2012 badcamp-batson

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2012 badcamp-batson

  1. 1. B A DCA MP ACCELERATING 2 0 1 2 YOUR DRUPAL PRODUCT BUSINESS • Jay Batson
  2. 2. BIO• 25 years in tech (Dev, Prod, Exec)• 19 in VC-backed startups, 12 in ones I started• 3x founder (Acquia, Pingtel)• 18 months as focused mentor for 20 startups: 13 TechStars 4 MassChallenge 4 FounderMentors
  3. 3. BIO• 25 years in tech (Dev, Prod, Exec)• 19 in VC-backed startups, 12 in ones I started• 3x founder (Acquia, Pingtel)• 18 months as focused mentor for 20 startups: 13 TechStars 4 MassChallenge 4 FounderMentors http://startupdj.com Remixing classic with new to create sweet new startup companies
  4. 4. BIO• 25 years in tech (Dev, Prod, Exec)• 19 in VC-backed startups, 12 in ones I started• 3x founder (Acquia, Pingtel)• 18 months as focused mentor for 20 startups: 13 TechStars 4 MassChallenge 4 FounderMentors http://startupdj.com Remixing classic with new to create sweet new startup companies
  5. 5. • Co-founders: Spin-out? Stake of parent? Roles? Ownership?• Capital: Yours? Outside?• Sources: Angels? Seed investors? Venture Capital?• Plan: Business Model? Company culture? Values?• Go-to-market: CAC? ASV? LTV? Churn? Cash burn?• Business model: Strategy? Pricing? Margins? Operating metrics?Where’s the community/help?
  6. 6. ACCELERATORSSummer@HIGHLAND LaunchpadLA the start project
  7. 7. MENTORS +A LITTLE MONEY
  8. 8. SWITCHING• Likely to fail without dramatic stuff• Consulting ➤ product company issues • Doesn’t function with startup economics • Irresistible temptation to do distracting PS for $• Spinout issues • Parent owner creates broken ownership split • Lack of vested interest of team You’ve gotta be a “startup”, from scratch, with at-stake people
  9. 9. FOUNDERS• Let there be 2• There is only one CEO• Define your roles, and obey them
  10. 10. RICH OR KING? Financial gains Well below potential Close to potential Rich LittleControl of company Failure Complete King Exception The Founder’s Dilemma (Noam Wasserman, HBS)
  11. 11. STAKESDeciding this should take a full day
  12. 12. STAKES Idea->Launch $0-$10M $10M-$100M Weighted 30% 40% 30% stake Idea, early Non-CEO, founder, CEO, investorMichael business plan, 65% management 60% Business 40% 55.5% Development fundraising Product VP Engineering, VPGeorge development, 35% product 40% Development, 60% 44.5% business plan managementTotal 100% 100% 100%
  13. 13. CAPITAL• Wait... there’s a bigger question
  14. 14. WHAT KIND OFCOMPANY AREYOU BUILDING?
  15. 15. INVESTORS • Only one available return for investor: acquisition, or IPO • You must go big, or go home
  16. 16. COMPANY CULTURE• As important as business model• Hire desired behaviors and cultural fit, not skills• Google “Netflix culture”• Acquia: Piii
  17. 17. First Acquia team meeting,Jan 2008
  18. 18. BIGGEST LESSON• A product is nothing.• Successfully going-to-market is everything.
  19. 19. GO-TO-MARKET• How are you going to get customers? • Advertising? Inbound marketing? Inside sales? Field sales? In-app virality? Other virality?• Does that cost the “right” amount? (What’s your margin?)• What portion of operating costs is sales/mktg?• How many customers are there?• SEO / SEM is not a go-to-market strategy.
  20. 20. TERMS TO LIVE BY Key SaaS metrics:• CAC = Customer Acquisition Cost• ASV = Annual Subscriber Value• LTV = LifeTime Value (of customer)• Churn = % of customers that do not renew
  21. 21. TERMS TO LIVE BY Key SaaS metrics: Startup killer• CAC = Customer Acquisition Cost• ASV = Annual Subscriber Value• LTV = LifeTime Value (of customer)• Churn = % of customers that do not renew
  22. 22. TERMS TO LIVE BY Key SaaS metrics: Startup killer• CAC = Customer Acquisition Cost• ASV = Annual Subscriber Value• LTV = LifeTime Value (of customer)• Churn = % of customers that do not renew http://forentrepreneurs.com
  23. 23. YOUR IDEA ISPROBABLY OUTOF BALANCE
  24. 24. THE SAAS CASH-FLOW TROUGH
  25. 25. AND ON AND ON...
  26. 26. ACCELERATORSSummer@HIGHLAND LaunchpadLA the start project
  27. 27. DRUPALACCELERATOR?
  28. 28. POSSIBILITIES• Drupal PS company with product idea• Drupalist with idea• Generic startup who (should) use Drupal
  29. 29. WHEN?• A couple of calendar quarters at least.• Learning now.• Is there a “there” there?
  30. 30. IS THIS YOU?• Contact me• batsonjay@gmail.com• http://startupdj.com

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