3/2/2016

Wikipedia:
Wikipedia: a company, a partnership or temporary organization
designed to search for a repeatable and scalable business model.

Business Dictionary:
Dictionary Early stage in the life cycle of an enterprise
where the entrepreneur moves from the idea stage to securing
financing, laying down the basis structure of the business, and
initiating operations or trading.

Paul Graham:
Graham A startup is a company designed to grow fast.
Newly founded, technology focused, venture funded or exit
oriented does not in itself make a company a startup. The only
essential thing is growth. Everything else follows from growth.

Dr. Alex Kosik

alex@gravitonus.com

Urban Dictionary:
Dictionary: A recently formed company. In modern
terminology, it has come to describe a company formed with a
business model relying on the internet with a jobless founder.

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3/2/2016

A startup is a business that has ambitions and plans to grow by a

large factor of 10x
10x or more over the next few (1-5) years.
years.

People can talk about social enterprises, and other warm,

fuzzy, and dodo-goodie concepts.
concepts. Its great, but I believe a startup
is a business, not a charity.
charity. Marketplace is unforgiving.
unforgiving.

Charities can be super profitable and tax exempt.
exempt. You just cant
sell them for profit, so forget till you matured enough.
enough.

If your aim isn't to make money with it, it is not a startup.
startup.

This rules out the crowd of "check out my new startup, it's a
1,001st plugplug-in for Instagram"
Instagram" efforts which, while perhaps very
useful and worthwhile, are not startups, just tiny app projects.
projects.

However, making money via selling the business itself is a valid
business model by this definition!!
definition

All rights reserved, Copyright by Dr. Alex Kosik, CEO

All rights reserved, Copyright by Dr. Alex Kosik, CEO

3/2/2016

Beyond the need for discovery of business models, the startups

are all about your ambition.
ambition. No Ambitions = no business.
business.

This is important.
important. I often ask tech founders I mentor, where
they want to be in 5 years.
years. What about you?

If you want to take 1% of your local market see you next time.
time.

Even the most uncertain startup must has some kind of idea
how they'll get there and show growth and profits on horizon.
horizon.

Building global, profitable business involves a lot of ambition

and uncertainty.
uncertainty. You must deserve to be called the startupper
startupper.

If you want to build, say, an A.I. for Tesla/Uber
Tesla/Uber/Google
Uber/Google cars to
be acquired in the next 5 years, in my iPad you deserve the
moniker of "startup founder and I will take your business card.
card.

But when I ask them how they're going to do it, most don't have
a plan, or any idea how to get there.
there. Do you?!...
you?!...

See! In fact, you may think (rightly) it's not possible.
possible.

Build something awesome and get VC investment:
investment: a good plan!

If you have ambitions and can prove it I can be your mentor.

mentor.

Ambitions are not about just a technology, they are about YOU!

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If there are no plans (right or wrong), just a general wish or

hope, it's not a startup.
startup. Dont waste your time.
time. Get a job.
job.

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3/2/2016

LifetimeLifetime-style businesses aim to provide income for a handful

of people, VS "scalable businesses", which aim to grow.
grow.

Your ambition needs a timescale.

timescale.

Your growth is visible on a timescale.
timescale.

Such small similar businesses can be very interesting, fun and

even profitable for some time, but they're barely startups.
startups.

Your milestones are bound to a timescale.

timescale.

With no intention to grow, those are simply small businesses.

businesses.

Your life as a startupper is guided by a timescale.

timescale.

Want to license your tech? It has nothing to do with a startup.

startup.

If all above factors have no timescale attached to them, it's

probably not a real effort.
effort. In 5 years you will likely say:
say:

Want VC investment? Tell VC that you will turn his $1m into
$20m
20m. He gets $15m,
15m, you get the rest.
rest. Everyones happy.
happy.

The ambition to grow much larger than you are today is a
defining characteristic of startup.
startup. Is a defining characteristic of
YOU
All rights reserved, Copyright by Dr. Alex Kosik, CEO

All rights reserved, Copyright by Dr. Alex Kosik, CEO

3/2/2016

Define the purpose of your team

1. Teambuilding

Talk to your close (but capable!) friends and colleagues

2. Design

Fill with available people first, identify who is lacking, second

3. Prototyping

Select right team members, foster trust, manage socialization

4. Financing

Share the overall purpose with potential members.
members. Get firm Y/N

5. Sourcing

Fill in team mission and short/long term objectives

6. Manufacturing

Establish team norms, procedures and reporting

7. Sales, marketing and customer support

Determine core team issues as soon as possible

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All rights reserved, Copyright by Dr. Alex Kosik, CEO

3/2/2016

First, talk to your future customers and learn about problem

Ideas are not funded

Come up with a principal solution to problem

You need a prototype (alpha version, proofproof-ofof-concept) before

you approach investors

Draft the MRD (Market Research Document).

Document).

