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Creating a Sustainable Business Let the Market Speak

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					Creating a Sustainable Business Let the Market Speak
Cliff Grossner VP Product Marketing Nov 5, 2004

What Does it Take?
• Novel piece of technology or business process • Practical business problem to solve • Product that is easy to understand, sell, and use • Viable business model
• Team with the “right” mix of experience • Sufficient funding to get to profitability

• A “wave” to catch

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A Practical Business Problem

• Is it a problem that people recognize? • Is this a problem that people need solved with reasonable urgency? • Is this a problem that is wide spread? • Is it easy to identify who has the problem? • Is it easy to get the word out to people with the problem?

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Viable Business Model?
• Can you deliver a complete solution? • Can you deliver V1.0 for a reasonable cost? • Can you sell V1.0 in a short enough time frame to prove the business is real? • Is the price the market will bear sufficient to have a profitable business?
• Is it possible to ramp sales fast enough to reach a revenue neutral position?
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What Are The Steps?

Genesis
• Determine the business problem • Concoct a Solution
– – Generate IPR Develop Technology Demo

New Product Release
• Complete product development • Determine key marketing messages • Start selling product

Market Assessment
• Find a willing trial customer • Develop business model

Ramp to Volume
• Build sales distribution and channels • Build vendor partnership

Market Validation
• Develop early release version of product • Deploy trials with lead customers • Evaluate product and business model
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Exit
• Negotiate sale to larger partner • Reverse take over • IPO to fund new growth
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How to Keep The Pump Primed?
Genesis
• Personal Funds • R&D Grant • Angel Funding • Business Development Grants

Market Assessment • Angel Funding

Market Validation New Product Release Ramp to Volume Exit
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• Private Seed Funding • VC Seed Funding • Private Seed Funding • VC A Round • Sales Revenue • VC B Round • Market Funded
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The Team?

Genesis Market Assessment

• Technology Inventor • Business Development • Technology Inventor • Marketing • Business development
• • • • • CEO Marketing/Product Sales Technology Finance

Market Validation, New Product Release & Ramp to Volume

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What Are The Pitfalls?
• Know your Limitations • Keep the business focused • Adapt to the market • Leveraging partnerships • Raise funds only as needed • Be frugal

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Pulling it All Together

• The Technology/Product • The Sample Customer • The Business Model • The Team • The Funding

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