OEP Technology Entrepreneurship Online Course - Stanford 2012 - IdeasLab
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The document describes an entrepreneurial team from Portugal that is developing an online platform called InovLand to connect landlords with farmers and potential farmers. The team is developing an initial beta version and plans to launch a stable first version in January. They describe their marketing strategy of using social media and radio advertising. They plan to generate revenue through a freemium model with paid subscription plans and advertising on the platform. The risks include technical challenges in developing an innovative platform and potential issues covering the entire target market.
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OEP Technology Entrepreneurship Online Course - Stanford 2012 - IdeasLab
- 1. Inovland Plataform for Land and Forrest Resources and Services IdeasLab // Technology Entrepreneurship 2012 Oportunity Analysis Project - OAP
- 2. » Team IdeasLab • 2 met up through online games • 2 are brothers • 1 was found on venture-lab • Curiously all are from the same region: Porto, Portugal Luis Bivar Ramos (http://www.linkedin.com/in/luisbivarramos) Simão Curval (http://www.linkedin.com/in/simaocurval) Inês Amaral (http://www.linkedin.com/in/iamaral) Miguel Bivar Ramos (http://www.linkedin.com/in/miguelbivarramos) 12/13/2012 IdeasLab // Technology Entrepreneurship 2
- 3. » Product InovLand Putting landlords, farmers, want to be farmers in contact, matching each other needs. Starting with the Portuguese market and then expanding to other markets with strong agricultural tradition, economy and background. Our first beta is under development and will be launched soon. We hope to have a first official and stable version during January. 12/13/2012 IdeasLab // Technology Entrepreneurship 3
- 4. » Marketing • Target Market: Market characteristics > growing and mature; • Potential Market: 90.000 users; • Potential ways to reach target: marketing door to door, a campaign on Facebook/Twitter/Pinterest, participation in a weekly show on national radio; • Marketing Strategy: Blended Marketing - social media strategy combined with a traditional media campaign and direct marketing; • Marketing Costs: no costs yet; • Actual Marketing Reach: 131.000 > social media campaign, national radio show and direct marketing. 12/13/2012 IdeasLab // Technology Entrepreneurship 4
- 5. » Sales Channels • Website • Mobile Application Customer Acquisition • Network of contacts (friend involved in agriculture) • Agriculture Associations • Agricultural National Fairs • Social Media 12/13/2012 IdeasLab // Technology Entrepreneurship 5
- 6. » Partnerships Will be developed at different levels: • Users acquisition (mostly not bi-directional relevant): 3 contacted Agricultural (sector) regional and national associations; Forrest regional and national associations; Cooperatives and farmers’ associations. • Services development (more bi-directional relevant): 10 contacted Universities and technical schools specialized on land development; Land laboratories; Real estate agencies and municipalities; Temporary work agencies • Products development (some may be bi-directional relevant): none contacted yet Agricultural and forrest machinery companies; Seed, animal food and fertilizer companies. 12/13/2012 IdeasLab // Technology Entrepreneurship 6
- 7. » Distribution Our product is a web platform, distributed through the web: • Distribution channels: Website and Apps for smartphone and tablet; • No third party or partners in distribution; • Support for distribution: weekly email newsletter and social media; • Best way to reach our customers: Internet; • Estimated costs of distribution: 125.000 € / year with taxes 12/13/2012 IdeasLab // Technology Entrepreneurship 7
- 8. » Costs Beta Stage: 703€ • Trade mark: 700€ • Domain cost: 3€ (Godaddy.com) First Launch Version: 81.650€ • Dedicated machine: 1.200 €/year • 2 Programmers: 60.000 €/year with taxes • Structural office (in a start up center): 3.200 €/year • Marketing: 5.000 € • Software licenses: 3.000 €/year • Computer equipment: 4.000 € • Portuguese company taxes: 250 €/year • Creation of the company: 5.000 € 12/13/2012 IdeasLab // Technology Entrepreneurship 8
- 9. » Revenue model Freemium Model: • Free registration: access to basic features as profile and simple ads creation, application to ads and newsletter received; • Service and Subscription plans: access to premium services, products and apps either through one time use or an annual plan (more complete land sales and rental ads, product sales, consulting on land production, apply for group discounts, register for auctions, access to ERP and cloud features, training and consulting discounts); Advertising Model: • More cost effective advertising directed to land development businesses and users; • Advertising: at the web platform, mobile apps and weekly newsletter. • Affiliation programs: refering the product in other websites. 12/13/2012 IdeasLab // Technology Entrepreneurship 9
