SALZBURG ACADEMY ON SALZBURG ACADEMY ON MEDIA AND GLOBAL MEDIA AND GLOBAL

CHANGECHANGE

““Media Entrepreneurship: Financing Media Entrepreneurship: Financing Change in a Digital World”Change in a Digital World”

Stephen Salyer, President, Salzburg Global Seminar

QUESTIONS FOR THIS MORNING’S SESSION:

When does social entrepreneurship become business entrepreneurship?

What sources of revenue might “sustain” future digital media?

How might my project become a “business”?

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WHAT EXPERIENCE AM I DRAWING ON?

Early work on population and development (1970–79) 1974 Salzburg Seminar – “Non-profit entrepreneur” Training in law and public policy (1974–79) Television production (1980-88) International news – Public Radio International (1988-

2005) Web news and service provider – Public Interactive, LLC

(1999-2005) Encouraging support for media innovation – Salzburg

Global Seminar (2007 - present)

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COMMON THREADS

1. Breaking new ground - no precise model to replicate.

2. Defining a need to be met before designing a solution.

3. Creative collaboration.

4. Distinctive media application.

5. Convincing others to “invest” in the idea.

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SOCIAL V. BUSINESS ENTREPRENEUR

Problem-driven Social good foremost $ return secondary Relies on government or

donor adoption Grant investment Limited risk Slow to scale

Need-driven $ return foremost Public good secondary Relies on market /

consumer adoption Investor/shareholders Risk / competition Fast to scale

Social Entrepreneur Business Entrepreneur

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EXAMPLE #1

Indie Voices

Need to raise startup funds for small media projects Many projects lost on larger crowdsourcing platforms Transactional website / automated updates Small donors interested in media development Progress reports in place of “financial return”

Targeted, crowd-sourcing model?

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INDIE VOICES MAY BE FOUND AT: https://indievoic.es/#!/

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EXAMPLE #2

Bright Simons, m-Pedigree Network

Huge global health delivery problem Need to eliminate counterfeit drugs from the market App developer, pharmas, distributors, government Leveraging cell phone technology Attracting support, spreading the word

Give Away the Solution Modelv.Transactions Model?

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M-PEDIGREE MAY BE FOUND AT:http://mpedigree.net/mpedigreenet/

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EXAMPLE #3

Rock Band – The Grateful Dead [Early pic of GD

Web services threaten music publishers monopoly Need for new model to get paid Bypass publishers – give music away free Raise prices for concerts and tour a lot Secondary effects

Free content / pay at the gate model?10

EXAMPLE #4

TED TALKS

Localizing global concept Megaphone for new ideas Licensor, licensee/organizer, web developer, publicity Strong brand, tested methodology Sell tickets

Franchising model?

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EXAMPLE #5 GUIDESTAR

Create public interest database (NGO tax filings)

Invest in unique database / provide free reports Needed by donors, law enforcement, money managers

Collect supplemental information from NGOs Offer paid search for comparative info/analytics License info / analytics to private and public groups

Public / Private platform model?

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GUIDESTAR MAY BE FOUND AT:https://www.guidestar.org/

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GROUP WORK HYPOTHETICALS

Hypothetical #1: Sam’s video platform

Hypothetical #2: Irmgard’s human resources co.

Please see the individual handouts at each table

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WHAT MAKES IT A BUSINESS PLAN?

Competition and differentiation – e.g., first to market, branding, unique features, exclusive partners, cool tech

Pathway to profitability – a plausible revenue model

Return on Investment (ROI) – a way for investors to get their money back plus a “return” worth the risk taken

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WHAT MAKES FOR A POWERFUL ELEVATOR SPEECH?

Be Specific What exactly is the need and opportunity? What makes your solution superior to others? What will drive movement to scale?

Connect strategy and outcome• A credible implementation path from here to there

Capture Significance How big could this become? Make it compelling Why is it essential to move now?

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BUSINESS PLAN V. ELEVATOR SPEECH

Much more detail What supports your needs assessment? How is your ‘solution’ superior to what exists (e.g.,

cheaper, faster, better)? What is required to bring it to market (e.g., talent,

technology, rights)? How can your concept be tested / proven? Who are your competitors? What risks do you and your investors face? What is the track record of you and partners? What signposts will say you are moving in the right

direction? 17

INVESTMENT

What investment(s) do you require? What and how long will that buy? How will the next stage be supported? When and how will investors receive a “return”? What role will investors have in future decisions?

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THE BOTTOM LINE

An effective business plan

helps you develop a pathway to success for your idea,

inspires confidence you (the entrepreneur) can execute, and

convinces others to join you in your journey.

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