. 51
  52. 52. Essential conditions Essential conditions are those conditions which are required by law or basics for operations  Legal condition: Corporation, operational licenses, opening a bank account  Official authorization: marketing authorization, operating permit, education, degree  Technical, personal, physical, conditions: facilities, tools and equipment (owned, rent) Startup Roadmap © J. Vecsenyi, 2014. 52
  53. 53. 53 4. Who would make it happen? Startup Roadmap © J. Vecsenyi, 2014. Key internal people External partners, suppliers FOUNDERS/OWNERS/ OWNER MANAGERS a) Who are and will be the owners? b) Who would we work with in the business, who would be the key managers and associates? c) Who will be the external partners and suppliers?
  54. 54. Creating an entrepreneurial team Startup Roadmap © J. Vecsenyi, 2014. 54 Self anaysis • Purposes • Abilities • Competencies • Connections • Experiences Corporations • Owner, co- owners • Key associates • External partners, suppliers Team building • Goals • Roles • Processes • Interpersonal relationship
  55. 55. Roles and responsibilities in the new venture 55Startup Roadmap © J. Vecsenyi, 2014. Suppliers External contributors Employees Owners Founder Complementary competencies, resources personalities Providing core competencies Required, but outsourceable competencies e.g., accountant, lawyer, patent agent, designer, programmer Key managers Advisory board Board of directors Key personnel Subcontractors
  56. 56. Startup Roadmap © J. Vecsenyi, 2014. 56 5. What would be the sources of revenue and how would we get it? a) What will be the sources of revenue, what is the way of creating and capturing value (the business model)? b) Why do we want run the business? c) How would we want to acquire revenue by marketing and sales?
  57. 57. Sources of revenue Startup Roadmap © J. Vecsenyi, 2014. 57 Asset sale Usage fee Renting fee Leasing fee License fee Lending fee Advertising Subscription Brokerage
  58. 58. The business model 1. The story: For whom, why, how do you create value with what? 2. The value chain: How do you create, capture value? 3. The money making: The revenue stream, the cost structure, the profit, the financing need, return? 58Startup Roadmap © J. Vecsenyi, 2014. Creating and capturing value
  59. 59. The business model What are we doing for whom and why would anyone pay? The story 59 Collection and distribution of job offers via the Internet Profession.hu Printing and copying services for customers and businesses Copy General User-friendly, personalized, beautiful everyday IC objects Apple Startup Roadmap © J. Vecsenyi, 2014.
  60. 60. Sample revenue generation/business models • Online auction business model • Online content • Premium business model • Professional open-source • Retailer • Pyramid scheme business model • Razor & blades • Servitization of products business model • Subscription business model • Premium • Wholesale Startup Roadmap © J. Vecsenyi, 2014. 60 • Asset sale • Auction business model • All-in-one business model • Brick & click • Collective business model • Cutting out middleman • Direct sale • Distribution • Franchise • Freemium • Low-cost carrier business model • Loyalty business models • Monopolistic business model • Multi-level marketing • Network effects business model
  61. 61. Mission, vison, values: your story. Startup Roadmap © J. Vecsenyi, 2014. 61 Mission, reason for your busines exists VISION, the state your business wants to reach VALUES which govern your business life VALUE PROP, the product you provide
  62. 62. STP marketing strategy Startup Roadmap © J. Vecsenyi, 2014. 62 Define market for the business Create market segments Evaluate segments on set criteria Construct segment profile Evaluate the attractiveness of the segments Selecting target market Develop positioning strategy Develop and implement marketing mix Review performance S Segmenting T Targeting P Positioning
  63. 63. Startup Roadmap © J. Vecsenyi, 2014. 63 6. How will the venture be profitable and how much money do you need for start and where do you want to get it from? COST STRUCTURE Financing needs Financing sources and methods a) What will be your costs and how much profit you can make? b) How much money do you need and for what to start your business? c) Where do you get financing for starting your business?
  64. 64. How will you make money? – Costs 2. For what, how much, when do you need to spend? = Profit 3. How much profit can you make? When will you break even? Equity 4. How much capital do you need? Return 5. When will your investment come back? 1. Who would pay, why, when and how much? What would be the primary, secondary sources of your income? How much revenue will you calculate? Revenues 64Startup Roadmap © J. Vecsenyi, 2014.
