SEFI 4.25.2011 Founders Institute Seely
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Transcript of SEFI 4.25.2011 Founders Institute Seely
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8/7/2019 SEFI 4.25.2011 Founders Institute Seely
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FounderIns+tuteSea/le
StartupResearch-Suppor+ngYourIdeawithFacts
JeffreySeely4.25.11
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StartupResearch-thoughtsonsuppor+ngyourideawithfacts
Assignment:takeafreshlookathowresearchhelped
shapeyourproduct,directstrategyand
drivegrowthinyourcompanies
Youhaveanideaorhavealreadybuiltaproduct
Whatroledoesresearchplayatthispointinguidingyournextsteps?
Whataboutongoingresearch? Addressthisfrommyexperiencewith
severaldifferentcompaniesandbrands
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Basics:thepillarsofmarketandproductresearch
Themarketyouintendtoserve Defineit Sizeit WhowillbethecompeMtors? Whatarethetrendsandforecasts Wheredoesyourideafitin?
Thecustomeryouwanttocapture Demographics ANtudesanddesires Wheretofindher/him Howtoengageher/him
ostimportantly-
Whatproblemarewetryingtosolve?
Whatneedsoftheirsarenotbeingmet?3
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Savings-likeinvestmentproductWeb-based,allonlineRecurringrevenuemodelSMcky/accumulatedvalueAUracMvecustomeracquisiMoncostsAddressablemarket
Evaluation Criteria
ShareBuilder:howwedecidedtoposi+ontheproduct
COMPETITIONTARGET
CUSTOMERS
SWEET
SPOT
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Earlystageinvestors,lowernetworth IgnoredbySchwab,errill,etc.Simple,easytouseproductLowervaluepercustomer,butmore
ofthem!
Target a Specific Customer Segment
And,howweimprovedoddsofsuccess
COMPETITIONTARGET
CUSTOMERS
SWEET
SPOT!
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Definingthetargetcustomer-anotherperspec+ve
U.S. Distribution of Wealth: Household Net Worth
Lowest 25% Highest 10%
iddle
Income,Early
Stageor
Beginner
Investors
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MarketPosi+oning-gowheretheyaint
Lowest 25% Highest 10%
Industry Standard- Focus on the Wealthy
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Howwevalidatedourcustomertarge+ng
Research: CarefullyanalyzedcompeMMveofferings, StudiedFederalstaMsMcsonpersonalsavings, AUendedinvestmentconferences, SpokewithWallStreetresearchanalysts, AssembledfocusgroupsanddidmulMplesurveys, And,gottoknowthesectormediapersonaliMes-
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Wedeterminedwhoourcustomerwas
ProfileofShareBuilderstargetcustomer Agegroup25-40 EqualdistribuMonofwomen(vs.industrypredominantlymale%) ostlycollege-educated Owntheirfirsthome,orsoonplanningto LiUleinvesMngexperience(usuallycompany401k) Online,ofcourse
InvestmentcharacterisMcs Accountsizeswere
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Research:Wemadeitanongoingpriority
HiredafullMmecustomerresearchprofessional TheProfessorranaconstantprocessofstudyinginvestorbehavior
sabilitytesMngwasaregulardiscipline Webuiltanin-housefacilitytoconstantlytestnewdesigns
Formedacustomeradvisorycouncil InteresMng,butdidntreallywork.Weabandonedit.
RegularscheduleoffocusgroupmeeMngs Otherwiseverydifficulttostayintouchwiththeconsumer
Listentocustomers ExecuMveswererequiredtospendMmeeachmonthincustomercare
department,parMcipaMngincalls
etPromoterScore PSbecameoneofourkeymetrics,anotherwaytomeasurecustomer
happiness
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Complexi+esofcustomerbehaviorandeconomics
ThebestintenMonssomeMmesdontfollowthrough Americaninvestorslackdiscipline,tendnottosMckwithaplantosave About55%ofnewaccountsactuallyputmoneyintoinvest LessthanhalfofthemonthlyinvesMngplanskeptgoingaer1year
etricsDriven:nitleveleconomicssMllweresuccessful CAC(customeracquisiMoncost)wascloselymanagedagainstactualrevenues PaybackonCACwas
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ShiOinggears-JobsterandRecrui+ng.com
Assignment:restartastartupthathadbeendealingwithcomplexcustomerandproduct
issues,solveoperaMonalproblemsandreposiMonthecompany
Theprocesswetooktore-inventthecompany:
Basically,hadtotakethesameapproachwhenstarMngShareBuildertoassessthe
changedmarket,dobasicresearch,andfigureoutwhichwaytotaketheproductandthebusiness.
