Go global e245 march 2014 final
 

Go global e245 march 2014 final

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Go global e245 march 2014 final Go global e245 march 2014 final Presentation Transcript

  • GoGlobal “Helping US companies expand to new markets” Justin Womersley, Dan Leahy, Eric Epstein, and Gabriel Garza Interviews this week: 9 Interviews to date: 92 Mentor interactions this week: 0, 0 Mentor interactions to date: 10, 32
  • Canvas #1 - ExpertsOnDemand Value Proposition Customer Segments Get Salesforce questions answered instantly Medium/Large sized companies that use Salesforce and don‟t have in-house experts to solve mission critical problems. Save time and money by increasing Salesforce efficiency
  • ExpertsOnDemand What We Thought: Salesforce is great since it’s used at large companies with money and is often complicated and unwieldy. Companies can only hire in-house or bring in consultants - both are expensive and not suited to small and quick but important problems. Salesforce is complicated and businesses often struggle with using it, which slows their business down in a critical ways. What We Learned:
  • ExpertsOnDemand What We Thought: Salesforce is great since it’s used at large companies with money and is often complicated and unwieldy. Companies can only hire in-house or bring in consultants - both are expensive and not suited to small and quick but important problems. Salesforce is complicated and businesses often struggle with using it, which slows their business down in a critical ways. What We Learned:
  • ExpertsOnDemand What We Thought: Salesforce is great since it’s used at large companies with money and is often complicated and unwieldy. Companies can only hire in-house or bring in consultants - both are expensive and not suited to small and quick but important problems. Salesforce is complicated and businesses often struggle with using it, which slows their business down in a critical ways. What We Learned: Nobody cares! It’s a nice-to-have, is never mission critical and nobody was begging us to take their money...
  • Restart..
  • Canvas #2 - GoGlobal Value Proposition Customer Segments Help companies support their services in other languages and timezones SaaS companies with have never expanded before and need help with their first expansion. Translating their websites professionally Gain: Helping companies enter new markets in a faster and more effective way Pain: Navigating the legal requirements to expand internationally Pain: The logistics involved in entering a new market E-commerce companies with have never expanded before and need help with their first expansion.
  • Canvas #2 - GoGlobal Value Proposition Customer Segments Help companies support their services in other languages and timezones SaaS companies with have never expanded before and need help with their first expansion. Translating their websites professionally Gain: Helping companies enter new markets in a faster and more effective way E-commerce companies with have never expanded before and need help with their first expansion. Pain: Navigating the legal requirements to expand internationally Really vague Pain: The logistics involved in entering a new market
  • GoGlobal What We Thought: Managing support in international markets (different languages and timezones) is a barrier stopping companies expanding. Translating their website was a pain and was hard to manage and a large barrier to reaching external markets. Our customers would be first-time expanders (since they have no experience and need the help), and not repeat expanders. What We Learned:
  • GoGlobal What We Thought: Managing support in international markets (different languages and timezones) is a barrier stopping companies expanding. Translating their website was a pain and was hard to manage and a large barrier to reaching external markets. Our customers would be first-time expanders (since they have no experience and need the help), and not repeat expanders. What We Learned: Business most often won‟t trust support to an unknown 3rd party. Support was not the first barrier, and not the most pressing issue
  • GoGlobal What We Thought: Managing support in international markets (different languages and timezones) is a barrier stopping companies expanding. Translating their website was a pain and was hard to manage and a large barrier to reaching external markets. Our customers would be first-time expanders (since they have no experience and need the help), and not repeat expanders. What We Learned: Business most often won‟t trust support to an unknown 3rd party. Support was not the first barrier, and not the most pressing issue Website translation is a solved problem with many good competitors - this is one of the easiest aspect of expanding.
  • GoGlobal What We Thought: Managing support in international markets (different languages and timezones) is a barrier stopping companies expanding. Translating their website was a pain and was hard to manage and a large barrier to reaching external markets. Our customers would be first-time expanders (since they have no experience and need the help), and not repeat expanders. What We Learned: Business most often won‟t trust support to an unknown 3rd party. Support was not the first barrier, and not the most pressing issue Website translation is a solved problem with many good competitors - this is one of the easiest aspect of expanding. First time customers didn‟t care. Though they could do it themselves or didn‟t want to expand. Second or third time expanders were much more interested they knew how hard it really is!
  • Canvas #3 - GoGlobal Value Proposition Customer Relationships Customer Segments Help companies support their services in other languages and timezones GET: Direct salesforce SaaS companies that have already expanded somewhat and need help getting to more markets Translating their websites professionally Gain: Helping companies enter new markets in a faster and more effective way Pain: Navigating the legal requirements to expand internationally Pain: The logistics involved in entering a new market GET: Website with lead generating content E-commerce companies that have already expanded somewhat and need help getting to more markets
  • Canvas #1 - ExpertsOnDemand Key Partners VCs who can recommend us US Lawyers - after legal work, recommend us to their clients Local network of experts in other markets
  • GoGlobal What We Thought: Weren’t sure whether SaaS or Ecommerce was a better customer segment. Lawyers and VCs would be good partners, and a channel to get clients. Direct sales would be our main channel, and the web would not work for this type of high-value product. Weren’t sure which countries to focus on and which direction (US -> other or other -> US?) What We Learned:
  • GoGlobal What We Thought: What We Learned: Weren’t sure whether SaaS or Ecommerce was a better customer segment. E-commerce companies were much more interested, as they faced far more challenges Lawyers and VCs would be good partners, and a channel to get clients. Direct sales would be our main channel, and the web would not work for this type of high-value product. Weren’t sure which countries to focus on and which direction (US -> other or other -> US?)
