nwen and founder institute ideation bootcamp - week 2 - venture ready research & models

Ideation Bootcamp

Week 2

Weekly Format

• 6:30 – Food/beverages • 6:45 – Introduction to topics & mentors • 7:00 – David Bluhm – Research • 7:30 – Dave Parker – Models • 8:00 – Q&A • 8:25 – Break • 8:45 - Working Groups• 9:15 – Home work

About Mentors

David Bluhm

• Entrepreneur & Founder

• Chairman of Z2Live Mobile

Gaming

• Enterprise Software

• Venture Capital

Dave Parker

• Director, Seattle Founder Institute

• Entrepreneur

• Board Member Guidant Financial

• Former Board Member

Classmates.com

David Bluhm

Customer Acquisition

“The primary reason that I think most startups fail is lack of customer acquisition at at reasonable economics” Dave McClure

• Business Model – B2B, B2C, Retail, Web Direct, Channel

• Product Pricing

B2B Models

Business to Business

• Direct Sales – Inside Sales – Outside Sales – High Price Point

• Indirect (Channel) Sales – Does NOT create demand, only fulfills demand – Partnered with Services

• Web Direct – PPC, Banner – Prospects need to be looking for your product

B2B Sales Process

3

2

UNDERSTANDMy Needs & Desires

ALTERNATIVESTo Satisfy My…

SELECT BEST

1Step 1: Suspects (0% – 20%)

Step 2: Prospects (20% – 30%)

Step 3: Qualified Prospects “SMART” (30% – 50%)

Step 4: Requirements ~ Go No-go (50% – 65%)

Step 5: Develop “Draft” and Pre-Sell Solution (65% – 80%)

Step 6: Finalize your Proposal (80% – 90%)

Step 7: Close (90% – 95%)

B2B Sales Process

TIME, Price, Closing Ratios Between Steps

13 Consumer Models

13 Consumer Models

• TechCrunch Teardown: 13 Consumer Internet

Business Models (Part I) « The World According To

Carp http://fndri.com/jEvuYa - Steven Carpenter– Media– Paid Service – Physical Commerce

• Your idea has to foot to a model! • Benchmarks

Your examples

• What model will you use? How will you model it

Explain Your Idea

I want to develop

to help

(solve a problem)

(with secret sauce)

(a defined offering)

(a target audience)

Idealibs for Startups

Founder Institute - Seattle• http://fi.co/apply/135/• 15 Week Program with Local Founder/CEOs • Ideation to fundraising, office hours/coaching • Tuesday night meals • Costs

– $50 Application Fee/Test Waived if applying by Feb 17th – $995 Course Fee– 3.5% of company into shared pool (peers, mentors and FI)– Post funding tuition - $4,500

Home Work

• Gather and present– TAM– SAM– SOM

• Gather and present competitive analysis • Pick a proxy business model

– Begin to define your key assumptions – Benchmark assumptions to industry data