Free Market Research for Entrepreneurs and other Cheapskates

Free Market Research for Entrepreneurs and Other Cheapskates David Teten Partner, ff Venture Capital ffvc.com blog: teten.com @dteten New York, NY info@teten.com© 2012 David Teten. More at ffvc.com and teten.com http://www.flickr.com/photos/roblee/133498854/

Intro Tools Signals Network Next Steps •  Introduction •  Tools of the Trade •  Signals of Potential Customers •  Growing Your "Network 2.0" •  Next Steps© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Investment Search Process (# Companies) TA First Highland Assoc- Round Angels on Typical Capital iates Capital Gust Entre- (2008) (2006) (2009) (2010) preneur Profiled Initially - - 2,500 20,850 3 Targets selected 10,000* 8,000 500 1,315 - Met 1,000 750 NA 1,047 - Negotiated with - - NA NA - Due diligence - - 100 577 2 Acquired/ 10-20 10-12 20 541 1 invested Business plans received Highland data: Economist, Global Heroes: A Report on Entrepreneurship, March 14, 2009, page 9. TA Associates data: The Big Issue: Deal Origination, Corporate Financier, October 2006 First Round Capital data: Aktihanoglu , Murat. “NYC Entrepreneur Week Events Take-aways.” May 3, 2009. http://centrl.com/blog/?p=53 .© 2012 David Teten. More at ffvc.com and teten.com Angelsoft data: Website, March 17, 2010.

Intro Tools Signals Network Next Steps ff Venture Capital (ffvc.com) •  Early-stage technology venture capital fund •  Founded 1999, with over 150 investments in over 50 companies •  Focus on early stage web-based services companies with disruptive models, including SaaS, video gaming, digital media, social, mobile and VoIP •  First investments typically $50-$400K at valuations of <$5m pre-money •  50% of fund reserved for follow-on investments •  Prominent angel investments include: Cornerstone OnDemand (IPO); Quigo Technologies (sold to AOL for reported $340m); Klout; BetterWorks© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps David Teten Biography (teten.com) •  Partner, ff Venture Capital, early-stage technology venture capital fund •  Founder and Chairman, Harvard Business School Alumni Angels of Greater New York •  Founder and Chairman, Navon Partners, research and analytics startup focused on private companies •  Managing Director, Evalueserve, through September 2008. 2,500-person finance-focused research and analytics firm. •  Founder and CEO, Circle of Experts (investment research firm), sold to Evalueserve •  Founder and CEO, Teten Executive Recruiting, sold to Accolo, #42 on 2007 Inc. 500 •  Founder and CEO, GoldNames, domain name investment bank, based in Israel •  Technology/Defense Investment Banking, Bear Stearns (#1 group at Bear investment banking by revenues) •  Lead author, The Virtual Handshake: Opening Doors and Closing Deals Online (TheVirtualHandshake.com) •  Harvard MBA 1998, Yale BA, both with honors. •  Contact: info@teten.com© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Past Audiences for This Presentation •  Founder Institute New York (three times) •  National University of Singapore Techno Venture Forum (Entrepeneurship Centre) •  OCE Discovery (Canadian innovation conference)© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Definition of Market Research •  Market Research is the systematic, objective collection and analysis of data about a particular target market, competition, and/or environment. •  Always incorporates some form of data collection, whether it be primary or secondary research.© 2012 David Teten. More at ffvc.com and teten.com http://www.marketresearchworld.net/index.php?Itemid=38&id=14&option=com_content&task=view . http://www.flickr.com/photos/niosh/2492013803/

Intro Tools Signals Network Next Steps Why Private Information About Opportunities Is More Valuable Few competitors Many competitors Customers Sweet spot of pay highest returns high prices Customers pay low prices Info is private Info is public Inspired by Robert Bruner, Applied Mergers & Acquisitions, page 186© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Why Do Market Research •  A survey of small business managers in Texas revealed that 84% of those who conducted formal marketing research projects in the past three years felt that the information obtained was worth the money spent. •  Overall, 58% said that they were able to incorporate the research findings into their decisionmaking process. •  Only 6% reported that they were not able to implement the results.© 2012 David Teten. More at ffvc.com and teten.com http://extn.msu.montana.edu/communitydevelopment/pubs/mt9013.pdf

Intro Tools Signals Network Next Steps Market Research Process 1: Define Marketing Problems and Opportunities 2: Set Objectives, Budget, and Timetables 3: Select Research Types, Methods, and Techniques 4: Design Research Instruments 5: Collect Data 6: Organize and Analyze the Data 7: Present and Use Market Research Findings© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Google Search Hacks •  Filetype:pdf •  Filetype:ppt •  Filetype:doc •  Books.Google.com eDonkey—search hard drives© 2012 David Teten. More at ffvc.com and teten.com http://flickr.com/photos/neilt/2517652/sizes/o/ http://flickr.com/photos/neilt/2517652/sizes/o/

