Bulletproof Your Startup Be the 10% who succeed

Acknowledgements This presentation uses ideas, theories and material from Clayton Christensen about Theory of Disruption Anthony Ulrick about Customer jobs Alexander Osterwalder about Business Model Canvas Roger Martin about 5 questions of strategy

The Startup Graveyard 90% startups close down in 3 years 997 of 2,281 startups launched in India after June 2014 were dead already, within two years Inc.com Sept 2016 90% startups close down in 3 years Date Source: market research firm Xeler8

The Startup Graveyard Hyperlocal 6 Foodtech 5 Apps 3 Travel tech 2 Ed tech 2 32 of the 997 failed startups had succeeded in raising funding from investors. Inc.com Sept 2016 Peppertap Hyperlocal $ 46 M Local Baniya Hyperlocal $ 5 M Gozoomo Lead Gen $ 7.5 M Fashionara ecommerce $ 2 M Purple Squirrel Edtech $ 2 M Date Source: market research firm Xeler8

The Startup Graveyard Funding crunch for startups with no clear or a poor business model or no differentiation from rival ventures Inc.com Sept 2016 Date Source: market research firm Xeler8

The Startup Graveyard The average age of the failed ventures – 11.5 months   The average age of the failed founders - 27 years 4 months. More than ¾ of the failed entrepreneurs took up a job after their failure. Only around 23% ventured to start up again.  Perseverance, Passion, Experience was found wanting Date Source: market research firm Xeler8

Does any of this sounds familiar? Reasons for failure Not serving a market need 42% Running out of cash 26% Ignoring the competition 19% Flawed or weak/untested business model Not a user-friendly product or a service Starved of customer feedback No attention to marketing The wrong price Too early to market Not the right team –fear of diluting the equity Too many copycats, not enough differentiation Does any of this sounds familiar? Source: CB Insights Survey

Why Bulletproofing Your Startup Workshops Why are so many startups failing? Should it be so difficult to do a startup? How is it any different from a regular business? Is it possible to create a model to understand the real nature of the problem and thereby better manage it? Can we create a framework for improving probability of succeeding? Developing a systemic rather than symptomatic response to ensure success

Be the 10% that Succeed Follow a structured business evolution process leveraging conventional business frameworks Existing business frameworks have been adapted and applied for startups to significantly reduce the risk of failure. Mentoring alone is not sufficient. A coach needs to be fully familiar with these frameworks and embedded in the business working closely with the founders.

Startup Business Evolution Process From an "Idea" to "Defining The Opportunity" Anthony Ulwick’s Customer Centered innovations map to understand problem/ need in target market and identify the right opportunity. Establishing the "Product market fit" Leverage frameworks for establishing Minimum Viable Product (MVP) and doing customer development. Creating a "Go To Market Strategy" Develop a GTM strategy using the “7 questions for GTM strategy” framework Discovering the "Business Model" Using one of the 9 different established business models and Alexander Osterwalder’s Business Model Canvas framework discover and develop your startup’s business model "Growing" the business Convert discovered patterns into rules and processes, understand how to hire the right management team and set up a strong operations discipline in place to drive growth "Scaling" the business Implement strategy frameworks like the “Five Questions To Build A Strategy” by Roger Martin.

A Quick Look At What Makes Startups Successful and Sustainable Right founding team Understood Product Marketing as against Sales Or Marketing Great at recognizing patterns and draw insights Defined a differentiated value proposition Achieved Product market fit Developed a Business model Have a Go To Market Strategy Figured out Finance required at all stages and why Understood, planned and built for execution Established Processes, Systems and Infrastructure

How would you define a Startup?

What is a Startup? As per Ministry of Commerce and Industry notification released on April 17, 2015. An entity that is. Up to five years from the date of incorporation. Has turnover not exceeding 25 crores in the last five financial years. innovating, developing, deploying, and commercializing new products, processes, or services driven by technology or intellectual property or opening new geographies or customer segments.

What is a Startup? A temporary organization formed to test & prove a bunch of hypothesis and then designed to search for a scalable and a repeatable business model

What will you be innovating? Products/Services Business Processes or part thereof Revenue model What Will it be driven by? New technology or Intellectual property. Will it be in new Market Segment or Geographies

Are you self aware enough to recognize your stories The Narrative Fallacy I can because…. Product of a premier institute Coding whiz Have business “genes” Will take an year or two off before taking a job My idea will get funded Are you self aware enough to recognize your stories

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