Startup Talk @ JCU Everyone can do it - but how?

Heroku - SF

A bit about me

#3 Amazon (Portuguese)

That any good?

Yeah! Don’t you speak

Portuguese?

Search x Execution

$ Bi - from IBM to Instagram

1911 1975 1998 2004 2010

Acquired by Facebook

for $19 Bi!!!

But then, Kickstarter gave us…

2012 CROWDFUNDING PROJECTS:Oculus Rift

Acquired by Facebook for $2 Bi!!!

What people think is important

What really matters

Idea• Too many ideas, challenge is focus

• No ideas, challenge is creativity

• How to turn creativity into innovation: The Inventure Cycle

• Imagination is envisioning things that do not exist

• Creativity is applying imagination to address a challenge

• Innovation is applying creativity to generate unique solutions

• Entrepreneurship is applying innovation, bringing ideas to fruition, by inspiring others’ imagination

• Getting personal - best ideas involve emotion: love or hate

X

Market Need

• Most startups fail due to market risk, not technical risk

• Many entrepreneurs are moved by solving problems

• So instead of pivoting the Customer Segment to fit your idea, you pivot the Value Proposition until you find one that solves a market need

• Niche markets are prolific sources of unserviced needs

• Niches became global!

Whatever the Case, Two Main Hypotheses

Growth (Engine) • Paid • Sticky • Viral

Value Minimum Viable Product

What next? The Value Proposition Canvas. http://businessmodelgeneration.com/canvas/vpc

Customer Segment

• Get Out Of The Building and interview 50-100 customers

I. Customer Discovery

1. Three-Point Interview:

• Have you ever had [problem]?

• Tell me a story about the last time you had [this problem]

• For you, what is the ideal solution for that situation?

2. Create a Persona

• Gather both quantitative data and qualitative insights

Value Proposition

No product development, yet we’re still GOOB

II. Pitch: try to sell* the product / service (*only as validation)

III. Concierge of Oz: deliver the product as a service, in person, in a manual or "fake" manner

• Focus and empathy are key

• Less is more

• Always define the VP from the customer perspective

The Business Model

Revenue Model (Monetisation)

• Simple & Straightforward

• Focus on 1 revenue source, even if there may be others

• Revenue model heavily dependant on Growth Engine

• Paid

• Sticky

• Viral

• Multi-sided markets = complex

• Experiment with price points

Get Out of The Building - The Experiment Board

CASE: Wannadoo (opusphere.com)

CASE: JESI Management Solutions (jesims.com.au)

What Investors Are Looking For

Most Important Factors

1. MKT Size: TAM / SAM / Target Market

2. Product (P/M Fit) - demo if possible

3. Team (Bio, Skills, Execution Capacity)

4. Progress: Validated Learning / Evidence-BasedTM

5. Scalability & Traction • Growth Engines: Paid / Sticky / Viral

• Know thy metrics!

Pitch Deck

1. The Market Need

2. Product-Market Fit

3. Product Demo

4. TAM / SAM / Target Market

5. Revenue / Monetization Model

6. Growth Strategy

7. Traction / Biz Development

8. The Team (who will execute)

9. Call to action: Investment needs

10. <More details as requested>

Further reading

• Lean Thinking - Daniel T. Jones, James P. Womack • The Lean Startup - Eric Ries • The Four Steps to The Epiphany & The Startup Owner's Manual -

Steve Blank (& Bob Dorf) • Business Model Generation & Value Proposition Design - Alexander

Osterwalder • Lean Software Development (& sequel) - Mary & Tom Poppendieck • Rework - Jason Fried & David Heinemeier Hansson • Seth Godin on community marketing & doing things that matter • Like a Virgin - Richard Branson • And so much more!

Townsville Startup Weekend: 21st-23rd November 2014 Website: http://goo.gl/uptrwp + FB: http://fb.me/TSVSW

Questions?

Sara Hughes, Download, 2005, acrylic on linen, Wallace Trust Collection

Richard Sazima meetup.com/Townsville-

Startups-Meetup

au.theleanstartup.org

linkedin.com/in/rsazima