Intro Tools Signals Network Next Steps Major Research Databases •  Often available free for students •  Public libraries also often offer free access •  D&B •  Hoovers •  Factiva •  LexisNexis© 2012 David Teten. More at ffvc.com and teten.com http://www.flickr.com/photos/kodomut/3728718035/sizes/l/

Intro Tools Signals Network Next Steps Online Document Repositories/Marketplace for files, publications, presentations, and whitepapers •  Slideshare – presentation slides from conferences/events •  Scribd, Docstoc, Edocr – general •  Wepapers – focus on students •  Twidox – focus on academics •  Archive.org – Web archives http://www.flickr.com/photos/sookie/94778946/© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Tools for Tracking Competitors •  Astragy •  Attaain •  Compete •  Rivalmap •  Socialtalk •  SpyFu •  Tracked •  Workstreamer© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Free Social Media Monitoring Tools •  Alterian SM2 – Social media data aggregation, comprehensive analytics •  Boardreader – Online community search •  Boardtracker – Tracks conversations on discussion boards •  Blogpulse – Trend identification for blogs • SocialMention – Real time social media keyword search© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Social Media Analysis for Companies with Money •  Nielsen Buzzmetrics (Free reports occasionally) •  TNS Media Intelligence (Free reports occasionally) •  Cymfony (Provide free trials) •  Radian6 (Free demo)© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps How to Woo Interns •  Prestige •  Open doors •  Education •  Substantive experience •  Target marketing© 2012 David Teten. More at ffvc.com and teten.com http://www.flickr.com/photos/uaeincredible/3333223048/sizes/o/

Intro Tools Signals Network Next Steps Intern Sources in New York •  Business Schools –  Columbia Business School Small Business Consulting Program –  Insite NY –  Levin Institute JumpStart –  NYU EEX •  Colleges •  Student Special Interest Groups •  IIM Ahmedabad Forum for Industry Interaction http://flickr.com/photos/foundphotoslj/1134148114/© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Customers •  Observe customers in action •  In-depth interviews •  Snowball sampling • Ask for referrals to potential buyers to build a sample •  Online surveys •  Bleeding-edge users© 2012 David Teten. More at ffvc.com and teten.com http://www.flickr.com/photos/superrabbit/319538167/

Intro Tools Signals Network Next Steps Polling Recommended: •  Adword buys •  Google Docs – can be used for surveys •  Surveymonkey – leading polling service •  Polldaddy – easy interface and comprehensive analytics Also: •  ask500people •  buzzdash •  buzzvote •  Pollgenius •  pollpub •  toluna •  Twiigs •  urtak •  quibblo© 2012 David Teten. More at ffvc.com and teten.com http://www.flickr.com/photos/extraketchup/748452643/sizes/o/

Intro Tools Signals Network Next Steps Grossly Simplified Entrepreneur’s Market Map: Social Networking, mid 2005 Business LinkedIn XingTargetMarket Social Facebook Orkut myspace Dating Match.com Plentyoffish US Europe LatAm Geography© 2012 David Teten. More at ffvc.com and teten.com This chart is purely illustrative and is not intended to be exhaustive.

Intro Tools Signals Network Next Steps Market mapping is a powerful way to identify white space. Sample Market Mapping Approach # Stage Example from Klout.com 1 Choose industries and geographies of initial interest Lean entrepreneur in US. 2 Define your proprietary point of view. Thesis: People will care about their influence on social media networks, just as they care about their dress/appearance in face- to-face networks. 3 Translate into investment theme for specific industries and/ Expect growth of analytics companies analyzing social media or geographies of interest. influence. 4 List major players in target industries/geographies, and Recruiters and marketers will use social media influence as a filter how each will be impacted by investment themes. for identifying candidates with whom they want to work. 5 Iteratively improve market map based on feedback from Discuss elements of the market map with key sector players industry through industry forums and mass media. 6 Determine which activities along the value chain offer A large database of information about social media influence is the highest return (typically the proprietary ones). difficult to build and can be branded. 7 Identify areas of future growth. People will care about their influence in niche markets, e.g., who are the influencers in the fashion industry. 8 Assess fit with your strategy. Examine how people are using the product. 9 Regularly update the market map based on market Get smarter. feedback and lessons from investment prospects.© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Other Sample Market Maps Customer Quality Segment Distribution Products Channel Contextual info about each company to Include •  Management strength •  Product strength •  Client desirability •  Financial returns© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Search Engine Traffic •  What traffic are different terms getting? (“Google Adwords Keyword Tool”) •  What phrasing do people use to describe their problem?© 2012 David Teten. More at ffvc.com and teten.com http://500px.com/photo/6878052 Source: Jeff Sttewart

