How to Conduct Market Analysis Sdforum Crafting a Fund Able Roadmap for Your Start Up 090331170021...

7/31/2019 How to Conduct Market Analysis Sdforum Crafting a Fund Able Roadmap for Your Start Up 090331170021 Phpapp01

1/65

Meet Susan


2/65

Also known as


3/65

Ms. Entrepreneur


4/65

Susan lives in


5/65

Flickr: http2007


6/65

and went to school at


7/65

Flickr: matsuda.yukihiro


8/65

and has an idea for

a startup


9/65

EasyERPThe Best Run Businesses Are Easy


10/65

She got a little

seed funding from


11/65


12/65

But will her idea


13/65


14/65

that question?

How would you

help Susan answer


15/65

Assessing Susans Market Opportunity

CompellingUnmetNeed

Will customers

leap at thechance to ownyour solution?

Explainable

Uniqueness

Can you easilyexplain how

youredifferent?

Market Size

and Growth

How large isthe pie, and

how fast is itgrowing?

Competition

With howmany othersmust youshare the pie?

Revenue

Potential


16/65

Why do new products fail?

Inadequate Market Analysis

Product Problems or Defects

Lack of Effective Marketing Effort

Higher Costs Than Anticipated

Competitive Strength or Reaction

Poor Timing of Introduction

Technical or Production Problems

All Other Causes

10% 20% 30% 50%40%0%

Percentage of Companies Citing (n=233)

Source: Conference Board as cited by R.G. Cooper, Winning at New Products

Primary Causes of Product Failure


17/65

% of

cash

flow

17

Failed Project(50-80% probability)

Without

Market Analysis

(Best case)

With Market Analysis

Time (Years)

1 2 3

First Customer

First Customer

Difference in

PaybackBreakeven

Money Saved

How Susan Can Save Time and Money


18/65

Whatshould Susan do?


19/65

StuffSusan Might Do

Market AnalysisMarket Research

Market Sizing

CompetitiveAnalysis

Focus

Groups

Surveys

InterviewsOpportunity

Assessment


20/65

Best Practice

When Should Susan Do It?Idea Screening

Quick & Dirty Market Analysis

Preliminary Technical Assessment

Detailed Market Validation

Business & Financial Plan

Product/Service Development

In-House Tests

Customer Tests

Trial Sell

Trial/Pilot Production

Pre-Launch Business Analysis

Production Startup

Launch

Concept Review

Business Case Review

PostDevelopmentReview

LaunchDecision

Today

Source: Robert Cooper, Winning at New Products

ProductDevelopment

Process


21/65

Do It Multiple Times

Friends & Family

Angel Round

Series A

First productVersion3 customers

Second productVersion10 customers

Third productVersion50 customers


22/65

The roadmap:

A three stage, iterative process

1

2

3

Two days

Two weeks

Two months


23/65

Idea Screening1


24/65

- Who are your customers

- What are their important problems?

- How do you solve their problembetter than anyone else?

1 Idea Screening:

1.1 Define Your Business Concept


25/65

1

Idea Screening:

1.2 Estimate the market size


26/65

Why is market sizeimportant to

investors?


27/65

For less mature markets try market billions


28/65


29/65


30/65


31/65

EasyERP will make its projected

revenues with just 1% of the$48B ERP Software Market


32/65


33/65

1 Idea Screening:

1.3 - Identify the key risks


34/65

What are the greatest

risks for Susan?

Market Risk Competitive Risk Product Risk

Financial Risk Technology Risk Team Risk Other?


35/65

Susan believes her

greatest risk is

competition. Shedecides to emphasize

competitive analysis.


36/65

Quick & Dirty

Market Analysis2


37/65

2 Quick and Dirty Market Analysis

What you can dofrom your desk, a

trip to the library,

and the coffee shop


38/65

Free article: Ten steps to increase your market success.- Clarify your research objectives

- Define your ideal customer and possible market segments.

- Identify how customers solve the problem today.

- Size the market demand and supply.

- Identify market, technical, industry, societal and regulatory trends that

affect spending on your category of solution.- Identify what you imagine to be your customers selection criteria and

buying process.

- Talk to 3-5 friendlies to validate your customers goals, problems and

evaluation criteria, how they would buy, and alternative solutions.

- Identify your customers top three goals, challenges, and pain points andtheir relationship to your solution.

- Write down the top three reasons you believe customers should buy your

solution instead of how they do it today or competing solutions.

- Define your sales model.

2 Quick and Dirty Market Analysis


39/65

Bottoms Up

A * B * C = Market SizeWhereA = # of customersB = average transaction sizeC = # of transactions/customer/year

2


40/65

How big does themarket size

need to be?


41/65

Terminology

Total Available Market (TAM) = entire universethat could ever buy your product for your

niche, anywhere

Addressable Market = revenue represented bythe market segments that you intend to sell

and service in the time covered by your

business plan, or initial investment

2


42/65

Estimate EasyERP TAM Bottoms Up

Segment 1 Enterprise

Segment 2 Medium Business

CAGR = Compound Annual Growth Rate


43/65

Is that big enough?