  65. 65. What dou you need money for? • Seed money • Operational expenses • Personal expenses • Safety reserve 65Startup Roadmap © J. Vecsenyi, 2014.
  66. 66. Sources of entrepreneurial financing Startup Roadmap © J. Vecsenyi, 2014. 66 Founder Bootstrapping 3Fs (Family, Fiends, Fools) Private investors Business Angels Venture Capital Crowdfunding Governamental support Bank loan
  67. 67. VIABILITY TEST Are you sure it’s a good idea? Startup Roadmap © J. Vecsenyi, 2014. 67
  68. 68. Startup Roadmap © J. Vecsenyi, 2014. 68 5+2 initial questions before starting a new venture 1. Is there a real need/demand? – Finding, creating, fulfilling market niche with the right product/service (Marketable) 2. Can we win it with a competitive value proposition? – Utilizing distinct competencies (better, special, different) (Competitive) 3. Can we do it? – Launching, managing the new venture with the right people, technology (method) and organization (Operational) 4. Is it worth doing? – Making it profitable (Profitable) 5. Do I (we) really want it? – Mobilizing competence and commitment of a socially responsible private individual (Commitment and competence) 6. How much money do we need to start? – Funds required to start the venture (Seed capital) 7. Do we have money for it? – Getting the seed capital for launching and starting (Capitalization)
  69. 69. Is your business idea viable? 1. Would it be marketable? 2. Would it be competitive? 3. Would it be feasible? 4. Would it be profitable? 5. Would you and your team be competent and committed? 69Startup Roadmap © J. Vecsenyi, 2014.
  70. 70. Profitable A viable business concept Startup Roadmap © J. Vecsenyi, 2014. 70 with a competent and committed team Marketable Comptetitive Technically feasible
  71. 71. RISK MANAGEMENT How can you improve your chances? Startup Roadmap © J. Vecsenyi, 2014. 71
  72. 72. Startup decision analysis Startup Roadmap © J. Vecsenyi, 2014. 72 Risk and strength management Strategy and action plan Decision on the start
  73. 73. Startup decision Startup Roadmap © J. Vecsenyi, 2014. 73 Why will it be fine to start? Why do we wait to start? Why do we not start? Later
  74. 74. ENTREPRENURIAL TEAM FORMATION With whom do we want to make it? Startup Roadmap © J. Vecsenyi, 2014. 74
  75. 75. Creating the entrepreneurial team Startup Roadmap © J. Vecsenyi, 2014. 75 Self assessment • Attitudes • Abilities • Competencies • Network • Experience Partners • Owner(s) • Employees • Partners • Supplyers Team • Goals • Roles • Processes • Interpersonal relationship
  76. 76. Startup Roadmap © J. Vecsenyi, 2014. 76 ‘Must haves’ to become an entrepreneur? Network Whom we know Who knows me Personality sense … abilities motivations ExperienceCompetencies knowledge skills attitude What I was born with What I learned, am able and want to apply Those who can add value What I consciously utilize 1. Know yourself and build on that 2. Strengthen your strengths 3. Cooperate with others! 4. Learn from your past!
  77. 77. Startup Roadmap © J. Vecsenyi, 2014. 78 Where is your strength? Entrepreneur- expert – Working in her/his business – Executes things – Likes to deliver product Entrepreneur-entrepreneur – Working on her/his business – Oversees chaos – Likes to create business Entrepreneur-manager – Working in her/his business – Makes order in chaos – Likes to operate business Source: M. E. Gerber: The E Myth Revisited. 1995
  78. 78. Whom do you need for your technology start-up? Startup Roadmap © J. Vecsenyi, 2014. 79 Hackers (experts in technology) Hipsters (good in business and management) Hustlers (great in sales and marketing) Business is not a one man show!
  79. 79. Early stage personal decisions • Alone or with others? • With family, friends, associates? • Investors? Founder • Employee, subcontractor, or owner? • Quality or availability and compensation? • Individual contributor or manager? Associates • Whom I know, who knows me? • Who would be the right external partners? • Who would be the right supplyers, subcontractors? Partners Startup Roadmap © J. Vecsenyi, 2014. 80 Startup is teamwork!
  80. 80. 81 Key roles at the beginning CEO CTO - Staffing, motivating, accessing people - Managing Finances - Executing business strategy - Networking, PR - Product and technology development - Building knowledge management system CMO -Marketing management -Design - Sales management COO - Organization design - IT systems - Sourcing - Logistics Startup Roadmap © J. Vecsenyi, 2014.
