bartek gola - democamp

My name is Bartek Golabartlomiej.gola@speedupgroup.com www.speedblog.pl

How not to become a businessmanGuide for dummies

23.10.2010 Poznań

Why do you want to run your own business?

A more certain way to earn good money is a career in a „big company”.

Concern is associated with better status and prestige, social benefits.

.The first years of company's operation bring about the feelings of fear and "overwhelmness", to which you will have to accustom yourself.

You will be tormented with guilt towards yourself, your family, your loved ones - you will devote them (yourself) too little time.

After five years, you may have to start things over

If your only drive is money, surely, you will not succeed.

The only chance for success is to believe that your idea will bring a significant change to

the lives of its users

I apologize for the lofty tone

„An entrepreneur is someone who dares to dream the dreams and is foolish enough to

try to make those dreams come true.”Vinod Khosla

How to become an entrepreneurGuide for dummies

One says that every journey begins with the first step. How does any good

business start?

In the beginning, there is always an idea

What is this idea?

What can not be called an idea?

Technology or a technological solution does not constitute an idea .

An idea is neither a description of a function nor a technical specification.

An idea is not a visualization of a product or a model of a web service.

An idea is not a description of our competitive advantages.

An idea does not represent the number of Clients, who you wish to obtain.

Define your idea as a benefit; as a reason for which people will choose your

product.Consumers do pay for benefits.

Let's assume that you have an idea. Do you need a strategy to implement it?

The fundamental dilemma remains: tactics vs. strategy

http://speedblog.pl/2010/08/31/taktyka-vs-strategia

Operational excellence vs. Strategy

What, then, cannot be called a strategy ;-)

A strategy is not a multi-page document which you keep aside to present it to the Supervisory Board from time to time.

Strategy does not define operational goals of a company.

Strategy is not a list of procedures which are being followed in a company.

Strategy does not describe the Boards' vision of a company.

Strategy is not a marketing plan or sales plan.

Consider a strategy as a system of resource allocation, so as to effectivelly

produce and provide benefits (the reason for which your company exists)

Just a few words about marketing ...

Let us begin with a traditional approach ;-)

What can not be called marketing

Marketing is not an advertisement or an advertising strategy of your business.

Marketing – “the management process responsible for identifying, anticipating and satisfying customer requirements

profitably”.

Business model

According to „our” traditional approach...

...No, not this time ;-)

A Business Model is the way you monetize the feelings evoked in your

Clients.

Be extremely conservative when constructing a business model, even though you are an innovator.

Remember, costs are inevitable, revenues are only predictions.

Do not assume to attain even half of your goals regarding the sources of revenue.

Diversify your sources of income.

Top-down thinking vs. bottom-up thinking(let me explain ;-)).

Dear Entrepreneur, your problems have just started, now you need to ...

... write a Business plan

Business plan is a comprehensive list of tasks we have been discussing since the

beginning of this meeting.

What constitutes a business plan?

1. Purpose and reason– say why do you launch your own company (preferably in one sentence)

2. Problem– what "bothers" your potential Clients– how do they cope with this problem

3. Solution– What benefits do you offer to your Clients; why would they choose you– present situations in which the product / service will be used.

4. Why now?– do trends favour you, remember: „trend is your friend”

What constitutes a business plan?

5. Market size– define your Client's profile– what is the market potential (try to estimate how much money there is in the pot)

6. Competition– list your competitors– what are their competitive advantages

7. Product– description of functionality– development schedule

8. Business Model– revenue streams– pricing policy– sales and distribution plan– NBP (New Business Pipeline)

What constitutes a business plan?

9. Team– description of people involved in the project

10. Finances– P&L – cost and revenue plan– cash flow projection

Bartek Gola

bartlomiej.gola@speedupgroup.com www.speedupgroup.com www.speedblog.pl