FAST START STUDIO

SERGEY SUNDUKOVSKIY PH.D.

What to Do Once You Have an Idea

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Introduction2

Background3

Agenda

Visualizing Your IdeaPutting Together a DeckFinding Co-Founders/Mentors/AdvisorsBuilding a Prototype

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Startup Progression

Idea is not a product, product is not a company

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Visuals

Idea DescriptionIdea VisualizationWireframes Mockups (UI)Clickable Prototype (UX)VideolizeMind Mapping

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Idea Description

Idea Description Success Calculator: Inventor (cloud over the head). Many factors

represented by circles (founder experience circle, previous startup experience circle, competition circle, funding circle, customer circle, market size, industry circle, board of directors circle, product development experience, advisers circle) go into the SourceIgniter Predictor Engine box, what comes out is a Success Score

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Idea Visualization8

Wireframes vs. Mockups9

Clickable Prototype10

Prototyping Tools11

Videolize

Videolize aka video scribe – Same as visualize only better

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Putting Together a Deck

10-20-30 RuleShow Do Not TellTaxicab and Elevator PitchesTarget CustomerMarket AnalysisDifferentiation and JUDPressure TestingCompetitive Advantages

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Business Plan vs. Business Deck

Business Plan as we knew it in the Business School is dead

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Putting Together a Deck15

Deck Rules

10 slides In reality it is 3 (others are used as reference)

20 min In reality it is 5 (at most)

30 point font Last guy from the end of the table Too much information

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Deck Rules

Picture is always better !!!!!It is worth 84.1 words

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Deck Structure

Executive SummaryProblemSolutionPlatformMarket OpportunityBusiness ModelPricing

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Financial ProjectionsCompetitorsDifferentiationCompetitive AdvantagesTeamMilestones/Roadmap

Mind Mapping

Organize Your Thoughts

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Mind Mapping Tools20

Pitches21

Pitches

Taxicab Pitch“Facebook for teenagers”, “Flicker for Video”Elevator Pitch

What do we do? Who are we doing it for? How are we different?

“ConferenceByWire is an event streaming solution that brings live and on-demand events directly to the remote viewers over the Internet. Unlike other solutions it does not require significant infrastructure investment”

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Pressure Testing

Have your idea and the pitch pressure testedDo not insist on NDAs. Nobody cares

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Market and Customer24

Differentiation

Distinction without difference

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Differentiation

FeaturesBusiness ModelTarget Audience

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Differentiation and JUD

What Investors Are Looking For? JUD – Just Enough Difference Different Enough Not Too Different

Valid Question “Why existing competitors are not focused in ‘this’ area?”

Invalid Question “Why wouldn’t existing competitors replicate ‘this’?”

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Competitive Strategies

Prices We are just like that only cheaper

Differentiation We are just like that with following differences

Niche We are just like that only verticalized

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Competitive Advantages

Not Easy to Overcome Original Content Execution Loyal Customer Base Brand Awareness

Easy to Overcome Patents First Mover Obscurity

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Deck Distribution

Push your deck online

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Finding Co-Founders/Mentors/Advisors

Co-Founder Selection CriteriaFinding Co-FoundersCommitment vs. InvolvementMentor/Advisor Selection CriteriaMentor/Advisor ExpectationsIncubators

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Co-Founder Selection Criteria32

NOT GOOD BAD

GOOD

Where to Find One?33

Co-Founder Selection Criteria (cont.)

Complementary SkillsetWorked Together BeforeSimilar Work EthicSimilar Commitment LevelSimilar Conflict Resolution StyleCan Disagree and CommitIdeal Number of Co-Founders is 3

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Commitment vs. Involvement35

Decide How to Decide

Do no block unless you feel very strongly about it

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Mentor vs. Advisor

Expectation Setting Hands On vs. Not Hands On

Mentor Advice

Advisor Cover Gaps Pressure Testing Industry IQ Introductions

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Mentoring

Real difference is focus. Mentors focus on you. What do advisors focus on?

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Incubators

Help Getting StartedLearning the RopesGood MentorsGreat AdvisorsHelpful IntroductionsRight Atmosphere Place to “Hang Your Hat”

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Right Incubator Program

Make sure to pick a right program for you

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Building a Prototype

Prototype PurposePrototype FeaturesPrototype DurationPrototype Starting PointEvolutionary vs. Throwaway

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Fine Line

Half-Baked and the Prototype are not the same thing

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Building a Prototype

If you are not failing you are not trying hard enough

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Product Development44

Startup DNAby Yevgeniy Brikman

Product Development45

Startup DNAby Yevgeniy Brikman

Prototype Purpose

Fail Quickly and PivotProve Business HypothesisDiscover Inflection PointsCollect Customer FeedbackCollect Initial AnalyticsZero in on a Customer ProfileGet Funding

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Product Evolution vs. Revolution

Which picture do you think is right?Hint: They are not identical

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OR

Product Analytics

If you can’t measure it you can’t improve it

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Analytical Tools49

Traction Points

Sample Traction Points CTR Number of sign ups Number of sign ins Number of video uploads Number of product configurations Number of store deployments

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User Testing

ABT – Always Be Testing

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A/B Testing

Less the data, louder the opinion

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What Can Be A/B Tested?

HeadlineLead (first sentence)Hero ShotFontColorCall To Action Number of Steps in the FunnelAlgorithm

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A/B Testing Tools54

Usability Testing

Eye Tracking

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What Are They Measuring?

AttentionEmotion Task Completion TimeHoveringClicksHotspottingPath

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Usability Testing Tools57

Business Metrics

Sample Business Metrics CPA (Cost Per Acquisition) Churn Break Even Duration TOC (Total Cost of Ownership) LTV (Live Time Value) Average Support Contracts

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Prototype Starting Point

Find open source starter product to build upon

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Prototype Features60

Prototype Features

Features need to prove business hypothesis aka core functionality Usability trumps completeness Speed trumps completeness

Some Business models are too complex for an evolutionary prototype. You might have to settle for throw away prototype Too much technical debt to remedy Too expensive to evolve Can’t find needed resources

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