Session 4: The steps to get your startup going?

Session 5: Financials of the Business Opportunity

Master Agenda - Entrepreneurship 101Session 1 - January 10th - What is creativity? What is my passion?Session 2 - January 17th - Behavior traits for a successful entrepreneur.Session 3 - January 24th - Turning your passion into a business opportunity.Session 4 - January 31st - Steps needed for your startup ... 1,2,3 GO.Session 5 - February 21th - Financials of the business opportunity.Session 6 - February 28th - Presentation skills, successful pitches, what ideas got funded.Session 7 March 7th - Filing your patent, patent gotchas, successes and failures.Session 8 - March 14th - Pitch your business plan to VCs (only 12 spots will be available).

Weeks 1-4 recapWeek 1PassionCreativityProblemWeek 2LeadershipHardworkIntegritySocial GoodWeek 3The Hacker WayThe VCBusiness PlanWeek 4IncorporationPaper MoneyPivotExit

Mini-exercise: What is your favorite Leadership trait?

What Happens to Successful Startups?An Exit EventIPOAcquisitionTodays session is about how to measure success

--- Financials ---

Financial StatementsProfit & Loss StatementRevenue and expenses for a specific period of time.Balance SheetAssets and LiabilitiesWhat the business owns, owes, and its net worth.

How to think Financials?You have an idea of App What problem is your app trying to solve and how?What is unique about your app and would people pay for it?What else do you think your app users would be willing to pay for?What business models do competing apps use and how well have they worked?

Sizing the market opportunity How and when you will generate revenues, and how much?What are your costs associated with running to achieve revenue?

Revenue ModelSome Business Models that Help Mobile Apps Make Money Free, But With Ads (In-App Advertising)Freemium (Gated Features)Paid Apps (Cost Money to Download)In-App Purchases (Selling Physical/Virtual Goods)Paywalls (Subscriptions)Sponsorship (Incentivized Advertising)

How soon you can reach Profitability?Profit = Revenue Cost (Direct + Indirect)

Profit & Loss Statementhttps://youtu.be/ulpX3jX_UT0

Hockey Stick CurvenounA chart with a slow initial growth rate that suddenly increases to a much faster growth rate that continues indefinitely. The resulting chart takes the shape of a hockey stick.Our growth doesn't look great right now, but once we release our new version it's going to be ahockey stick curve

What are Cost Drivers?Cost of developing an app depends on a lot of factorsCost drivers based on stages: Planning Design, Features, Infrastructure, App Administration, Testing and Deployment,

Balance Sheethttps://youtu.be/ixCPM5HznRU

Class Exercise

Class ExerciseIntroduce your Founding Team and Startup NameWhat does the Startup do (idea)?Pick one or two components from Business Plan template and describe the components to class.

Appendix

Business Plan

Approaches to Startup Projections

Financial Terms