Science of Entrepreneurship

1. Science ofEntrepreneurship

2. Introduction • AamirButt • 20 years+ instartups • 5 Startups, 4exits • Chasm Marketing, MillerHeiman Sales • Gazelle Growth andAccelerace • Tumour Trace,CEO • Lancor Scientific, CEO • NED • Aamir@LancorScientific.com

3. Need forScience • Businessplans • Value proposition • Who are you building itfor • Channels • CustomerRelations • Revenue model • Partnerships • Resources

4. Intuition SterlingMoss 16years 529races 212wins

5. VisionandMission Visualise, Focus, Commit, Act

6. New Product / NewMarket • A startupis: • A temporary organisation designed tosearch • for a scalable andrepeatable • business model • SteveBlank

7. PrematureScaling

8. What isScience? • http://www.oxforddictionaries.com/definiti on/english/science?q=science • The intellectual and practical activity encompassing the systematic study of the structure and behaviour of the physical and natural world through observation and experiment

9. WhyScience?

10. ScientificMethod • Phenomenon • Hypothesis • Prediction • Experiment • PeerReview • Publication • Replication

11. Hypothesis (testable, falsifiable) • A prediction statement that includesvariables • and a measurable or testable Scenario.

12. BeingRigorous • Value Hypothesis • Who • Problem • Implication • Solution • Pain • GrowthHypothesis • MarketSize • Reach • Drivedemand • Revenue • What is the measure of success, i.e. what is your baseline metric

13. The Pain andOpportunity • See a need, fill aneed • People buy painkillers, not vitamins • 73% fail because noneed. If we have data, let’s look atdata. If all we have are opinions, let’s go withmine. Jim Barksdale, former CEO of Netscape

14. Workshop Document your assumptions/hypothesis and experiments

15. Focusing on aBeachhead The Universe TheMarkets AddressableMarket Target Market Beachheads YourBeachhead Size = Number of Transactions x Size of eachTransaction

16. Focusing on aBeachhead • Focus • WholeProduct • Your‘Crowd’ • Influential Idea • Simplicity • Leader is aguide • Freed • Run risk of death to securetriumph • Personal interestssacrificed • Fanatic – we can guide theirthoughts • They wantit! Influence Reference

17. ThePerspective • what is acrowd? “A group of individuals united by a common idea, belief, orideology”

18. ThePerspective • crowdsentiment “Crowds rather than isolated individuals may be induced to run the risk of death to secure the triumph of a creed or an idea, that may be fired with enthusiasm for glory and honour…. Such heroism is without doubt somewhat unconscious, but it is of such heroism that history is made”

19. ThePerspective • crowd contagion • “In a crowd, every sentiment and act is contagious, and contagious to such a degree that an individual readily sacrifices his personal interest to the collective interest.”

20. ThePerspective • crowd formswhen • “an influential idea unites a number of individuals and propels them to act towards a commongoal”

21. ThePerspective • Crowds needsimplicity • “Ideas being only accessible to crowds after having assumed a very simple shape must often undergo the most thoroughgoing transformations to become popular. It is especially when we are dealing with somewhat lofty philosophical or scientific ideas that we see how far-reaching are the modifications they require in order to lower them to the level of the intelligence of crowds. [….] However great or true an idea may have been to begin with, it is deprived of almost all that which constituted its elevation and its greatness by the mere fact that it has come within the intellectual range of crowds and exerts an influence uponthem.”

22. ThePerspective • Crowds will follow aleader • “The majority of men, especially among the masses, do not possess clear and reasoned ideas on any subject whatever outside their own specialty. The leader serves them as guide. It is just possible that he may be replaced, though very inefficiently, by the periodical publications which manufacture opinions for their readers and supply them with ready-made phrases which dispense them of the trouble ofreasoning.”

23. ThePerspective • why join acrowd • “In crowds the foolish, ignorant, and envious persons are freed from the sense of their insignificance and powerlessness, and are possessed instead by the notion of brutal and temporary but immense strength.”

24. ThePerspective • crowdsbelieve • “A person is not religious solely when he worships a divinity, but when he puts all the resources of his mind, the complete submission of his will, and the whole-souled ardour of fanaticism at the service of a cause or an individual who becomes the goal and guide of his thoughts andactions.”

25. Workshop Document yourbeachhead

26. Building the team and ProtectingIP • Co-Founders • First Employees • MainBoard • Non-executiveBoard • AdvisoryBoard • IntellectualProperty

27. Workshop Document your Team andIP

28. Building a SalesMachine Buyer Roles: User Buyer, Economic Buyer, TechnicalBuyer

29. Building a SalesMachine

30. Building a SalesMachine VOLUME

31. Building a SalesMachine MOMENTUM

32. Building a SalesMachine

33. Building a SalesMachine

34. Workshop Document your SalesMachine

35. Discontinuity – In the BowlingAlley A B C D Provides modestenhancements Adds substantial newvalue Gives dramatic productivitygains Changes the competitivefield Pain 4 3 2 Integrates with existingsystems Local changes to existingsystems Broad changes to existingsystems Major reengineering, newsystems 1 Gain 35

36. Beware theChasm! 36

37. Workshop Document your Beachheadprofile

38. Modelling yourRevenue AHAAA! • The Market Size = $20Gazillion • Ouropportunity: • 5% Market Share in the first 3 years = $1Gazillion • 10% Market Share in the first 5 years = $2Gazillion COME ON – INVEST IN MYCOMPANY!!!

39. Present toInvestors Customer Value Introduction -Valueproposition Thepain Solution Barriers Against Imitation Business- Model Competition Themarket Why investin us Go toMarket plan Metricsand Money TheTeam

40. Present toInvestors

41. HELP! • aamir@lancorscientific.com