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


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There are best practices

There are bad practices

These are just statistical matters

David&Argelliès&/&IREN&2014&Do&not&share&or&distribute&this&content&&&

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


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


There is no solutions or answers

There is right paths There is no good or bad choices

There is no mistakes just new challenges


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


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



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



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



Share Talk

Listen feedbacks

The difference/the value is

Not the IDEA but the EXECUTION

To stay in your garage

Obstinacy

VS determination



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



Keep your common sense for everything

And even more for business

decisions

No risk

Too much risk



Balance

Unfortunately, the economic history of the world show a statistic direct correlation

between

risk and revenues

Think big Start small Move fast


micro-projets créant de la

micro-valeur pour des

micro-cibles


Courtesy of Olivier Ezratty / http://www.oezratty.net/wordpress/2014/ecosysteme-numerique-francais-surchauffe/

SUCCESS Is

OUBVIOUS


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&not&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 ….


Team

•  CEO •  CFO •  CTO •  CSO •  COO •  CHRO •  COCM


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 ?

David&Argelliès&/&IRN&2015&Do&not&share&or&distribute&this&content&&&

“Time is Money” “Risk is Money”

More time is less money More risks is less money

Go/No GO = Cash expected x Risks

Time


HR risks Product risks Market risks Finance risks

Competition risks Environment risks Execution risks


RISKS

KNOW / SCORE DETAILS UPDATE

LEVERAGE WORK ON THEM


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


1.  pre-idea 2.  Idea(s) 3.  Some work done 4.  Business launched 5.  Customers and revenue 6.  Scale


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


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&not&share&or&


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&not&share&or&


MVP YOUR MVP WILL NEED TO BE CHANGED and

DEEPLY MODIFIED

Code from draft Value Analysis

Think about Hardware MVP cost


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


LEARN& BUILD&

MEASURE&

IDEAS&

CODE&DATA&


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


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


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


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


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&not&share&or&


Talk about your Product


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 ++++

David&Argelliès&/&IREN&2014&Do&not&share&or&


Search Think (problem and risk identification)

Check List Ressources needed

Compare Understand

Optimize


Business Model : what’s for ? "

Internal communication Multiple Simple Clear Short

Logical


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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Roadmap&&


Presentation


Elevator Pitch Exec Summ

Pitch Presentation

Bus Plan (short) Bus Plan (long)

Product Presentation Spreadsheets

Corporate website Customer website


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

David&Argelliès&/&IREN&2014&Do&not&share&or&


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.


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


•  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&


•  Plan de financement / Founding Plan

Start' S1' S2' S'X'

Needs/expenses&

Ressources&

Ressources&–&needs&


•  Compte de résultats / P&L

Start' Month1' Month2' Month'X'

Income&

Costs&&

Margin&

Net&profit&


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

distribute this content

This was a feedback "This was not a lecture

David Argelliès [email protected] [email protected] Facebook/Twitter : @OpenFromage


Feedbacks DOs/DONTs for tech startups

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