2. Company Builder
Speed is everything
Price Premium
Competitor lock-out
Market leadership
Biggest hurdle is from idea to launch
3. Ideas
Every business starts with an winning idea…
then markets provide feedback
Quick response to market feedback is critical for
success
4. Often the first idea is not what’s
launched
Idea
Idea Idea validation is
Valid
?
iterative, not linear!
Expanded
Prototype
Testing
Idea
Validation During idea validation
be open to change.
Prototype
Concept
Feedback
Your baby may grow
Prototype
Concept
and look different over
time.
5. What if you could…….
Focus energy
on listening to
the market
Reduce the
and selling
“noise” of
building a
company
6. Idea to Profit Framework
Validate Build the Launch the Grow the
the idea Business Business Business
…….. its not about launching an idea, it’s about profits!
“Show me the money”
7. Validate the idea
Validate
the idea
• Create initial business plan
• Size the market
• Define the buyers (persona)
• Develop prototype
• Recruit Board of Advisors/Industry Experts
• Conduct in-depth market research and validation
• Estimate costs/volumes/selling prices and create initial financial model
• Decide go/no go on opportunity
8. What’s a Plan Got to Do with It
• First step is to create a business plan
– Merely writing down decisions creates rigorous
thinking
– The better the up front planning, the lower the risk of
failures
– Use a complete business plan framework
• But focus on understanding the market, differentiators, and
competition
• Using a “plan” to drive activities, you’ll move
faster, chase fewer geese and reduce the risk
you’ll lose money
9. Build the Business
Build the
Business
• Continue prototype research and refinement (Increase reach and depth of focus group)
• Update the business model (C/V/P)
• Create legal entity
• Recruit key management team members
• Establish accounting/financing provider and track investments
• Create website presence and begin generating “buzz”
• Review investment risk – go/no go decision for launch
• Evaluate “exit strategy” options
10. Launch the Business
Launch the
Business
• Define critical business functions and processes, select service providers
for each key function
• Refine customer acquisition strategy
• Initiate development of strategic alliances
• Finalize product / complete QA go no-go
• Update financial models
• Prepare press releases
• Sell, Sell, Sell
11. Grow the Business
Grow the
Business
• Develop the culture
• Hire the right talent
• Penetrate your market; drive focused marketing and sales campaigns
• Implement business planning process – define key metrics for each
function and consistently review and monitor
• Continue scanning for ideas and opportunities – updates to existing
products, new offerings, etc.
• Grow, Grow, Grow
12. Top 10 list for building a business *
1. Focus on creating value
2. Build a team
3. Develop a mantra
4. Get in the game
5. Stay lean and scrappy
6. Go for the globe
7. Be nimble, be quick
8. Always be selling
9. Plan for continuous upgrading
10. Focus on people
* Garage.com
13. Critical Function and Activities for
Business Planning
Accounting
G/L, A/P, A/R, Fixed Assets
Sales Tax
State and Federal Tax Filing
Time and Expense
Finance
Currency Hedging/Management
Treasury
Cash-flow Forecasting and Modeling - Working Capital
Banking - Funding, Investing, LOC/Foreign Exchange, etc.
HR
PEO - Professional Employment Organizations
Recruiting
Payroll
Benefits
Retirement Plans
Compliance
Employment Taxes (FICA, Unemployment, Medicare, etc)
14. Critical Function and Activities for
Business Planning
Engineering
CAD Design Tools
Software Development Tools
Requirements Management, Agile, Waterfall, etc.
Bug Tracking
Test Management
Configuration Management
Technical Writing, Specs, Release Notes, etc.
Serial Number Creation/Tracking
Product Data Management
Product Compliance with National/International Laws
Quality Assurance
Operations
Business Volume Forecasting and Planning
Purchasing and Vendor Management
Inventory Control
Sales Order Management (acknowledging, shipping, etc.)
Warranty Repairs and Returns
Quality Control
Manufacturing Execution, Inventory Tracking
Serial Number Creation/Tracking (Serialization, finished goods identification)
Continuous Process Improvement Tools
Distribution and Logistics (Shipping and Receiving)
15. Critical Function and Activities for
Marketing Business Planning
Inbound
New Product Requirements/Voice of the Customer (Market)
MRD/PRD/Specifications
Market Sizing and Forecasting/TAM/SAM
Launch Readiness/Sales Training/New Product Development
Outbound
Market Awareness/Marcom/PR
Twitter
FaceBook
LinkedIn
Yammer
Product Pricing
Promotions and Campaigns
Events (conferences, webinars, podcasts, etc.)
