Feedbacks DOs/DONTs for tech startups
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Transcript of Feedbacks DOs/DONTs for tech startups
David Argelliès [email protected] [email protected] Facebook/Twitter : @OpenFromage www.agoranov.com
David Argelliès / IREN 2014 Do not share or distribute this content
This is a feedback "This is not a lecture
David Argelliès / IREN 2014 Do not share or distribute this content
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&
There are best practices
There are bad practices
These are just statistical matters
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Teachers"Mentors"
Serial Entrepreneurs"Funds, business angels "
Lawyer
These are just statistical matters based on previous stories and maybe a different context
They know these best and bad practices They have stories and lots of experiences
and feedback
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Successful entrepreneurs
Think two shots ahead
know about these best and bad practices have heard stories and lots of experiences and feedback
Are perfectly skilled And
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There is no solutions or answers
There is right paths There is no good or bad choices
There is no mistakes just new challenges
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DONTs DOs
Things that may NOT help It s more :
Things that may help
Copying/Redoing
If you fight against biggers with money, clients, people,
legitimity
You’d better had to have A better idea and/or
a strong agility
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This may NOT help This may help
Be smart/Think
It s not a choice Teachers call that Blue ocean
strategy
Fighting
The word is not ready for us = you are not ready to run a
business
The guy I’m talking to is not smart enough to understand us
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This may NOT help This may help
Be smart with people give peace a chance
you will need them all :
team,
help, supplier, clients and also competitors
If you pitch a dumb do a pitch for
dumb If people did not understand well
your project it s because you present it baddly
Be naïve
Not be aware of who you
are and where you sail
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This may NOT help This may help
Identify what you have that others don’t
Ideas, people knowledge
technologies patents advance
Agility,motivation
Try to keep that for you
Secret Protect Too much
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This may NOT help This may help
Share Talk
Listen feedbacks
The difference/the value is
Not the IDEA but the EXECUTION
To stay in your garage
Obstinacy
VS determination
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This may NOT help This may help
Be curious with everything
it may help one day
Score and valuate everything
Take decisions like an
insurer
CEO jobs is to make decisions
not to score options
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This may NOT help This may help
Keep your common sense for everything
And even more for business
decisions
No risk
Too much risk
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This may NOT help This may help
Balance
Unfortunately, the economic history of the world show a statistic direct correlation
between
risk and revenues
Think big Start small Move fast
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micro-projets créant de la
micro-valeur pour des
micro-cibles
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Courtesy of Olivier Ezratty / http://www.oezratty.net/wordpress/2014/ecosysteme-numerique-francais-surchauffe/
SUCCESS Is
OUBVIOUS
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Courtesy of Oussama Ammar / Koudetat theFamily
Extensive marketing actions help to scale the business Not to force the success
First : think "Then : work "
Then think again • You will have to be
– a senior strategic advisor for few hours – a subservient worker for the rest of the week – Don’t mix up strategy and delivery
• You must have 3 to 5 year of smart and confident strategy – update it every week
• You have to deliver every day • You don’t have time • You don’t have money
– You have to decide fast with sense (no choice) – There is no bad decision possible for a startup – you have to deal with your choice anyway David&Argelliès&/&IREN&2014&Do¬&share&or&
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VALUE "Know it , keep it "
try to make it grow every single day • People • Knowledge • Technology • Science (IP, know how) • Design • Marketing (brand name, clients) • Products • Ideas • Cash ….
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Team
• CEO • CFO • CTO • CSO • COO • CHRO • COCM
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two guys
Don’t be a consultant"
• Do things • Try to talk about – things that you are doing – and not about thinks that you could do if you had
money Ask money you’ll get advice Ask for advice you’ll have money
• Open Question : – Do you think it is your job to present a SWOT or a matrix
analysis to your audience ? Client ? Investors ?
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“Time is Money” “Risk is Money”
More time is less money More risks is less money
Go/No GO = Cash expected x Risks
Time
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HR risks Product risks Market risks Finance risks
Competition risks Environment risks Execution risks
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RISKS
KNOW / SCORE DETAILS UPDATE
LEVERAGE WORK ON THEM
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Time&1& Time&2& Time&3& Time&4& Time&5& Time&6&
People&
Product&design&
ProducEon&
Market&
Financials&
How many time you need to spend 1M€ ?
How many time you need to get 1M€ ?
What will be your mains problems ?
Rank your main focus regarding time and money
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1. pre-idea 2. Idea(s) 3. Some work done 4. Business launched 5. Customers and revenue 6. Scale
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Tha Agile startup Guide "the entrepreneur’s life cycle
Your company has to be already"cool and super smart
• If your tales are true (huge and fast growth) you will be very busy in few months
• Find good providers now • Use professional tools even if you are two people a
meter away • Have KPI, CRM, Mailings, contacts managements
clean from the beginning of your project • Create and control your name and web presence
and image
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Product design • Nobody care about your PhD thesis • People want to be cool (staffs, suppliers, customers) • Design is everywhere • Design is not only cool (IP, strategy, value analysis) • Strategic Marketing and Pricing are definitely for
engineers • Value analysis should be called margin optimization • There were no disruptive technologies in the first iPod • Your technology could be added to something stupid to
do something great • Your current product will be maybe 5% of your income
within 3 years David&Argelliès&/&IREN&2014&Do¬&share&or&
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MVP What is the purpose
Market ? Product design ?
