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rapidinnovation.co.uk
Strategy Fundamentals for
B2B Startups
General Assembly
11 July 2013
rapidinnovation.co.uk
Who are we?
David Gates | @davidrig81
Jessica Tayenjam |@JessicaTayenjam
Ffion Rolph| @FfionRIG
Rapid Innovation Group | @RapidInnovation
rapidinnovation.co.uk
Strategy
1.What is strategy?
2.Positioning statement exercise
3.Profiling your ideal customer and target markets
4.Ideal Customer Profile exercise
5.Engaging the market and measuring your success
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Why bother?
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Why bother?
rapidinnovation.co.uk
Why bother?
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Why bother?
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How do we define strategy?
The ‘kernel’ of good strategy
contains three elements: a
diagnosis, a guiding policy
and a set of coherent actions.
Richard P. Rumelt Good Strategy, Bad Strategy
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Strategy is not …
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Strategy is not …
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So what is strategy?
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Good strategy begins with diagnosis. And
diagnosis is analysis, not a description of
symptoms. You don’t go to your doctor to
be told you have a sore throat. You go to
be told you have an infection and that an
antibiotic will fix it. The doctor tries to
discover “what is really going on here?”
and the measure of his competence is his
ability to do that.John Kay ‘Avoiding fluff is surest route to success’ Financial Times
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Define the problem
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How will you solve that problem?
• How do I compete?
• Where do I compete?
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What are the elements of a business model?
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What are the elements of a business model?
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What are the elements of a business model?
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How do I identify my market?
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So what does this look like in
practice?
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Positioning Statement
• A.K.A. “The elevator pitch”
• Crossing the Chasm – Geoffrey Moore
• Position your product in the correct way
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Positioning is based on the target segment
you intend to dominate and the value
proposition you intend to dominate it
with.
Geoffrey Moore
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Positioning Statement
• FOR: target customer
• WHO: compelling reason to buy
• OUR PRODUCT IS A: product category
• THAT: key benefit
• UNLIKE: main competitor
• OUR PRODUCT: key differentiator
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Why is it important?
• First impressions count
• Clarity and coherence
• Identifies challenges that need resolving
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Identify challenges to be resolved
• Vision
• Business Strategy
• Sales & Marketing
• Opportunity
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Positioning Statement
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Positioning Statement
• FOR – Vehicle manufacturers
• WHO – Want to build safer products
• OUR PRODUCT IS A – Safety device for passengers
travelling in vehicles
• THAT – Makes motorised travel safer and saves lives
• UNLIKE – The status quo (no seatbelts)
• OUR PRODUCT – Reduces fatalities as a result of
RTAs
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rapidinnovation.co.uk
How do I get my first
customers?
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Ideal Customer Profile
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Circumstances Attributes
New legislation
Recent customer win
>50 employees
Polluting business
processes
Aged 18-30
Recent accident at
work
New father
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Legal Register Provider
Circumstances Attributes
New QHSE manager
Bidding for European
Union work
Pan-European
ISO Certified Business
Multiple sites
Recently missed a
relevant law
Last audit criticised
processes
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New Shampoo Brand
Circumstances Attributes
Desire to look
glamorous
Increased awareness of
hair condition
Young women
ABC1
demographic
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Categorisation
Attributes Circumstances
Economic Coutts will only bank for those with at
least £1m in assets
Social Wrigleys chewing gum is for people
who have just eaten onions
Physical High and Mighty is ‘for Big and Tall
Men’
Spatial MONEYCORP Currency Exchange is
for people who forgot to buy their
travel money
Political Liberal Democrat members attending
their first Welsh Conference are
eligible for a 50% discount on their
registration
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Where are these people?
Those with at
least £1m in
assets
People who
have just eaten
onions
Big and tall
men
Travellers who
have forgotten
their travel
money
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rapidinnovation.co.uk
Categorisation
Attributes Circumstances
Economic Coutts will only bank for those with at
least £1m in assets
Social Wrigleys chewing gum is for people
who have just eaten onions
Physical High and Mighty is ‘for Big and Tall
Men’
Spatial MONEYCORP Currency Exchange is
for people who forgot to buy their
travel money
Political Liberal Democrat members attending
their first Welsh Conference are
eligible for a 50% discount on their
registration
rapidinnovation.co.uk
How do I engage the market?
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Elements to engagement
Message Method
Attention-
grabberCall-to-action
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Methods of engagement
• Direct mail
• Events
• Whitepapers and thought pieces
• Network events
• Online networking
• Telemarketing
• Telesales
• Pay per click – Google / LinkedIn
• Organic search
• Distributors
• Consultants
Brian Carroll
B2BLeadBlog.com
Lead Generation for the
Complex Sale
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Resourcing engagementO
utp
ut
Irrelevant trade show
in the US
Google Adwords Lunch with all your
investment banking
friends
Your LinkedIn
Profile
Effort
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Measuring success
Method Total Cost Number of
conversations
Cost per
conversation
Number of
sales
Cost per sale
Google Ads £476.50 28 £17.02 2 £238.25
Telemarketing £3,500 15 £233.33 3 £1,166.67
Trade show £17,500 340 £51.47 5 £3,500
Lunches with
your network
£357.24 12 £29.77 1 £357.24
• Know what you want to achieve
• Attribute cost
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The takeaway
• Strategy is an ongoing, iterative process that requires
both analysis and action
• Creating a positioning statement can help you
articulate your strategy and create focus
• Defining your ideal customer profile will create focus
in your sales and help you figure out where to find
business
• A balanced mix of engagement methods will improve
the odds of accessing your ideal customer
• Measure your outputs and invest in success
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Find
Your Model
Build
Your Capability
Realise
Your Value
Rapid Innovation Group