  81. 81. Startup Roadmap © J. Vecsenyi, 2014. 82 The role of the board of directors • Involvement of external people • Mentoring • Review operating and capital budgets • Develop longer-term strategic plans for growth • Support day-to-day activities • Resolve conflicts • Ensure proper use of assets • Networking
  82. 82. What do you need to clarify with co-owners and employees? 83 Goals Roles & responsibilities Processes Interpersonal relationship Conflictresolution Planning What are the key results, short, medium, long term goals and the reasons for existance? Who does what? What are the core values and grand rules? What are the core processes, systems, action plans with deadlines? Source: Beckhard, 1975 Startup Roadmap © J. Vecsenyi, 2014.
  83. 83. PRODUCT DEVELOPMENT & DESIGN What the product will be like? Startup Roadmap © J. Vecsenyi, 2014. 84
  84. 84. How to create product from the idea? Startup Roadmap © J. Vecsenyi, 2014. 85 Source: http://www.innecs.com/html/Product%20development.html
  85. 85. LEAN STARTUP ACCELERATING MARKET PENETRATION How can we create value faster and better? Startup Roadmap © J. Vecsenyi, 2014. 86
  86. 86. 87Startup Roadmap © J. Vecsenyi, 2014.
  87. 87. The lean startup methodology for product development Ideas Build Product Measure Data Learn 88Startup Roadmap © J. Vecsenyi, 2014. • Coding • Designing • Prototype / Product building • Check Quality • Test with users • Collect evaluations • Raise statistics • Learn from users • Find conclusions • Generate new ideas Source: www.kickstarter.com
  88. 88. Minimal viable product (MVP) 1. Helps entrepreneurs start the process of learning as quickly as possible 2. The goal is to test fundamental business hypotheses 3. Only one hypothesis at a time 4. One total circle of Define, Measure, Learn at a time 5. Do not push perfection just show the prototype, or the concept to the customer 89Startup Roadmap © J. Vecsenyi, 2014.
  89. 89. Startup Roadmap © J. Vecsenyi, 2014. 90 Source: http://huitale.blogspot.hu/2010/12/
  90. 90. More startup failed because of lack of customers than failures of product development Steve Blank Startup Roadmap © J. Vecsenyi, 2014. 91
  91. 91. FINANCING For what, how much, from where? Startup Roadmap © J. Vecsenyi, 2014. 92
  92. 92. Startup Roadmap © J. Vecsenyi, 2014. 93 • Entrepreneurship: Pursuing an opportunity beyond the resources currently controlled / Howard Stevenson • Financing Obtaining the missing resources
  93. 93. Startup Roadmap © J. Vecsenyi, 2014. 94 Why For what From where How When you need How much money at the early phase of your new business?
  94. 94. Financing categories Equity financing Investing • Creates ownership • Provides control and insight • Equity increase expectations • Occasionally dividend/ROI expectations • Net loss in case of insolvency • Obtained from capital markets • Investor sometimes provides expertise too in startup phase Debt financing Crediting  No ownership but collateral and/or tangible asset (property) is required  Pre-defined time frame  Interest bearing  Payback obligation, requires profit from operation (positive EBITDA)  Usually provided by banks, but due to high associated risks is not a preferred financing tool by commercial banks in startup phase Startup Roadmap © J. Vecsenyi, 2014. 95
  95. 95. What financing do you need for? Startup Roadmap © J. Vecsenyi, 2014. 97 Seed capital for development Startup capital for quick start Growth capital for expansion
  96. 96. Startup Roadmap © J. Vecsenyi, 2014. 98 What does the venture need the money for? 1. How much money do you have and how much will you need for personal use? 2. How much money will you need to start your business (start-up cost) ? 3. How much money will you need to stay in business (operational expenses) ?
