Going from Concept to Cashflow - Login 2010Presentation Transcript
From Concept to Cashflow Andy McLoughlin
I am co-founder and VP strategy at Huddle.net Award-winning cloud collaboration and project management Huddle was launched in April 2007 HQ in London, US office in San Francisco Venture funded, cash-flow profitable A little bit about us...
Securely manage all your projects from one place Share files with online editing, auditing, versions, permissions and workflow Collaborate and organise with discussions, whiteboards and tasks Live meetings with integrated telephone and web conferencing Work the way you want! Multi language, RSS, iCal, social networks, desktop, iPhone, mobile, open API
Who wants to build a $10M+ company?
Who wants to build the next $100M+ company?
Picture of a path (yellow brick road?)
The beginning of the adventure
Taking the plunge Taking the plunge
Picture of old school football team
Your founding team
In the Gospel according to…
Where to live (London vs San Fran)
Picture: Golden Gate Vs Tower Bridge
Do I stay or do I go? (i.e. know your market!)
Launch: how soon is too soon?
Launch early vs. launch late
First mover adv.
It could bomb
Big launch buzz
No user feedback
Someone gets there first!
(or: how do i get featured on techcrunch?)
Build a great product
Learn how to pitch your product in one sentence
Generating buzz (or, “How do I get featured on TechCrunch.com?!”)
Finding your first customers
Raising Finance Financing your start up
Send me an angel Send me an angel
Venture capital Venture (vulture?) capital
AKA “Kissing Frogs”
The VC Process
Things you’ll need to know!
User acquisition cost
Cost to convert to paying
“ Payback time” (less than 1 year FTW)
Justification for all projections
More money, more problems
What’s in store post-funding?
Lots of hiring (and some inevitable firing)
No longer in complete control
Targets to set targets
Things we've learnt
Your initial team may not make the grade
Don’t be afraid to say no
Meeting the perfect candidate is like falling in love
Working in a start-up isn’t for everyone
Don’t hire people if you wouldn’t want to spend all day, every day with them
Go for smart, entrepreneurial people
“ Bet on openness, build trust”
Huddle’s product and company mantra
Keep the team in one building
Publish company targets and roadmap
Weekly company stand-up with open floor
Get engineers and product on sales calls
Get sales and marketing people testing
Company-wide product planning sessions
10% hack time to build cool stuff
Development: Moving from fragile to agile Development: from fragile to agile
Process, process, process
Product Management FTW! Product management (a.k.a. ‘how to lose friends and alienate people’)
Pricing your product
Pricing – the hard lessons
Decide how you’ll make money early
Ad-funded free? Freemium? Enterprise?
Don’t get into a price war
People will pay more than you think
Where possible, migrate customers to yearly payments
Iterate, iterate, iterate!
Dealing with recruiters Building a sales team that sells
Making partnerships work Making partnerships work
Partnerships – what we learnt
Good partnerships can deliver everything you want but...
Pick your battles wisely
Be prepared to invest
Be prepared to wait
Be prepared to argue, argue, argue
Only 1 in 10 will really succeed
But remember that David beat Goliath!
“ A place I'd want to work” Creating “a place I would want to work”
Creating that place
Great people + nice surroundings = WIN
Make everyone a shareholder
Invest in a good coffee machine
Table football league / Wii / beanbag area encourage creative thinking and bonding
Eat together regularly
Regular outings with partners invited
Continually ask yourself if this truly is a place you’d want to work