Business Plans for Startups
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Business Plans for Startups

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SeedCamp Presentation

SeedCamp Presentation

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Business Plans for Startups Presentation Transcript

  • 1. “ Boulevard of Broken Dreams” - But you’re not alone... April 2009 [email_address] twitter: @seedcamp
  • 2. Business Models for Startups
    • Think through a biz model early on; Don’t just build and worry about survival
    • Lots of ways to sell valuable services. Find your ‘Best Fit’
    • The devil is in the details and secret to success in the execution – talk to other startups and learn from each other
    • Seedcamp companies
      • Of the 11 (13) startups; Mobclix (mobile ad-network), Kublax (freemium?), Basekit, Zemanta, Soup, Ubervu (Freemium), RMO (Subscription), myBuilder (marketplace), Kyko (Virtual goods), Toksta, Stupeflix (License)
  • 3. Business Models for Startups
    • A flavor of the popular and successful few:
    • Advertising
    • Freemium and Subscription
    • Marketplaces and eCommerce
    • License and SaaS
    • Virtual Goods
    • Graduated Business Models
  • 4. Advertising
    • Everyone
    There’s a lot of noise. Isn’t so dissimilar to the physical world Don’t rely solely on advertising
  • 5. You have to pedal twice as fast to go the same distance data thanks to
    • Advertising as a supporting Revenue stream; Blend with complementary models
    • Look at verticals, lead generation , affiliate programs (eBay, Amazon), Mobclix (ad network + analytics subscription)
    Expedia (Marketplace), Business Week and NYT (Offline one-off and subscriptions) Startup examples – Zoombu (lead gen), Simply Hired (job seekers), Zemanta (Amazon affiliate)
  • 6. Freemium Skype, Flickr, 37Signals, iMall, Freetailer, Freeservers Basekit, Box.net, Zemanta Pro Model: Offer basic services for free (features, use), drive users, and charge a premium for truly advanced features
  • 7. Subscription Model: Straight charge for use of service. Can have promotional offers Salesforce, Amazon EC2, Gartner Slicehost (actually, fewer startups starting with a straight subscription model)
  • 8. Marketplace & eCommerce Build a great marketplace and they will pay Or make and sell something people want
  • 9. Marketplace and eCommerce
    • Model:
      • Mktplace - % of success fee, listing fee, subscription
      • eCommerce - Acting as the merchant itself or agency
    • There is a LOT of CONSISTENT Revenue to be made here
    Expedia (Merchant model),Net-a-porter, Zappos myBuilder, Rent Mine Online
  • 10. Licensing and SaaS
    • Model: License underlying technology or offering software as a service to customers
      • SMEs – Distribution (Channel, channel, channel)
      • Corporates – longer sales cycles, customization
    Big company: Livebookings, Meebo, Magnify.net, NetSuite Startups: Toksta, Stupeflix
  • 11. Virtual Goods
    • Model: Selling virtual gifts, furniture, in-game upgrades like weapons, online currency, etc
    Changeyou, Tencent, Second Life, Habbo Hotel Stardoll, Kyko, HotorNot
  • 12. Graduated Business Models
    • Blended business models that add further relevant revenue streams
      • myBuilder – going from % of transaction to subscription to advertising/lead-gen
      • Amazon – E-commerce to hosting to affiliate advertising
      • Other models: Micropayments, Third party support models
    • Consulting = NOT a business model b/c it’s not your core activity
  • 13. Good Blogs/Resources
    • http://startup-marketing.com/the-right-business-model-for-your-startup/
    • http://omalleyblog.typepad.com/infectious/2009/02/ad-based-startups-bad-idea.html
    • http://500hats.typepad.com/500blogs/2008/09/startup-metrics.html
    • http://www.avc.com/a_vc/2006/03/my_favorite_bus.html
    • http://www.techcrunch.com/2007/06/20/virtual-goods-the-next-big-business-model/