  • GoGlobal What We Thought: What We Learned: Weren’t sure whether SaaS or Ecommerce was a better customer segment. E-commerce companies were much more interested, as they faced far more challenges Lawyers and VCs would be good partners, and a channel to get clients. These channels won‟t work: US Lawyers never recommend other services, and VCs were very wary to recommend services. Direct sales would be our main channel, and the web would not work for this type of high-value product. Weren’t sure which countries to focus on and which direction (US -> other or other -> US?)
  • GoGlobal What We Thought: What We Learned: Weren’t sure whether SaaS or Ecommerce was a better customer segment. E-commerce companies were much more interested, as they faced far more challenges Lawyers and VCs would be good partners, and a channel to get clients. These channels won‟t work: US Lawyers never recommend other services, and VCs were very wary to recommend services. Direct sales would be our main channel, and the web would not work for this type of high-value product. Weren’t sure which countries to focus on and which direction (US -> other or other -> US?) Web channel worked better than expected, and could be a viable channel!
  • GoGlobal What We Thought: What We Learned: Weren’t sure whether SaaS or Ecommerce was a better customer segment. E-commerce companies were much more interested, as they faced far more challenges Lawyers and VCs would be good partners, and a channel to get clients. These channels won‟t work: US Lawyers never recommend other services, and VCs were very wary to recommend services. Direct sales would be our main channel, and the web would not work for this type of high-value product. Weren’t sure which countries to focus on and which direction (US -> other or other -> US?) Web channel worked better than expected, and could be a viable channel! Better to have customers based in the US, and help expand to nearby countries - Mexico, Brazil and Canada.
  • Customers said: “I need help with researching top 5 countries we should be thinking about next” “I need help doing thorough research into the exact steps and options for expanding into our next immediate country.” Best feedback came from US series A e-Commerce companies that were looking to expand to their next 3 markets over the next 12 - 18 months. And we “signed” 2 customers - over $30k worth of contracts!
  • Canvas #3 - GoGlobal Value Proposition Customer Relationships Customer Segments Gain: Helping companies enter new markets in a faster and more effective way GET: Direct salesforce SaaS companies that have already expanded somewhat and need help getting to more markets Pain: The logistics involved in entering a new market Help researching which of their top markets to go for Help with a deep dive research in exact steps needed to expansion into next country GET: Website with lead generating content US E-commerce companies that have already expanded somewhat and need help getting to their next markets
  • Canvas #1 - ExpertsOnDemand Key Partners VCs who can recommend us US Lawyers - after legal work, recommend us to their clients Local network of experts in other markets
  • So we got out the building.. We pushed hard to pitch these 2 products to as many customers in our customer segments as possible
  • GoGlobal What We Thought: Series A US E-commerce companies that were looking to expand to their next market in the next 6 months Logistics, HR, distribution and other onthe-ground issues were valuable to our customers. We could sell 2 different products - one broad research into next 5 interesting countries and single country deep dive. Country manager head-hunting is difficult and we could add value there. What We Learned:
  • GoGlobal What We Thought: What We Learned: Series A US E-commerce companies that were looking to expand to their next market in the next 6 months A good proportion of these customers were very interested and signed or delayed until needed. Logistics, HR, distribution and other onthe-ground issues were valuable to our customers. We could sell 2 different products - one broad research into next 5 interesting countries and single country deep dive. Country manager head-hunting is difficult and we could add value there.
  • GoGlobal What We Thought: What We Learned: Series A US E-commerce companies that were looking to expand to their next market in the next 6 months A good proportion of these customers were very interested and signed or delayed until needed. Logistics, HR, distribution and other onthe-ground issues were valuable to our customers. These issues resonated with most of the above customers we talked to We could sell 2 different products - one broad research into next 5 interesting countries and single country deep dive. Country manager head-hunting is difficult and we could add value there.
  • GoGlobal What We Thought: What We Learned: Series A US E-commerce companies that were looking to expand to their next market in the next 6 months A good proportion of these customers were very interested and signed or delayed until needed. Logistics, HR, distribution and other onthe-ground issues were valuable to our customers. These issues resonated with most of the above customers we talked to We could sell 2 different products - one broad research into next 5 interesting countries and single country deep dive. Country manager head-hunting is difficult and we could add value there. Most of the customers issues could be grouped into these two products/services.
