MBA talk for Univ of Washington (Startups from the Trenches)

Bryan Starbuck April 22nd, 2014

Startup Learnings from the Trenches The counter-intuitive

@BryanStarbuck [email protected]

• Serial Founder and CEO

• TalentSpring Founder & CEO. Acquired in 2010 B2B Enterprise SaaS company with Artificial Intelligence / Machine Learning

• SPARKON Founder & CEO. B2C Online learning & Passion Discovery

• CTO at Crystal Commerce

About Me

• Big teams • No cash-flow pressure to

fast-to-market • Politics • Big visibility & less hands on

execution

Bigco vs. Startup

BigCo Startup • Miniscule team size • Fast-to-market due to cash flow • Validate deeply • Better strategy/positioning

needed • Better product needed

Timeline Segment #1: Validate Strategy & fit

Stages – of a Lean Startup

Timeline Segment #2: Build product

Timeline Segment #3: Post-launch GROWTH

Product build Post-launch growth

• Initial idea

• Craft Strategy

• Validate HEAVILY with customers

Stage #1: Validate

Timeline Segment #1: Validate Strategy & fit


Validate by Pitch-Deck

" Force Planning in all Critical Areas"

" Brief enough for feedback from Customers, Employees, Advisors, Investors, etc. "

Pitch Deck PAIN finds your blind spots

Complete ALL of your Pitch-Deck!

He says, “This specific Pitch-Deck SLIDE is PAINFUL”""

Response, “You found a Blind Spot in your ANALYSIS skills…… or in your business”"

10x Healthy Business Problem

10x!SOLUTION!

10x!PROBLEM!

1! 2!

Transactions multiply to a Large

Market Size!

Great Single Transaction Economics!

3! 4!

“10-x” refers to the customer have a LARGE problem in their life, not just another small issue in their life.!

" Do NOT use your friends"" And do not use the startup community""

" Be willing to pay $25 to $50 for 60-minutes for B2C. $50-$100 for B2B professionals. PayPal, Amazon, iTunes"

" lets you record the dial-in conference call and share the screen. Cheaply"

Validating from Customers

People from"Your Social Group are BAD"

" Early Adopters"" White-Collar employees"" College educated"" A-Players or Type-A"" Advocate change & disruption"

The US and your customers are more like:"

" NOT Early Adopters"" NOT A-Players or Type-A"" NOT Advocating change & disruption"" Have a budget already fully spent"" Blue-Collar employees"" High School only, Community College…"

Dating start:

Validate on craigslist

B2C - Dating & CraigsList

B2B buyers have a budget in a spreadsheet

B2B buyers and their Budget Spreadsheet

Stages – of a Lean Startup Timeline Segment #2: Build product

Product build

80% = •  Perfect strategy & need •  Craft Product •  Fast product building

20% = • Everything else: Branding, team building,

raising capital, etc.

Post-launch growth

Stages – of a Lean Startup


Growth =

Success vs Failure

Timeline Segment #3: Post-launch GROWTH

Strategy

• Positioning is your top strategic skill

• Positioning is the battle for your mind

• See how…

Purple Cow

" BLOG: bryanstarbuck.typepad.com!16

Your Positioning and Uniqueness M

anua

l So

lutio

n HIGH COST

Market Leader

LOW COST

Market Leader

Is Your Startup here or here

High Cost

Low Cost

Old generation New generation

Example of a problem with strategy

Example in the Recruiting industry

•  Branding is important … but LEAN means fast to market

•  80% in stage #2 is: a) validating strategy & direction, b) brilliant product design, c) execute building product

•  20% = everything else. 5% of that is branding

Still branding is important. Get branding done – well – and quickly.

Branding

How Do We Find Them?


Dave McClure marketing Model


Hotmail.com GROWTH HACKING TO: [email protected]

From: [email protected]

Sent by hotmail.com


AirBnB

Customer

Post to AirBnB

Post to CraigsList

GROWTH HACKING


Digg

Many Websites

Digg.com

GROWTH HACKING

" BLOG: bryanstarbuck.typepad.com!

“X Problem” can be solved better by

“Y Solution” which we rock at

24

Blogging

“INBOUND” OR SEOMOZ STYLE

Facebook Articles

our unique uniquely

Questions? [email protected] @BryanStarbuck


Next Steps for Learning (1 of 3) People often ask how to learn more. Here is the best way:" ABSOLUTE Must Read! Strategic Thinking or Execution!

Other!

Innovator’s Dilemma On Amazon"By: Clayton Christensen""Crossing the Chasm On Amazon"By: Geoffrey Moore""Blue Ocean Strategy On Amazon"By: W. Kim"""Good to Great On Amazon"By: Jim Collins""Maverick On Amazon"By: Ricardo Semier"""The Four Steps to the Epiphany On Amazon"By: Steven Blank""Inspiring Excellence On Amazon"By: Michael Schutzler"

The Ten-Day MBA On Amazon"By: Steven Silbiger""Founders at Work On Amazon"By: Jessica Livingston""""

ABSOLUTE Must Read"

Venture Deals On Amazon"By: Brad Feld"""Art of the Start On Amazon"By: Guy Kawasaki""""The Lean Startup On Amazon"By: Eric Ries""


Next Steps for Learning (2 of 3) People often ask how to learn more. Here is the best way:" Marketing!

The 22 Immutable Laws of Branding On Amazon"By: Al Ries"""Full Frontal PR On Amazon"By: Richard Laermer"""Positioning: The Battle for your Mind On Amazon"By: Jack Trout""The Strategy and Tactics of Pricing On Amazon"By: John Hogan"""Purple Cow On Amazon"By: Seth Godin"""

Other!Founders at Work On Amazon"By: Jessica Livingston"""Startup Weekend On Amazon"By: Marc Nager""Don’t Make Me Think On Amazon"By: Steve Krug"""

ABSOLUTE Must Read"


More Learning (3 of 3) " (My) Bryan Starbuck’s Blog on Company Building:"

" http://bit.ly/StarbuckBlog"" Dave McClure – Marketing Model for Startups: "

" http://500hats.typepad.com/500blogs/2007/06/internet-market.html"" http://vimeo.com/26277733"" http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version"" http://www.slideshare.net/dmc500hats/startup-metrics-101-367863"

" More from Dave McClure:"" http://www.slideshare.net/dmc500hats/why-not-to-do-a-startup"" http://www.slideshare.net/dmc500hats/do-marketing-its-not-evil"

" Presenting to Investors:"" http://www.slideshare.net/dmc500hats/how-to-pitch-a-vc-aka-startup-viagra-how-to-give-a-vc-a-hardon"

" Strategic economics of SaaS https://salesforce.adobeconnect.com/_a13852757/buildingasuccessfulsaasco/"" Startup Marketing: http://howtolaunchastartup.com/2011/06/20/21-must-read-resources-for-start-up-marketing/"" 57 Things I’ve Learned Founding 3 Tech Startups:

http://betashop.com/post/1417413108/57-things-ive-learned-founding-3-tech-companies"

ABSOLUTE Must Read"

The New Model for Startups