Ej Methodology For 1 M1 M Ambassadors
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Transcript of Ej Methodology For 1 M1 M Ambassadors
Sramana Mitra
Primary Goal: Inspiration & Demystification
It can be done, you can do it, but it will take a lot of work and careful, diligent crafting; you can’t wing it
Luck is not a repeatable event; I can’t teach you how to be lucky
I can teach you how to craft your business if you are willing to put in the work
The EJ methodology is based on the assumption that it is better to bootstrap the early stage of a venture, and raise money only when you have a validated business, if at all
Most first time entrepreneurs do not have the seasoning to raise external financing
If they do raise money, they give away a lot of equity early on
Most ideas are too small for the VC model
Worth Building, thoughEspecially if you own 100%
To own 100% of a business, you cannot raise money
5% owner of $25m company sold for $100m
$22.5m
$5m
Validating the business idea is essentialEJ2 deals extensively with the methodology of
validationInvestors never fund ideas that are not
validatedPitch at the roundtables AFTER doing some
validation of your idea using the methodology in EJ2
Do not spray and pray
Positioning & Go to market strategy are key to business success
Use the EJ3 appendix to do your home work and ask the right questions to litmus test your idea
When an idea gains a strategy, your chances of business success go up significantly
Try to do some of the strategy work before coming to the roundtables so you know what questions to ask
Web 3.0 – the entire Taking On Giants section [EJ1]
Web 3.0 = (4C + P +VS)Big section on the blog
Finisar: Bootstrapping To Billions [EJ1] - $5b market cap in 2001
Bootstrapping using services
RightNow: The Montana Mogul [EJ2] - $500m market cap in 2009
Great lesson on idea validationGreat lesson in bootstrapping the early stages
to get to a big Series A valuation
PayCycle: SaaSing Back At Athe Economy [EJ3] – acquired by Intuit for $170m
Great segmentation and TAM analysis
Sramana Mitra : Positioning
Payroll for small businesses22–25 m small businesses in the US
@ $500/yr, TAM = $11–12.5 b
5.9 million businesses that employ people Majority mom & pops, no employeesTAM = $2.95 b
5.2 m employers with < 20 employeesTAM = $2.6 b (Bottom Up)
Without segmentation, TAM appears larger
04/08/23 15
The Find: Web 3.0 – Under Construction [EJ3] – segmentation
Sramana Mitra : Positioning
Uuma – busy professional womenTime constrained, not ladies who lunchOver $100,000 household income, not my
housekeeperStyle conscious, not the geek engineer
04/08/23 17
04/08/23Sramana Mitra : Positioning 18
Psychographic is as important as demographic
Appendix of EJ3 – Clarify your story - http://www.sramanamitra.com/clarify-your-story-excerpt/
All Books on Amazon, Kindle, SmashwordsEntrepreneur Journeys (EJ1)Bootstrapping, Weapon of Mass
Reconstruction (EJ2)Positioning, How To Test, Validate, And Bring
Your Idea To Market (EJ3)Innovation, Need Of The Hour (EJ4, coming
in June)
Vision India 2020
Blog and Strategy Roundtables