- 10. » Risk • Financial: no risk on beta (703€ investment) and low risk on first launch version (81.650€); • Technical: high risk as we need to develop a new and innovative platform with different innovative features that add value to the users. This problem will be faced with the hiring of high skilled programmers; • People: medium risk as we have a good team with knowledge in the different areas of the business, but we need high skilled programmers that raise the associated risk. In order to lower it we’ll offer them company participation. • Market: risk of not covering all the potential market because of associations and cooperatives’ power. We’ll face it going first for the ones looking to grow and so more interested in partnering with us. 12/13/2012 IdeasLab // Technology Entrepreneurship 10
- 11. » Partners and Allies Partners, the ones that will help us develop services and products for the end users (the ones eager to get market share) Universities and technical schools specialized on land development; Land laboratories; Real estate agencies; Temporary work agencies Agricultural and forrest machinery companies; Seed, animal food and fertilizer companies; Municipalities. Allies, the ones that will help us develop the platform: Software development company; Programmers; Cloud services company. 12/13/2012 IdeasLab // Technology Entrepreneurship 11
- 12. » Funding Different sources depending on platform development: 1. Beta Stage and First Launch Version, 90.000€: three Fs (Family, Friends and Fools), crowdfunding and national and international entrepreneurship competitions; 2. Second Launch Version, 180.000€: we’ll go for BA (Business Angels) with experience on internet start up platforms; 3. International Expansion, 1.000.000€: we’ll go for VC (Venture Capital firms) with experience on start up internet platforms. 12/13/2012 IdeasLab // Technology Entrepreneurship 12
- 13. Thank you! COURSE Technology Entrepreneurship 2012 OAP
Editor's Notes
- Our target market has different characteristics: a). growing; b). mature. Potential customers already targeted: young people with training and interest in working in agriculture, individuals with land to sell, individuals who want to maximize the profit from their land, farmers seeking land to lease and/or farm; farmers seeking integrated services targeted to land development. Accordingto the Portuguese NationalStatisticalInstitute, 90.201 agriculturallabour force plusproducerswhich are Internet and/or mobile appusers. We tested our marketing strategy through different ways: online survey, direct marketing, landing page, Twitter profile, Facebook page, Pinterest profile and the participation in a weekly show on a national radio. We decided to implemet a Blended Marketing Strategy, including all the segments of the market at the same time because of the specific business. Therefore, we will use pull and push online resources organized in a social media strategy combined with a traditional media campaign, an investment in marketing from door to door and permanent contacts with associations of the area. As we haven’t print any marketing resources nor developed any online campaign (adwords or similar) yet, for now we have not had any cost associated with marketing. Currently, through the current campaign (social media campaign, national radio show and direct marketing), we estimate that our marketing reach is 131.000 people.
- Weneed to developpartnershipsatdifferentelevels;For usersacquisition: agriculturalandforrest regional andnationalassociations, cooperatives, andfarmers’ associationstheyhavethedirectcontactwiththeendusersthatwewant, theonesinterested in thelanddevelopment, sobypartneringwiththemwe’llbeable to reachourclients.problems: mostofthem are notbi-directionalrelevant as theyhaveverybigdimensionsandmayseethepartnership as notrelevant for theiractivitywhileitdoesn’tgettraction. Weneed to show themthepotentialofthe business andstartwiththeones in more needofgrowth.Fromtheonescontactednow (3), noneshowedimmediateinterest in thepartnershipdevelopmentimmediatelybutmaybe in the future.For servicesdevelopment: univeritiesandtechnicalschools, consultingcompanies, landlaboratories, real estate agencies andmunicipalities, temporarywork agencies, allofthemspecializedonagriculture, forrestandlanddevelopmentthesepartnershipswillallowus to offertheendusersdifferenttypesofservices, fromconsultingservicesrelatedwithlanddevelopmentandproduction, to job searchandland sales orevaluation;We’llgo for smallerentities in needofgrowththatmaybe more interested in thepartnershipdevelopment;Fromtheonescontacted for now (10), 6 showedinterest in developingjointservices.For productsdevelopment: agiculturalandforrestmachinerycompanies, seedcompanies, animal foodcompanies, fertilizercompanies, amongstother.Withthesecompanieswe can try to offerinnovativeproducts for specificusers, orwe can try to getdiscountsandspecialoffers for theendusers.
