STARTUP MARKETING Most dangerous mistakes and how to avoid them
Top 10 mistakes to avoid & how to transform your idea into successful startup
Dr. Donatas Jonikas
AGENDA
1. Global RESEARCH on startup marketing
2. Top 10 most dangerous MISTAKES 3. HOW TO create a successful startup
STARTUP MARKETING
RESEARCH
STARTUP MARKETING: RESEARCH
GLOBAL RESEACH
STARTUP MARKETING: RESEARCH
STARTUP MARKETING: RESEARCH
STARTUP MARKETING: RESEARCH
STARTUP MARKETING: RESEARCH
STARTUP MARKETING: RESEARCH
Donatas' book is like an IKEA guide for building your next startup. Michal Tomek, Co-founder & Editor at Slovak STARTUP
If I could have read this book before creating my first startup, I would have avoided many pitfalls and tons of frustration. Ariel Mizrahi, Serial Entrepreneur & Mentor at StartupMexico
Startup Evolution Curve is in the same league with The Four Steps to the Epiphany by Steve Blank and The Art of Start by Guy Kawasaki. Denis Todirica, Start-up Chile Entrepreneur. Forbes 30 under 30
I don’t know any book that sums up better the startup evolution and growth than the Startup Evolution Curve by Dr. Donatas Jonikas. Velimir Tasic, Co-founder of ESAA entrepreneurship incubator in Singapore
MISTAKES
STARTUP MARKETING: MISTAKES
#1 Creating the product first, thinking about marketing later
STARTUP MARKETING: MISTAKES
1960s Fousing on product creation is a business mindset that was popular and very effective in... 1960s
21st Century You have to create products that will be loved and used by customers, not you!
STARTUP MARKETING: MISTAKES
#2 Offering “nice to have,” but not essential value
STARTUP MARKETING: MISTAKES
AutoPixie • 106 repair shops in 5 countires interviewed
• Some of them interviewed 5 or 6 times • 26 prototypes built in PowerPoint
• $5,000 experiment with 3 of 3
STARTUP MARKETING: MISTAKES
STARTUP MARKETING: MISTAKES
AutoPixie • €20,000 in government grants • contract for a small government investment • shortlisted onto one of the world’s top accelerators • Silicon Valley angel syndicate prepared to invest $500,000
STARTUP MARKETING: MISTAKES
#3 Lack of market verification: saying is not the same as paying!
STARTUP MARKETING: MISTAKES
42,6% are trying to address really serious problems and create tremendous value but don’t test it in the market or they do it in the wrong way You’ll never have real market verification until customers give you their money for your product.
STARTUP MARKETING: MISTAKES
Modgarden
Location Food gardening Climate zone Gardening purpose
124.5 million households in USA 31% of all US households (estimated at 36 million) did food gardening in 2008 (2015 data is available under paid subscription at National Gardening Association) 22% of the 36 million households (or 7.92 million) are cold climate gardeners Vegetable gardeners are 23% of Herb gardeners are 12% of 7.92 or 0.95 7.92 or 1.7 million households million households
Target market size
1.7 + 0.95 = 2.6 million households
Campaign goal
2,000 households, which is less than 0.08% of the estimated target market size
STARTUP MARKETING: MISTAKES
#4 Anything to please investors instead of customers
STARTUP MARKETING: MISTAKES
Investors can bring money, their network, and quick solutions to some of the challenges of a startup, but only if you have a valuable and verified solution.
Customers If they are happy, many things follow automatically,
including the investors standing at your door to provide you needed funds. STARTUP MARKETING: MISTAKES
#5 Thinking that “we have no competitors”
STARTUP MARKETING: MISTAKES
33,9% have evaluated their micro and macro business environment, while others hadn’t even thought about it
Ask Yourself “How can we find out with whom we are competing” STARTUP MARKETING: MISTAKES
#6 We have brilliant idea and it will go viral by itself
STARTUP MARKETING: MISTAKES
“Hope marketing” Why should anyone recommend your service or product? What’s in it for them to do so?
3 Engines of Growth Take action to implement at least one of those engines: viral, sticky, paid STARTUP MARKETING: MISTAKES
#7 A good growth hacker is all we need!
STARTUP MARKETING: MISTAKES
Death by Growth Good growth hacker will kill your startup if you are not well prepared!
<20% Only 20% of startups have developed their up-sell and cross-sell strategies
STARTUP MARKETING: MISTAKES
#8
Marketing needs a huge budget, therefore weâ&#x20AC;&#x2122;ll take care of it after fundraising
STARTUP MARKETING: MISTAKES
47,9% were already on the market, but only 39.4% had
developed their brand and positioning and only 17.4% had a consistent marketing plan
Crafting positioning statement and marketing strategy as well as creating a marketing plan requires effort, not money! STARTUP MARKETING: MISTAKES
#9 We’ll enter the market with “big boom” launch
STARTUP MARKETING: MISTAKES
WRONG! Big launches might be a strategy for the wellestablished, traditional business, but for startups, it usually just causes failure in the form of wasted money and insufficient sales.
STARTUP MARKETING: MISTAKES
#10 Burning money instead of investing
STARTUP MARKETING: MISTAKES
Cash Burn Rate Allways know hos wast you are “burning” your money. Does it create tangible value?
See the Difference between fundraised and earned money and which milestones you can achieve with current “cash burn” rate
STARTUP MARKETING: MISTAKES
Expensive Mistake • $11 million fundraised • Entered into 13 country markets • Team of more than 150 people • Millions of users! • Run out of funds!...
STARTUP MARKETING: MISTAKES
HOW TO DO IT...
STARTUP MARKETING: HOW TO...
