Business Development Module 8 Copyright © VENTURE HIGHWAY

Making customers aware of:  Product and company  Where to buy  Value provided  Why customers should buy Copyright © VENTURE HIGHWAY What Is Marketing?

Marketing Tactics  SEO and SEM  Written materials – brochures, newsletters, etc  Direct mail  Trade shows  Partnerships  Advertising Copyright © VENTURE HIGHWAY

Marketing Return  ROI - How much revenue do marketing activities generate?  How much does it cost to acquire customers?  What is a customer’s lifetime value? Copyright © VENTURE HIGHWAY

Marketing in Stages The Customer Adoption Life Cycle:  Innovators  Early Adopters  Early Majority  Late Majority  Laggards Copyright © VENTURE HIGHWAY

Marketing In Stages Innovators and Early Adopters:  They will find you through technology and word of mouth.  They will give you feedback, help you refine your product Copyright © VENTURE HIGHWAY

Marketing In Stages Early Majority:  The largest and most critical group  They want quality, reliability, service  Hard to reach – to get to them, you are “Crossing the Chasm”  Use a partner strategy, or pick a niche market and market aggressively  You must make them happy – deliver on your promises. Copyright © VENTURE HIGHWAY

The Sales Process  Prospecting  Initial Contact  Presentation  Handling Objections  Closing the Sale  Follow up and Service Copyright © VENTURE HIGHWAY

The Right Sales People  Genuineness  Service  Learning customer needs  Innovation  Ki  Customer focus  Being Real  Power, Presence, Passion Copyright © VENTURE HIGHWAY

Sales Channels Direct:  Stores  Company website  Direct sales people Copyright © VENTURE HIGHWAY

Sales Channels Indirect Channels:  Partner stores  Online marketplaces  Affiliate sales  Agents Copyright © VENTURE HIGHWAY

Choosing Sales Channels Direct – Control, higher margins, relationships Indirect – Established customer base, scale faster, shared resources, but lower margins Copyright © VENTURE HIGHWAY

Choosing Sales Channels Choice based on:  Product Type  Competition  Budget  Cost vs. Benefit Copyright © VENTURE HIGHWAY

Touch Revenue Mix Copyright © VENTURE HIGHWAY

Business Development Plan  How much do you earn per customer?  How many customers do you need to meet your revenue goal?  What activities do you need to perform to acquire customers?  How much do those activities cost? Copyright © VENTURE HIGHWAY

Business Development Plan By analyzing the answers to those questions, you can create a model in a spreadsheet that shows:  Monthly BD activities  Costs of the activities  Revenues earned Copyright © VENTURE HIGHWAY

Business Development Plan The model will tell you:  How long it will take to reach your goal revenue  Your business development breakeven point  How much it will cost to reach your goal Which then tells you:  How much money you need  If your business model is viable based on time and cost of capital Copyright © VENTURE HIGHWAY

For Next Class Read Module 9 and complete the exercises Create your Business Development Plan and Model Update your Business Model Canvas Copyright © VENTURE HIGHWAY