Have skills? Do it yourself in your kitchen/garage/basement

Think over critical points, available and required resources and
time line for implementation
Software:
Software:

Start with SRA (software requirement analysis):
analysis): lowlow-level
component algorithm design and highhigh-level architecture design
Hardware:
Hardware:

Autodesk 123D
123D Design, Google SketchUp,
SketchUp, Blender,
TinkerTinker-Cad:
Cad: low cost tools to get job fast & cheap

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Need precision? Desktop 3D printers, CNC routers, laser cutters

got so cheap, you can buy all 3 basic versions for $1k

Send your CAD files to Shapeways
Shapeways 3D printing service and get
printed prototype in mail at very affordable prices

Join a maker collective service (Techshop,
Techshop, Nextfab)
Nextfab)
for access to any of their tools at under $125/mo
125/mo

All rights reserved, Copyright by Dr. Alex Kosik, CEO

3/2/2016

To turn your prototype into a product for the masses (both

hardware and software), you need a healthy injection of cash

Make sure your components needed for manufacture can be

purchased or created.
created. If you gizmo cant work without 3 grams of
Unobtanium,
Unobtanium, change your design.
design.

Idea stage:
stage: your own and 3F contributions, Incubator seeding

Google is your friend.
friend. Ebay and Alibaba are both too.
too.

Early stage:
stage: grants (CRDF, USAID, TEMPUS, FASIE, SBIR/STTR)

Mature early stage:
stage: Kickstarter.
Kickstarter. I participated in 4 projects.
projects. 1
got funded.
funded. When happens - its a miracle.
miracle. You preserve equity
and promise a progressive scale of incentives from some good
karma to your funders to discounts and VIP parties.
parties.

Early growth:
growth: angel funding or bootstrapping.
bootstrapping.

Growth stage:
stage: VC investment or bootstrapping!

All rights reserved, Copyright by Dr. Alex Kosik, CEO

Vendors from over the world can sell you any electronic
components, chemicals, equipment and other goods for a fraction
of cost you would get from local distribution

There are online portals that work for startups:
startups: DigiDigi-key,
SparkFun etc.
etc. These let you purchase piecemeal or a truckload
and will identify right vendors for you for pennies from dollar.
dollar.

Software:
Software: use openopen-source for inspiration.
inspiration. Billions
of strings of code are readily available.
available.

All rights reserved, Copyright by Dr. Alex Kosik, CEO

3/2/2016

If you think its early for you to think about this trust me its
already late

Plan your marketing strategy, pricing, sales channels and

logistics well ahead of you XX-hour

When orders skyrocket you will need to quench the demand

and do it fast and quality stay focused

Start selling directly online through your website, or through

Ebay,
Ebay, Amazon, Shopify,
Shopify, Volusion,
Volusion, etc.
etc.

Cant meet demand you will alienate your customers

Go to resellers only when you can show them good sales

records and impressive forecasts you can justify

Need industrial space? Go to Showcase.

Showcase.com

Need used equipment for production line? Go to Biditup.
Biditup.com

Software business:
business: you are lucky, post to exact appstore and
enjoy cash flow.
flow. If you sell adds/service/etc there are simple
business models available.
available. Look at businessmodelgeneration.
businessmodelgeneration.com

Dont want to produce yourself ? Go to mfg.

mfg.com

Software business:
business: you are lucky, just code and
execute! Free cloud servers at Microsoft

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Customer support/ Call center/ Warranty and postpostwarranty customer service are critical for success.
success.

All rights reserved, Copyright by Dr. Alex Kosik, CEO

3/2/2016

Exclusive,
Exclusive, Custom tailored

All rights reserved, Copyright by Dr. Alex Kosik, CEO

All rights reserved, Copyright by Dr. Alex Kosik, CEO

3/2/2016

$300 OEMOEM-kits, automotive market of the future

Corporate market, mainstream

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All rights reserved, Copyright by Dr. Alex Kosik, CEO

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Set Clear Expectations

- never put your team to dig from here southbound and till evening

Set Commitments on Paper

- or risk facing the Saverin VS Facebook
Facebook type lawsuit if you succeed

Never loose Control

- got a fierce opportunist on your team? Set unrealistic goal and kiss Bye

Share Consequences
- fat contract? Send an extra pay check.
check.

Innovate (I hate this clich, yet

yet
)
- people join you to get rich.
rich. Ensure they get it

$2,000 per treatment, $45k

45k for device, M.D. market,

Be proud of your team

- I cant stress it ever enough

All rights reserved, Copyright by Dr. Alex Kosik, CEO

All rights reserved, Copyright by Dr. Alex Kosik, CEO

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3/2/2016

Alex Kosik,
Kosik alex@gravitonus.com
Join me on

: linkedin.com/in/alexkosik
linkedin.com/in/alexkosik
4031 University Dr. Ste 200 Fairfax VA 22030

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