So you want to do a startup


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  • So you want to do a startup

    1. So you want to do a startup? Rashmi Sinha, SlideShare
    2. Are you sure?
    3. Who am I?
    4. SlideShare... <ul><li>best place in the world to share presentations </li></ul>
    5. Taking over the world (one PowerPoint at a time!) <ul><li>Start May 06 > Beta > Launch Oct 06 > Grow > Grow more > Angel funding Dec 07 > Series A Apr 08 </li></ul>We are hiring!
    6. 1. Make your app useful
    7. Solve one problem really well
    8. Make app social <ul><li>SlideShare as non social app </li></ul><ul><ul><li>PowerPoint plugin? </li></ul></ul><ul><ul><li>No virality </li></ul></ul>
    9. 2. Speed is imperative
    10. Why startups need speed?
    11. Small & fast
    12. Set the tone for speed <ul><li>In hiring, development, design, releases, biz dev </li></ul>
    13. Be agile <ul><li>(worry about scaling later) </li></ul>
    14. The monster of expectations
    15. 3. What to build
    16. Why we built products we did <ul><li>MindCanvas: Could sell into market </li></ul><ul><li>SlideShare: Understood market </li></ul>
    17. 37signals: Build less
    18. Build for right reasons <ul><li>Start with less </li></ul><ul><ul><li>Add complexity (when necessary) </li></ul></ul><ul><ul><li>Remove features </li></ul></ul><ul><li>Get people used to change </li></ul>
    19. To build a feature or not to <ul><ul><ul><li>Listen to loudest? </li></ul></ul></ul><ul><ul><ul><li>Watch behavioral metrics? </li></ul></ul></ul><ul><ul><ul><li>Read blog posts? </li></ul></ul></ul>
    20. Loudest users OR silent majority <ul><li>slidecasting example </li></ul>
    21. How to double traffic ?
    22. Anatomy of a feature launch <ul><li>Groups: V1, V2 & V3 </li></ul>
    23. 4. Ideas are dime a dozen
    24. <ul><li>NO EXECUTION = $1 </li></ul><ul><li>WEAK EXECUTION = $1000 </li></ul><ul><li>SO-SO- EXECUTION = $10,000 </li></ul><ul><li>GOOD EXECUTION = $100,000 </li></ul><ul><li>GREAT EXECUTION = $1,000,000 </li></ul><ul><li>BRILLIANT EXECUTION = $10,000,000 </li></ul>AWFUL IDEA = -1 WEAK IDEA = 1 SO-SO IDEA = 5 GOOD IDEA = 10 GREAT IDEA = 15 BRILLIANT IDEA = 20 Ideas are just a multiplier X
    25. Execution is all that matters
    26. Care about execution <ul><li>Scrutinize ideas: “can we execute on this?” </li></ul><ul><ul><li>How fast? When can we start work? </li></ul></ul><ul><ul><li>What will first version take? </li></ul></ul><ul><ul><li>Which team member will do it? </li></ul></ul><ul><ul><li>What metrics to track progress? </li></ul></ul><ul><ul><li>What will we push back to work on this? </li></ul></ul>
    27. 5. Understand market size (& revenue model)
    29. Potential market size <ul><li>No of PowerPoint presentations </li></ul><ul><li>Blogs & Video </li></ul>
    30. Potential revenue streams <ul><ul><li>AdSense </li></ul></ul><ul><ul><li>Affiliate Networks </li></ul></ul><ul><ul><li>Sponsorships </li></ul></ul><ul><ul><li>Fremium </li></ul></ul><ul><ul><li>Licensing </li></ul></ul><ul><ul><li>White label version </li></ul></ul><ul><ul><li>Marketplace </li></ul></ul><ul><ul><li>Job board </li></ul></ul><ul><ul><li>Professional services </li></ul></ul>
    31. Good early legs <ul><li>Adsense </li></ul><ul><li>Consulting revenue </li></ul>
    32. Revenue stream impacts application <ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Pro accounts & Fremium </li></ul></ul><ul><ul><li>White label solutions </li></ul></ul><ul><li>-Revenue stream should not kill virality </li></ul><ul><li>-Don’t loose focus on majority </li></ul>
    33. Problems with fremium
    34. VC money? <ul><li>Retain control till you can </li></ul><ul><li>Take money (if you absolutely need it) </li></ul><ul><ul><li>From right partners </li></ul></ul>
    35. 6. Get advisors & angel investors
    36. SlideShare advisors & angel investors <ul><li>Dave McClure </li></ul><ul><li>Guy Kawasaki </li></ul><ul><li>Mark Cuban </li></ul><ul><li>Jonathan Abrams </li></ul><ul><li>Yee Lee </li></ul><ul><li>Hal Varian </li></ul><ul><li>Saul Klein </li></ul>
