15 lessons from 5 mic boostcamps to create an it startup

15 advices to launch
your start-up
Ben Piquard, directeur
Microsoft Innovation Center
Benpiquard

Ben@mic-belgique.be

www.mic-belgique.be
Twitter @benpiquard
Mobile +32 477 36 01 64

Entrepreneurs Boostcamps
Le Boostcamp : 4 mois pour démarrer une entreprise ! 150
– Le Boosctamp est un programme d’accélération au démarrage d’entreprises emplois
innovantes du secteur IT. Concentré sur 4 mois, le Boosctamp proposent quelques 20
journées de formation intensive, des ateliers thématiques, des rencontres avec des
30
Start-ups
experts et des conférences inspirantes en complèment des autres outils existants en
Wallonie. 80
participant
s
– Les anciens Boostcampers sont réunis dans le Club des Alumni à travers lequel ils
continuent à participer aux conférences et ateliers. Le Club des Alumni est également
l’occasion de réunir des pairs et de réseauter. 800
Rencontres
expert

Je recommande le Boostcamp qui est une opportunité unique de
recevoir des conseils avisés de la part d’experts et d’être encadrés
par des personnes expérimentées. Le MIC m’a permis d’évoluer Boostcamps
plus vite et d’avoir confiance en mon projet. Etre supporté par le
MIC apporte énormément de crédibilité auprès des clients
potentiels. Guillaume Tilleul, Numerizik BILAN 2009-2011
MIC WALLONIE

100 startups and 5 Boostcamps later…
Before Starting
6 key Dimensions
Business Model
Marketing
Sales
Finance
Technology
*
Pitches
And now ?

Let’s share thinkings… 1H ???

Why Tools are critical ?
A quoi servent les outils ?
- Parler le même langage
- Gagner du temps
- Travailler ensemble

Outils de toutes sortes:
Accounting, strategie, HR,
organisation, finance, time
management,…

des CENTAINES d’OUTILS !!!
http://www.wordle.net

Must 1 : value chain; Greiner Model; paradigm shifts

Explosion du concept Move to 6 ?
Externalisation

Breaking the Chasm !

Must 2 : as basic as XL !!!
XL:
-Abs / Related
-Name
-What If analysis
Business Plan Stability
• Assumptions stability
• Cash Flow ? (2/3 bankrupt)
• ROI  measure sensibility and hold them !

Limits of tools: Michael Porter
• Strategy = define and keep a sustainable advantage
• 3 ways
– Best
– Cheap
– Different

• Invented end of 80’
– Information speed
– Individual value: €, social, sustainable

Must 3 : Time management !

Why do you do something ?
SMART
Think Visual
4D  emails management

Ton’s of MUST…
• Voyagez !
• Parlez de nombreuses langues !

Conclusions : Learn to Learn
• Kill your TV

• Go to Cinema
From working Hard…

• Subscribe to To working smart…
– À Harvard Business Review
– 123 Manage
– Wikipedia
– Amazon.com
– …

Contribution to your wisdom…

Thinking 1

What are the business of
Microsoft?
Apple ?
Salesforces.com ?
FaceBook ?

• Microsoft is a software
company with ww market
• Local adaptation
• 1000€  720€ back to LSE
• 40% of jobs in IT WW are Msft
Related
• Partner based model
– 750.000 partners ww
– 4800 in Belgium
• Strong in G2M
FOOTPRINT
• Own & Partners innovation

Apple
• Consummer model
(low SMB, Enterprise)
• End-to-end
• Captive : web cam, iPhone,…
• Reccuring : G5 (backward), Mac.com vs Me,...
• Premium Market
(High End, €$, Design)
• Why is iPhone « that » a success ?
 App Store

Revolution
in distribution
But
- pre-finance dev
- Volume needed
- % fee for Apple

DIFFERENT

• B2B via Web
• Subscription based
• Segmented : High end, middle range
and individual/SMB
• Direct or Partners : cost of sales
aligned to margin; from 1 platform
• Platform : web 2.0 : user generated
configuration
• Gain on
– Subscription
– Services
• Leverage community :
app-ecchange

ALIGNMENT

• Advertising model
–they know you !!! (subscription ?)
• Border line of Profitability
• Stupid basic functionality
– User Profile
– Friends
– Board
– Share photos / Video
• But … facebook API…

MONETARIZE

Before Starting
6 key Dimensions
Business Model
Marketing (in IT !!!)
Sales
Finance
Technology
*
Pitches
And now ?