Intro Tools Signals Network Next Steps Private Equity News •  Dealbook.blogs.nytimes.com •  PEHub.com •  PENews.com •  PrivateEquityInfo.com •  peiAsia (Asian focus) •  Asian Investor (Asian focus) •  ASIANMONEY (Asian focus)© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity •  Introduction •  Tools of the Trade •  Signals of Potential Customers •  Growing Your "Network 2.0" •  Next Steps© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Network Valuation Formula Ch = Character Co = Your Firm’s Competence R = Relevance of the contact S = Strength of your relationship I = Information N = Number of people D = Diversity N = D * ∑ (Chn*Con *Rn* Sn*In) n=1© 2012 David Teten. More at ffvc.com and teten.com David Teten and Scott Allen, The Virtual Handshake: Opening Doors and Closing Deals Online (www.TheVirtualHandshake.com)

Intro Tools Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Biography Analysis Software •  Honestly •  Pipl •  ZoomInfo© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Learn from People Who’ve Been There •  Ex-Employees •  Customers who’ve analyzed multiple vendors (BestVendor.com) http://flickr.com/photos/h-k-d/2898797929/sizes/o/© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Organizing / Speaking at Conferences •  Alumni organizations http://www.flickr.com/photos/programmerman/2315566040/sizes/l/© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity How to Get People to Return Your Calls • Affinity • Information • Others Credibility • Ego Boost© 2012 David Teten. More at ffvc.com and teten.com http://www.nus.edu.sg/oam/studentprofiles.html

Intro Tools Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Customer Relationship Management (CRM) •  Jigsaw© 2012 David Teten. More at ffvc.com and teten.com http://flickr.com/photos/misterdna/49841409/sizes/l/

Intro Tools Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Gated Communities for Executives •  IERGOnline.com •  Executive-Forum.org •  INMobile.org •  Sermo.com Platforms •  LinkedIn •  Ning •  Xing •  Groups.Yahoo.com •  Grouply© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Sample Gated Communities for Investors Early-Stage Late-Stage Public Private Private Angel.co ACG.org FTAlphaville.FT.com/longroom Caplinked Axialmarket.com SumZero.com Gust.com PE-Nexus ValueInvestorsClub.com CapitalSphere Village.Albourne.com© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Character – Competence – Relevance – Strength – Information – Number – Diversity Take One Step •  By industry •  By geography •  By personal characteristics© 2012 David Teten. More at ffvc.com and teten.com http://flickr.com/photos/extranoise/169187125/sizes/l/

Intro Tools Signals Network Next Steps Appendix: Slides from Presentation in Singapore© 2012 David Teten. More at ffvc.com and teten.com http://www.flickr.com/photos/90664717@N00/380336885/sizes/z/in/photostream/

Intro Tools Signals Network Next Steps Intern Sources in Singapore Universities: •  NUS Business School Career Services: http://bit.ly/9GOqAb •  NUS Career Services Center: www.nus.edu.sg/osa/career/employer/index.html •  NUS Overseas Colleges (NOC) www.overseas.nus.edu.sg/  The ilead Program: www.nus.edu.sg/nec/ee/ilead/index.html  NOC Alumni: www.nocalumni.org/site/index.php •  NTU Business School: www.nbs.ntu.edu.sg/careerservices/index.asp •  NTU Career Services Center: www.nbs.ntu.edu.sg/careerservices/index.asp •  SMU: www.smu.edu.sg/students/career_services/for_employer/recruit.asp •  Singapore Institute of Management: www.sim.edu.sg Polytechnics •  Singapore Polytechnic: http://bit.ly/aPGxwu •  Entrepreneurship IAP: www.sp.edu.sg/wps/portal/vp-spws/spws.i.entrepreneurshipinsp.itp •  Temasek Polytechnic: www.tp.edu.sg/home/global/glo_sip.htm •  Ngee Ann Polytechnic: www.np.edu.sg/ss/internship/Pages/local.aspx •  Nanyang Polytechnic: www.nyp.edu.sg/aboutNYP/job_opportunities_for_employers.html •  Republic Polytechnic: www.rp.sg/iep/employer/ Darren Luo (NUS), http://flickr.com/photos/foundphotoslj/1134148114/© 2012 David Teten. More at ffvc.com and teten.com

Intro Tools Signals Network Next Steps Intern Sources in Singapore •  jobs.triplepoint.asia/jobs •  www.singapore-interns.com •  singaporeinternship.com •  originsingapore.com •  internsg.com •  IIM Ahmedabad Forum for Industry Interaction ` Darren Luo (NUS), http://flickr.com/photos/foundphotoslj/1134148114/© 2012 David Teten. More at ffvc.com and teten.com

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Free Market Research for Entrepreneurs and other Cheapskates

by David Teten on Dec 10, 2009

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Free Market Research for Entrepreneurs and other Cheapskates — Presentation Transcript