What to Do Once You Have an Idea

1 FA S T S TA R T S T U D I O SERGEY SUNDUKOVSKIY PH.D.

Introduction
2

Background
3

Agenda
4

Visualizing Your Idea Putting Together a Deck Finding Co-Founders/Mentors/Advisors Building a Prototype

Startup Progression
5

Idea is not a product, product is not a company

Visuals
6

Idea Description Idea Visualization Wireframes Mockups (UI) Clickable Prototype (UX)

Videolize
Mind Mapping

Idea Description
7

Idea Description Success Calculator: Inventor (cloud over the head). Many factors represented by circles (founder experience circle, previous startup experience circle, competition circle, funding circle, customer circle, market size, industry circle, board of directors circle, product development experience, advisers circle) go into the SourceIgniter Predictor Engine box, what comes out is a Success Score

Idea Visualization
8

Wireframes vs. Mockups

9

Clickable Prototype
10

Prototyping Tools
11

Videolize
12

Videolize aka video scribe Same as visualize only better

Putting Together a Deck

13

10-20-30 Rule Show Do Not Tell Taxicab and Elevator Pitches Target Customer Market Analysis

Differentiation and JUD

Pressure Testing Competitive Advantages

Business Plan vs. Business Deck

14

Business Plan as we knew it in the Business School is dead

Putting Together a Deck

15

Deck Rules
16

10 slides In reality it is 3 (others are used as reference) 20 min In reality it is 5 (at most) 30 point font Last guy from the end of the table Too much information

Deck Rules
17

Picture is always better !!!!! It is worth 84.1 words

Deck Structure
18

Executive Summary

Financial Projections

Problem
Solution Platform

Competitors
Differentiation Competitive Advantages

Market Opportunity
Business Model Pricing

Team
Milestones/Roadmap

Mind Mapping
19

Organize Your Thoughts

Mind Mapping Tools

20

Pitches
21

Pitches
22

Taxicab Pitch Facebook for teenagers, Flicker for Video Elevator Pitch What do we do? Who are we doing it for? How are we different? ConferenceByWire is an event streaming solution that brings live and on-demand events directly to the remote viewers over the Internet. Unlike other solutions it does not require significant infrastructure investment

Pressure Testing
23

Have your idea and the pitch pressure tested Do not insist on NDAs. Nobody cares

Market and Customer

24

Differentiation
25

Distinction without difference

Differentiation
26

Features Business Model Target Audience

Differentiation and JUD

27

What Investors Are Looking For? JUD Just Enough Difference Different Enough Not Too Different Valid Question Why existing competitors are not focused in this area?

Invalid Question Why wouldnt existing competitors replicate this?

Competitive Strategies
28

Prices We are just like that only cheaper Differentiation We are just like that with following differences Niche We are just like that only verticalized

Competitive Advantages
29

Not Easy to Overcome Original Content Execution Loyal Customer Base Brand Awareness Easy to Overcome Patents First Mover Obscurity

Deck Distribution
30

Push your deck online

Finding Co-Founders/Mentors/Advisors
31

Co-Founder Selection Criteria Finding Co-Founders Commitment vs. Involvement Mentor/Advisor Selection Criteria Mentor/Advisor Expectations

Incubators

Co-Founder Selection Criteria

32

NOT GOOD

BAD

GOOD

Where to Find One?

33

Co-Founder Selection Criteria (cont.)

34

Complementary Skillset Worked Together Before Similar Work Ethic Similar Commitment Level Similar Conflict Resolution Style

Can Disagree and Commit

Ideal Number of Co-Founders is 3

Commitment vs. Involvement

35

Decide How to Decide

36

Do no block unless you feel very strongly about it

Mentor vs. Advisor

37

Expectation Setting Hands On vs. Not Hands On Mentor Advice Advisor Cover Gaps Pressure Testing Industry IQ Introductions

Mentoring
38

Real difference is focus. Mentors focus on you. What do advisors focus on?

Incubators
39

Help Getting Started Learning the Ropes Good Mentors Great Advisors Helpful Introductions

Right Atmosphere
Place to Hang Your Hat

Right Incubator Program

40

Make sure to pick a right program for you

Building a Prototype
41

Prototype Purpose Prototype Features Prototype Duration Prototype Starting Point Evolutionary vs. Throwaway

Fine Line
42

Half-Baked and the Prototype are not the same thing

Building a Prototype
43

If you are not failing you are not trying hard enough

Product Development
44

Startup DNA by Yevgeniy Brikman

Product Development
45

Startup DNA by Yevgeniy Brikman

Prototype Purpose
46

Fail Quickly and Pivot Prove Business Hypothesis Discover Inflection Points Collect Customer Feedback Collect Initial Analytics

Zero in on a Customer Profile

Get Funding

Product Evolution vs. Revolution

47

OR

Which picture do you think is right?

Hint: They are not identical

Product Analytics
48

If you cant measure it you cant improve it

Analytical Tools
49

Traction Points
50

Sample Traction Points CTR Number of sign ups Number of sign ins Number of video uploads Number of product configurations Number of store deployments

User Testing
51

ABT Always Be Testing

A/B Testing
52

Less the data, louder the opinion

What Can Be A/B Tested?

53

Headline Lead (first sentence) Hero Shot Font Color

Call To Action
Number of Steps in the Funnel Algorithm

A/B Testing Tools

54

Usability Testing
55

Eye Tracking

What Are They Measuring?

56

Attention Emotion Task Completion Time Hovering Clicks

Hotspotting
Path

Usability Testing Tools

57

Business Metrics
58

Sample Business Metrics CPA (Cost Per Acquisition) Churn Break Even Duration TOC (Total Cost of Ownership) LTV (Live Time Value) Average Support Contracts

Prototype Starting Point

59

Find open source starter product to build upon

Prototype Features
60

Prototype Features
61

Features need to prove business hypothesis aka core

functionality
Usability trumps completeness Speed trumps completeness

Some Business models are too complex for an

evolutionary prototype. You might have to settle for throw away prototype
Too much technical debt to remedy Too expensive to evolve Cant find needed resources