Thinking 2
How old are
FaceBook ?
Twitter ?
Fikket ?
Resto.be ?
Immoweb.be ?

50% of IT today did not exist 3 years ago !
• Business = transaction, added value
• From
– 1-1
– Value Chain
(software, integrator, hoster, customer)
– Distributed / Clouds
• How do you gain money ?
– Software
– Service
– INfrastructure
– Web
• Subscription
• Adverstising
• % transaction
• How do you go to market (G2M) ?
– B2B, B2C, B2Web
– Direct, Indirect ?
• How do you finance your cashflow ?

Tom Siebel : ww leader in CRM
• Ex Oracle
• Has a Vision on next generation CRM
• First group a Board
– 5 customers « early adopters »
– 3 Partners
– 1 bankers
– 1 Nasdaq investor
– Marketing team
– Business Dev / Sales / Partner Team
 Fully paid, 6 month « time for true ? »
• 1 year : release 1
• Direct Sales, B2B + Partners
• License based : cash + maintenance
• 600mio$ in 4 years
• Purchased by Oracle for 5.85 Bi$ after 7 years…

What can we learn from all this ?
1. Time to market is more important than features
2. Inventing the appropriate business model
(you can copycat, danger of being the first one,…)
3. Align costs and revenue (Siebel vs HR)
4. Manage risk in time
5. Don’t he$itate to partner if time 2 market is in
danger : VC, Bank, public funds*, sales
partner, implementation, hosting,…
 Make or buy question ?
6. Which distributed value chain do you accept ?
Michael Porter : best, cheapest or the other one
7. Have a clear value model (open ERP)

What’s the difference between a company and succesful company ?

« THE ABILITY TO EXECUTE »
KENICHI OHMAE

How can you do 1 Mio € in 2 Years ?
Example : SMS game, pay per SMS
10c / sms; 500k€ de cout / an
• Stratégy 1 : Think "Big"
• Stratégy 2 : Repeatable Business Case
• Stratégy 3 : Socialisation
• Stratégy 4 : Indirect / Prescriptor
• Stratégy 5 : web 2.0
• Stratégy 6 : Pure Services

Finance for Startups

Martin van Wunnik

Xavier Corman

Creativity
level

Finance & Accounting
level

5
• Company Setup

• Accounting

• Financial Plan

• Funding your startup

• Valuation / Dilution

Why should I create a company ?
Limit your liabilities !
Professional touch
Fiscal 34% (24% for 3y)
Succession
...

Formalities & some costs
(bank, notary, KBO/CBE, social secretary)
Double entry accounting
Revisor for in-natura contributions 41

Accounting: Profit & Loss (P&L)
COGS (Cost of Sales)

Personnel Costs

Gross margin
Revenues (Sales…) General Expenditures

Added Value
Depreciation

EBITDA
Financial cost
Profit

Financial Plan / Profit & Loss
Revenues (Sales…)

COGS (Cost of Sales)

General Expenditures
COSTS
Personnel Costs

Financial cost
Depreciation CASH
CASH-FLOW IF NEGATIVE DRAIN
Profit

http://www.ideaowl.com/blog/2011/06/microconf-2011-3-surprises-and-
learnings-from-best-conference-ever/

How to finance your start-up ?
FFF
Clients
BA
Suppliers
VC
Banks
Crowd
Shareholders
Equity
LT Debts
ST Debts

Public

Banks

Shareholders

Valuation
Exit Money

Sweat Money

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Valuation - What is dilution ?

On possible way for a Belgian IT startup
type B2B: 20k€
Idea : 4 weeks

POC : max 6 months
Clear Proposal Value
Where is the money First run = max 1 year
Pre-activity funds
Business plan 2nd run :
(12.500€)
Build or buy Build a technical POC FFF + Find 150k€ max 24 months
3rd run : max 36
Show this to 2 early 2 persons months
adopter customers Find 250k€
Distribution
Partner model Channels 10 persons
(PAM vs Direct Sales) Find 1Mio€
Indirect
Web 2.0 branding 20 peoples
Target
Target : • 5 distributors
Indirect
• 3 distributors, • 100 customers Target
• 25 customers • 2 moi€
• 10 distributors
• 500k€ • 300 customers
• 10 Mioi€

