Meet Susan
Also known as…
Ms. Entrepreneur
Susan lives in…
Flickr: http2007
and went to school at…
Flickr: matsuda.yukihiro
and has an idea for
a startup…
EasyERP
The Best Run Businesses Are Easy
She got a little
seed funding from…
But will her idea…
How would you
   help Susan answer
  that question?
Assessing Susan’s Market Opportunity
                               • Will customers
                                 leap...
Why do new products fail?
                                      Primary Causes of Product Failure

                 Inadeq...
How Susan Can Save Time and Money
                                                                          Without
      ...
What
should Susan do?
Stuff Susan Might Do
          Market Analysis
                              Market Research

Market Sizing               ...
Best Practice

When Should Susan Do It?
                                                   Today
                         ...
Do It Multiple Times

Friends & Family                    First product
                                    Version –
    ...
The roadmap:
    A three stage, iterative process

                                  Two days
          1
                ...
1 Idea Screening
Idea Screening:
 1

      1.1 Define Your Business Concept
- Who are your customers
- What are their important problems?
-...
1
    Idea Screening:
    1.2 Estimate the market size
Why is market size
    important to
      investors?
For less mature markets try “<industry> market billions”
“EasyERP will make its projected
revenues with just 1% of the
$48B ERP Software Market”…
Does this answer the
      “will it fly”
           question?
Idea Screening:
1

    1.3 - Identify the key risks
What are the greatest
risks for Susan?


                    •   Market Risk
                    •   Competitive Risk
    ...
Susan believes her
    greatest risk is
  competition. She
decides to emphasize
competitive analysis.
“Quick & Dirty”
2 Market Analysis
“Quick and Dirty” Market Analysis
2

    What you can do
    from your desk, a
    trip to the library,
    and the coffee...
“Quick and Dirty” Market Analysis
    2

Free article: Ten steps to increase your market success.
-   Clarify your researc...
2
        Bottoms Up

    A * B * C = Market Size
          Where
          A = # of customers
          B = average trans...
How big does the
  market size
     need to be?
2
               Terminology
• Total Available Market (TAM) = entire universe
  that could ever buy your product – for you...
Estimate EasyERP TAM – Bottoms Up
          Segment 1 – Enterprise
          Segment 2 – Medium Business




             ...
Is that big enough?
“Our competitors include”…
Competitive Matrix
                    SAP       Oracle       NetSuite   EasyERP
Market share rank         1            2 ...
“EasyERP is the first
  system specifically
designed to be easy to
install, easy to change
  and easy to use…”
Find a Proven Sales Model

                                        Unprofitable:
                                         ...
“With an average
  transaction size of
$80,000, EasyERP will
use an inside telesales
   and online sales
      model…”
Before we build a better mousetrap,
we need to find out if there are any
         mice out there.”
           - Yogi Berra
Detailed Market Analysis
3
Detailed Market Validation
 3

Conduct 20-30 interviews with representative customers.
What are their needs? Will they buy...
Sample Interview Questions
• What are your top 3 goals? Challenges?
• Typical day in your life?
• How do you solve this pr...
Case Study – SaaS B2B Software
Target Account List   Contacted   Interviewed          Results
        500               75...
Can Susan Generate Traffic Online?
Now Susan
 knows…
…what her customers need
…how


is different
…and how to
make her idea
     fly
Thanks to…
Grow your software company. Faster.
Tennant Consulting Services
   Strategy              Capital                Products                Marketing           Al...
Tennant Consulting Services
   Strategy              Capital                Products                Marketing           Al...
Drop me a business card for
freebies and to
            learn more
   Copy of slides
   Business Concept Questionnaire
 ...
How To Conduct a Market Analysis - SD Forum's Crafting A Fundable Roadmap For Your Startup
How To Conduct a Market Analysis - SD Forum's Crafting A Fundable Roadmap For Your Startup
How To Conduct a Market Analysis - SD Forum's Crafting A Fundable Roadmap For Your Startup
How To Conduct a Market Analysis - SD Forum's Crafting A Fundable Roadmap For Your Startup
How To Conduct a Market Analysis - SD Forum's Crafting A Fundable Roadmap For Your Startup
How To Conduct a Market Analysis - SD Forum's Crafting A Fundable Roadmap For Your Startup
How To Conduct a Market Analysis - SD Forum's Crafting A Fundable Roadmap For Your Startup
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How To Conduct a Market Analysis - SD Forum's Crafting A Fundable Roadmap For Your Startup

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How to conduct market analysis - a roadmap for startups. Presented at Software Development Forum March 31, 2009. Steve Tennant, Tennant Consulting, www.tennantconsulting.com. Tip of the hat to Scott Schwertly from Ethos3 Communications for "Meet ____" presentation format.

