Business Development for Startups
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Technology Startups Queen Rania National Entrepreneurship Competition
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Transcript of Business Development for Startups
Technology StartupsQueen Rania National Entrepreneurship Competition
Business opportunity Vs. Business idea
A unique innovative idea
Has the needed
knowledge about skills
Passionate about it, and
willing to sacrifice to
make it work
√
Startup Lifecycle
Theoretical Stage
•Concept
•Demo.
•R&D.
Early Stage
•Viable product.
•Revenue.
Growth Stage
•Break-even.
•Profit.
Exit Strategy
•Acquisition.
•IPO.
The AWESOME! Idea stages
Why would the AWESOME! Idea DIE…
The startup might die because of different scenarios:
It might be because of funding:
Going out of cash at the theoretical stage.
Going out of cash at the early stage.
It might be because of bad decisions:
Being stiff while dealing with the business model or the business plan.
Taking the wrong decisions when it comes to the product development.
Not considering the market reality.
Some technologies that couldn’t make
it
Technology Startups sources of
Funding
Bootstrapping Angel Investors
(Ex. Bedaya)
Corporate Venture Capital
(VC)
Traditional Venture Capital
(VC) (Ex. IVH)Others
Sahlman’s* Entrepreneurship Model
People
Team, Capabilities, Attitudes, Reputation.
Resources
Financial, Physical, Intellectual.
Deal
Rewards and risks, Incentives, Ownership,
Harvest.
Opportunity
Customers, Strategy, Business Model.
Business Plan
Bill Sahlman - HBS
Technology Lifecycle adoption curve
Discovery
•Developing the new technology
Introduction
•Introducing the new technology to the market
Implementation
•Innovators and early adopters start using the technology
Evaluate
•Innovators evaluate the new technology and either adopt it or reject it
Market dynamics
It’s not impossible yet very hard to expect the market dynamics, because
of:
In the technology field it’s hard to predict the future.
To know the market dynamics you need experts in multiple sectors not only the
sector that you are working at.
The data keeps on changing all the time and it’s hard to collect.
Still you can:
Talk to the customers.
Reasoning indicators, understanding the S curve.
The historical data.
Understanding the S curve
The technology development curve
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10
20
30
40
50
60
70
80
90
100
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Concept development
Product Development
Alpha/Beta Test
Launching
Understanding the S curve
The penetration curve
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10
20
30
40
50
60
70
80
90
100
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Early Adopter
Growing Market
Mass Adoption
Slowing down
Alliances importance
Why you get into alliances?
Fostering the product developing.
Giving a better access on the market.
Understanding the industry culture.
Entering new markets.
Some of the large companies nowadays are hiring top managers in the position of (Strategic Business Alliances), where this person can focus on developing alliances with other organizations and companies to develop strategic alliances and to work on finding new opportunities for the company through cooperating with other organizations.
Some Successful Alliances
LCD Panel
Taking Advantage of a Successful
Alliances
LCD Panel
Why Alliances are more
important for Startups?
Startups business development
Create clear BD targets
Structure your approach
Be prepared and solve the problems
Always be responsive
Don’t over rush
Promise less deliver more
Focus on building the strong partnerships
Listen to your customers and partners
Make sure that you have all the needed legal back-up and support
Hire the right person!
The BDM can be:
Scouting
Testing
Scaling
Business Development Vs. Sales
Network, Network, Network
It’s not about how large is your
company!
Code of ethics & CR
importance for startups.How can startups afford having such programs and how it would affect their
work.
Recommended to Read
For more Information
Feel free to contact me at:
LinkedIn: www.linkedin.com/in/mobaidat
Twitter: mobaidat