Sell ?
Sell ?
No Revenue Sell ?
True business

The SaaS opportunity
• Costs of your IT resources are simplified
as commodity
• Advantages
– Possible Costs alignments on Revenue
streams
– No upfront investments
– Backing SLA on Microsoft
– New « revenue model possible »
• Can turn decision from Capex to Open in
Buyer eyes
• Cf 7 revenue models (infra)

The SaaS opportunity
• Costs of your IT resources are simplified as commodity
• Advantages
– Possible Costs alignments on Revenue streams
– No upfront investments
– Backing SLA on Microsoft
– New « revenue model possible »
• Can turn decision from Capex to Open in Buyer eyes
• Cf 7 revenue models (infra)

Before Starting
6 key Dimensions
Business Model
Marketing
Sales
Finance
Technology
*
Pitches

And now ?


The MIC’s Boostcamps

Microsoft Innovation Center asbl
Parc Initialis
Boulevard Initialis, 1
7000 Mons - Belgique

Tél: +32 65 95 03 95
Fax: +32 65 95 03 96

Email: info@mic-belgique.be
@micbelgique Groupe mic.fikket.be www.facebook.com/micbelgique
Site web: http://www.mic-belgique.be
micbelgique

My contribution to your Wisdom today…

© 2012 - ben@mic-belgique.be

Are you an app builder or planning to
become one? Stay updated and in the
know through Microsoft.be/ISV

Check out our ISV team at the Microsoft
booth and get your entrance bracelet for
the Microsoft Partner Drink here at
TechDays!

Roald Sieberath

HOPE MIC Belgique

Who am I ?
I used to : I studied business at :

I (co-)launched startups : I work with startups :

Main ideas
What is a business model
Why it’s important
Building blocks
Startup is a different animal
Exemples & TEST !

Violonist story

Earned : 32$

Violonist story II
(the revenge)
Joshua Bell

Lesson
for Joshua (& gifted developers)

Talent is not enough

Some building blocks…missing

The winner is…
…not the one …but the one
with the best with the best
technology business
model

Business Model : 9 building blocks

All right,

what do I make of it ?

Business Models need to be designed

It’s a communication tool

Developers Marketers
are from are from
Mars Venus

It’s becoming a lingua franca

An easy way to share, discuss, adjust

We used to think:
a startup is a company,
just smaller

And should be managed in a similar way

Reality
A startup is a different animal

Management science
shouldn’t be completely the same

Another view: Steve Blank
a company a startup
solves a solves an
known unknown
problem problem

Waterfall model

Problem: known Solution: known

Agile Development (XP)
Problem: knowncustomer Solution: unknown

Customer Development

Data, feedback, insights

Problem: unknown Solution: unknown

Hyp, experiments, insights

Adjust until you can prove it works !

Search (and find)
the right business model

Only then, “execute” !

Exemple : Djengo
Cool startup
Young
founders
Cool concept

Djengo v.0.5 : C2C car-sharing
(may 2010)

Carsharing concept :
- Between individual users
- From anywhere to anywhere
- ‘clearinghouse’ + social

Djego v.1.0 : event car-sharing
Value prop:
Fixed destination

Customers:
Event organizers

BMC : changed

Better !

Djengo v.2.0 : B2B car-sharing
• Changed again :
– car-pooling for
employees
– Value proposition for
companies
– Different partners,
relationships,
• …

Djengo : they now have a business !

Business Model innovation
Many sectors can be
challenged & changed.

Not so much technologically,
But on their business model.

Business Model innovation
ENIAC
First commercial
computer

15 Feb 1946

1. Business Model
can win or kill your
business

2. You need to design your
Business Model

3. Use it as a
communication tool

5. …by getting out of the
building !

Understand this to avoid crashes

30-second pitch
everyone can understand
Leo Exter, founder @ westartup

Because clarity of
speech requires
clarity of thought.

Not everyone
knows as much as
you do.

1. Short words everyone knows
1. Zero fluff
2. No vague words: forget about
“platforms” and “solutions”

3. Zero fluff

• What it is
(smartphone app)
• Whose problem it solves
(engineering students)
• What problem it solves
(find cheap second-hand books)
• With which secret ingredient
(Dropbox-like recruitment of buyers and sellers)

leo.exter@westartup.eu
www.westartup.eu Got questions?
@leoexter

Anatomy of a

COMPETENT
5-minute pitch
Leo Exter, founder @ westartup

15 lessons from 5 mic boostcamps to create an it startup

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15 lessons from 5 mic boostcamps to create an it startup

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