7 step to a successful startup efactor mini

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Efactor.com workshop on 2/22 in SF on how to go about starting a business while avoiding mistakes most people make. Proven lessons from having started 6 and advised over 200 startups and 1000 entrepreneurs from Silicon Valley.

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  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • All Rights Reserved (c) Naeem Zafar BizEducationWorkshops.com & ConcordiaVentures.com
  • 7 step to a successful startup efactor mini

    1. 1. 7 Steps to a Successful Startup Lessons from Silicon Valley Naeem Zafar Haas B School at University of California Berkeley Twitter: @naeem All rights reserved © Naeem Zafar Startup Workshop www.Startup-Advisor.com
    2. 2. Personal Background <ul><li>Faculty member at Univ of Calif Berkeley Haas business school </li></ul><ul><li>Founder Concordia Ventures – advisory to entrepreneurs </li></ul><ul><li>CEO of three companies (semiconductor & software) </li></ul><ul><li>Worked in engineering, research, marketing & sales </li></ul><ul><li>Experience at one large multinational & 6 startups </li></ul><ul><li>One IPO (Initial Public Offering) </li></ul><ul><li>Four acquisitions, One merger, two “wind-down”, One “restart” </li></ul><ul><li>Raised over $70M in multiple ways (VC, asset sale, debt, angel) </li></ul><ul><li>Extensive experience in working with people from all cultures </li></ul><ul><li>Traveled to 73 countries, lived in 3 </li></ul><ul><li>Brown University engineering 1981, Univ of Minnesota </li></ul><ul><li>Charter member of TiE Silicon Valley, President of OPEN SV </li></ul><ul><li>Advised or mentored over 1,000 entrepreneurs </li></ul>All rights reserved © Naeem Zafar Startup Workshop
    3. 3. Entrepreneurship <ul><li>Pursuit of business opportunity with the resources that you currently do not control </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    4. 4. Types of Businesses <ul><li>Life-style business </li></ul><ul><li>Scalable business </li></ul><ul><li>In US there are 5,700,000 small businesses </li></ul><ul><li>There are 18,000 businesses with more than 500 employees </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    5. 5. Startup vs. Large Business Startup Workshop All rights reserved © Naeem Zafar search execute <ul><li>Known biz model </li></ul><ul><li>Known customers, channels, problems </li></ul><ul><li>Unknown biz model </li></ul><ul><li>Unknown customers, channel </li></ul>
    6. 6. 7-Step Process: Starting Scalable Business <ul><li>Are you really an entrepreneur? </li></ul><ul><li>Identify a big unmet need </li></ul><ul><li>Market research- validate assumptions </li></ul><ul><li>Customer discovery: who needs me more? </li></ul><ul><li>Define unique positioning </li></ul><ul><li>Confirm scalable business model </li></ul><ul><li>Inspire the right team </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    7. 7. Steps for Starting Up <ul><li>Find unmet need </li></ul><ul><li>Validate need </li></ul>www.startup-advisor.com All rights reserved © Naeem Zafar Find team Market research Write Biz Plan Create Investor Materials
    8. 8. 1: Personal Clarity <ul><li>Profile of an entrepreneur </li></ul><ul><li>Job taker or a job giver? </li></ul><ul><li>Your reasons for starting </li></ul><ul><ul><li>Own boss? </li></ul></ul><ul><ul><li>More money? </li></ul></ul><ul><ul><li>Change the world? </li></ul></ul><ul><ul><li>Chip on your shoulder? </li></ul></ul>Startup Workshop All rights reserved © Naeem Zafar Have clarity on why you want to be an entrepreneur!
