The Business Plan : Go To Market Strategy David Brenner Mike Reardon

2 Statement of the Obvious You can’t write a business plan ….without a plan for your business

3 Statement of the Obvious You can’t write a business plan ….without a plan for your business Which naturally demands a clear understanding of the prospective customer’s needs and expectations

4 Invention = Innovation A Key Misconception

5 Distinction Invention = Creation of a new idea Innovation = Transforms new idea into value, commercial or otherwise Business Plan = Written explanation how value will be realized in the chosen market

6 Marketing’s “Perfect Storm” Convergence of relevant market facts, observations, hunches, etc. about the potential of a new innovation in an emerging market in relevant commercial action steps

7 Customer-Centric Marketing: Start at the End – With Your Customer – and Work Backwards Your Business Distribution Channels Economic Buyers Influencers End- Users

8 Customer-Centric Marketing: The “Solution Selling” Approach* Who is your customer What is your customer’s unmet need (their “pain”)? Surface your customer’s pain and its impact on them Help your customer develop a vision for addressing their pain (“What if you had the ability to………….?”) Describe your solution that matches the vision (the “whole product”) Bargain for the order (“If I can prove to you……”) Provide proof (customer testimonials, demos, etc.) Book the order! *Derived from Solution Selling by Michael T. Bosworth Business Plan Operating Plan

9 Customer-Centric Marketing: The “Solution Selling” Approach* *Derived from Solution Selling by Michael T. Bosworth 100% 100% of Addressable Market (all theoretical potential customers) TOTAL POTENTIAL MARKET YEAR Expected Rate of Market Penetration Your Market Share (in units or $)

10 Customer-Centric Marketing: The “Solution Selling” Approach* *Derived from Solution Selling by Michael T. Bosworth 100% 100% of Addressable Market (all theoretical potential customers) TOTAL POTENTIAL MARKET YEAR Expected Rate of Market Penetration Your Market Share (in units or $) Don’t fall into the “1%” market share trap!

11 Competitive Alternatives How does the customer problem get solved now? What impact on customer acquisition? Any likely impact on pricing or channel strategy? Other impediments?

12 Market Segmentation? Geographic Demographic Pyschographic Business vs. Consumer Large vs Small Public vs Private Military vs Civilian By Industry Sector Professional vs Amateur

13 Stage of Market Development? Total Market Revenue Innovators Early Adopters THE CHASM Early Majority Late Majority Laggards Are you selling to risk-taking “Early Adopters”? ….or are you selling to conservative “Pragmatists” (the vast majority of potential customers)? Derived from: Crossing the Chasm, by Geoffrey A. Moore

14 Where Are You Selling? Distribution Channels Exactly by what means do you sell your product or service to your customers? Direct Sales? Retail? Distributors? Resellers? Combination? End- Users

15 How Do You Make Money? The Question of Business Model Extracting Fair Economic Value for your product or service  Pricing Strategy Sell vs. rent/lease Up-front sale vs recurring revenue Bundling products Quantity discounts  Making it easy to buy  Building customer loyalty and future business

16 How Do You Make Money? The Question of Business Model Extracting Fair Economic Value for your product or service  Pricing Strategy Sell vs. rent/lease Up-front sale vs recurring revenue Bundling products Quantity discounts  Making it easy to buy  Building customer loyalty and future business More next week on Business Models…………….

17 Key Take-Aways…. Always start at the end: With your customer The purpose of marketing is to sell…”Solution Selling” Know what questions to ask Business model and pricing are strategically linked Competitive alternatives  Impact on pricing, business model and channel strategy

18 Additional Information and Reading Art of the Start, by Guy Kawaski Solution Selling, by Michael T. Bosworth The 22 Immutable Laws of Marketing, by Al Ries & Jack Trout Crossing the Chasm: Marketing and Selling High Tech Products to Mainstream Customers, by Geoffrey A. Moore Inside the Tornado, by Geoffrey A. Moore High Tech Startup, by John L. Nesheim

19 Dialogue & Questions David Brenner Mike Reardon