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Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
Should You Take The Product Or Services Route
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Should You Take The Product Or Services Route

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This is presentation is less useful to watch as a slide show, without someone explaining, except for the graphic slides towards the end of the PPT. The graphic is borrowed from …

This is presentation is less useful to watch as a slide show, without someone explaining, except for the graphic slides towards the end of the PPT. The graphic is borrowed from http://www.softwareceo.com/files/white_papers/4_Paths_to_Greatness.pdf

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  • 1. Should a Startup focus on Product OR Services
  • 2. Disclaimers <ul><li>Oxymoron? </li></ul><ul><li>Ideas and Thought Process </li></ul><ul><li>Not a subject matter expert </li></ul><ul><li>Product Bias? </li></ul><ul><li>Land of Services </li></ul>
  • 3. What is a startup? <ul><li>Business vs Startup </li></ul><ul><li>Life-Style Business </li></ul><ul><li>High Growth </li></ul><ul><li>Technology Oriented </li></ul><ul><li>Risk – Reward Ratio is high </li></ul>
  • 4. Origins <ul><li>With Conscious Intend </li></ul><ul><li>Fun Explorations - Accidents </li></ul><ul><li>Why should I work for someone else? </li></ul><ul><li>Struggle with a Problem </li></ul><ul><li>Spot unaddressed need </li></ul><ul><li>Derived from work or personal experiences </li></ul>
  • 5. On Product <ul><li>Sell IP </li></ul><ul><li>Innovation Oriented </li></ul><ul><li>Funding is relatively easy </li></ul><ul><ul><li>A piece of paper can get money </li></ul></ul><ul><ul><li>I mean compelling business plan. </li></ul></ul><ul><li>High Risk </li></ul><ul><li>Entry Barrier – High (with patentable IP) </li></ul><ul><li>Team </li></ul><ul><ul><li>Small number of highly specialized people </li></ul></ul><ul><ul><li>Large Pizza Teams </li></ul></ul><ul><li>Fixed Overhead </li></ul>
  • 6. Financing Cycle
  • 7. Product Statistics <ul><li>75% of value of US public companies are derived from IP </li></ul><ul><li>$6.5M – Statistical Average of Founder CEOs of Public Companies </li></ul><ul><li>20%-60%-20%::Success-Lifestyle-Failures </li></ul>
  • 8. On Services <ul><li>Sell Time </li></ul><ul><li>Not fundable – Typically! </li></ul><ul><li>Low Risk </li></ul><ul><li>Revenue from Day 1 </li></ul><ul><li>No 10x growth </li></ul><ul><li>Entry Barrier Low </li></ul><ul><li>Team </li></ul><ul><ul><li>Large number of people with common skills </li></ul></ul><ul><li>Delivery excellence – Process Oriented </li></ul><ul><li>Variable Flexibility </li></ul>
  • 9. Acknowledgement <ul><li>The graphic in next few slides are excerpted from </li></ul><ul><li>S-Business: Reinventing the Services Organization </li></ul><ul><li>James A. Alexander and Mark Hordes. </li></ul><ul><li>ISBN 1-590-79054-5. </li></ul><ul><li>www.alexanderconsultingsbiz.com. </li></ul>
  • 10. Types of Service Companies
  • 11. Services – Value Potential
  • 12. Customer Expectations
  • 13. Buyers
  • 14. Buying Strategy
  • 15. Service Strategies
  • 16. Value Propositions
  • 17. Acknowledgement <ul><li>The graphic in last few slides are excerpted from </li></ul><ul><li>S-Business: Reinventing the Services Organization </li></ul><ul><li>James A. Alexander and Mark Hordes. </li></ul><ul><li>ISBN 1-590-79054-5. </li></ul><ul><li>www.alexanderconsultingsbiz.com. </li></ul>
  • 18. Blended Scenarios <ul><li>Boot strapping with Services </li></ul><ul><li>Product within Services </li></ul><ul><li>Services for Product </li></ul><ul><li>Open Source </li></ul><ul><li>SaaS </li></ul><ul><ul><li>Delivery Model </li></ul></ul><ul><ul><li>Pricing Model </li></ul></ul><ul><ul><li>Quality Ownership </li></ul></ul><ul><ul><li>True TCO </li></ul></ul>
  • 19. Summary <ul><li>Product or Service </li></ul><ul><ul><li>Base it on your strength / expertise </li></ul></ul><ul><ul><li>Have Solid Focus </li></ul></ul><ul><ul><li>Good founding team </li></ul></ul><ul><ul><ul><li>Just 1 – An easy option to give up too soon </li></ul></ul></ul><ul><ul><ul><li>2 people is too small – result in stale mate </li></ul></ul></ul><ul><ul><ul><li>3 is a perfect team </li></ul></ul></ul><ul><ul><ul><li>Anything more than that is a crowd </li></ul></ul></ul><ul><ul><ul><ul><li>can’t even co-ordinate a common meeting time! </li></ul></ul></ul></ul>
  • 20. Q & A Thank You

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