Masterclass High Tech Entrepreneurship
29 November 2013 Drs. Steef Blok Managing Director TU/e Innovation Lab
Introduction Present position • Managing Director TU/e Innovation Lab • Owner of WLB Group – 8 companies in recreation and leisure
Former Positions • Director TTO, Director Holding VU&Vumc • Director TTO, Director Erasmus MC Holding • Founder, owner and director of life science companies (Cobrint, Medi-C, SVG, Cobra, Genovum)
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TU/e Innovation Lab
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TU/e Innovation Lab Where Innovation Starts
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Start-up Start-ups are really hard Start-ups are really f****** hard
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Start-up: 5 myths • Start-ups cost nothing to build • The average tech startup founder is a 25year-old male • Start-ups get funded on a napkin sketch and passion • A good idea wins every time • Location doesn’t matter
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If I tell you… • That this is the first prototype made of a new developed synthetic fiber from the lab of the TU/e…
• Would you be the launching customer to buy this??
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Start-up: fact 4 out of 5 people who use the phrase “it’s cheap to build a start-up” have never built a start-up (and probably never will)…. The remainder are independently wealthy.
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Start-up: a week in the life of a founder
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Bargaining power ????
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How to deal • Know that you will be rejected • Understand that you will underestimate the number of times that you will be rejected and how long it will take you to raise Euro’s • Ask rejectors for “real” feedback • Ignore most of said feedback • Seek mentors and allies (!)
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Investors: seeds and venture funds • We think you are too early • We don’t understand the market • You are raising to much • You are raising to little • If only you did a+b, we’d be a better fit “FIND YOUR PRODUCT/MARKET FIT BEFORE YOU RUN OUT OF MONEY”
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Investors: seeds and venture funds
“YOU CAN DO EVERYTHING RIGHT AND STILL DIE BROKE”
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Market
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Markets are good, customers are better
BUT
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Market and competitor analysis •
What have you done to identify the market?
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How large is the market? And what could be your share of the market?
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How will products or services be promoted?
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What do you know about (potential) competing products and companies? And how do you compete with them?
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How will the product or service be priced?
“To whom do you send your first invoice, what is on the invoice and why would he pay …?”
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Market and competitor analysis
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The industry analysis 1 • What is the size of your industry by both revenue and number of firms? • Discuss key characteristics of this industry, e.g. growth trends, units sold, employment • What factors are influencing growth or decline in your industry? • What have been the trends in previous years? • What trends are expected in the coming years? (include supporting research) • What are the barriers of entry for your industry?
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The industry analysis 2 • How many companies are expected to enter your industry in the future? • What government regulations effect your industry and your business? • Is your industry highly regulated or does it fall below the government's radar? • Provide a general explanation of the distribution system for products and services in your industry. • Is it difficult to gain distribution access to your industry? Explain.
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My product is superior‌
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Market is a battlefield, prepare yourself!
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Competitive analysis: Mistakes to avoid • Assuming you have no competition & failing to identify both direct and indirect competitors (this is a sign of inexperience). • Underestimating the power and strength of competitors. • Omitting the specific competitive advantages you hold over your competition. • Demonstrating a lack of knowledge or strategy to combat changing competitive conditions. • Failing to define and clarify your position, strength, and market niche focus.
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Competition
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Big mistake 1 “I can do the sales myself�
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Big mistake 2 “I can do everything by myself and need nobody�
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Hiring your first marketing and sales representative
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Your challenge in marketing & sales Generating suspects
Leads
Prospects
Getting actively involved in the business strategy of your (potential) customer to identify opportunities and to create new prospects / leads for your customer’s business and therefore for your own business
Helping to organise the activity cycle of the customer In other words: Make it easy for the customer to buy and to buy more ‌
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Understanding the customer From…. ....which products / services will they buy?
To …. ….which opportunities do they see? ….which problems do they want to overcome?
It’s not important what they buy …. …. but why, when en how much they will buy!
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Inside out versus outside in ‌.
Value
Benefits
The business of my customer through the eyes of my customer The business of my customer through my eyes My business through the eyes of my customer
Specifications
My business as I see it
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4:1
2:1
€
HOT PROSPECT
5:1
PROSPECT
25:1
LEAD
SUSPECT
Managing the sales funnel
Deep Up sell Cross
1:1000
Conversion ratio’s 30
Get and keep customer interest Attract
Advertising Marketing Webvertising Portals Banners ...
Turn interest into orders
Manage orders
Service customers
Interact
Act
React
Catalogue Sales Call Centre Internet GSM ...
Order capture Payment Fulfilment Delivery Administration …..
Customer service Order Tracking Loyalty ….
Amaze
?? ?? ?? ….
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Capturing the customer in the total service cycle... Seduce
Order
Renew
Cross/up/deep selling Loyalty
Pay
Support
Produce
Mass customization
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Defining the (potential) quality of your (potential) customer ‌
Focus on Account Planning Key accounts
PROSPECTS Accounts
Focus on Sales Activity Management
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Sales aim pecific easurable chieveable ealistic ime Without shooting at targets that we cannot reach (yet)‌
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Playing chess at more than one field at the same time
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Before you sell, make sure you have your after sales arranged
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And…
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Contact information A:
TU/e Innovation Lab Horsten 1 5612 AX EINDHOVEN The Netherlands
T:
+31 402474822
E:
innovationlab@tue.nl
W:
www.tue.nl/innovation
Y:
www.youtube.com/user/tueinnovation
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