  97. 97. What does the venture need the money for? Startup Roadmap © J. Vecsenyi, 2014. 99 Development, startup costs Operational expenses Living costs Reserve needs Research and development cost, Licenses, permits, Fixtures, equipment, Installing fixtures, equipment, Beginning inventory costs, Rent deposit, Insurance fee, Advertising for opening, Legal, professional fees, Unanticipated expenses Be more realistic with the projections Minimum of 3-6 months operative expenses or 10-30% Food, clothing, utilities, insurance, rent, entertaintment, transportation, health care, etc. Employee wages, Your living expenses, Rent, Supplies, Utilities, Advertising, insurance, Taxes, Maintenance,Delivery / Transportation, Accounting fee, Membership fee, Miscellaneous
  98. 98. Startup Roadmap © J. Vecsenyi, 2014. 100 The Business model: Making money – Cost 2. Spending on what, how much, when? Profit 3. How much, when will break- even be reached, positive cash flow? Investment 4. How much investment is needed? Return 5. When will the investment return? 1. Who will pay for what, how much, when? Revenue
  99. 99. Startup Roadmap © J. Vecsenyi, 2014. 101 Money Fix cost Volume/Time Break-even analysis Fix cost Variable cost Profit Break- even point Minimum volume Minimum Price Realistic? Enough?
  100. 100. Sources of entrepreneurial financing Startup Roadmap © J. Vecsenyi, 2014. 102 Founder(s) Bootstrapping 3F (Family, Fiends, Fools) Private investors Business Angels Venture Capital Crowdfunding Governmental support Bank loan
  101. 101. How can we get out from the Valley of Death? Startup Roadmap © J. Vecsenyi, 2014. 103 Valley of Death Source:
  102. 102. Startup Roadmap © J. Vecsenyi, 2014. 104 Return 1. When will the operation become profitable? – Operating break-even 2. When will the return on investment reach its break-even point? – Duration of the Return on investment 3. What is the rate of investment compared to other investments? – ROI
  103. 103. Two pitches for two kinds of audience • Investment pitch wants to convince investors to give money to your business • Sales pitch wants to convince customers to buy your product/service 105Startup Roadmap © J. Vecsenyi, 2014.
  104. 104. Elevator pitch for investors Startup Roadmap © J. Vecsenyi, 2014. 106 1. What is the problem/ need? 2. What is the solution/value proposition? 3. What is the value for the market and for the investor? • 2-5 minutes pitch • Raises investor’s attention to the new venture 1. No nonsense 2. Easy to understand 3. Greed inducing 4. Irresistable 5. What we offer to, what we request from the investor? 4. Who are the members of the winning team?
  105. 105. Preparation for the elevator pitch 1. Define your business concept 2. Define why do you want to pitch, what do you want to accomplish 3. Formulate what do you want to tell and how 4. PRACTICE, PRACTICE, PRACTICE 5. Ask for feedback 6. Tell your pitch to the investors 7. Listen to the questions 8. Give brief answers to the questions. Be prepared for expected questions 9. Be calm in taking the results 10. Assess your performance and be prepared for the next pitch 107Startup Roadmap © J. Vecsenyi, 2014. 10
  106. 106. CREATING YOUR BUSINESS PLAN How can you convince the investors? Startup Roadmap © J. Vecsenyi, 2014. 108
  107. 107. www.startmybusines s123.com Self confident Profound Concious Execution Why do you need a business plan? Startup Roadmap © J. Vecsenyi, 2014. 109 Detailed BUSINESS PLAN Viable STARTUP BUSINESS CONCEPT Idea Systematic thinking using WHY? For the founders, for 3F investors and business angels For the founders, investors FOR WHOM? HOW? WHAT? Detailed planning with Business plan toolkit Convincing profound arguments Self confident Planned Concious ExecutionConvincing, credible document
  108. 108. Startup Roadmap © J. Vecsenyi, 2014. 110 A business plan for a new venture is … a convincing and credible document for starting and financing a new venture to prove that in the next 2-3 years the new venture  with its products and services  on the target market  with the entrepreneurial team  can make profit  and manage risk …prepared  for and by the founders to make a conscious decision on starting a new venture  for the investor to convince financing institutions or private investors
  109. 109. Startup Roadmap © J. Vecsenyi, 2014. 111 A business plan is… when the founder  Analyzed the market and industry  Planned actions to market entry  Defined and designed products and services  Designed operational conditions of the business  Identified the necessary staff  Calculated the profit making potential  Calculated risks and risk management tools  to the founder that to start the business is rewarding and possible  to the investor that financing the new business is rewarding and safe when it proves Convincing Credible
