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Flashcards in 7 Marketing, Sales & Exit Deck (14):
1

RECAP study dilution & valuation

loans do not dilute you, even if they come from a VC

2

RECAP

most common failure reason for new ventures

premature scaling
= try to grow faster than you have money for

=> balance is needed, even under pressure from investors

3

RECAP

customers can kill you: how, why?

they don't pay / pay late, and you have had to pay already what you sourced

4

RECAP

4 growth strats over 2 dims + their assessments

market dev strats       diversification strats

penetration strats       product dev strats -> use first 


Dims:
products (existing to new)

markets (existing to new)

 

5

RECAP

growth strats: accumulated S curves: principle

try to start new one before the previous flattens out

6

RECAP

internal vs external growth strats

 

internal = organic

external: from alliances to M&A (but about 5 choices)

7

Entrepreneurial marketing & issues for small ventures

  • strong influence by entrepreneur
  • not much formalization
  • market does not trust you yet

8

Methods in entrepreneurial marketing

  • Reverse graffiti
  • Viral marketing
  • Guerilla marketing

sometimes you need to use forbidden methods!

9

guerilla marketing:

features

targets

features = invest time & smarts, based on human psy, rather than money

targets = individuals or small groups

10

B2B sales process

4 stages + some advice

by increasing cost of sale & long-term reward:

  • sell prod & forget
  • sell solution --> a package deal
  • sell against competition --> win over
  • strategic sale --> symbiosis w client

advice: start with a small CRM SW, simpler than salesforce

11

Exit strategies

  • 6 possible why's

situational:

  • dire need = various problems
  • preference = to get a normal life!

achievement level:

  • biz plan = goals met
  • investor driven = expectations NOT met

growth perspectives:

  • growth induced = need resources to grow
  • market driven = segment mature; competitors

-->DiMaGrI BpP

12

7 possible exit paths

  • no exit --> make it a lifestyle biz!
     
  • close-down 
    • ramp-down
    • bankruptcy

sell to someone else (in order of closeness from founders to market)

  • buy-back --> other founders
  • MBO --> managers
  • secondary buy-out --> other investors
  • M&A --> other Cos
  • IPO --> market

13

Critical Qs to validate a new idea

 

  1. What exactly is innovative about the business idea?
  2. How unique is the business idea? Can it be protected by a patent?
  3. Who is the customer?
  4. Why should a customer buy the product?! What need does it meet?
  5. Why is the product better than comparable alternatives?
  6. What are the competitive advantages of the new product, and why can a competitor not simply copy them?
  7. How does the product reach the customer?
  8. Can the product make money? What are the coats involved, and what price can be asked for it?

14

key findings by analysis Co Startup Genome

  • pivoting brings more profit
  • frequent premature scaling
  • hands-on investors bring no value
  • financed startups overestimate value of IP by 250% and market size by 100x