    9. 9. Make up of an Entrepreneur <ul><li>Resilience, determination, perseverance! </li></ul><ul><li>Creative & resourceful </li></ul><ul><li>Strong conviction but very flexible in execution </li></ul><ul><li>Able to work in the “fog” </li></ul><ul><ul><li>Comfortable in 40-70 zone! </li></ul></ul><ul><li>Knows how to network, communicate & sell </li></ul><ul><li>Choice of life partner is crucial </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    10. 10. 2: Identify Big Opportunity <ul><li>Is there an unmet need? </li></ul><ul><ul><li>Most important homework </li></ul></ul><ul><ul><li>Not just a solution looking for a problem </li></ul></ul><ul><ul><li>Observe people who claim there is a need </li></ul></ul>Startup Workshop All rights reserved © Naeem Zafar
    11. 11. Sizing the Opportunity <ul><li>Will this be worth your time? </li></ul><ul><li>Will this idea be easy to raise money for? </li></ul><ul><li>What is wrong with smaller markets? </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    12. 12. Size The Opportunity <ul><li>Market size = # of people who can buy </li></ul><ul><li>X price </li></ul><ul><li>X # of times they will buy per year </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    13. 13. 3: Market Research to Validate Assumptions <ul><li>How big is market if we can fulfill this need </li></ul><ul><ul><li>Do bottom-up & top-down analysis </li></ul></ul><ul><ul><li>Both numbers should be consistent </li></ul></ul><ul><li>How big a market should there be to start? </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    14. 14. Free Sizing Data <ul><li>www.census.gov </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    15. 15. Public Data <ul><li>http://www.google.com/Top/Business/Associations/By_Industry/ </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    16. 16. Conducting Market Research <ul><li>Surveys, talk to people, group sessions to discover: </li></ul><ul><ul><li>Who is interested in my product or service? </li></ul></ul><ul><ul><li>How many such people are there </li></ul></ul><ul><ul><li>Why do the need me </li></ul></ul><ul><ul><li>Why will they buy from me </li></ul></ul><ul><ul><li>How many can we reach easily </li></ul></ul><ul><ul><li>Where are they looking </li></ul></ul>Startup Workshop All rights reserved © Naeem Zafar
    17. 17. 4: Who Needs Me More? Market Segmentation <ul><li>Start by intense domain & customer knowledge </li></ul><ul><li>Articulate pain users have </li></ul><ul><li>Who has more pain now! </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    18. 18. Linked In Search Startup Workshop All rights reserved © Naeem Zafar
    19. 19. Results Startup Workshop All rights reserved © Naeem Zafar
    20. 20. Write & Ask Startup Workshop All rights reserved © Naeem Zafar
    21. 21. Questions <ul><li>Is there a real unmet need in this area (where your products address the problem)? </li></ul><ul><li>How does he/she want to see this problem solved? </li></ul><ul><li>Why have they not solved this until now – what issues are preventing the problem from being solved? </li></ul><ul><li>If a solution (or a product) existed, what would it look like? </li></ul><ul><li>Who will use this product (or service) – what are these users looking for? How badly do they want it? </li></ul><ul><li>What is the buying process (in other words, who needs to approve this purchase)? </li></ul><ul><li>What are usually the selection criteria? </li></ul><ul><li>What price point will make this decision a no-brainer? At what price point are we likely to find resistance? </li></ul><ul><li>What are the reasons somebody would decide not to buy? </li></ul><ul><li>Why hasn’t the customer bought this solution from someone else until now? </li></ul><ul><li>Who else may be interested in solving this problem? </li></ul><ul><li>Who in the organization is the most likely to champion solving this problem – can I get an introduction to them? </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    22. 22. Startup Workshop All rights reserved © Naeem Zafar
    23. 23. Google Adwords Startup Workshop All rights reserved © Naeem Zafar
    24. 24. Analytics Startup Workshop All rights reserved © Naeem Zafar
    25. 25. Target Market 5/15/2009 all rights reserved Concordia Ventures LLC <ul><li>Identify your target market </li></ul><ul><li>Find a sliver who needs you more! </li></ul>