  110. 110. Startup Roadmap © J. Vecsenyi, 2014. 112 Content of a business plan 1. Cover sheet 2. Executive summary 3. Introducing the business 4. Industry, market, competitor analysis 5. Product /service 6. Marketing plan 7. Operational plan 8. People and organization 9. Financial and financing plan 10. Risks and risk management 11. Attachments
  111. 111. Analyzing business environment Startup Roadmap © J. Vecsenyi, 2014. 113 Industry Industry trends Growth potential Market segments and groups Industry success factors Official regulations Technology trends Preferred purchasing and payment methods Purchasing power Payment moral Competitors Competitive value props Industry value chain Labor market Networks Legal system Investors’ ecosystem Accounting Act Tax Act
  112. 112. How much money will your startup make? 114 Income statement Income statement Sales - Costs Net income Balance sheet Debt Assets Equity Cash-Flow statement Cash in - Cash out Cash Flow Financial statements for entrepreneurial answers Would it be profitable? Would it be liquid? Would it be thriving? Startup Roadmap © J. Vecsenyi, 2014. Financing Closing Balance Sheet Beginning balance sheet
  113. 113. FOUNDATION STEPS How to start? Startup Roadmap © J. Vecsenyi, 2014. 115
  114. 114. Business conditions 116 Startup Roadmap © J. Vecsenyi, 2014. Tax regulations Legal form People Organization Core activities and products Accounting Accountant Experts Advisors Investment Site, office Bank selection Licences Basic conditions for launching a new venture? Patents Insurance Name selection Sales strategy and force Technical, organizational, human Legal conditions
  115. 115. MARKET ENTRY How do we start selling? Startup Roadmap © J. Vecsenyi, 2014. 117
  116. 116. Steps to the market 1. Who would be our customers, what do we know about their buying behavior? (Segmenting) 2. What are the needs of our targeted segments? (Needs analysis) 3. What do our competitors offer? (Competitive analysis) 1. What do we sell, to whom, satisfying what needs? (Positioning) 2. How do we price? (Pricing) 3. How will we communicate to the market? (Promotion) 4. Where and how will we sell? (Sales channels, strategies execution) Market research Market entry Market retention 1. How do we get feedback from our customers? (Correction needs) 2. How will we react to correction needs, short term? (Reactive customer service, complaint management) 3. How will we react to correction needs, long term? (Proactive actions, product development) 118Startup Roadmap © J. Vecsenyi, 2014.
  117. 117. CLOSING REMARKS Do you still want to start a business? Startup Roadmap © J. Vecsenyi, 2014. 119
  118. 118. Instinct can never replace knowledge, but perfectly complement it. Kristina Ohlsson, 2012 Startup Roadmap © J. Vecsenyi, 2014. 120 It is not enough to invent it… You should make it… You should sell it… You should make money out of it
  119. 119. Startup Roadmap © J. Vecsenyi, 2014. 121 Staircase of entrepreneurial success Technical success You can make it Sales success You can sell it Business success You can make money out of it Social success It is useful, not harmful to society Personal success You are happy
  120. 120. Enjoy the journey not just the destination! 122Startup Roadmap © J. Vecsenyi, 2014.
  121. 121. 1. Aulet (2013) Disciplined Entrepreneurship 2. Blank, Steve (2013) The Four Steps to the Epiphany 3. Béza és társai (2013) Kisvállalkozások finanszírozása. Perfekt 4. Gerber Michael E. (2001) The E-Myth Revisited 5. Ries Eric (2011) Lean startup 6. Szirmai P.-Klein S. Üzleti tervezés kívül és belül. Induló vállalkozások tervezése. EDGE 2000 Kiadó, Budapest 7. Timmons, J. (2003) New venture creation. Entrepreneurship for the 21st century. Irwine 8. Vecsenyi János: (2012) Kisvállalkozások indítása és működtetése. 72h 9. Wasserman, Noam (2012) The Founder’s dilemmas Videos 1. http://www.ted.com/talks/lang/eng/simon_sinek_ how_great_leaders_inspire_action.html 2. 8 secrets of success 3. If You Don’t Understand People, You Don’t Understand Business 4. http://www.ted.com/talks/malcolm_gladwell_on_ spaghetti_sauce.htm 5. Marketing Strategy 6. http://www.youtube.com/watch?v=Tq0tan49rmc 7. On pitching to VCs 8. The era of open innovation 9. Before Avatar ... a curious boy Startup Roadmap © J. Vecsenyi, 2014. 123 Sources
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