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Wedidanassessmentofthesector
Crowded:compeMMonisconcentratedinedium/LargebusinesssegmentConfusing:consolidaMoninevitable;productdefiniMonsfluidandblurring
Changing:landscapewillremaindynamic-alliancesshiingconstantly End-to-endsoluMonsandintegratedHRsuitesaregrowinginpopularity SaaSdeliverymodelisgainingtracMonandmomentum
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Short-term:wearesellinghiringtoolsinthemiddleofahiringfreeze Long-Term:Theglobalwarfortalentisaninevitablerealityandtheremay
beopportunity
TheSHCsowaremarketgrew13%in2007to$7.2B,thenhitawall ForecastwasCAGRof10-12%,growingto$10.6Bto$12.8Bby2012 Jobboardspendingincreasedto$11Bin2008,butcrateredin2009
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Timeline:researchprocessfornewproductstrategy
BoardPresenta+on
ovember18
September
14
August October ovember
Kickoff
mee+ng
August6
serTraining&
SupportDemo
BeginCurrent
CustomerResearch
Worksession
reportoutV2Demo
BeginSecondary
CategoryResearch
Refined
RecommendaMons
Prospect
Research/
Chicago
RetenMon&RenewalDemo
Research
Findings
PresentaMon
JobTechTrade
Show
LeadTeam
WorkSession
Preliminary
RecommendaMons
BeginExecuMve
Interviews
Prospect
Research/LA
Prospect
Research/
YC
SalesDemo
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Customerresearch
ewYork9/18
Chicago9/17
LosAngeles9/22
In-depthBuddyPairinterviewsinChicago,ewYorkandLA 29totalinterviews
Recrui'ngDirectors: 13 HRDirectors: 11 VicePresident,HR: 5
Diversitybygeography,industry,companysize 20K+(e.g.,Disney,IBM,Mitsubishi) 10K20K(e.g.,AIG,Mitsui,Reuters) 1K10K(e.g.,AmericanGolf,USCellular,OSI) 5001K(e.g.,LandmarkTheaters)
AllrespondentsinchargeofrecruiMngormanagingrecruiters,allwereawareofandinterestedinpassivetalent Conducted20-25onsitefocussessionswithlocalrecruiters
andtalentmanagers.Interviewedeveryclientcompany.
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Wedefinedourtargetcustomer
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Recruitment
Director
CFO
VP/HR
Line
Recruiters
500+FTEs50+reqsperquarterFiveyearsinpresentposiMonPrimarydecisionmakerBudgetauthorityFrontline+managementperspecMve
Hiringgrs.
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DidtheusualSWTanalysis:IntegratedRecrui+ngSolu+on
Strengths Resolvestension DifferenMaMoninawhitenoisemarket Thoughtleadership DontseecompeMtorwhocanfollow
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Threats
Cash/Mmepressures Developmenttalent Opportunitycost
pportuniMes
Territorytoclaim,defend,own Cansellasservicevs.product IncreasingsMckiness
Weaknesses oreMme,money ewidea=noanalogue
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Whatstepswetookbasedonourfindings
LearnedJobsterwasperceivedasaconsumername. SoldthejobposMngbusiness,Jobsternameandrelatedassets
RenamedandrebrandedthecompanyRecruiMng.com focustobeonprovidingaCR-likesowareproductforfinding,managing
andcommunicaMngwithfuturehireprospects
RebuilttheproductwithenMrelynewarchitecture Saasservicedesignedtoincorporatetheneedsofourtargetcustomer,easyto
use,withagreatsearchengine
LaunchedthenewRecruiMng.comonscheduleinSept.2009
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Howitworkedout
otsogood.
Saleswereweakonthenewproduct,andcapitalwasrunningout. arketcondiMonsforrecruiMngsowarewerebadeverywhere;ourtarget
customerswerenothiring,infacttheywerelayingofftheirrecruiMng
teams.BuyingrecruiMngsowarewasntevenonthelist.
WesawnopathtoprofitabilitywithoutaddiMonalfinancing,andourVCswereclearaboutnotinvesMngmore.
WesoldRecruiMng.comtoanotherindustryplayerinthe2ndhalfof2010.
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Conclusions
ResearchiscriMcalindefiningyourmarketspace,shapingyourproduct,anddrivingyourmarkeMngandproductdevelopmentonceyoulaunch.
Youcantanalyzethingstodeath.TherecomesaMmewhenyouhavetopullthetriggerandjustdoit.
Alltheresearchintheworldwontfixabadideaorstabilizeadifficultmarket.
SomeMmesideasturnintogreatsuccesses,someMmesthingsdontworkout.Thatswhyitsriskcapital.
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FounderIns+tuteSea/le
StartupResearch-Suppor+ngYourIdeawithFacts
JeffreySeely4.25.11
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Thank You.