1M1M EJ Methodology

The EJ Methodology

Most businesses are too small for VCs
Worth Building, though
Especially if you own 100%
To own 100% of a business, you cannot raise money

Sramana Mitra

Primary Goal: Inspiration & Demystification
“ Crafting a Business”
vs
“ Being Lucky”

The EJ methodology is based on the assumption that it is better to bootstrap the early stage of a venture, and raise money only when you have a validated business, if at all

Validating the business idea is essential
EJ2 deals extensively with the methodology of validation
Investors never fund ideas that are not validated
Pitch at the roundtables AFTER doing some validation of your idea using the methodology in EJ2

Validation Methodology
RightNow: The Montana Mogul [EJ2] - $500m market cap in 2009
Great lesson on idea validation & bootstrapping the early stages to get to a big Series A valuation
Also Murli Thirumale (Ocarina) and Manoj Saxena (Webify)

Do not spray and pray

B:B PayCycle: SaaSing Back At Athe Economy [EJ3] – acquired by Intuit for $170m
Great Segmentation and TAM analysis
B:C The Find: Web 3.0 – Under Construction [EJ3]
Segmentation
EJ3 Case Studies

Appendix of EJ3 – Clarify your story - http://www.sramanamitra.com/clarify-your-story-excerpt/

Efficient Innovators solve problems, not invent solutions looking for problems.
Venture Capital is not the only option.

Other Useful Case Studies & Principles

Web 3.0 = (4C + P + VS)
4C = Content, Community, Commerce in Context
P = Personalization
VS = Vertical Search
Taking on Giants section of EJ1
Applies to all web businesses that have a specific context
EJ1: Web 3.0 Framework

Bootstrapping to Billions - Finisar Case Study - EJ1 -Using services to fund product development
Free To Innovate - Creyptography Research Case Study - EJ4 - using services to fund IP development
Bootstrapping Using Services

Open Source Go-to-Market Strategies
DimDim - EJ3
SugarCRM - EJ4
SpringSource - EJ4
CollabNet – EJ4

All Books on Amazon, Kindle, Smashwords
Entrepreneur Journeys (EJ1)
Bootstrapping, Weapon of Mass Reconstruction (EJ2)
Positioning, How To Test, Validate, And Bring Your Idea To Market (EJ3)
Innovation, Need Of The Hour (EJ4)
Vision India 2020

45 Billion dollar business ideas
Business Fiction set in 2020
A futuristic retrospective
http://www.sramanamitra.com/2010/03/19/vision-india-2020-internships/

1M1M EJ Methodology

by Sramana Mitra on Jul 09, 2010

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