The secret sauce for success is motivation and teamWhat drive you?You have a problem that you want to solveYou are passionate about a particular issueYou want to explore, see what is out there
9 out of 10 startups failThe ones that succeed change plans and direction along the way.
The secret sauce for success is motivation and teamWhat drive you?You have a problem that you want to solveYou are passionate about a particular issueYou want to explore, see what is out there Where will your idea come from?Personal problems you have Reading the news, TC, VBFriends and FamilyDon’t fall in love with your ideaBe willing to changeMake a list, do market research, down select
If you can’t easily explain why you exist, none of the subsequent steps matter. A good format is “We help X do Y by doing Z”.Once you have a statement in that format, find a few other people (doesn’t matter if they’re your target market) and ask them if it makes sense.If not, give them a longer explanation and ask them to summarize that back to you. Other people are often better than you at crafting an understandable value proposition.
Put yourself out there Get a domain name for your company. To find an available domain quickly, tryDomize or DomainrThen use godaddy or namecheap to register the name. (RetailMeNot usually has ~ $8/year discount coupons for Godaddy You may want to register many different domains (different possible brand names, or different misspellings and variations of a brand name.) Depending on your product, this may be as simple as a splash page with: your value proposition, benefits summary, and a call-to-action to learn more, answer a short survey, or pre-order.)For surveys and pre-order forms, Wufoo and Google Forms can easily be embedded within your site with minimal coding.
Launched in 2005Twitter, launched in 2007
Float like a butterfly Sting like a bee By Camilo Lopez New Venture Challenge
Tonight’s Points• Introduction 1min• Personal Story 4 min• Motivation to Start a Company 5 min• Idea Generation 10 min• Customer Development 30 min• Lean Canvas 30 min• Go do it!
• Reading • Team Sports• Watching TV • Shopping• Family Time • Traveling• Going to Movies • Sleeping• Fishing • Socializing• Computer • Sewing• Gardening • Golf• Renting Movies • Church Activities• Walking • Relaxing• Exercise • Playing Music• Listening to Music• Entertaining• Hunting
Idea 1 Idea 2 Idea 3 What Economics Competitors
How big is the marketTAM = # of Potential Customers X Value of each customer
How big is the marketNumber of Potential Customers X Value of each customer = Total Available Market
Top Down Bottom Up Number of customers ITotal Available Market can get today Attainable Market Growth ShareProjected Customers Projected Customers with target share with expected growth
Idea 1 Idea 2 Idea 3 What Economics Competitors
Idea 1 Idea 2 Idea 3 What Economics Competitors Motivation
Problem Solution FitState your assumptions:• The Product Hypothesis• Customer Hypothesis – ROI• Channel and Pricing Hypothesis• Demand Creation Hypothesis• Market Type Hypothesis• Competitive Type Hypothesis
Product• Problem you are solving• Product Features• Product Benefits• Intellectual Property• Product Delivery Schedule – MVP• Total cost of ownership/adoption
Customer• Types of customers – Decision Maker – Economic Buyer – Recommender – Influencer – User• Customer Problems• A day in the life of your customer• Customer Influence Map• ROI Justification – Cost of Problem vs Cost of your solution• Minimum Feature Set
Distribution• System Integrators• Direct Sales Force• Value added resellers• Dealers• Distributors• Retail• Online / Direct
Demand Creation• How would you create demand for your product to your chosen channels – Advertising – Social Media – PR – Promotions – Spam – Web Site – Word of Mouth – Seminars – Telemarketing – Partners – INFLUENCERS
Market Hypothesis• Existing vs Resegmented vs New High Benefit Low High Low Cost
New Co. Great Idea New Co. Clear message of what you do, tag line Problem Solutions Unique Value Unfair Customer Top 3 features Proposition Advantage SegmentsTop 3 Problems Can NOT be easily copied or Single, clear compelling, bought Target customer message that states why you are different and worth buying Metrics Channels Key activities you measure Path to customers Cost Structure Revenue Streams-Customer acquisition -Revenue modelDistribution cost Lifetime valueHosting RevenuePeople Gross Margin
Customer Engagement1. Start showing the site to potential customers, testing customer segment and value proposition2. Use Ads, textlinks or Google AdWords, Facebook ads and natural search to drive people to your Minimally Viable web site3. Use your network to find target customers – ask your contacts, “Do you know someone with problem X? If so, can you forward this message on to them?” and provide a 2-3 sentence description4. For B2B products, Twitter, Quora, and industry mailing lists are a good place to find target customers. Don’t spam these areas, but if you’re already an active participant you can sprinkle in some references to your site or you can ask a contact who is already an active participant to do outreach for you.5. Use Mailchimp, Postmark or Google Groups to send out emails and create groups6. Create online surveys with Wufoo or Zoomerang7. Get feedback on your Minimum Viable Product (MVP) features and User Interface
Next Steps• Test hypothesis by talking to customers – Start Building a landing page – Make progress toward your MVP – Talk to customers – Collect Data – Ask for Money• Iterate
ToolsMust Read Blogs • Fred Wilson – A VC • SK Murphy • Marc Andreessen • Paul Graham • Hacker News • Brad Feld • Chris Dixon • OnStartups-Dharmesh Shah • Both Sides of the Table – Mark Suster • 37signals • Eric Ries – Startup Lessons Learned • Venture Hacks and http://twitter.com/venturehacks • Andrew Chen • Dave McClure • Venture Made Transparent
Co-founders• TechCoFounder - directory of developers• Foundrs - recruit co-founders• StartupLinkup - recruit co-founders• FoundersHookUp - Invite-only find a co-founder• CoFounder Network• PartnerUp-• Meetup – go to a Meetup!