Published in: Business, Self Improvement
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  • hi-thanks for uploading the excellent and valuable work,Could you please,(if it is possible) forward me at:arfali@gmail.com.I would deeply appreciate.Thanks
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  • Thanks for sharing all these useful and effective tips. It will help all marketers to set a road map for startups.
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  • About iQVision

    Incorporated in July 2011, iQVision’s mission is to provide reliable, robust vision-inspection solutions to Australian manufacturing industries, by establishing, then automating, objective quality processes.

    iQVision is a Matthews-affiliated company and works closely with Matthews on integrated product identification projects where vision inspection is needed. It also operates directly with customers on vision-only projects.

    The company is developing and managing wide OEM and integration partner networks to supply the Australian and New Zealand markets.

    iQVision has a wide range of vision solutions for industrial applications. These solutions are specifically designed to suit your needs and processes, and to achieve effective and lean manufacture. Developments in the technology have now made it accessible to small and medium-sized businesses.

    iQVision delivers the best fit technology for your application and can help with:

    Understanding your production process, quality issues and defining the application
    Scoping the application and building the specifications
    Suggesting the right technology (hardware- cameras, lighting etc as well as software- firmware and controlling software)
    Building and commissioning the solution
    Supporting the solution

    Talk to us if you have an existing solution from Cognex, Datalogic, Dalsa, Omron or Sick that is not delivering the results you would like it to. We can help service or re-configure the system to increase your return on investment.
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  • Very usseful, especially for entrepreneurs
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  • VERY GOOD PRESENATION
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    Your message goes here
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How To Conduct a Market Analysis - SD Forum's Crafting A Fundable Roadmap For Your Startup

