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NWEN Startup Ideas and Business Models - www.dkparker.com/businessmodels

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Northwest Entrepreneur Network event. 10/1/13. Business models and Big Ideas

Published in: Business, Economy & Finance

NWEN Startup Ideas and Business Models - www.dkparker.com/businessmodels

  1. 1. Copyright DKParker, LLC 2013 Ideas & Business Models Dave Parker @DaveParkerSEA www.dkparker.com Dave@dkparker.com
  2. 2. Copyright DKParker, LLC 2013 Agenda   About Dave   Big Ideas/Big Markets   Business Models   Q&A
  3. 3. Copyright DKParker, LLC 2013 About Dave   VP Programs at UP Global (Startup Weekend + Startup America)   Serial Entrepreneur   EIR at Mitsui Venture Capital   Board member for four mid-market, handful of startups and advisory board for over 50 startup companies + NWEN   Husband, Dad
  4. 4. Copyright DKParker, LLC 2013 Big Idea/Big Markets
  5. 5. Copyright DKParker, LLC 2013 Markets  Who Buys from You?  Business to Business  Business to Consumer  Established vs. Immature  What is a Market?
  6. 6. Copyright DKParker, LLC 2013 Source: Dow Jones VentureSource AmountInvested($B) NumberofDeals Investment Falls in 2012 Deal Flow and Equity into Venture-Backed Companies
  7. 7. Copyright DKParker, LLC 2013 Source: Dow Jones VentureSource Industry Allocations Steady in 4Q’ 12 Deal Flow Allocation by Selected Groups %DealFlowAllocation
  8. 8. Copyright DKParker, LLC 2013 Source: Dow Jones VentureSource Software Loses Pace in 4Q’ 12 IT Investment Allocation by Sector %ofDollarsInvested
  9. 9. Copyright DKParker, LLC 2013 Big Markets?  Is the Market in Billions?  Specific Opportunity for VC >$100M  If you own the market how big would your be  Market Leader vs. First Mover  Known or unknown
  10. 10. Copyright DKParker, LLC 2013 Big Ideas?  Changes the world  Simple  “Aha” idea  Transformational  Changes a market  Complex  Feature or tool  Incremental
  11. 11. Copyright DKParker, LLC 2013 Big Problems  Pain Pill? Have to have it  Vitamin? Nice to have  Who wins if you win?  Do they “win big” or “save a little”?
  12. 12. Copyright DKParker, LLC 2013 It’s takes as long to build a small idea as big idea
  13. 13. Copyright DKParker, LLC 2013 Contrast  Passion!  Ideas!  Product  Doesn’t make it a great business  Execution  Company
  14. 14. Copyright DKParker, LLC 2013 Business Models
  15. 15. Copyright DKParker, LLC 2013 Your Idea (may) be unique. Your business model is not
  16. 16. Copyright DKParker, LLC 2013 B2B Sales Models   Direct – internal sales people (Inside or Outside), # of deals/ Month, salary + commissions   Distribution/Channel Sales – Indirect or external, <# of deals/ Month, no Salary, just commission <Mindshare. Fulfill demand, don’t create demand   White Label Sales/Licensing – infrastructure or license sales, long sales cycle, few but targeted customers   Web Direct – Advertising and conversion based sales, sales support?, requires customers to search   Retail – N/A
  17. 17. Copyright DKParker, LLC 2013 6 7 “Scalable” B2B Business Models 1. Commerce – Physical Goods- Wholesale, cost of goods, retail, average margin, physical good 2. Subscription – Dropbox – cost of customer acquisition, lifetime value and churn 3. Lead Generation – AllStarDirectories – traffic, form data, price per lead,
  18. 18. Copyright DKParker, LLC 2013 6 7 Scalable B2B Models, Cont. 4. Market Place – Alibaba – average transaction, commission on transaction   But start with one side 5. Transaction Fees – Flattr, KickStarter – average transaction fee, commission 6. Combinations – Multisided markets – hardware sensors, software services with data analytics 7. Non-profit - Scalable doesn’t include services – Others?
  19. 19. Copyright DKParker, LLC 2013 13 B2CModels   TechCrunch Teardown: 13 Consumer Internet Business Models (Part I) « The World According To Carp http://fndri.com/jEvuYa - Steven Carpenter   Media   Paid Service   Physical Commerce   Kfactor businesses don’t need a model
  20. 20. Copyright DKParker, LLC 2013
  21. 21. Copyright DKParker, LLC 2013
  22. 22. Copyright DKParker, LLC 2013 Your examples   What model will you use? How will you model it?   Example
  23. 23. Copyright DKParker, LLC 2013
  24. 24. Copyright DKParker, LLC 2013 Q&A
  25. 25. Copyright DKParker, LLC 2013 Founder Institute www.fi.co/apply/159 15 Week Early Stage Accelerator Program Monday nights beginning in November – including dinner Graduation in March $995
  26. 26. Copyright DKParker, LLC 2013 dave@dkparker.com www.foresttreesbark.com/blog @DaveParkerSEA

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