5 Stages x7 Tasks =35 Tasks
STARTUP MARKETING: Mistakes STARTUP MARKETING: HOW TO DO IT...
Value Proposition Target Market
Business Model
Feasibility Study
STARTUP MARKETING: Mistakes
Prototype (MVP)
Funding
Product Launch
Growth Hacking
Value Proposition
O st e rwa ld er A le xa nder, P ign e ur Yve s, B e rn arda G re go ry, S m it h A la n . Va lu e P ro p osition De sign : Ho w t o Cre a t e P ro d uct s a n d S e rvice s Cu st o mers Want (S t ra t e gyze r). W iley; 1 e d it ion (O ct o b er 2 0 , 2 0 14)
STARTUP MARKETING: HOW TO DO IT...
Target Market Name: Anna
Gender: Female
Age: 30
Occupation: accountant, secretary
Education: college degree
Work location: business center in city
Living location: condo in suburb
Monthly income: $ 1,500
Family status: married, 2 children
Other details: Family monthly income $ 2,000 – 3,500 Have one or two family cars, but uses public transport as well Number of similar customers:
42,500
Potential revenue in segment:
$ 1,000,000
Description:
cares about healthy lifestyle of the family goes to the gym at least 2-3 times a week loves gardening, but has no garden at home loves cooking on weekends reads professional and lifestyle magazines, romantic novels Motivates
natural source of vitamins and minerals fresh vegetables and herbs for weekend cooking aesthetics and modern look of furniture being proud about home-grown
STARTUP MARKETING: HOW TO DO IT...
Demotivates
Doubts about durability and maintenance New furniture needs additional space Price
Business Model
Ma u rya A sh . Ru n n ing L e a n: I t e ra t e f ro m P la n A t o a P la n T h a t W orks. O 'Re illy Me d ia ; 2 e d it ion (Ma rch 9 , 2 0 1 2)
STARTUP MARKETING: HOW TO DO IT...
Value Proposition
Main Hypotheses
Target Market
Validated Business Model
Business Model
Marketing Strategy
Feasibility Study
STARTUP MARKETING: Mistakes
Prototype (MVP)
Funding
Product Launch
Growth Hacking
Main Hypotheses 1. Promblem 2. Solution
3. Segment 4. Price
5. Channels
STARTUP MARKETING: HOW TO DO IT...
Marketing Srategy Purpose
How to achieve it
Target market
Marketing weapons
Niche Identity Budget
Target customers enroll in comprehensive online courses at a price range of $997 - $2,999 Lead magnets will generate sign ups to free online mini-courses that will solve one or more painful problems related to startup marketing and will deliver tangible value right during the course. Then I will show them what other problems could be solved in my comprehensive online courses and how these courses help startups to build a profitable and scalable business faster. Strategic calls (video conference via Skype) could be used for onboarding high ticket customers at the final stage. Early stage startups who have innovative ideas, but are still searching for how to build a profitable and scalable business, and have no resources or donâ&#x20AC;&#x2122;t want to spend them on hiring professional marketers or consultants at this early stage. Lead magnets (templates and spreadsheets for startup marketing, free online courses, webinars), virality boost tools (for example Maitre App, Pay with a tweet), social media advertising, contextual advertising, blogging and guest blogging, guest speaking at startup events, email marketing automation, affiliate marketing partnerships, free e-books, and other useful giveaways. Comprehensive startup marketing online courses with six months mentoring and one-on-one consulting. Expertise, individual, and in-depth approach $2,000 starting budget, 20% of revenue will go for marketing
STARTUP MARKETING: HOW TO DO IT...
Value Proposition
Main Hypotheses
Milestones
Target Market
Validated Business Model
Fundraising Material
Business Model
Marketing Strategy
Secured Investments
Feasibility Study
STARTUP MARKETING: Mistakes
Prototype (MVP)
Funding
Product Launch
Growth Hacking
Milestones
STARTUP MARKETING: HOW TO DO IT...
Fundraising Material
STARTUP MARKETING: HOW TO DO IT...
Value Proposition
Main Hypotheses
Milestones
Irresistible Offer
Target Market
Validated Business Model
Fundraising Material
Marketing Plan
Business Model
Marketing Strategy
Secured Investments
Execute, Measure, Learn
Feasibility Study
STARTUP MARKETING: Mistakes
Prototype (MVP)
Funding
Product Launch
Growth Hacking
Irresistible Offer
B2B Prospex
STARTUP MARKETING: HOW TO DO IT...
Irresistible Offer
Hostaway.com STARTUP MARKETING: HOW TO DO IT...
Irresistible Offer 01
02
03
04
05 STARTUP MARKETING: HOW TO DO IT...
Create Up-Selling Offers Generate at least a few ideas to increase value and earn extra revenue per sale
Create Cross-Selling Offers Think about how to encourage customers to purchase related or complementary items
Create Repeat Sales Business Model Think about how you could sell once and get revenue multiple times
Consider Down-Sell Strategy Be ready to downgrade your main offer if customers find it too expensive
Find Partners for Affiliate Sales Find people who will sell your product and earn commissions per sale
Value Proposition
Main Hypotheses
Milestones
Irresistible Offer
Viral Loop
Target Market
Validated Business Model
Fundraising Material
Marketing Plan
Marketing Automation
Business Model
Marketing Strategy
Secured Investments
Growth Execute, Measure, Learn Engines
90%
75%
Feasibility Study
Prototype (MVP)
STARTUP MARKETING: Mistakes
35%
Funding
15%
Product Launch
7%
Growth Hacking
Automation Workflow
Viral Loop and “Pirate” Metrics (AARRR)
QUESTIONS?
Dr. Donatas Jonikas Mob. +3706 7047671 startup@evolutioncurve.com