So you want to do So you want to do a startup?a startup?

Rashmi Sinha,SlideShare

Are you sure?

Who am I?Who am I?

SlideShare... SlideShare... best place in the world to share presentations

Taking over the Taking over the world world (one PowerPoint (one PowerPoint at a time!)at a time!)

Start May 06 > Beta > Launch Oct 06 > Grow > Grow more > Angel funding Dec 07 > Series A Apr 08

We are hiring!

1. Make your1. Make your app app usefuluseful

Solve one problem Solve one problem really wellreally well

Make app Make app socialsocial

SlideShare as non social appPowerPoint plugin?No virality

2. Speed is2. Speed is imperativeimperative

Why startupsWhy startups need need speed?speed?

Small & fast

Set the tone for Set the tone for speedspeed

In hiring, development, design, releases, biz dev

Be agileBe agile(worry about scaling later)

The monster of expectations

3.3. What What to buildto build

Why we builtWhy we built products products we didwe did

MindCanvas: Could sell into marketSlideShare: Understood market

37signals:37signals: Build less Build less

Build forBuild for right right reasonsreasonsStart with lessAdd complexity (when necessary)Remove features Get people used to change

To build To build a feature ora feature or not tonot to

Listen to loudest?Watch behavioral metrics?Read blog posts?

Loudest users ORLoudest users OR silent silent majoritymajority

slidecasting example

How toHow to double double traffictraffic??

Anatomy of aAnatomy of a feature feature launchlaunch

Groups: V1, V2 & V3

4. Ideas are4. Ideas are dime a dime a dozendozen

NO EXECUTION = $1WEAK EXECUTION = $1000SO-SO- EXECUTION = $10,000GOOD EXECUTION = $100,000GREAT EXECUTION = $1,000,000BRILLIANT EXECUTION = $10,000,000

AWFUL IDEA = -1 WEAK IDEA = 1SO-SO IDEA = 5GOOD IDEA = 10GREAT IDEA = 15BRILLIANT IDEA = 20

Ideas are just a multiplierIdeas are just a multiplier

XX

http://www.oreillynet.com/onlamp/blog/2005/08/ideas_are_just_a_multiplier_of.html

Execution is Execution is all that all that mattersmatters

Care aboutCare about executionexecution

Scrutinize ideas: “can we execute on this?”How fast? When can we start work?What will first version take?Which team member will do it? What metrics to track progress?What will we push back to work on this?

5. Understand5. Understand market market sizesize (& revenue model)(& revenue model)

http://www.flickr.com/photos/docman/5053155/

Potential Potential market market sizesize

No of PowerPoint presentationsBlogs & Video

Potential Potential revenue revenue streamsstreams

AdSenseAffiliate NetworksSponsorshipsFremiumLicensing White label versionMarketplaceJob board Professional services

Good Good early legsearly legsAdsenseConsulting revenue

Revenue Revenue stream stream impacts impacts applicationapplication

AdvertisingPro accounts & FremiumWhite label solutions-Revenue stream should not kill virality-Don’t loose focus on majority

Problems withProblems with fremiumfremium

VC money?VC money?Retain control till you canTake money (if you absolutely need it)From right partners

6. Get6. Get advisors & advisors & angelangel investorsinvestors

SlideShare SlideShare advisors & angel advisors & angel investorsinvestors

Dave McClureGuy KawasakiMark CubanJonathan AbramsYee LeeHal VarianSaul Klein

Who?Who?

7.7. Outsource Outsource what what you canyou can

Outsource Outsource complexitycomplexity

Amazon S3, EC2Dedicated servers instead of colocationGoogle AdsGoogle SearchDifferent widgets (Gigya, AddThis)

8. Working with8. Working with remote teamsremote teams

ChallengesChallengesGetting to know each otherHard to develop informal rapportNeed to look at same screen.Body clockBenefits: 24 hour cycle

Synchronous Synchronous is is mustmust

SkypeGoToMeeting

SCRUMEnd of day reports

9. How to9. How to LaunchLaunch

The AlphaThe AlphaFeedback to the embedNo publicityBrowser compatibility issues

How How developeddeveloped should a Beta be?should a Beta be?

SlideShare betaEnough to get point acrossLittle of social layerNot buggy

SlideShare SlideShare launchlaunch

Invite only: Before or after launch?

AlphaStealth mode

Open to allLaunchInvite only

Initial MomentumInitial Momentum

10. Use10. Use metricsmetrics

What metrics?What metrics?Performance: page load times...Errors: 404, 500s...Traffic: Web logs

Database tracking: No. registrations, login, uploads, contactsCustomer feedback emails

Get yourself aGet yourself a shadow appshadow app

Metrics we care aboutSimple console with daily, hourlySimpler than web analyticsWhole team uses itMeasure project success, iterateProxy AB testing

Startup Metrics from Dave Startup Metrics from Dave Mc ClureMc Clure

Acquisition: users come to site from various channelsActivation: users enjoy 1st visit: "happy” experienceRetention: users come back, visit site multiple timesReferral: users like product enough to refer othersRevenue: users conduct some monetization behavior

Customer Lifecycle & ConversionCustomer Lifecycle & Conversion BehaviorBehavior

4. REFERRAL

Emails & widgets

Campaigns, Contests

5. Revenue $$$

Biz DevAds, Lead Gen, Subscriptions,

etc2. Activation

Homepage / Landing Page

Product Feature

s

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Network

s Blogs

Domains

Example ConversionExample Conversion MetricsMetrics(note: (note: *not* actuals…*not* actuals… your mileage may vary.) your mileage may vary.)

Category Conversion Status Conv % Est. ValueAcquisition Visit Site

(or landing page, or external widget)100% $.01

Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks)

70% $.05

Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)

30% $.25

Activation Email/Blog/RSS/Widget/Acct Signup(anything that could lead to repeat visit)

5% $2

Retention Length of Session / # of Clicks(length/intensity of engaged visit, >180s)

10% $1

Retention Email Open/ RSS view -> Click/Repeat Visit(3+ visits in first 30 days)

3% $5

Referral Refer 1+ users who visit site 2% $1Referral Refer 10+ users who activate 0.2% $10Revenue User generates minimum revenue 2% $5Revenue User generates break-even revenue 1% $25

Finally Finally slides athttp://www.slideshare.net/event/webvisions-2008/slideshows

find me at www.slideshare.net/rashmi

We are hiring!