    37. Who?
    38. 7. Outsource what you can
    39. Outsource complexity <ul><li>Amazon S3, EC2 </li></ul><ul><li>Dedicated servers instead of colocation </li></ul><ul><li>Google Ads </li></ul><ul><li>Google Search </li></ul><ul><li>Different widgets (Gigya, AddThis) </li></ul>
    40. 8. Working with remote teams
    41. Challenges <ul><li>Getting to know each other </li></ul><ul><ul><li>Hard to develop informal rapport </li></ul></ul><ul><li>Need to look at same screen. </li></ul><ul><li>Body clock </li></ul><ul><li>Benefits: 24 hour cycle </li></ul>
    42. Synchronous is must Skype GoToMeeting
    43. SCRUM End of day reports
    44. 9. How to Launch
    45. The Alpha Feedback to the embed No publicity Browser compatibility issues
    46. How developed should a Beta be? <ul><ul><li>SlideShare beta </li></ul></ul><ul><ul><li>Enough to get point across </li></ul></ul><ul><ul><li>Little of social layer </li></ul></ul><ul><ul><li>Not buggy </li></ul></ul>
    47. SlideShare launch <ul><li>Invite only: Before or after launch? </li></ul>Alpha Stealth mode Open to all Launch Invite only
    48. Initial Momentum
    49. 10. Use metrics
    50. What metrics? <ul><li>Performance: page load times... </li></ul><ul><ul><li>Errors: 404, 500s... </li></ul></ul><ul><ul><li>Traffic: Web logs </li></ul></ul><ul><ul><ul><li>Database tracking: No. registrations, login, uploads, contacts </li></ul></ul></ul><ul><ul><ul><li>Customer feedback emails </li></ul></ul></ul>
    51. Get yourself a shadow app <ul><ul><li>Metrics we care about </li></ul></ul><ul><li>Simple console with daily, hourly </li></ul><ul><li>Simpler than web analytics </li></ul><ul><li>Whole team uses it </li></ul><ul><li>Measure project success, iterate </li></ul><ul><li>Proxy AB testing </li></ul>
    52. Startup Metrics from Dave Mc Clure <ul><li>Acquisition : users come to site from various channels </li></ul><ul><li>Activation : users enjoy 1 st visit: &quot; happy ” experience </li></ul><ul><li>Retention : users come back , visit site multiple times </li></ul><ul><li>Referral : users like product enough to refer others </li></ul><ul><li>Revenue : users conduct some monetization behavior </li></ul>
    53. Customer Lifecycle & Conversion Behavior 4. REFERRAL Emails & widgets Campaigns, Contests 5. Revenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, etc 2. Activation Homepage / Landing Page Product Features 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains
    54. Example Conversion Metrics (note: *not* actuals… your mileage may vary.) Category Conversion Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1 st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget/Acct Signup (anything that could lead to repeat visit) 5% $2 Retention Length of Session / # of Clicks (length/intensity of engaged visit, >180s) 10% $1 Retention Email Open/ RSS view -> Click/Repeat Visit (3+ visits in first 30 days) 3% $5 Referral Refer 1+ users who visit site 2% $1 Referral Refer 10+ users who activate 0.2% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
    55. Finally <ul><li>slides at </li></ul><ul><li> </li></ul><ul><li>find me at </li></ul><ul><li> </li></ul>We are hiring!