  1. Meet Susan
  2. Also known as…
  3. Ms. Entrepreneur
  4. Susan lives in…
  5. Flickr: http2007
  6. and went to school at…
  7. Flickr: matsuda.yukihiro
  8. and has an idea for a startup…
  9. EasyERP The Best Run Businesses Are Easy
  10. She got a little seed funding from…
  11. But will her idea…
  12. How would you help Susan answer that question?
  13. Assessing Susan’s Market Opportunity • Will customers leap at the Compelling Unmet chance to own Need your solution? • Can you easily explain how Explainable Uniqueness you’re different? Revenue Potential • How large is “the pie”, and Market Size and Growth how fast is it growing? • With how many others Competition must you share the pie?
  14. Why do new products fail? Primary Causes of Product Failure Inadequate Market Analysis Product Problems or Defects Lack of Effective Marketing Effort Higher Costs Than Anticipated Competitive Strength or Reaction Poor Timing of Introduction Technical or Production Problems All Other Causes 0% 10% 20% 50% 30% 40% Percentage of Companies Citing (n=233) Source: Conference Board as cited by R.G. Cooper, Winning at New Products
  15. How Susan Can Save Time and Money Without With Market Analysis Market Analysis (Best case) Money Saved Difference in % of Payback cash Breakeven flow 3 1 2 First Customer First Customer Failed Project (50-80% probability) Time (Years) 17
  16. What should Susan do?
  17. Stuff Susan Might Do Market Analysis Market Research Market Sizing Focus Groups Opportunity Interviews Assessment Competitive Surveys Analysis
  18. Best Practice When Should Susan Do It? Today Idea Screening Product “Quick & Dirty” Market Analysis Concept Review Development Preliminary Technical Assessment Process Detailed Market Validation Business Case Review Business & Financial Plan Post Product/Service Development Development Review In-House Tests Customer Tests Trial Sell Trial/Pilot Production Launch Pre-Launch Business Analysis Decision Production Startup Launch Source: Robert Cooper, Winning at New Products
  19. Do It Multiple Times Friends & Family First product Version – 3 customers Angel Round Second product Version – 10 customers Third product Series A Version – 50 customers
  20. The roadmap: A three stage, iterative process Two days 1 Two weeks 2 Two months 3
  21. 1 Idea Screening
  22. Idea Screening: 1 1.1 Define Your Business Concept - Who are your customers - What are their important problems? - How do you solve their problem better than anyone else?
  23. 1 Idea Screening: 1.2 Estimate the market size
  24. Why is market size important to investors?
  25. For less mature markets try “<industry> market billions”
  26. “EasyERP will make its projected revenues with just 1% of the $48B ERP Software Market”…
  27. Does this answer the “will it fly” question?
  28. Idea Screening: 1 1.3 - Identify the key risks
  29. What are the greatest risks for Susan? • Market Risk • Competitive Risk • Product Risk • Financial Risk • Technology Risk • Team Risk • Other?
  30. Susan believes her greatest risk is competition. She decides to emphasize competitive analysis.
  31. “Quick & Dirty” 2 Market Analysis
  32. “Quick and Dirty” Market Analysis 2 What you can do from your desk, a trip to the library, and the coffee shop
  33. “Quick and Dirty” Market Analysis 2 Free article: Ten steps to increase your market success. - Clarify your research objectives - Define your ideal customer and possible market segments. - Identify how customers solve the problem today. - Size the market – demand and supply. - Identify market, technical, industry, societal and regulatory trends that affect spending on your category of solution. - Identify what you imagine to be your customer’s selection criteria and buying process. - Talk to 3-5 “friendlies” to validate your customer’s goals, problems and evaluation criteria, how they would buy, and alternative solutions. - Identify your customers top three goals, challenges, and pain points and their relationship to your solution. - Write down the top three reasons you believe customers should buy your solution instead of how they do it today or competing solutions. - Define your sales model.
  34. 2 Bottoms Up A * B * C = Market Size Where A = # of customers B = average transaction size C = # of transactions/customer/year
  35. How big does the market size need to be?
  36. 2 Terminology • Total Available Market (TAM) = entire universe that could ever buy your product – for your niche, anywhere • Addressable Market = revenue represented by the market segments that you intend to sell and service in the time covered by your business plan, or initial investment
  37. Estimate EasyERP TAM – Bottoms Up Segment 1 – Enterprise Segment 2 – Medium Business CAGR = Compound Annual Growth Rate
  38. Is that big enough?
  39. “Our competitors include”…
  40. Competitive Matrix SAP Oracle NetSuite EasyERP Market share rank 1 2 ? N/A Easy of Use 3 3 4 5 On-Demand 1 1 5 5 Multi-currency 5 4 4 5 Easy Install 2 2 4 5 Easy Changes 2 2 3 5 Customer Base 5 5 3 1
  41. “EasyERP is the first system specifically designed to be easy to install, easy to change and easy to use…”
  42. Find a Proven Sales Model Unprofitable: Enterprise You lose Selling Investment in each transaction by Your Company Consultative Selling Poor service: Transactional You lose Selling Investment in each transaction by Customer Recommended reading: Neil Rackham, Rethinking the Sales Force
  43. “With an average transaction size of $80,000, EasyERP will use an inside telesales and online sales model…”
  44. Before we build a better mousetrap, we need to find out if there are any mice out there.” - Yogi Berra
  45. Detailed Market Analysis 3
  46. Detailed Market Validation 3 Conduct 20-30 interviews with representative customers. What are their needs? Will they buy? Our new What’s frustrating employees run about your ERP screaming they system? hate it so much.
  47. Sample Interview Questions • What are your top 3 goals? Challenges? • Typical day in your life? • How do you solve this problem today? • Who would you trust for advice? • How would you want to buy it? • What would you expect to pay? • What services would come with it? • If you had three choices in front of you, what criteria would you use to evaluate them? • What did you expect to talk about that we haven’t?
  48. Case Study – SaaS B2B Software Target Account List Contacted Interviewed Results 500 75 26 • Prioritized features • Feedback on prototypes of next five products • Development partners & contacts • Company exposure/visibility • Management team alignment • Customer-centric, problem-driven messaging • White papers summarizing key business issues & how to address • & more
  49. Can Susan Generate Traffic Online?
  50. Now Susan knows…
  51. …what her customers need
  52. …how is different
  53. …and how to make her idea fly
  54. Thanks to…
  55. Grow your software company. Faster.
  56. Tennant Consulting Services Strategy Capital Products Marketing Alliances Executive Team Financing Product Mgmt Marketing Alliance Facilitation Assessment Assessment Assessment Assessment Market Needs Positioning & Vision & Mission Business Plan Alliance Strategy Interviews Messaging Market Trends & Investor Win/Loss Website Strategy Alliance Programs Analysis Presentation Analysis & Content Competitive Product Business Marketing Plan & Investor Meetings Alliance Marketing Analysis Plan Budget Opportunity Due Diligence Product PR & Thought Alliance Partner Assessment Support Messaging Leadership Recruiting Strategy Term Sheet Trade Shows & Relationship Beta Customers Development Support Events Rescue/Facilitation Strategy Execution Board Sales & Customer Alliance Scorecard Launch & Metrics Communications Conferences & Metrics Project Management Leadership Feedback & Coaching Organization Design, Staff Recruiting & Development Collaborative Operating System
  57. Tennant Consulting Services Strategy Capital Products Marketing Alliances Executive Team Financing Product Mgmt Marketing Alliance Facilitation Assessment Assessment Assessment Assessment Market Needs Positioning & Vision & Mission Business Plan Alliance Strategy Interviews Messaging Market Trends & Investor Win/Loss Website Strategy Alliance Programs Analysis Presentation Analysis & Content Competitive Product Business Marketing Plan & Investor Meetings Alliance Marketing Analysis Plan Budget Opportunity Due Diligence Product PR & Thought Alliance Partner Assessment Support Messaging Leadership Recruiting Strategy Term Sheet Trade Shows & Relationship Beta Customers Development Support Events Rescue/Facilitation Strategy Execution Board Sales & Customer Alliance Scorecard Launch & Metrics Communications Conferences & Metrics Project Management Leadership Feedback & Coaching Organization Design, Staff Recruiting & Development Collaborative Operating System
  58. Drop me a business card for freebies and to learn more  Copy of slides  Business Concept Questionnaire  22-Page Article – How to Conduct “Quick & Dirty” Market Analysis  Email newsletter Follow me on Twitter: steve811 Email me at steve@tennantconsulting.com Call me at (925) 258-9100

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