Startup Metrics for Convicts

Startup Metrics for Convicts
Goal:
Geographic challenges Australian founders need to control
David Jones
http://djinoz.com
http://slideshare.net/djinoz/startup-metricsforconvicts
Technology Venture Creation (ELEC5701) Oct 10 Homage to Dave McClure’s “Startup Metrics for Pirates”

Personal experience from 3 startups OEM Channel Enterprise Consumer EmU Tech Reach Software 90’s 2000 2003 2004 2006 2009 High Touch Low Touch NetWorth

Don’t whinge but recognize you have more barriers than a US Founder $$$ Team Skills Mentors and Relationships david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz Customer Pool/Feedback

david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz So ask yourself this: 1. How will I define success? (revenue, exit, lifestyle, headcount) 2. If I take investment, how will investors define success? 3. At each stage of the business where do I need to be to maximize (their definition) success? 4. How much control do I want to give up?

david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz $$$

(Ye olde) Funding Model for: Web 1.0, Enterprise S/W, Deep IP, Rockstar Founders david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz Australia: Not a great track record here X

VC as an asset class is under question Hence the birth of angels, super angels, micro-VCs AND “Lean” is now fashionable. Infrastructure supports “lean” david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz

Lean but not starving - revenue is a the best deodorant BEWARE: Market Change or slow execution… a common “underfunded aussie story”. david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz X

Aussie startups have always been “lean”
(its in our DNA by necessity)
The Good News…

david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz Customer Pool/Feedback

Bridge the Geo Gap to feedback david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz

Focus or Fail (picture credit: Mick Liubinskas/Pollenizer ) If you have limited resources and cash reserves then focus is your most valuable discipline – if you get it wrong at least you “fail fast” david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz

You Can Validate Locally (audience/segment focus)
Hit the core features
OZ companies/consumers are often early adopters
Ironed out bugs
Do you need to?….Consumer have the tools for global frictionless feedback (getsatisfaction, uservoice, engagement metrics, game mechanics)
The Good News…

Austria or Australia? You need revenues from a BIG market to survive …. If your product is “enterprise” you need Sales/Support in US Timezone david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz + 612??? Where is the “+” ?
The reality:
is that 70-100% of revenues for US companies come from US customers
“ if you build it” they won’t come
You PROBABLY have a US competitor
Your product is PROBABLY better
Your product is PROBABLY cheaper
They don’t really care (risk, barriers)
“ Touch” matters – be near your customer

Match your audience to your cash (or get diluted) (the OEM anomaly – you think its low cost – but no free lunch) OEM Channel Enterprise Consumer High Touch Low Touch Firewall Vendors Security Vendors Per Vendor Customerisation Whiteboxing Are they blowing smoke?? No-one is incented as you!
Resellers/Integrators
Training
Mindshare
Are they Incented
Symbiotic product-line
Pilots/Integration Closing Complex Contract Negotiation Repeatable Contracts Debtors

Entering US - Team (or elsewhere)
Will a sales focused founder move to US? (CEO is often the best sales guy)
If not – your first Sales Hire in critical
Consider Sales/BD Contractor ( EMDG and COMET reimbursement (as an agent) )
Work LinkedIn first/SV OZ mafia
Be There – no substitute for spending time
Work some deals with them – will it work? (Bull-terrier, Hunter, Farmer?)
“ Blowing Smoke” (Geek Founders have no clue how to interview Sales ppl)
What other gigs do they have on the side? (Integrity)
What profile do you need? (VP, Director, Outbound Sales)
Hire from your industry
Can you afford it? (SV VP USD150-180K => AUD23K/month (before EMDG)
Dial-for-Dollars – fill the pipeline
Anyone had good experience with Austrade outsource?
Anzatech, David Cannington? etc

Entering US/UK – Channel No-one will EVER sell like you!
Impedance Match
OK, so its on their pricelist – but will they sell it? (scratch the itch)
Are they selling symbiotic product?
Will they be selling to the same customer?
Does your product give them a unique differentiator?
Reseller Margin (you need to be more generous than you think)
Education/Training
Again – will they sell it? (training Surfcontrol Web ppl to sell Email Filtering)
Work some deals with them – countering objections
Cultural Differences
Taiwan and Japan were polar opposites
Is this relevant in a SaaS world? (people still buy from people but “self-service does compress sales cycle)

david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz Mentors and Relationships

The local startup community is building:
StartupCamp
StartMate
SeedAccelerator
Courses like this….
Lots of global information
Aussie “mafia” in Silicon Valley (StartMate)
The Good News…

david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz Team Skills

david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz So much to say I don’t want to say anything… But… 1. Now “scale” == “traffic scale” (so - Access a gene pool who’ve done massive traffic before) 2. Market/Product Define/Build--  Transition to Growth-  Growth There is a different team “fit” at each stage.

Same as mentor slide…
… get advice from people with scars
The Good News…

Questions?

Startup Metrics for Convicts

by David Jones on Oct 14, 2010

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Startup Metrics for Convicts — Presentation Transcript