1. Float like a butterfly
Sting like a bee
By Camilo Lopez
New Venture Challenge
2. Tonight’s Points
• Introduction 1min
• Personal Story 4 min
• Motivation to Start a Company 5 min
• Idea Generation 10 min
• Customer Development 30 min
• Lean Canvas 30 min
• Go do it!
19. • Reading • Team Sports
• Watching TV • Shopping
• Family Time • Traveling
• Going to Movies • Sleeping
• Fishing • Socializing
• Computer • Sewing
• Gardening • Golf
• Renting Movies • Church Activities
• Walking • Relaxing
• Exercise • Playing Music
• Listening to Music
• Entertaining
• Hunting
20.
21.
22. Idea 1 Idea 2 Idea 3
What
Economics
Competitors
23. How big is the market
TAM = # of Potential Customers X Value of each customer
24. How big is the market
Number of Potential Customers
X
Value of each customer
=
Total Available Market
25. Top Down Bottom Up
Number of customers I
Total Available Market
can get today
Attainable Market
Growth
Share
Projected Customers Projected Customers
with target share with expected growth
26. Idea 1 Idea 2 Idea 3
What
Economics
Competitors
27.
28. Idea 1 Idea 2 Idea 3
What
Economics
Competitors
Motivation
36. Problem Solution Fit
State your assumptions:
• The Product Hypothesis
• Customer Hypothesis
– ROI
• Channel and Pricing Hypothesis
• Demand Creation Hypothesis
• Market Type Hypothesis
• Competitive Type Hypothesis
37. Product
• Problem you are solving
• Product Features
• Product Benefits
• Intellectual Property
• Product Delivery Schedule
– MVP
• Total cost of ownership/adoption
38. Customer
• Types of customers
– Decision Maker
– Economic Buyer
– Recommender
– Influencer
– User
• Customer Problems
• A day in the life of your customer
• Customer Influence Map
• ROI Justification
– Cost of Problem vs Cost of your solution
• Minimum Feature Set
39. Distribution
• System Integrators
• Direct Sales Force
• Value added resellers
• Dealers
• Distributors
• Retail
• Online / Direct
40. Demand Creation
• How would you create demand for your product to your
chosen channels
– Advertising
– Social Media
– PR
– Promotions
– Spam
– Web Site
– Word of Mouth
– Seminars
– Telemarketing
– Partners
– INFLUENCERS
46. New Co. Great Idea
New Co. Clear message of what you do, tag line
Problem Solutions Unique Value Unfair Customer
Top 3 features
Proposition Advantage Segments
Top 3 Problems
Can NOT be easily copied or
Single, clear compelling, bought Target customer
message that states why you
are different and worth
buying
Metrics Channels
Key activities you measure Path to customers
Cost Structure Revenue Streams
-Customer acquisition -Revenue model
Distribution cost Lifetime value
Hosting Revenue
People Gross Margin
51. Customer Engagement
1. Start showing the site to potential customers, testing customer
segment and value proposition
2. Use Ads, textlinks or Google AdWords, Facebook ads and natural
search to drive people to your Minimally Viable web site
3. Use your network to find target customers – ask your contacts, “Do
you know someone with problem X? If so, can you forward this
message on to them?” and provide a 2-3 sentence description
4. For B2B products, Twitter, Quora, and industry mailing lists are a good
place to find target customers. Don’t spam these areas, but if you’re
already an active participant you can sprinkle in some references to
your site or you can ask a contact who is already an active participant
to do outreach for you.
5. Use Mailchimp, Postmark or Google Groups to send out emails and
create groups
6. Create online surveys with Wufoo or Zoomerang
7. Get feedback on your Minimum Viable Product (MVP) features and
User Interface
52. Next Steps
• Test hypothesis by talking to customers
– Start Building a landing page
– Make progress toward your MVP
– Talk to customers
– Collect Data
– Ask for Money
• Iterate
53.
54. Tools
Must Read Blogs
• Fred Wilson – A VC
• SK Murphy
• Marc Andreessen
• Paul Graham
• Hacker News
• Brad Feld
• Chris Dixon
• OnStartups-Dharmesh Shah
• Both Sides of the Table – Mark Suster
• 37signals
• Eric Ries – Startup Lessons Learned
• Venture Hacks and http://twitter.com/venturehacks
• Andrew Chen
• Dave McClure
• Venture Made Transparent
55. Co-founders
• TechCoFounder - directory of developers
• Foundrs - recruit co-founders
• StartupLinkup - recruit co-founders
• FoundersHookUp - Invite-only find a co-founder
• CoFounder Network
• PartnerUp-
• Meetup – go to a Meetup!
The secret sauce for success is motivation and teamWhat drive you?You have a problem that you want to solveYou are passionate about a particular issueYou want to explore, see what is out there
9 out of 10 startups failThe ones that succeed change plans and direction along the way.
The secret sauce for success is motivation and teamWhat drive you?You have a problem that you want to solveYou are passionate about a particular issueYou want to explore, see what is out there Where will your idea come from?Personal problems you have Reading the news, TC, VBFriends and FamilyDon’t fall in love with your ideaBe willing to changeMake a list, do market research, down select
Learning Loop
If you can’t easily explain why you exist, none of the subsequent steps matter. A good format is “We help X do Y by doing Z”.Once you have a statement in that format, find a few other people (doesn’t matter if they’re your target market) and ask them if it makes sense.If not, give them a longer explanation and ask them to summarize that back to you. Other people are often better than you at crafting an understandable value proposition.
Put yourself out there Get a domain name for your company. To find an available domain quickly, tryDomize or DomainrThen use godaddy or namecheap to register the name. (RetailMeNot usually has ~ $8/year discount coupons for Godaddy You may want to register many different domains (different possible brand names, or different misspellings and variations of a brand name.) Depending on your product, this may be as simple as a splash page with: your value proposition, benefits summary, and a call-to-action to learn more, answer a short survey, or pre-order.)For surveys and pre-order forms, Wufoo and Google Forms can easily be embedded within your site with minimal coding.