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INTRODUCTION TO STARTUPS (AND WHY YOU SHOULD START ONE TODAY!)

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INTRODUCTION TO STARTUPS (AND WHY YOU SHOULD START ONE TODAY!) IDEA Network QUT 1 Sept 2014 @ColinKinner


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Background


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WHAT IS A STARTUP?


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A company that's confused about (1) what its product is, (2) who its customers are, and (3) how to make money Startup =


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A startup is a temporary organisation. . . designed to search for a repeatable and scalable business model.


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Startup = growth


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NOT Scalable Costs Revenues $ time


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NOT Scalable Costs Revenues $ time


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Scalable $ Costs Revenues time


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Which type of business? Social venture Buyable startup Scalable startup Small business Lifestyle business


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WHY DO A STARTUP?


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Massive global markets


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Massive global markets April 2012 700 million registered users 40 million concurrent users 8 million paying users $860 million annual revenues


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Low barrier to entry “Heavy” software “Light” software / apps 1980’s 1990 2000 2010 Networking infrastructure Computer hardware Processors $20m <$100k $50m $50m $100m Capital required


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Years to reach $1 billion annual revenue


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Reproduced with kind permission of Peter Lewis and the Newcastle Herald


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WHY DO A STARTUP NOW?


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WHAT MAKES A GOOD STARTUP IDEA?


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Notice things that suck, and think of ways to make them better. If something bugs you, it might also bug a lot of other people. Some of those people might pay for a better solution.


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What makes a good startup idea? You understand the problem You can think of a better solution You can build the solution Few others realise it’s worth doing Live in the future, then build what's missing. Paul Graham, Y Combinator


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Startup idea #16: Crowdsource professional photography Unlock the billions of images sitting on pro photographers’ hard drives (ie. not searchable) Advertisers post briefs to photographers who can submit existing images


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Disruption


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A viable business model Customer Acquisition Cost (CAC) Lifetime Value of Customer (LVC)


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WHAT MAKES A GOOD STARTUP?


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Team


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>


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A real problem that needs to be solved


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A compelling solution


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Daily deals sites. . . Helping merchants sell stuff at below cost to low-value customers they will probably never see again


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Validation Does the problem exist? Does your idea solve the problem? Does anyone care?


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Ability to scale


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Enterprise is HOT


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THE LOCAL STARTUP ECOSYSTEM


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PRACTICAL TIPS


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NDAs


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In need $250,000 from investors to hire a developer to build a prototype. . .


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USEFUL RESOURCES


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paulgraham.com Brisbane


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PROBLEM List the top 1-3 problems EXISTING ALTERNATIVES List how these problems are solved today SOLUTION Outline a possible solution for each problem KEY METRICS List the key numbers that tell you how your business is doing UNIQUE VALUE PROPOSITION A single, clear, compelling statement about why customers will buy your product HIGH-LEVEL CONCEPT One-line description of your business (eg. YouTube = Flickr for videos) UNFAIR ADVANTAGE What advantages do you have that can’t be easily bought or copied CHANNELS List your path to customers CUSTOMER SEGMENTS List your target customers and users EARLY ADOPTERS List the characteristics of your ideal customers COST STRUCTURE List your main fixed and variable costs REVENUE STREAMS List your sources of revenue Lean Canvas 1 2 3 4 5 6 7 8 9 www.leanstack.com


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www.udacity.com/course/ep245


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jfdi


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Thank you Colin Kinner email colin@spikeinnovation.com.au www.spikeinnovation.com.au @ColinKinner http://au.linkedin.com/in/colinkinner


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