BUSINESS DEVELOPMENT FOR STARTUPS Robyn Ward at Co-Loft 8.23.12 Me Majored in Entrepreneurship Investment Banking Addicted to the start: Advised &Consulted over 20 startups Worked at: Online Retail Partners, e-commerce incubator OANDA, FX tools and currency trading platform Verified Person, background screening enterprise & smb software DocStoc, small business services Betterworks, employee rewards/recognition platform for smb Glossi, digital magazine platform BD in the Early Days Owner of industry & competitive landscape Early advocate for a business model & revenue model discovery One man/woman combo of sales, bd, and marketing Start to build the ecosystem Ecosystem Distribution Channel Outsourcers Partners Conference Organizers Suppliers Trade Assocs. BD Customers Investors Press, Analysts, Influencers Competition Building Social Capital Be everywhere IMPORTANT – offline and online Tips: Don’t just attend, participate Become/Friend a thought leader Make connections, not contacts Give before you get/ask Business Development v. Sales As per Paige Craig Why Partner? Grow audience/traffic Grow revenue Geographic expansion Increase Inventory Cost efficiencies Enhance Product -“build, buy, partner” Types of Partnerships Marketing Content Referral Reseller Technology Product Joint-Venture Targeting/Prioritizing Partnerships Partnership Evaluation Framework Potential Likelihood of Upside Success Effort Strategic Involved Value Courtesy of Docstoc’s Jason Nazar “Let’s Make a Deal” Do your homework Get a warm intro BD Build a relationship Listen – what is the need, want, desired outcome? Take copious notes SHOW benefits of the deal (projections & pictures) End every call w “Next Steps” CLOSING is just the beginning Deal Economics Barter Pay for action Tiered per performance Revenue share Key Terms Financial Who owns purchasing process, traffic, data, support Term and Termination Confidentiality Marketing and Promotions SLAs Reps & Warranties, Limited Liability, Indemnification, Dispute resolution Find agreements online: Docstoc, LegalZoom Potential Pitfalls Wrong type of deal for stage of company Not a “win/win” Reseller partnership FAIL (“if it does not make dollars, it does not make sense”) Exclusivity Failure to get buy-in with team Poor cross-functional management = Poor implementation Poor ongoing account management Characteristics of a Great BizDev’r PEOPLE PERSON General business athlete Strong salesman & negotiator Crafty / creative Investment banking or legal background (+ not a must) Industry contacts (+ not a must) firstname.lastname@example.org @rmward robynmward.com
"Business Development for Startups"