Marketing & Sales

The Founder Institute Roger Yee Barcelona – Feb 19 2013

Background
• Three start-ups – full lifecycle • Enterprise Services & Products • Unique perspective
– – – – – Idea to funding to execution Hyper-growth businesses Initial Public Offerings Mergers & Acquisitions Angel Investor & Limited Partner

What’s Your Business Model?
• Product
– License (user vs platform vs enterprise) – Free-mium/Try & Buy – Subscription

• Services
– Consulting – Implementation – Retainer

Consumer vs Enterprise?

Zero to One
• Focus on the first dollar • Many steps to the first $100k and $1M • Go as fast as possible (early on) • Varies upon…
– product or services – stage of offering (alpha, beta, launch) – size of market

Convincing customers is critical – think sales!

Making the First Sale
• Prove the offering/technology • Get the first customer • De/re-fine the model • Get the first customer Start here – before external funding You might not need it

Making Sales
• Know the race track
– Markets – Customers (who is your DREAM customer?)

• Know your competitors
– Offerings – Competitive differentiation

• Know your customers
– Understand and exceed their needs – Are you solving a HARD problem? – Build Feedback loop

Real-world: Services
• Services: IT Consulting & Services integrator • Market: eCommerce sites and systems (dot.com) • Customers: Fortune 1000 • Product Sales
– None - reseller

• Implementation Services
– – – – Prototypes (demos) Advisory/Architecture (consulting) Projects Tailored solutions

Real-world: Services - Reality
• Challenge: Hard to differentiate – lots of competitors -- “e” everything • Market Position: End-to-end provider, one-stop shop, build capability in 5 key domains Revenue Result Reality: 13 acquisitions, 30% organic B2B market focus, growth IPO & acquired for $2.1B by product company

Real-world: Product
• Product: High security operating system • Market: Information sharing • Customers: Government Agencies • Product Sales
– Direct – Channel/Partners

• Engineering Services
– Prototypes (demos) – Advisory/Architecture (consulting) – Custom solutions (projects)

Real-world: Product – Reality
• Challenge: Industry standard OS • Market Position: Niche player for secure OS, build packaged info-sharing applications, expand into homeland & healthcare markets Reality: Product powers 5 of 12 Gov’t approved solutions, patented IP, 100% Gov’t market Revenue Result 1:2 ratio

Real World: Fortify Portfolio
Web-based event planning and community building platform Individual event planners >> Event Venues Service provider connection via phone to consumers 14 cities in 14 months >> Driven by Demographics SMS text mobile sharing, search and storage technology Enterprise platform >> OEM Consumer Mobile App Social media analytics for food products Blog/recipe search engine >> Vertical Analytics Service

Investor Perspectives
• Market focus is critical …Pick and go – pivot & change markets • Marketing is not a business model …Prove value to drive sales • Best champion is your first customer …Not necessarily your best customer • Customer acquisition is important …Early traction drives momentum

Closing Thoughts
“A-B-C. A-always, B-be, C-closing. Always be closing! Always be closing!!”
- Alec Baldwin in movie Glengarry Glen Ross

Contact Info:
roger.yee@gmail.com www.linkedin.com/in/rogeryee rogery33

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