salyer, stephen media entrepreneurship presentation to salzburg academy
TRANSCRIPT
SALZBURG ACADEMY ON MEDIA
AND GLOBAL CHANGE
“Media Entrepreneurship: Financing Change
in a Digital World”
Stephen Salyer, President, Salzburg
Global Seminar
QUESTIONS FOR THIS MORNING’S
SESSION:
� What is the difference between social entrepreneurship and
business entrepreneurship?
� Which revenue sources might “sustain” future digital media?
� How might I persuade someone to “invest” in my idea?
2
WHAT EXPERIENCE
AM I DRAWING ON?
� “Starting Things”
� 1974 Salzburg Seminar – “Non-profit entrepreneur”
� Training in law and public policy (1974–79)
� Television production, educational publishing (1979-88)
� WNET Learning Lab (1983 – 86)
� Radio news – Public Radio International (1988-2005)
� Digital news and service provider – Public Interactive, LLC
(1999-2005)
� Encouraging media innovation – Salzburg Global Seminar
(2007 - present)
� Board of Internews: https://internews.org/ 3
COMMON THREADS
1. Breaking new ground - no precise model to replicate.
2. Defining a need to be met before designing a solution.
3. Creative collaboration.
4. Distinctive media application.
5. Convincing others to “invest” in the idea.
4
SOCIAL V. BUSINESS
ENTREPRENEUR
� Problem-driven
� Social value foremost
� Economic sustainability
secondary
� Relies on donor startup $
� Depends on diversified
revenue sources
� Difficult to measure success
� Often slow to scale
� Need-driven
� Economic return foremost
� Public value secondary
� Relies on investors or
shareholders
� Relies on market / consumer
adoption
� Market metrics
� Often fast to scale or failure
Social Entrepreneur Business Entrepreneur
5
EXAMPLE #1: MINNPOST (LOCAL)
� Target market: Minnesota, USA
� Launch: 2007
� Full time employees: ~17
� Annual budget: $2M
� Startup capital: $850,000 from 4 families
� Current revenue sources:
� Subscribers / members
� Foundation grants
� Advertising / corporate sponsorships
� In-person events
Model: Diversified community support 6
EXAMPLE #2 (Global)
� Bright Simons, m-Pedigree Network
� Mission: eliminate counterfeit drugs from the market
� Launch: 2007
� Leverage cell phone technology to eliminate counterfeit
drugs
� Territories: East Africa, West Africa, South Africa, South
Asia
� Partners: 2 dozen telecos, regulatory agencies,
pharmas, regional health organizations
� Supporters: Ashoka Innovators for the Public, World
Economic Forum, TED
� Model: Give Away the Solution and money will come8
EXAMPLE #3 (glocal)
� TED TALKS
� Started as design conference
� Effective marketing of exclusive event
� Simple, recognizable format
� Megaphone for new ideas
� Free marketing via uTube / podcasts / broadcasts
� Localizing global concept
� Licensing organization, web developer
� Strong brand, tested methodology
� Sell tickets
Model: Franchising 10
GROUP WORK HYPOTHETICALS
Hypothetical: Sam’s video platform
1. Read Hypothetical
2. At your table, decide on:
a. what product Sam should offer
first?
b. 3 forms of revenue to sustain his
business?
c. who might invest in Sam’s idea?
d. what might they receive in return?
11
WHICH QUESTIONS APPLY TO NON-PROFIT
VERSUS FOR-PROFIT BUSINESS PLANS?
� What need are you trying to meet?
� Will your concept produce high social value?
� Who are your customers?
� Why will they want your product?
� How will customers access your offer?
� Who will pay for its development?
� Who will sustain its availability?
� When will investors receive a ‘return’?
12
WHAT DISTINGUISHES A FOR-
PROFIT PLAN?
� Competition and differentiation – e.g., first to market, unique
features, exclusive partners, cool tech, branding
� Pathway to profitability – a plausible revenue model
� Return on Investment (ROI) – a way for investors to get their
money back plus a “return” worth the risk taken
13
WHAT DISTINGUISHES A NON-
PROFIT BUSINESS PLAN?
� Powerful argument for social value creation
� Convincing explanation why the market can’t
meet the need
� Metrics beyond profitability for assessing success
14
WHAT MAKES FOR A POWERFUL ELEVATOR
SPEECH?
� Be Specific
� What exactly is the need and opportunity?
� What makes your solution superior to others?
� What will drive movement to scale?
� Connect strategy and outcome
• A credible implementation path from here to there
� Capture significance
How BIG could this become?
� Make it compelling
Why is it essential to move now?
15
BUSINESS PLAN V. ELEVATOR
SPEECH
� Much more detail
� What supports your needs assessment?
� How is your ‘solution’ superior to what exists (e.g., cheaper,
faster, better)?
� What is required to bring it to market (e.g., talent, technology,
rights)?
� How can your concept be tested / proven?
� Who are your competitors?
� What risks do you and your investors face?
� What is the track record of you and partners?
� What signposts will say you are moving in the right direction?
16
INVESTMENT
� What investment(s) do you require?
� What and how long will that buy?
� How will the next stage be supported?
� When and how will investors receive a “return”?
� What role will investors have in future decisions?
17
THE BOTTOM LINE
� You will need to innovate your whole life
� You may need to invent your next job
� You will need to convince others to succeed
� An effective business plan
� helps you develop a pathway to success for your idea,
� inspires confidence you (the entrepreneur) can execute, and
� convinces others to join you in your journey. 18