Should a Startup focus on Product OR Services

Disclaimers Oxymoron? Ideas and Thought Process Not a subject matter expert Product Bias? Land of Services

Oxymoron?

Ideas and Thought Process

Not a subject matter expert

Product Bias?

Land of Services

What is a startup? Business vs Startup Life-Style Business High Growth Technology Oriented Risk – Reward Ratio is high

Business vs Startup

Life-Style Business

High Growth

Technology Oriented

Risk – Reward Ratio is high

Origins With Conscious Intend Fun Explorations - Accidents Why should I work for someone else? Struggle with a Problem Spot unaddressed need Derived from work or personal experiences

With Conscious Intend

Fun Explorations - Accidents

Why should I work for someone else?

Struggle with a Problem

Spot unaddressed need

Derived from work or personal experiences

On Product Sell IP Innovation Oriented Funding is relatively easy A piece of paper can get money I mean compelling business plan. High Risk Entry Barrier – High (with patentable IP) Team Small number of highly specialized people Large Pizza Teams Fixed Overhead

Sell IP

Innovation Oriented

Funding is relatively easy

A piece of paper can get money

I mean compelling business plan.

High Risk

Entry Barrier – High (with patentable IP)

Team

Small number of highly specialized people

Large Pizza Teams

Fixed Overhead

Financing Cycle

Product Statistics 75% of value of US public companies are derived from IP $6.5M – Statistical Average of Founder CEOs of Public Companies 20%-60%-20%::Success-Lifestyle-Failures

75% of value of US public companies are derived from IP

$6.5M – Statistical Average of Founder CEOs of Public Companies

20%-60%-20%::Success-Lifestyle-Failures

On Services Sell Time Not fundable – Typically! Low Risk Revenue from Day 1 No 10x growth Entry Barrier Low Team Large number of people with common skills Delivery excellence – Process Oriented Variable Flexibility

Sell Time

Not fundable – Typically!

Low Risk

Revenue from Day 1

No 10x growth

Entry Barrier Low

Team

Large number of people with common skills

Delivery excellence – Process Oriented

Variable Flexibility

Acknowledgement The graphic in next few slides are excerpted from S-Business: Reinventing the Services Organization James A. Alexander and Mark Hordes. ISBN 1-590-79054-5. www.alexanderconsultingsbiz.com.

The graphic in next few slides are excerpted from

S-Business: Reinventing the Services Organization

James A. Alexander and Mark Hordes.

ISBN 1-590-79054-5.

www.alexanderconsultingsbiz.com.

Types of Service Companies

Services – Value Potential

Customer Expectations

Buyers

Buying Strategy

Service Strategies

Value Propositions

Acknowledgement The graphic in last few slides are excerpted from S-Business: Reinventing the Services Organization James A. Alexander and Mark Hordes. ISBN 1-590-79054-5. www.alexanderconsultingsbiz.com.

The graphic in last few slides are excerpted from

S-Business: Reinventing the Services Organization

James A. Alexander and Mark Hordes.

ISBN 1-590-79054-5.

www.alexanderconsultingsbiz.com.

Blended Scenarios Boot strapping with Services Product within Services Services for Product Open Source SaaS Delivery Model Pricing Model Quality Ownership True TCO

Boot strapping with Services

Product within Services

Services for Product

Open Source

SaaS

Delivery Model

Pricing Model

Quality Ownership

True TCO

Summary Product or Service Base it on your strength / expertise Have Solid Focus Good founding team Just 1 – An easy option to give up too soon 2 people is too small – result in stale mate 3 is a perfect team Anything more than that is a crowd can’t even co-ordinate a common meeting time!

Product or Service

Base it on your strength / expertise

Have Solid Focus

Good founding team

Just 1 – An easy option to give up too soon

2 people is too small – result in stale mate

3 is a perfect team

Anything more than that is a crowd

can’t even co-ordinate a common meeting time!

Q & A Thank You