Legitimity
It s only the first step, there will be others step
DO NOT push too much marketing on the MVP
The incoming Beta version will be the one
Choose the right balance beetween Cost / Time
Functionalities for the user / Usability for your company David&Argelliès&/&IREN&2014&Do¬&share&or&
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MVP YOUR MVP WILL NEED TO BE CHANGED and
DEEPLY MODIFIED
Code from draft Value Analysis
Think about Hardware MVP cost
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LEAN AGILE (Eric Ries) • Most Startups Fail • What do successful startups have in common? • Pivot, swing, spin, slew but stay focus • Speed Wins (?) • Agile Product Development – Minimum Viable Product – Market driven
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LEARN& BUILD&
MEASURE&
IDEAS&
CODE&DATA&
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AGILITY As soon as we have finished the develpment
we ll do a market study
V cycle of engineering
Market needs / specification / conception / design Industrialization / marketing / sales /support
REDESIGN
= 2 years between market needs and studies and sales
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Market analysis • You already know everything about it • Top down / Bottom up
« The market of cheese is 500 000 B$ worldwide, we plan to get 0,01% of it (why not 90%)
cause we are cool »
• We don’t have competitors • Pricing
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Practice • Group 1 : you run a startup • Group 2 : you are an investor or consultant
• Groupe 1 : choose a project and build a team Be ready next week for to pitch one of the following works :
– 5 slides/5 min Presentation – Business Model Canvas – 2 pages Executive Summary – Roadmap and project management chart (scheduling,
ressources allocations) – Task list of general business task to setup within the 1st year (not
related to field of the project) 1 CEO 1 CTO
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Practice • Group 1 : you run a startup • Group 2 : you are an investor or consultant
• Groupe 2 : you are an investor or consultant Prepare for next week a scoring or evaluation method for startups Next week after the presentations of the Group 1 you will pitch your method and feedback of all the projects
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Practice for investors groups Prepare a Memorandum Of Understanding MOU (or very short term sheet) Prepare a presentation to explain your choices, quickly the different point of the MOU Present spreadsheet and financials information that drove you to this investment (10/15 minutes) (KPI, Comparable, Exit, spreadsheets for your board) David&Argelliès&/&IREN&2014&Do¬&share&or&
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Talk about your Product
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Marketing VS Bus Dev Message
Punch Line
Value proposition
Marketing points : Technologies but if sexy
Design / Lifestyle
Description Features
Technology Value analysis
Business Plan ? BUSINESS PLANS ARE USELESS
TIME vs MONEY Planification and EXECUTION
KPIs for you KPI for investors
Consultant matrix (swot) Reality financial check NEED ++++
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Search Think (problem and risk identification)
Check List Ressources needed
Compare Understand
Optimize
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Business Model : what’s for ? "
Internal communication Multiple Simple Clear Short
Logical
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Business Model : what’s for ? "
What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?
For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?Who are our most important customers?
What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?
What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?
Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
Day Month Year
No.
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Elevator Pitch Exec Summ
Pitch Presentation
Bus Plan (short) Bus Plan (long)
Product Presentation Spreadsheets
Corporate website Customer website
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Presentation of the company (investor like)
Pitch your company Scan the Audience Choose your target
(several people, dont try to convince all of them) who you wan t to convert
who you don t care to loose
Identify the goal of the Pitch What your target want to hear
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Some Unconventional Investing Rules "(Joe Kraus)
• Rule #1: Invest only in teams that don’t need you. – but don’t conflate ‘need’ and ‘benefit’.
• Rule #2: Impatience is the enemy – Read the shareholder letters from Warren Buffet from 1977 to today as
a narrative
• Rule #3: Know why you want to own something: FOMO (fear of missing something ) or insight? – You need a reason to invest – a critical insight – and not just fear that
you might be missing out on a good deal.
• Rule #4: In poker and investing, the goal is to make good decisions, not to make money.
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Investors wall of shame Google is too big to be a threat
We just need 1% of the marketshare Several VC are interested
About to strike a huge deal Our plan is very conservative
We have no direct competitors
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• Plan de trésorerie / Cash Plan
Start' Month1' Month2' Month'X'
Cash&IN& 0& 10& 5&
Cash&OUT& 40& 40& 40&
Your&bank&account&
100& 60& 30& S5&
Cool&& Ok&& Take&care& Find&a&job&
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• Plan de financement / Founding Plan
Start' S1' S2' S'X'
Needs/expenses&
Ressources&
Ressources&–&needs&
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• Compte de résultats / P&L
Start' Month1' Month2' Month'X'
Income&
Costs&&
Margin&
Net&profit&
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Investment • Cash • Time
• Energy
Risk
Earnings • As a % of cash invested
• And not as an absolut value
Desire dreams
(Is It a Good Idea To Launch This Company Matrix) iGiToLaTiC Matrix
Exemple 1 : iPad App, smart idea, no strong value • Investment = Low • Risk = Low • Earnings = Low but high if related to investment (good cost structure) • Dreams = you know Conclusion : nice business if you are ok to run a small business David Argelliès / IREN 2014 Do not share or
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This was a feedback "This was not a lecture
David Argelliès [email protected] [email protected] Facebook/Twitter : @OpenFromage
David Argelliès / IREN 2014 Do not share or distribute this content