13006 iStartup Keynote Presentation

Transcript

1. entrepreneurs don’t ‘found’ Startups – customers do
2. do they?
3. without customers there is no Startup
4. customers should be… the first thing you think about the last thing you think about at the heart of every decision
5. Source: Steve Blank and this depends on customers!
6. your customers will underpin your business model… 1. Value Propositions 2. Customer Segments 3. Channels 7. Partners 4. Customer Relationships 6. Resources 8. Activities 9. Cost Structure 5. Revenue Streams …they’re how you create value What customer problem do you solve, or need do you satisfy? You exist for them…so who are they? How do you reach them? GET, KEEP, GROW! How do you make money from each customer segment? Assets needed to fulfil customers? Who do you need to work with to serve your customer most effectively? What you must do to win customers The cost base needed to create your customer proposition
7. like your business but love your customer – it makes financial sense
8. your proposition must address a clear cut customer need Pain Aspiration Expressed Latent Customers can articulate a specific problem Customers don’t know they have a problem until you solve it Customers can articulate a real desire Your idea is a surprising way to make life better
9. its not about your idea or your product… …its about customer needs!
10. define your target customers Theme Need to know Example Who Who are they? 21-29 male, busy, professional What What do they need? Excellent nutritious food on the go Why What motivates them? Lack of time, instant results, technology Where Where are they? City dwellers, at home, at friends When When do they consume? Evenings, weekends How How do they want to consume? Utilising online/devices, at their convenience more than 1 type – then segment them into customer groups
11. so you know your target customer? good companies never stop researching their needs How much am I worth? What do I like about your competition? What are my pain points? What risks do I pose? What marketing channels do I use? What other products/ services do I like?
12. customer research customer needs and… pivot your idea until they match your idea
13. Introduction to the customer development process an iterative route to building better companies Customer Discovery (PIVOT TIME!) - Talk to customers - Design experiments - Run tests - Get data Customer Validation (PIVOT TIME!) - Test your guesswork - Build customer feedback into loop - Test again Customer Creation - Look for insights in the numbers - Have your epiphany - Search, discover, validate, establish your way forward Company Building - Build your company in your customer’s image
14. so understanding their needs will drive your entire Startup strategy customer archetype the market Proposition Pricing model Channels Marketing
15. Remember… • Customers are more important than products • They are the only resource that really matters • Find your targets, repeat business is the backbone of selling • Know their needs and develop dialogue • They make it possible for you to succeed • Stick close to them as you develop
16. Idea Development Successful Startups o Case Studies o Business Process/Design Assessing potential of Ideas early on
17. What made these guys successful?
18. • Think through Mega trends– in early 90’s Jeff Bezos saw exponential internet use • Systematically studied top 20 mail order businesses before identifying books as best entry point • Obsession with Customers over competitors • Focus on invention – do not accept either-or scenarios & design solutions to do both • Will it support 10x growth? • c $80Bn Global sales 1995
19. • Identified market turning point - Community feeling hit low point, but signs of rebounding • Web provided new tools to solve existing needs • Free = exponential growth, but original revenue model failed • Group quality low with too many no shows • Pivoted to charging model - lost 95% activity, but stabilised the business • Est 10,000 meetups/day, $25-30M revenue/year 2001
20. • Started as ChocExpress – value driven mail order business • Successful, but concept becoming outdated • Used insight to redefine brand on quality - strong focus on provenance – bought cocoa estate in St Lucia • Focussed on remaining cash positive – never taken VC investment • Now expanded into retail with 33 shops • Sales c £55M/year 2004
21. • Started out as odeo – a site to create and share podcasts • Became largely irrelevant when Apple launched iTunes podcast platform • Struggling to stay alive they held a hackathon, Jack Dorsey proposed the microblogging concept • 500m users and $10bn valuation in 2012 2006
22. • Disruptive product - Research showed 2M do (half) marathons, but think they’re boring/badly run • Strong message of what they stand for – no one gets left behind • MVP – proved demand with $300 website & $20 ad • Viral & Cash positive • Partner with national brands – leverage scale • Strong corporate culture • Projecting $150 revenue in 2013 2010
23. Disruptive product Case Studies - Summary Viral Harnessed visible trends Obsessed with Customers & insight Build infrastructure for 10x growth Focus on Invention Applied new tools to existing needs Pivots common – not afraid to redefine company Strong message of what they stand for Used MVPs to test & learn
24. Focus on problems not product ‐ What problem do you want to solve? Is it big enough? ‐ Increase quality of life ‐ Focus on product will blinker you to other solutions Test & Learn ‐ Build an MVP & refine to reach optimal product-market fit ‐ Focus on action over planning. Trial & error is critical– do it cheap and do it fast. Measure results. ‐ ‘ if you’re not embarrassed by your first release, you’ve launched too late’ – Reid Hoffman – co founder of linked in Right Pace Right Team Mentoring ‐ Growing too fast before getting the proposition right will hinder long term success. Time investment carefully. ‐ Business & technical skills + credibility to deliver solution ‐ Solo founders pivot less & take longer to reach scale ‐ Clear split of responsibilities as early as possible ‐ Share your idea - get constructive feedback to help you grow ‐ Find experienced mentors to sponsor you & your idea Process / Design of a Successful Startup
25. Assessing idea potential • Enough target Customers? • Who & where are they? • GoogleTrends – compare search terms, growth/decline? • Google Adwords / Facebook - Volume of searches & likes Size of market • Build an MVP - could just be a landing page • Test Dummy features inc pricing / services • A/B testing • Interviews and Surveys • uSamp, UserTesting.com, UsabilityHub.com, CrazyEgg.com, GutCheckit.com, & Ask Your Target Market. Customer Feedback • How will you get your customers? • How much will it cost? • Can you piggyback on another larger service? e.g Paypal & Ebay Customer Acquisition • Can you deliver? • Your area of expertise and experience? • Who can join the team who has the experience? • Everyone needs to be the expert in what they do Your ability to execute • How much do they spend? • Over a year or lifetime value? • Product segments & Category trends Customer Value Complete before you start investing significant time and money in product
26. Resources • www.paulgraham.com/startupide as.html • www.fourhourworkweek.com/blo g/2011/09/24/how-to-create-a- million-dollar-business-this- weekend-examples-appsumo- mint-chihuahuas/ • www.fastcompany.com/63818/se ven-secrets-good-brainstorming • www.jamesaltucher.com/2012/0 4/how-to-have-great-ideas/ • www.inc.com/guides/201109/ho w-to-assess-the-market-potential- of-your-new-business-idea.html • www.dni.gov/files/documents/Gl obalTrends_2030.pdf • www.startupgenome.com • www.venturevillage.eu/why- startups-fail • www.fastcompany.com/1821798 /6-near-fatal-mistakes-we-made- year-one-and-how-we-built- company-anyway • www.slideshare.net/brikis98/star tup-dna • www.37signals.com/svn/posts/27 51-scott-heiferman-looks-back-at- meetups-bet-the-company- moment- • www.success.com/articles/1322- startup-stories • www.inc.com/tim- donnelly/tough-mudder- conquering-obstacles-to-build-70- million-business.html • http://newtome.wordpress.com/ 2011/12/22/lean-startup-action- summary-and-outline/ • www.businessmodelgeneration.c om/ • www.leanlaunchlab.com/ Finding Ideas Successful Startups Lean Development • www.Quora.com • http://topblogs.onstartups.com/ • http://entrepreneurs.about.com/ od/gettingstarted/a/guykawasaki. htm • http://www.entrepreneurhandbo ok.co.uk/ General