1. Copyright 2014 - FireMatter Biz Dev for Startups An exercise in partnership model denition and planning

2. Copyright 2014 - FireMatter #BD4startups 2 3. Copyright 2014 - FireMatter About Me Tech Scouting and Market Development Services Aero Engineer (PoliMi), MBA (IMD Lausanne) IBM, P&G, HP + a couple of (failed) startups Lived and worked in 5 countries In USA since 1998 3 4. Copyright 2014 - FireMatter Agenda Prep work assignment (done, hopefully) Part 1: Dening the Biz Dev model - 45 Part 2: Interactive session - n*15 4 5. Copyright 2014 - FireMatter Part 1 5 Dening the Business (Development) Model(s) 6. Copyright 2014 - FireMatter Biz Plan Biz Model Business plan is a story How the business will evolve in the future i.e. science ction Business model is a snapshot A diagram of the business engine i.e. in/outputs and ows It is not just how you make money... 6 7. Copyright 2014 - FireMatter Biz Model = How moving parts interact 7 8. Copyright 2014 - FireMatter A good model... 8 Shows HOW value ows Shows HOW results are achieved Shows WHY company needs money Shows WHERE to put it to work Shows WHO to partner with... 9. Copyright 2014 - FireMatter 9 Cost Structure Activities Value Proposition Adapted from the Business Model Canvas by Alex Osterwalder et al., 2010 Partners Customer Segments Revenue Streams Resources Customer Relations Channels Biz Model Biz Dev 10. Copyright 2014 - FireMatter Example: Small Inc. Developed advanced web recommendations software Built to integrate with eCommerce sites Sells software licenses to large eCommerce retailers Has 4 customers, sales of $700k/year Has two sales people 10 11. Copyright 2014 - FireMatter Example: Small Inc. 11 #ofCompanies 1 10 100 1000 Sales cycle (days) 0 30 60 90 120 $320 $90 $40 Large Retailers Medium Retailers Small eCommerce Retailers Partnering with Software Platform 12. Copyright 2014 - FireMatter 12 Cost Structure - Customer Acquisition - Sales Team - Consulting and Customer Support Activities - R&D - Product Development - Sales Value Proposition - Customers: Increase sales through recommendations - Users: Easier to nd what you want - Partners: Add valuable feature to your oering overnight ! Partners - eCommerce platform vendors Customer Segments - Medium Online Retailers - App Stores/ Digital Media - Large Multichannel retailers Revenue Streams - Licenses + Maintenance - SaaS subscriptions - Services Resources - Intellectual Property - Dev Team Customer Relations - Prof services - Maintenance - Training Channels - Direct sales - SaaS - Channel sales - OEM Example: Small Inc. 13. Copyright 2014 - FireMatter Its about the whole model Partner model impacts entire model Dierent partnership model = dierent tradeos Multiple partner choices = runaway complexity Small Inc. and Big Inc. must have mirror models 13 14. Copyright 2014 - FireMatter 14 Cost Structure Activities Value Proposition Partners Customer Segments Revenue Streams Resources Customer Relations Channels Cost Structure ActivitiesValue Proposition PartnersCustomer Segments Revenue Streams Resources Customer Relations Channels YouYour Partner Mirror models? 15. Copyright 2014 - FireMatter Why is a customer/vendor not a partner? Business model integration Collaborative business value creation Shared sales/prot upside Shared investment/upfront risk 15 16. Copyright 2014 - FireMatter Models Partners 16 Model Partner Typical Transaction Marketplace Sell-side/Merchant Commission Advertising Publisher Revenue Share Wholesale Distributor Wholesale discount IP Licensing Licensee Royalties Franchising Franchisee Marketing Royalties Web Service/API Developer Subscription/Utility 17. Copyright 2014 - FireMatter Part 2 17 Workshop: How are YOU going to partner? 18. Copyright 2014 - FireMatter 18 Cost Structure Activities Value Proposition Partners Customer Segments Revenue Streams Resources Customer Relations Channels What is your model? 19. Copyright 2014 - FireMatter Housekeeping 5 minutes presentation 10 minutes Q&A Focus on one partner type/model Focus on (partner) value proposition Discuss among peers (It is not a pitch!) 19 20. Copyright 2014 - FireMatter Good job! 20 21. Copyright 2014 - FireMatter 21 Thank You mf@rematter.com @matteofabiano @rematter #BD4startups !