2014 01-29 commercializing your idea iact jan 2014

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John Seiffer will provide burning insights to the commercialization process and why that line about a better mousetrap is completely wrong. He¹ll describe why some ideas make it out of the lab and some don't. He'll cover the different parts of a business model and how to use that information in your work.

Bio:

John Seiffer currently serves as Entrepreneur in Residence for CT Next. He has been an entrepreneur since 1979, and a consultant helping growing companies since 1994. He¹s also an angel investor. In 1998 he was president of the International Coach Federation and in 2012 became President of the Angel Investor Forum. His blog is at www.CEOBootCamp.com.

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  • The myth of the mousetrap perpetuates the idea that business is primarily about the product. Invention may be but not business.
    Business, Commercializing your idea, is about SELLING, commerce.
    Obviously you have to sell a product, and maybe less obviously you have to sell it to someone. That’s why …
  • Here’s a “traditional” timeline for most companies
  • Let’s look at someone who followed this pattern.
  • What do we mean by a customer?
  • What do we mean by a customer?
  • Where do each of you fit on this graph?
  • If you face both risks, don’t focus on technology first!
  • Most Startups fail – they run out of money at this point
  • Enter Peter Drucker
  • Jos A Banks
    Costco
    WalMart
    Dollar Store
    Backscratcher
  • Pains Gains Jobs
    Pains Gains Customer Jobs
  • Growth
    Investing money to get more capacity
    More Customers etc.
  • Growth
    Investing money to get more capacity
    More Customers etc.
  • 2014 01-29 commercializing your idea iact jan 2014

    1. 1. Commercializing Your Idea January 29, 2014 © 2014 John Seiffer
    2. 2. The purpose of a business is to create _____________________
    3. 3. The Cruelest words ever written:
    4. 4. Build a better mousetrap, and …
    5. 5. The purpose of a business is to create _____________________
    6. 6. There is only one valid definition of business purpose: To create a CUSTOMER. - Peter Drucker
    7. 7. Definition of a CUSTOMER?
    8. 8. WHY?
    9. 9. The Hard Part is… Selling, not Creating Value
    10. 10. Market Risk Market Risk Market Risk Risk Technology
    11. 11. Market Risk Market Risk Market Risk Risk Technology
    12. 12. Market Risk Market Risk Market Risk Risk Technology
    13. 13. Market Risk Market Risk Market Risk Risk Technology
    14. 14. Market Risk Market Risk Market Risk Risk Technology
    15. 15. Eric Ries tried the “Build First” approach.
    16. 16. 6 months 40,000 lines of code
    17. 17. 6 months 40,000 lines of code
    18. 18. 6 months 40,000 lines of code Nobody Cared
    19. 19. Did I waste 6 months? Should I have Did I provide any
    20. 20. 6 months 40,000 lines of code 3 months? 20,000 lines of code?
    21. 21. 6 months 40,000 lines of code 3 months? 20,000 lines of code? 1 month? 0 lines of code?
    22. 22. Lean = No Waste
    23. 23. Lean = No Waste Waste = Making Something People Don’t Want to Buy
    24. 24. A startup is a temporary organization designed to search for a repeatable and scalable business model.” - Steve Blank
    25. 25. • The purpose of a startup is to DISCOVER. • Progress is measured by LEARNING – not sales.
    26. 26. Learning requires •Falsifiable Hypothesis •Experiment •Data •Defined level of success or failure
    27. 27. Hypothesis about what?
    28. 28. Who your customers are. And what they want to pay for.
    29. 29. Who Decides what value is?
    30. 30. Pains Gains & Jobs
    31. 31. Pains, Gains & Jobs http://www.businessmodelgeneration.com/downloads/value_proposition_canvas.pdf
    32. 32. Search for a repeatable and scalable business model.” - Steve Blank
    33. 33. Search For:
    34. 34. Search For: Someone
    35. 35. Search For: Someone Who has a problem
    36. 36. Search For: Someone Who has a problem That they care enough to pay for
    37. 37. Search For: Someone Who has a problem That they care enough to pay for That you can solve
    38. 38. Search For: Someone Who has a problem That they care enough to pay for That you can solve Profitably
    39. 39. The Business Model Formula (LTV – CA) *N = $$
    40. 40. (LTV – CA) *N = $$ Where are investors?
    41. 41. Funding is not the answer if the business model is not sound! Real money comes from customers.
    42. 42. Vendor Funding Sell your Rights License Joint Venture SBIR Customer Funding Sikorsky Challenge Crowd Funding DECD www.ctinnovations.com/funding/sbir www.sikorsky.com/EChallenge http://www.ct.gov/ecd/cwp/view.asp?a=3931&q=462616 http://www.ct.gov/ecd/cwp/view.asp?a=1097&Q=253518 http://angelinvestorforum.com/submit_business_plan.html
    43. 43. John@CEOBootCamp.com 203-775-6676 John Seiffer

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