Campaign Management
Alliance Management (establishing and administering alliances, partnerships,
co-op marketing, channel partnerships, etc.)
16. Critical Function and Activities for
Business Planning
Sales
Prospecting and Qualifying Leads
Sales process execution (Requirements discovery, managing contacts,
meetings, coordinating channel sales, presentations, demos, proposals,
RFP's, contracting and closing etc.)
Sales management and operations (sales cycle tracking, reporting, sales
analytics, compensation planning/commissions tracking, etc.)
Bidding and Quoting (Quote Tracking, quote expiration, price changes,
etc.)
Pipeline Management (developing new prospects and opportunities,
managing number of opportunities, etc)
Account Growth and management (strategy for expanding sales in
existing accounts, cross-sell, up-sell, etc.)
Commissions Tracking
Shopping Cart
17. Critical Function and Activities for
Business Planning
IT Infrastructure
Web Server/App Server/DB Server
Phone System
Voice Mail
Email
Office Tools
Wiki
Blogs
Conference Calling
Webcasts
Chat
Web Customer Service
Data Storage
Cell Phone
18. Critical Function and Activities for
Business Planning
Legal
Document Management/Tracking
NDA
Sales Contracts
Purchase Contracts
Government Compliance (Product, Employment, etc.)
Patents/Copyrights/Trademarks
Terms Sheets
Buy/Sell Agreements
Loan Documents
Corporate Structure and Governance Model (LLP, LLC, S-Corp, C-Corp)
Capital Structure (Founder shares, equity in lieu of pay, etc.)
Insurance
Workers Comp
Liability
Property & Causality
Officers
Business Interruption
19. Critical Function and Activities for
Business Planning
Facilities
Office Space/Warehouse Space/Manufacturing Space
Space planning (guidelines for space per person, expansion
plans, contraction plans, etc)
Insurance planning (Office Equipment, Umbrella Policy)
Operating cost budgeting and forecasting- Gross or Net,
(Internet, Water, Electric, etc)
Legal planning and review lease Guarantee (legal entity,
company financials, letter of credit, personal guarantee)
20. Mapping tools to Processes
A
Q
P M N d S S
u D A I W A
e i e O m T h p
i y p n o v
a c t r i r o C e
c n
c r S l t r a
k a s a n i p a e
h o A i f a k l
b m u c i n p r d
t s P c c d a
o i i l s e i t t
r o o c a r
o c t
e f t e t n a
k s r t y a
e t e a g x
s
f
Accounting x x x x x x x x x
Finance x x x x x x x x
HR x x x x x x x x
Engineering x x x x
Operations x x x x x
Marketing
Sales x x x x x x
Legal
IT Infrastructure
Facilities
21. Mapping tools to Processes
Q M W S
N F L S
u T J i o a
e a Y i O G u
i w o T c r l e
t c a n O f o N g
c A i b a r d e .
S e m k p f o i a
k s D t V l o p s c
u B m e e i g n r
B P t i e s r F o
i o e d n c l g C
o e t o o e o m
t o r I e e R
o r e f s r
e k n M
k t s c
Accounting x x x
Finance
HR x x x x x
Engineering
Operations x
Marketing x x x x x x
Sales x x x
Legal
IT x x x x x
Infrastructure
Facilities
22. Mapping tools to Processes
M T T Q B C
k
i C a D R S S h e B A u a o
C A H s E
C o i i a A o o o a u A m i z r S M
o u P R / x
o n l r t c f f u m g m e c z e u o
n t I a M p
n s e i c t t g z a r k a M r n
t o T B l i r e s
t t C c o e w w h T i z i A r e v k
a c e M l n e
a a h t n p a a t r l o c r V t e e
c a s y g s
c n i o a t r r w a l n a r o r y y
t d t l s
t t m r l e e o c a n o i i
e
p r k w c c
Accounting x x
Finance
HR
Engineering x x x x x
Operations x x x
Marketing x x x x x x x x x
Sales
Legal
x
IT Infrastructure
Facilities