    26. 26. Customer Discovery Method <ul><li>Create a “product brochure” </li></ul><ul><ul><li>See what people’s reaction </li></ul></ul><ul><ul><li>Google Adwords to gauge customer interest </li></ul></ul><ul><ul><li>“ write a press release” </li></ul></ul><ul><li>You should have an extremely good idea why your customers would buy your product before you even start the company </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    27. 27. Doing Online Research <ul><li>www.Zoomerang.com </li></ul><ul><li>www.SurveyMonkey.com </li></ul>Startup Workshop All rights reserved © Naeem Zafar Drive traffic to landing page Landing Page Survey Online Collect contact www.constantContact.com www.aweber.com Sites.Google.com Tell them Value Prop & Link to take survey <ul><li>Google Adwords </li></ul><ul><li>Facebook Ads </li></ul><ul><li>Emails to targets </li></ul>
    28. 28. 5:Creating Differentiated Positioning <ul><li>Positioning = “what do you do?” </li></ul><ul><li>Who else is doing anything close to what you are trying to do and… </li></ul><ul><li>How do you appear different to customers that they do? </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    29. 29. Positioning <ul><li>Positioning statement must be simple & self explanatory </li></ul><ul><li>Make it specific </li></ul><ul><ul><li>Bad: “increase website security” </li></ul></ul><ul><ul><li>Good: “cuts fraud in online transactions for commercial banks” </li></ul></ul><ul><li>Must connect with core competency </li></ul>Startup Workshop All rights reserved © Naeem Zafar
    30. 30. How Will You Appear Different to Your Customers Startup Workshop All rights reserved © Naeem Zafar
    31. 31. 6: Business Model <ul><li>How do you make money? </li></ul><ul><ul><li>who pays you </li></ul></ul><ul><ul><li>what channels </li></ul></ul><ul><ul><li>what gross margins </li></ul></ul>Startup Workshop All rights reserved © Naeem Zafar
    32. 32. Good Business Model Startup Workshop All rights reserved © Naeem Zafar $0.50 $4.00
    33. 33. Business Model Drives Clarity Your Company Licensing fee User Customer $3 $2 $9 Google Ad
    34. 34. 7: Why us: The Team <ul><li>Where not to find a team? </li></ul><ul><li>Who is on a team? </li></ul><ul><ul><li>Not just your founders! </li></ul></ul>www.startup-advisor.com All rights reserved © Naeem Zafar
    35. 35. What Makes a Good Team? <ul><li>What is a good team? </li></ul><ul><ul><li>The only common thread among successful teams: deep mutual respect </li></ul></ul><ul><ul><li>People who share your vision </li></ul></ul><ul><ul><li>People whom you have worked with </li></ul></ul><ul><ul><li>Complementary skills </li></ul></ul>Startup Workshop All rights reserved © Naeem Zafar
    36. 36. Team <ul><li>Co-founders </li></ul><ul><li>Advisory board members </li></ul><ul><li>Strategic consultants </li></ul><ul><li>Professional service providers </li></ul><ul><ul><li>(Law firm, accounting firms, Professors) </li></ul></ul>www.startup-advisor.com All rights reserved © Naeem Zafar
    37. 37. Co-founder vs. Employees <ul><li>Owner mindset </li></ul><ul><ul><li>Thought leader, do what it takes, risks & rewards </li></ul></ul><ul><li>Employee mindset is of entitlement </li></ul><ul><ul><li>Salary, vacation, job description </li></ul></ul>www.startup-advisor.com All rights reserved © Naeem Zafar
    38. 38. Summary: Essential Homework Startup Workshop All rights reserved © Naeem Zafar Many ideas Good ideas Unmet need Differentiated Positioning Market size Scalable Biz Model Why us & why now
    39. 39. www.startup-advisor.com All rights reserved © Naeem Zafar www.FiveMountainPress.com
    40. 40. Startup Bootcamp I Learn all you need to get started in one day! Dallas Chicago Seattle Los Angeles San Francisco Entrepreneurship All rights reserved © Naeem Zafar
    41. 41. 1-Day Startup Bootcamp Outline <ul><li>The process of business startup </li></ul><ul><li>Assembling a team & dividing equity </li></ul><ul><li>Idea validation process </li></ul><ul><li>Customer discovery: who needs you more? </li></ul><ul><li>Conducting market research with no money </li></ul><ul><li>Legal steps needed to get started </li></ul><ul><li>What is ahead: the challenges </li></ul>Entrepreneurship All rights reserved © Naeem Zafar
    42. 42. Advanced Startup Bootcamp Learn all you need to raise money & finding customers in one day! Entrepreneurship All rights reserved © Naeem Zafar
    43. 43. 1-Day Advanced Bootcamp <ul><li>The process of getting funded </li></ul><ul><li>Customer acquisition process </li></ul><ul><li>Financial modeling </li></ul><ul><li>Creating a compelling business plan </li></ul><ul><li>How to launch product or service </li></ul><ul><li>Using social media for startups </li></ul><ul><li>What is ahead: the challenges </li></ul>Entrepreneurship All rights reserved © Naeem Zafar
    44. 44. 7 Steps to a Successful Startup Signup & download this book for free All rights reserved © Naeem Zafar Startup Workshop www.Startup-Advisor.com

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