So you want to do a startup? Rashmi Sinha, SlideShare

Are you sure?

Who am I?

SlideShare... best place in the world to share presentations

best place in the world to share presentations

Taking over the world (one PowerPoint at a time!) Start May 06 > Beta > Launch Oct 06 > Grow > Grow more > Angel funding Dec 07 > Series A Apr 08 We are hiring!

Start May 06 > Beta > Launch Oct 06 > Grow > Grow more > Angel funding Dec 07 > Series A Apr 08

1. Make your app useful

Solve one problem really well

Make app social SlideShare as non social app PowerPoint plugin? No virality

SlideShare as non social app

PowerPoint plugin?

No virality

2. Speed is imperative

Why startups need speed?

Small & fast

Set the tone for speed In hiring, development, design, releases, biz dev

In hiring, development, design, releases, biz dev

Be agile (worry about scaling later)

(worry about scaling later)

The monster of expectations

3. What to build

Why we built products we did MindCanvas: Could sell into market SlideShare: Understood market

MindCanvas: Could sell into market

SlideShare: Understood market

37signals: Build less

Build for right reasons Start with less Add complexity (when necessary) Remove features Get people used to change

Start with less

Add complexity (when necessary)

Remove features

Get people used to change

To build a feature or not to Listen to loudest? Watch behavioral metrics? Read blog posts?

Listen to loudest?

Watch behavioral metrics?

Read blog posts?

Loudest users OR silent majority slidecasting example

slidecasting example

How to double traffic ?

Anatomy of a feature launch Groups: V1, V2 & V3

Groups: V1, V2 & V3

4. Ideas are dime a dozen

NO EXECUTION = $1 WEAK EXECUTION = $1000 SO-SO- EXECUTION = $10,000 GOOD EXECUTION = $100,000 GREAT EXECUTION = $1,000,000 BRILLIANT EXECUTION = $10,000,000 AWFUL IDEA = -1 WEAK IDEA = 1 SO-SO IDEA = 5 GOOD IDEA = 10 GREAT IDEA = 15 BRILLIANT IDEA = 20 Ideas are just a multiplier X http://www.oreillynet.com/onlamp/blog/2005/08/ideas_are_just_a_multiplier_of.html

NO EXECUTION = $1

WEAK EXECUTION = $1000

SO-SO- EXECUTION = $10,000

GOOD EXECUTION = $100,000

GREAT EXECUTION = $1,000,000

BRILLIANT EXECUTION = $10,000,000

Execution is all that matters

Care about execution Scrutinize ideas: “can we execute on this?” How fast? When can we start work? What will first version take? Which team member will do it? What metrics to track progress? What will we push back to work on this?

Scrutinize ideas: “can we execute on this?”

How fast? When can we start work?

What will first version take?

Which team member will do it?

What metrics to track progress?

What will we push back to work on this?

5. Understand market size (& revenue model)

http://www.flickr.com/photos/docman/5053155/

Potential market size No of PowerPoint presentations Blogs & Video

No of PowerPoint presentations

Blogs & Video

Potential revenue streams AdSense Affiliate Networks Sponsorships Fremium Licensing White label version Marketplace Job board Professional services

AdSense

Affiliate Networks

Sponsorships

Fremium

Licensing

White label version

Marketplace

Job board

Professional services

Good early legs Adsense Consulting revenue

Adsense

Consulting revenue

Revenue stream impacts application Advertising Pro accounts & Fremium White label solutions -Revenue stream should not kill virality -Don’t loose focus on majority

Advertising

Pro accounts & Fremium

White label solutions

-Revenue stream should not kill virality

-Don’t loose focus on majority

Problems with fremium

VC money? Retain control till you can Take money (if you absolutely need it) From right partners

Retain control till you can

Take money (if you absolutely need it)

From right partners

6. Get advisors & angel investors

SlideShare advisors & angel investors Dave McClure Guy Kawasaki Mark Cuban Jonathan Abrams Yee Lee Hal Varian Saul Klein

Dave McClure

Guy Kawasaki

Mark Cuban

Jonathan Abrams

Yee Lee

Hal Varian

Saul Klein

Who?

7. Outsource what you can

Outsource complexity Amazon S3, EC2 Dedicated servers instead of colocation Google Ads Google Search Different widgets (Gigya, AddThis)

Amazon S3, EC2

Dedicated servers instead of colocation

Google Ads

Google Search

Different widgets (Gigya, AddThis)

8. Working with remote teams

Challenges Getting to know each other Hard to develop informal rapport Need to look at same screen. Body clock Benefits: 24 hour cycle

Getting to know each other

Hard to develop informal rapport

Need to look at same screen.

Body clock

Benefits: 24 hour cycle

Synchronous is must Skype GoToMeeting

SCRUM End of day reports

9. How to Launch

The Alpha Feedback to the embed No publicity Browser compatibility issues

How developed should a Beta be? SlideShare beta Enough to get point across Little of social layer Not buggy

SlideShare beta

Enough to get point across

Little of social layer

Not buggy

SlideShare launch Invite only: Before or after launch? Alpha Stealth mode Open to all Launch Invite only

Invite only: Before or after launch?

Initial Momentum

10. Use metrics

What metrics? Performance: page load times... Errors: 404, 500s... Traffic: Web logs Database tracking: No. registrations, login, uploads, contacts Customer feedback emails

Performance: page load times...

Errors: 404, 500s...

Traffic: Web logs

Database tracking: No. registrations, login, uploads, contacts

Customer feedback emails

Get yourself a shadow app Metrics we care about Simple console with daily, hourly Simpler than web analytics Whole team uses it Measure project success, iterate Proxy AB testing

Metrics we care about

Simple console with daily, hourly

Simpler than web analytics

Whole team uses it

Measure project success, iterate

Proxy AB testing

Startup Metrics from Dave Mc Clure Acquisition : users come to site from various channels Activation : users enjoy 1 st visit: " happy ” experience Retention : users come back , visit site multiple times Referral : users like product enough to refer others Revenue : users conduct some monetization behavior

Acquisition : users come to site from various channels

Activation : users enjoy 1 st visit: " happy ” experience

Retention : users come back , visit site multiple times

Referral : users like product enough to refer others

Revenue : users conduct some monetization behavior

Customer Lifecycle & Conversion Behavior 4. REFERRAL Emails & widgets Campaigns, Contests 5. Revenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, etc 2. Activation Homepage / Landing Page Product Features 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains

Example Conversion Metrics (note: *not* actuals… your mileage may vary.) Category Conversion Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1 st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget/Acct Signup (anything that could lead to repeat visit) 5% $2 Retention Length of Session / # of Clicks (length/intensity of engaged visit, >180s) 10% $1 Retention Email Open/ RSS view -> Click/Repeat Visit (3+ visits in first 30 days) 3% $5 Referral Refer 1+ users who visit site 2% $1 Referral Refer 10+ users who activate 0.2% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25

Finally slides at http://www.slideshare.net/event/webvisions-2008/slideshows find me at www.slideshare.net/rashmi We are hiring!

slides at

http://www.slideshare.net/event/webvisions-2008/slideshows

find me at

www.slideshare.net/rashmi