  • GoGlobal What We Thought: What We Learned: Series A US E-commerce companies that were looking to expand to their next market in the next 6 months A good proportion of these customers were very interested and signed or delayed until needed. Logistics, HR, distribution and other onthe-ground issues were valuable to our customers. These issues resonated with most of the above customers we talked to We could sell 2 different products - one broad research into next 5 interesting countries and single country deep dive. Country manager head-hunting is difficult and we could add value there. Most of the customers issues could be grouped into these two products/services. This is one the major pain points for expansion.
  • Canvas #3 - GoGlobal Value Proposition Customer Relationships Customer Segments Gain: Helping companies enter new markets in a faster and more effective way GET: Direct salesforce SaaS companies that have already expanded somewhat and need help getting to more markets Pain: The logistics involved in entering a new market Help researching which of their top markets to go for Help with a deep dive research in exact steps needed to expansion into next country GET: Website with lead generating content Series A US E-commerce companies that have already expanded somewhat and need help getting to Mexico and Canada.
  • So we had found a product/market fit, but was it the best one? We’ll get back to this later.
  • Diagrams and Key Metrics
  • http://GetGlobal.co Total Visits: 100 CPC: $2 Warm Lead CAC: $30-$50
  • http://GetGlobal.co Most Clicked: Logistics & Entry Guides
  • http://GetGlobal.co Country Guides as lead generators - start the conversion with customers
  • http://GetGlobal.co Improved Conversion - lowered the barrier to contacting us
  • Diagram of Partners & Payment Flows Activity Payment Manage providers GoGlobal Customer Management fee 10K - 30K 10%-15% of initial engagement Contact/Manage Service Providers
  • Customer Relationships GoGlobal actions Pass / Fail Metrics ● Direct Sales to: ○ E-Commerce companies ● Direct salesperson gets 1 commitments / month ● Web channel - AdWords, SEM ● ● Referral relationships with service providers CPA through Adwords > Guide Price (~$400 $20 / email assuming 5% conversion) ● Serve as intermediary between service providers and client ● Upsell additional services, e.g. recruiting, sales rebranding / marketing consultations ● Brand buildup through PR, usecase testimonials ● ● ● Enter new markets with current customers 30% of clients sign monthly retainer 90% sign up for and stay on [monthly] newsletter ● Live site analytics on services clickthru ● Customers stay on for 2nd market
  • Customer Personas / Archetypes + User: 1 Influencer: 2 Recommender: 3 Title: New Market “Launcher” Age / Sex: Late 20s, Early 30s / M No 30s / M n/a n/a 30s – 40s / M,F MBA or Serial Entrepreneur? Yes $100K-200K $200K+ $500K+ $500K+ equity Discretionary budget? Income: Experienced Market Entrants 4 Decision Maker and Economic Buyer: How to buy GoGlobal? Pitch CEO Rec. to “launcher”, VC, or CEO Motivation: P&L, impress CEO Build professional network, be “plugged-in”, consult Venture Capitalist Late 30s, Early 40s / M Rec. / persuade CEO Increase $$$ for company CEO Decide, in line with company strategy Increase $$$ for company, become global CEO
  • Why Mexico? Big, Growing, and Underpenetrated SOURCES: Gartner, Leading Latin American Offshore Services Locations, 2014: Country-Level Improvements Increase the Region's Attractiveness for Global Delivery; eMarketer January 2013; JLL - eCommerce Boom Triggers transformation in Retail Logistics;
  • Initial Market Size Initial market size per year a function of: ● # of Series A deals: 830 ● Total Globalization spend: $200K ● % of Series A Companies expanding internationally: 25% ● % of Series A Spend in 1st market: 10% Source:http://techcrunch.com/2013/04/10/vcs-invested-6-9b-in-841-deals-in-q1-2013-funding-up-17-percent-deal-activity-highest-since-dot-comdays/;http://techcrunch.com/2013/04/10/vcs-invested-6-9b-in-841-deals-in-q1-2013-funding-up-17-percent-deal-activity-highest-since-dot-comdays/;http://www.cbinsights.com/blog/trends/venture-capital-2013-q1
  • Competitors Large Consultancies / Market Research ProMexico / American Consulate Services “point you in the right direction” Internal company resources GoGlobal Current Lawyers/VCs JapanEntry The key to GoGlobal success will be finding the right company at the „right time‟ in their expansion efforts Mexican Lawyers Existing company professional resources Accountants, Tax, N otary, etc... end-to-end expansion consultants
  • Metrics that Matter fact kinda guess CPA to get email - warm lead: ~ $50 Average initial purchase size: $10k - $40k* Average lead time from first contact to sale: 1 - 2 months Conversion to paying for basic entry guide : 25% Conversion from basic entry guides to full paying customer: 10% Yearly sales needed per salesperson: - Assuming average revenue of $30K per customer - Assuming salesperson earning $10K per month - Salesperson would need at least 4 sales per year to break their own cost Content creation cost for market analysis: 100 hours - ~$10 000, cost for helping a client evaluate and execute a new market and should decrease over time Average # of countries per client: 3 Average LTV of a client: Too early to know
  • Investment Readiness Level 5 But….