44/65

Ourcompetitors include


45/65

Competitive Matrix

SAP Oracle NetSuite EasyERP

Market share rank 1 2 ? N/A

Easy of Use 3 3 4 5

On-Demand 1 1 5 5

Multi-currency 5 4 4 5Easy Install 2 2 4 5

Easy Changes 2 2 3 5

Customer Base 5 5 3 1


46/65

EasyERP is the firstsystem specifically

designed to be easy toinstall, easy to change

and easy to use


47/65

Find a Proven Sales Model

TransactionalSelling

ConsultativeSelling

EnterpriseSelling

Unprofitable:

You lose

Poor service:

You lose

Investment in each

transaction by Your

Company

Investment in each transaction

by Customer

Recommended reading: Neil Rackham, Rethinking the Sales Force


48/65

With an averagetransaction size of

$80,000, EasyERP will

use an inside telesales

and online sales

model


49/65

Before we build a better mousetrap,

we need to find out if there are any

mice out there.

- Yogi Berra


50/65

3 Detailed Market Analysis


51/65

Conduct 20-30 interviews with representative customers.

What are their needs? Will they buy?

3 Detailed Market Validation

Whats frustrating

about your ERPsystem?

Our new

employees run

screaming they

hate it so much.


52/65

Sample Interview Questions

What are your top 3 goals? Challenges? Typical day in your life?

How do you solve this problem today?

Who would you trust for advice? How would you want to buy it?

What would you expect to pay?

What services would come with it?

If you had three choices in front of you, what criteriawould you use to evaluate them?

What did you expect to talk about that we havent?


53/65

Case Study SaaS B2B SoftwareTarget Account List

500

Contacted

75

Interviewed

26

Results

Prioritized features Feedback on

prototypes of next

five products

Development

partners & contacts

Companyexposure/visibility

Management teamalignment

Customer-centric,problem-driven

messaging

White paperssummarizing key

business issues &

how to address & more


54/65

Can Susan Generate Traffic Online?


55/65


56/65


57/65

Now Susan

knows


58/65

what her customers need


59/65

how

is different


60/65

and how to

make her ideafly


61/65

Thanks to


62/65

Grow your software company. Faster.

Tennant Consulting Services


63/65

Organization Design, Staff Recruiting & Development

Collaborative Operating System

Alliance

Assessment

Alliances

Alliance Strategy

Alliance Programs

Alliance Marketing

Alliance Partner

Recruiting

Relationship

Rescue/Facilitation

Alliance Scorecard

& Metrics

Marketing

Assessment

Marketing

Positioning &

Messaging

Website Strategy

& Content

Marketing Plan &

Budget

PR & Thought

Leadership

Trade Shows &

Events

Sales & Customer

Conferences

Product Mgmt

Assessment

Products

Market Needs

Interviews

Win/Loss

Analysis

Product Business

Plan

Product

Messaging

Beta Customers

Launch

Financing

Assessment

Business Plan

Investor

Presentation

Investor Meetings

Due Diligence

Support

Term Sheet

Support

Board

Communications

Capital

Project Management

Leadership Feedback & Coaching

Executive Team

Facilitation

Vision & Mission

Market Trends &

Analysis

Competitive

Analysis

Opportunity

Assessment

Strategy

Development

Strategy Execution

& Metrics

Strategy

Tennant Consulting Services


64/65

Organization Design, Staff Recruiting & Development

Collaborative Operating System

Alliance

Assessment

Alliances

Alliance Strategy

Alliance Programs

Alliance Marketing

Alliance Partner

Recruiting

Relationship

Rescue/Facilitation

Alliance Scorecard

& Metrics

Marketing

Assessment

Marketing

Positioning &

Messaging

Website Strategy

& Content

Marketing Plan &

Budget

PR & Thought

Leadership

Trade Shows &

Events

Sales & Customer

Conferences

Product Mgmt

Assessment

Products

Market Needs

Interviews

Win/Loss

Analysis

Product Business

Plan

Product

Messaging

Beta Customers

Launch

Financing

Assessment

Business Plan

Investor

Presentation

Investor Meetings

Due Diligence

Support

Term Sheet

Support

Board

Communications

Capital

Project Management

Leadership Feedback & Coaching

Executive Team

Facilitation

Vision & Mission

Market Trends &

Analysis

Competitive

Analysis

Opportunity

Assessment

Strategy

Development

Strategy Execution

& Metrics

Strategy

Drop me a business card for


65/65

Drop me a business card for

freebies and to Copy of slides

Business Concept Questionnaire

22-Page Article How to Conduct Quick & Dirty

Market Analysis

Email newsletter

Follow me on Twitter: steve811

Email me at [email protected]

Call me at (925) 258-9100

learn more

How to Conduct Market Analysis Sdforum Crafting a Fund Able Roadmap for Your Start Up 090331170021...

Documents

Transcript of How to Conduct Market Analysis Sdforum Crafting a Fund Able Roadmap for Your Start Up 090331170021...