2 Business plan + Strategy, Products & Markets Flashcards Preview

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Flashcards in 2 Business plan + Strategy, Products & Markets Deck (25):
1

Venture life cycle in 6 stages 

+ pitfall

Idea > Start-up > Early Growth > Expansion > Maturity > Exit
-->I.SEgE.ME

Includes "valley of death" of accumulated negative cash flow before breakeven

2

The Fs of early startup financing

Family Friends Fools (LOL) Foundations Founders ? ...

3

5 types of new ventures - by decreasing potential

  1. Gazelle = high growth n very high potential
  2. High potential venture
  3. Foundation Co
  4. Lifestyle Firm
  5. Living dead = too valuable to kill, not enough to invest more

-->GHipFoLifLiv

4

Hofstadter's law

+ also what

It always takes longer than expected, even considering Hofstadter's law.

+ also more cash!!!

5

Business Plan

  • 3 elements
  • Goal
  • typical length
  • 3 things it is not

  • biz opportunity, strategy, detailed implementation
    -->OSdI
  • It forces you into honest, disciplined thinking
  • 20 pages
  • not alibi, beauty contest, bureaucracy --> ABB

6

BP Executive Summary

  • length
  • audience
  • content

  • 1-2 pages (first & most important 2 of the BP)
  • 90% of people only read this
  • brief Co description with unfair advantage

7

BP - Elevator pitch

  • def
  • goal
  • freq f use

  • 2 min summary f exec summary
  • to awaken interest f potential investors
  • used daily

 

8

Elevator pitch - structure 6 elements

  • For [target customers]
    • Who have [compelling reason to buy]
  • Our product is a [new product category]
    • That provides [key benefit (which solves problem)]
  • Unlike [competitor in new product category]
    • We have [key point of differentiation]

-->ForOurUnlike

9

Rel bw tech & ValueAdded

mediated by BizStrat & BizModel (=Co's DNA)

10

BizModel: Claesson's def w 3 els

- Co's DNA

  • delivers Value Added to clients
  • entices clients into paying for VA
  • transforms payments into profits

11

Lean startup methodology:

  • mantra in 3 words
  • goals
  • key author

  • build - measure - learn -->BmL
  • fail fast & learn & pivot -->FfLoP
  • Eric Ries

12

Startup pivot = avg Nr of pivots for a startup

= change of biz model avg = 2.3 !!!

13

Know your customers & markets

  • how, across 2 dims
  • what to be careful for

  • market segmentation, horizontal & vertical
  • advice from 1 segment could cause you to fail in others!

14

market S-curve =
+ "steepest" part of curve, aka...
+ conquering this can be more important than...

diffusion of innovation ~ contribution to profit curve = integral of bell-shaped adoption curve for new tech / prod: bell-shaped curve from innovators/visionaries, early adopters, early majority/pragmatists, laggards...


+ "steepest" part of curve is bw early adopters n early majority: called THE CHASM

+ ...than being the first mover!

15

market strategy classification
dim1: red VS blue ocean strategies
dim2. horizontal VS vertical

  • dim1: red ocean strat > beat competitors in existing market space VS blue ocean strat > create uncontested market space (prefer this!)
  • dim2: platform/toolkit for wide array of biz problems VS focused strategy for specific problems (prefer this!)

16

"if you build it, they will come" is...

True only in films!

17

RECAP Q: BizPlan structure + why show the weaknesses in the SWOT analysis?

... study from slides + show weaknesses so as to prove that you have identified and solved them!

18

what is a "one-trick pony" startup? + what conseq?

it is a startup w only 1 prod it is worth much less than one w 2-3+ products

19

BP: 8 inputs & various outputs

inputs:
(ingredients)

  1. financing sources
  2. products, markets, marketing
  3. team
  4. IP

(activities)

  1. strategy
  2. sales
  3. growth mgmt
  4. exit plan

outputs: formats & lengths vary dep. on occasion & targets

20

Business strategy process

  • cycle, w important condition
  • heart

  • define SMART strategic goals, do SWOT, iterate based on feedback or w new goals in case of SWOT failure
  • A SWOT analysis is performed to determine and leverage strengths and opportunities, and take action on weaknesses and threats

21

biz model canvas: def & 9 els

template w 1+2+1+2+1 / 1+1 els:

  • partners
  • key activities & resources
  • VP
  • CR & channels
  • customer segments
     
  • cost & revenue structures

 

22

market analysis 3 objects

  • industry (big players, trends, events, legislation)
  • market (size, structure, growth in worst & best case)
  • competitors (price, quality, perception)

23

Gartner new tech hype cycle: key 3 features

  1. first there's fast growth to a peak of inflated expectations, then
  2. trough of disillusionment
  3. slope of enlightenment, till productivity plateaus

24

customer satisfaction

perceived value / expectation

25

4 strategy tradeoffs, 2 "unsolved" & 2 "solved"

  • price skimming vs market penetration
  • pioneers vs late entrants
     
  • market risks vs tech risks --> never take both together!
  • market needs beats product focus