Brenda Spoonemore - A biz dev playbook for startups: Why, when and how to do deals to help your business win
A BIZ DEVPLAYBOOKFOR STARTUPSWHY, WHEN AND HOW TO DO DEALSTO HELP YOUR BUSINESS WIN
WHAT IS BIZ DEV? Business development means establishing relationships and doing deals to help your company. Sales Licensing Distribution Branding• Revenue • Revenue • Audience • Brand alignment• Establish model • Client base • Intelligence/data • Partner • Shared revenue dependencies
BIZ DEV FOR EARLYSTAGE STARTUPSYour unfair advantages: • Cutting edge tech • Nimble dev iteration • Optimization and focusYour key challenges: • Getting to scale • Little or no cash • Limited time and resources
HOW BIZ DEV PLAYSARE DESIGNEDThree case studies:• Yardbarker and FoxSports.com• BigDoor and NFL.com• Fantasy Moguls and CBSSports.com
YARDBARKERThe challenge:Substantial amount of unique user generatedcontent and a core community.Need more traffic to destination site to increase adrevenue and market position.
YARDBARKER ANDFOXSPORTS.COMYardBarker: • Access to large base of sports fans • Provide new fresh content • Distribution needed to drive revenueFoxSports.com: • Get fresh content at low or no cost • Access to a user gen sports content community • Generate incremental revenue
YARDBARKER ANDFOXSPORTS.COMQuid pro quo: Distribution Unique, low Revenue cost content Branding Revenue Community
BIGDOOR MEDIAThe challenge:Unique customer loyalty/gamification tech butsuccess dependent on reaching apassionate, engaged audience—the larger the bettersince only a % will convert.Monetization accelerated by leveraging existingsponsors and products.
BIGDOORAND NFL.COMBigDoor: • Access to users and usage data to prove product model • Provide unique technology and expertise • Must support NFL to ensure successful deployment • Generate revenue via partnerNFL.com: • Get unique functionality to drive core site metrics • Increase store of personal user data • Drive usage of other NFL goods and services
BIGDOORAND NFL.COMQuid pro quo: Prove model Unique tech Distribution Revenue Revenue Data
FANTASY MOGULSThe challenge:Fantasy Moguls runs social games with wellestablished virtual goods revenue stream butuntapped secondary sponsorship revenue stream.Engagement in games high but growth constrainedby size of Moguls’ ad spend and audience.
FANTASY MOGULSAND CBSSPORTS.COMFantasy Moguls: • Access to a sales force and sales revenue • Brand alignment • Marketing to targeted customer baseCBSSports.com: • New and creative sponsorship inventory for clients • Ability to tap into virtual goods revenue stream and learn social games business • Test theories about untapped value of existing and new customers
STEP ONE:DRAW UP YOUR PLAY• Define your needs • Know what you want, assign a metric• Create spreadsheet of target partners • Who is best positioned to deliver? • What do you have to offer in return (value)?• Find the right contact • Network and research • Cold calls are a last resort
STEP TWO:RUN THE PLAY• The pitch • Email or call to generate interest • Do pitch live or in person • Adjust on the fly• The proposal • Follow up with answers and proposal • Have term sheet in mind • Write out structure, model before sending
STEP THREE: FINISH• The negotiation • Don’t try to win every point • The negotiation sets the tone for the relationship• The term sheet • One page• The agreement • Legal, contracts vs letter agreements• The relationship • The only thing that really matters