Slide1: IEEE Entrepreneurial Seminar April 28, 2007 Juan Rodriguez


Serial Entrepreneur (?): Serial Entrepreneur (?) Founded IPO Year StorageTek 1969 1972 Iomega 1980 1985 Exabyte 1985 1989 Sweetwater 1992 1994 Datasonix 1992 no Decisionism 1992 1999 acquired by KANA Vixel 1994 1999 Colorlink 1995 2007 acquired by RealD Ecrix 1996 2001 merged with Exabyte DoDots 1999 no HiveLive 2006 ?


Entrepreneurship 1969-2007: Entrepreneurship 1969-2007 Starting a new company Choosing your target Designing your business The team Financing


Starting a New Company: Starting a New Company 1969: It’s crazy to do it 1985: It’s crazy NOT to do it 1999: It’s too easy to do 2007: It’s the sane thing to do


Choosing Your Target: Choosing Your Target KNOW your market. Business Plan Be VERY sure of what you’re doing Business Plan Seek UNFAIR advantage Know your market


KNOW your market: Opportunity/Need: KNOW your market: Opportunity/Need What is the pain? What problem is being solved? Dissatisfaction with current products/services Poor quality or service Must be compelling Must be easily understood Frank Moyes CU Business School


KNOW your market: Market Analysis: KNOW your market: Market Analysis Market: “group of current and potential customers having the willingness and ability to buy product/services to satisfy a need.” Industry: “group of sellers that offer product/services that are similar and close substitutes for one another.” JW Mullins, New Business Road Test Frank Moyes CU Business School


KNOW your market: Market Analysis Sections: KNOW your market: Market Analysis Sections Market size & growth Trends Target Market Channels of distribution Frank Moyes CU Business School


KNOW your market: Market Analysis (Macro): KNOW your market: Market Analysis (Macro) What is the size & growth potential? Historic and future Segment your market Lot’s of numbers – show in tables Frank Moyes CU Business School


KNOW your market: Market Segmentation: KNOW your market: Market Segmentation Groups of customers – demographics & psychographics Products – features, benefits, prices Geography – Distribution channels Sector – industrial (see MRT), consumer, government Objective is to identify potential entry points Frank Moyes CU Business School


KNOW your market: Trends: KNOW your market: Trends What changes are taking place – economic, socio-cultural, political/legal, global, environmental, demographic, technological Positive and negative trends Must provide your sources Frank Moyes CU Business School


KNOW your market: Target Segment: KNOW your market: Target Segment Best point of entry What is the size & growth potential? Consumer - demographics & psychographics Business – types of organizations, buying decisions Understand customer behavior How are products used? How are buying decisions made? It’s not about you! Frank Moyes CU Business School


KNOW your market: Target Market (Micro): KNOW your market: Target Market (Micro) Benefits are understood, compelling & differentiated Potential to grow & expand to other segments Evidence that the customer wants to buy Customer research is key Surveys provide credibility Lurk & Listen Frank Moyes CU Business School


KNOW your market:Channels of Distribution: KNOW your market: Channels of Distribution What is normal for your market? Distributors, wholesalers, dealer, retailer, internet, system integrator, Value Added Retailer (VAR) Original Equipment Manufacturer (OEM) How are buying decisions made Frank Moyes CU Business School


Designing Your Business: Designing Your Business Focus on value add Core competency: differentiator Outsourcing: Internal resources to develop your core competency. Outsource the rest


The Team: The Team It’s all about CHEMISTRY -Trust- Delegate-Communicate-Interact Getting through the tough times Dealing with Reality One rotten apple can spoil the whole barrel No place to hide


Financing: Financing It’s ALL about CHEMISTRY Know your investors Fund early, fund often. NEVER run out of CASH


Advise: 2007: Advise: 2007 Starting a new company It’s the thing to do! Choosing your target Seek that UNFAIR advantage Designing your business Focus on VALUE ADD, outsource the rest The team It’s all about CHEMISTRY Financing It’s all about CHEMISTRY


Advise: 2007: Advise: 2007 First they ignore you, then they laugh at you, then they fight you, then you win.   Mohandas Gandhi