- We will distribute our produc though the Internet. We will use two distribution channels: website and mobile apps for smartphone and tablet. We will use different distribution channels for our product distribution in order to have a better coverage of our potential market. This option will be the innovative aspect of our project and we think it is the best way to reach our customers. We did surveys and interviews to potential clients that allow us to be sure of this distribution option. There will be no third party or partners in the distribution of our product. Although, we will use a weekly email newsletter and social media as a support for the distribution of our product. We estimate that the costs of setting up distribution channels will cost 125.000 € per year.
- Our revenue model has 2 dimensions:Freemium model: registration for free with the basic features (profile, creation of simple ads, apply to ads, newsletter); premium paid services and products through subscription or use, where in the latter case the price is much more expensive (more complete ads including land testing and more quality pictures and movies, consulting on land production, apply for group discounts, register for auctions)Advertising model:single ad in weekly newsletter and mobile apps; pay per click; pay per action; pay per 1000 views. Potential advertisers will have several advantages, particularly a target assertive within a context that maximizes their visibility. Companies related with land development will have access to their final users, directly, through a specialized channel that will be much more cost effective.
- On the risk analysis we detected the following:Financial Risk: none to low risk as the associates investments for the beta and first launch version are low (up to 81.650€).Technical Risk: this is a high risk as we need to develop a platform that is new, needs to have innovative features that add value to its users and must be totally user friendly. In order to achieve that we need high skilled programmers, potentially with knowledge on new programing tools with higher risk.People Risk: for the management and operation side of the business the risk is low as we have a management team with experince in the different business areas (finance, strategy, IT, project management, marketing and communication). As we’ll need high skilled programmers, that will raise the total people risk to medium. The way to face that risk is to offer them company participation.Market Risk: power of cooperatives and sector associations is hig so it may be difficult to get to all the end user market. In order to face that risk we’ll go for those in more need of growth, offering them collaboration and free access to our platform, as well as exclusivity for some services and products offered.
- Our major partnerswillbetheservicesandproductdevelopmentcompanies as theywillbetheones to allowus to getservicesandproducts to theenduser. Wewillfirstlygoafterthecompaniesthathavegoodqualityproductsand are eager to gainmarketcharesotheywillbe more interested in partneringwithusandgettingaccess to ourendusers.To attractthepartnerswe’llofferthemcommissiononour sales, exclusivitywithourplatform, directaccess to ourclientsand free publicity (case by case analysis).Our major allieswillbecompaniesthatwillallowus to develop a better, stateoftheart web platform. We are in contactwith a software developercompayexperienced in workingwithstart-ups (to workwithusonthedevelopmentof a specific ERP), wehavecontacted 3 programmers for insideplatformdevelopmentsandonecloudservicecompany (to developallthecloud backup supportservices). To attracttheallieswe’llsubcontractthem, contractthem to workinternallywithusorgivethem some shares ofourcompany (onceagainon a case by case analysisanddependingontheircontributionandexperience).
- We’ll look for different sources of funding depending on the development phase of the platform:Beta : we’ll go for the three Fs (Family, Friends and Fools), plus crowdfunding and national and international entrepreneurship competitions, for a total of 10.000€;First Launch Version: we’ll go for BA (Business Angels) with experience on internet start up platforms, for a total of 180,000€, ;International Expansion, 1.000.000€: we’ll go for VC (Venture Capital firms) with experience on start up internet platforms.