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Should You Take The Product Or Services Route

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This is presentation is less useful to watch as a slide show, without someone explaining, except for the graphic slides towards the end of the PPT. The graphic is borrowed from http://www.softwareceo.com/files/white_papers/4_Paths_to_Greatness.pdf

Published in: Technology
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Should You Take The Product Or Services Route

  1. 1. Should a Startup focus on Product OR Services
  2. 2. Disclaimers <ul><li>Oxymoron? </li></ul><ul><li>Ideas and Thought Process </li></ul><ul><li>Not a subject matter expert </li></ul><ul><li>Product Bias? </li></ul><ul><li>Land of Services </li></ul>
  3. 3. What is a startup? <ul><li>Business vs Startup </li></ul><ul><li>Life-Style Business </li></ul><ul><li>High Growth </li></ul><ul><li>Technology Oriented </li></ul><ul><li>Risk – Reward Ratio is high </li></ul>
  4. 4. Origins <ul><li>With Conscious Intend </li></ul><ul><li>Fun Explorations - Accidents </li></ul><ul><li>Why should I work for someone else? </li></ul><ul><li>Struggle with a Problem </li></ul><ul><li>Spot unaddressed need </li></ul><ul><li>Derived from work or personal experiences </li></ul>
  5. 5. On Product <ul><li>Sell IP </li></ul><ul><li>Innovation Oriented </li></ul><ul><li>Funding is relatively easy </li></ul><ul><ul><li>A piece of paper can get money </li></ul></ul><ul><ul><li>I mean compelling business plan. </li></ul></ul><ul><li>High Risk </li></ul><ul><li>Entry Barrier – High (with patentable IP) </li></ul><ul><li>Team </li></ul><ul><ul><li>Small number of highly specialized people </li></ul></ul><ul><ul><li>Large Pizza Teams </li></ul></ul><ul><li>Fixed Overhead </li></ul>
  6. 6. Financing Cycle
  7. 7. Product Statistics <ul><li>75% of value of US public companies are derived from IP </li></ul><ul><li>$6.5M – Statistical Average of Founder CEOs of Public Companies </li></ul><ul><li>20%-60%-20%::Success-Lifestyle-Failures </li></ul>
  8. 8. On Services <ul><li>Sell Time </li></ul><ul><li>Not fundable – Typically! </li></ul><ul><li>Low Risk </li></ul><ul><li>Revenue from Day 1 </li></ul><ul><li>No 10x growth </li></ul><ul><li>Entry Barrier Low </li></ul><ul><li>Team </li></ul><ul><ul><li>Large number of people with common skills </li></ul></ul><ul><li>Delivery excellence – Process Oriented </li></ul><ul><li>Variable Flexibility </li></ul>
  9. 9. Acknowledgement <ul><li>The graphic in next few slides are excerpted from </li></ul><ul><li>S-Business: Reinventing the Services Organization </li></ul><ul><li>James A. Alexander and Mark Hordes. </li></ul><ul><li>ISBN 1-590-79054-5. </li></ul><ul><li>www.alexanderconsultingsbiz.com. </li></ul>
  10. 10. Types of Service Companies
  11. 11. Services – Value Potential
  12. 12. Customer Expectations
  13. 13. Buyers
  14. 14. Buying Strategy
  15. 15. Service Strategies
  16. 16. Value Propositions
  17. 17. Acknowledgement <ul><li>The graphic in last few slides are excerpted from </li></ul><ul><li>S-Business: Reinventing the Services Organization </li></ul><ul><li>James A. Alexander and Mark Hordes. </li></ul><ul><li>ISBN 1-590-79054-5. </li></ul><ul><li>www.alexanderconsultingsbiz.com. </li></ul>
  18. 18. Blended Scenarios <ul><li>Boot strapping with Services </li></ul><ul><li>Product within Services </li></ul><ul><li>Services for Product </li></ul><ul><li>Open Source </li></ul><ul><li>SaaS </li></ul><ul><ul><li>Delivery Model </li></ul></ul><ul><ul><li>Pricing Model </li></ul></ul><ul><ul><li>Quality Ownership </li></ul></ul><ul><ul><li>True TCO </li></ul></ul>
  19. 19. Summary <ul><li>Product or Service </li></ul><ul><ul><li>Base it on your strength / expertise </li></ul></ul><ul><ul><li>Have Solid Focus </li></ul></ul><ul><ul><li>Good founding team </li></ul></ul><ul><ul><ul><li>Just 1 – An easy option to give up too soon </li></ul></ul></ul><ul><ul><ul><li>2 people is too small – result in stale mate </li></ul></ul></ul><ul><ul><ul><li>3 is a perfect team </li></ul></ul></ul><ul><ul><ul><li>Anything more than that is a crowd </li></ul></ul></ul><ul><ul><ul><ul><li>can’t even co-ordinate a common meeting time! </li></ul></ul></ul></ul>
  20. 20. Q & A Thank You

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