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    BDfor Startups

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    ebazon
    This document provides an overview of business development strategies for startups. It discusses the differences between business development and sales, with business development focusing more on strategic partnerships and distribution rather than direct revenue. The document uses the example of Half.com to illustrate how business development was used to launch the site by securing inventory, distribution, and technology partnerships. It also discusses how to identify partners' problems and effectively communicate value propositions. The document provides tips on developing partnerships, managing deals, leveraging relationships, and getting a company's name known in an industry.

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    BDfor Startups

    Uploaded by

    ebazon
    5K views25 pages
    This document provides an overview of business development strategies for startups. It discusses the differences between business development and sales, with business development focusing more on strategic partnerships and distribution rather than direct revenue. The document uses the example of Half.com to illustrate how business development was used to launch the site by securing inventory, distribution, and technology partnerships. It also discusses how to identify partners' problems and effectively communicate value propositions. The document provides tips on developing partnerships, managing deals, leveraging relationships, and getting a company's name known in an industry.

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    BDforStartups

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    This document provides an overview of business development strategies for startups. It discusses the differences between business development and sales, with business development focusing more on strategic partnerships and distribution rather than direct revenue. The document uses the example of Half.com to illustrate how business development was used to launch the site by securing inventory, distribution, and technology partnerships. It also discusses how to identify partners' problems and effectively communicate value propositions. The document provides tips on developing partnerships, managing deals, leveraging relationships, and getting a company's name known in an industry.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5K views25 pages

    BDfor Startups

    Uploaded by

    ebazon
    This document provides an overview of business development strategies for startups. It discusses the differences between business development and sales, with business development focusing more on strategic partnerships and distribution rather than direct revenue. The document uses the example of Half.com to illustrate how business development was used to launch the site by securing inventory, distribution, and technology partnerships. It also discusses how to identify partners' problems and effectively communicate value propositions. The document provides tips on developing partnerships, managing deals, leveraging relationships, and getting a company's name known in an industry.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 25
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    The document discusses strategies for business development and partnerships, including identifying targets, selling benefits over features, leveraging existing relationships, and structuring deals.

    The main topic is strategies for business development, including identifying targets, pitching partnerships, structuring deals, and leveraging relationships over time.

    Strategies discussed include identifying targets, understanding partner pain points, finding partners willing to work in early stages, structuring deals around desired outcomes, leveraging APIs and shared development efforts.

    Business Development for Startups

    Chris Fralic, Partner

    July 16, 2009


    My Background

    linkedin.com/in/chrisfralic
    nothingtosay.firstround.com
    @chrisfralic
    What is Business Development?
    • BD vs. Sales: They’re very related
    • BD is Exchange of Value, Sales is usually more
    focused on dollars with a final product
    • BD is often focused on distribution and
    launch/strategic milestones as much as
    revenue – and needs to be aligned with
    company and product strategy
    • The 2 greatest traits of Sales and BD
    – Empathy and Persistence
    • “Begin with the end in mind…” Stephen Covey
    Half.com Example
    • Strategic Goals/Initiatives
    • Site Launch
    – License databases
    – Credit Card Processing
    • Inventory
    – 1 million items in inventory by launch
    • Distribution
    – Partnerships and affiliate program
    • From our Nov ‘99 fundraising deck…
    H alf.com has developed powerful relationships
    Inventory Partners Distribution Partners

    Major Video Concepts

    Tartan

    Technology Partners
    Anthology

    5
    O perating in “Half Time”

    Q3 1999 Q4 1999 Q1 2000 Q2 2000 Q3 2000


    •Founded July 7th •Preview Launch Nov 15 •National Marketing •Over 6 Million items •Over 10 million items
    Launch on Jan 15 listed in inventory listed in inventory
    •Raised $3 Million •Over 30 deals signed
    seed financing with with inventory suppliers to •Over 2.5 Million items •Over 342,000 •Over 570,000 Registered
    Comcast, VIMAC, list over 1.7 million items listed in inventory Registered Customers Customers
    Infonautics
    •Signed distribution deals •Over 133,000 •Product Database •Product Database Built
    •Product Databases with five of the top-twenty Registered Customers Built and Launched for and Launched for Laptops
    Built - Books, Music, Media Metrix-ranked sites Portable Audio Devices & Video Game Machines
    Movies & Camera/Camcorders
    •Product Database Built
    •Signed deals with most and Launched for PDAs
    •Signed Exclusive major shopping bots
    Inventory Software
    •Touch Tone SpeedSell
    deals
    •Product Database Built Interface added
    for Videogames
    •3 Patents filed
    •Deal signed with major
    •21 employees Book/Music/Movie club
    •10 employees
    •Hired online, offline,
    promo and PR agencies

    6
    A lready Accumulated Critical Mass of Inventory

    Already have over 1.7 million items

    BOOKS MUSIC MOVIES GAMES

    1,400,000 160,000 150,000 20,000


    163,179 159,152 79,145 12,701

    86,405 54,836 31,656 48,713

    4,331 4,468 338 554

    66,877 5,227 11,997 542

    7
    As of 11/15/99
    What Problem are you Solving?
    • In general, and for your partner in particular?
    • Nailing the elevator pitch, and why they
    should care.
    • WIFM – What’s in it for me..
    • Sell benefits, not features
    • “So what?”
    • “Don’t Sell – Help People Buy” – Chris Fralic
    Nailing the Value Proposition
    • Del.icio.us Consumer Value Prop
    – Better way to manage bookmarks, you can get to
    from any browser, describe with your own tags,
    benefit from everyone else’s bookmarks and tags
    • Del.icio.us Partner Value Prop
    – A del.icio.us save/tag button on your content is
    the way to optimize for social media
    • The WashingtonPost.com deal
    • The Mozilla Firefox deal
    • One that didn’t work…
    and
    December 2, 2005

    Chris Fralic
    VP Business Development
    Agenda

    • What is del.icio.us?
    • Why should Wikipedia care?
    • A possible Wikipedia and del.icio.us
    partnership
    • Next Steps
    Why should Wikipedia care?
    • It provides an additional service to your users –
    “keeping found stuff found”
    • Offering a “tag this” link gets Wikipedia content
    added to the del.icio.us Community Powered
    Discovery engine
    • It’s a higher order of attention and interaction
    than a pageview or a click, but less involved
    than directly editing and contributing to
    Wikipeda.
    • It’s the next wave of Search Innovation…
    Partnership Elements
    • Wikipedia implements “Tag This” on each
    article page
    • del.icio.us develops and hosts co-branded
    post and registration pages
    • Wikipedia content is added to del.icio.us and
    new users discover Wikipedia content
    • del.icio.us provides Wikipedia with usage data
    from del.icio.us users on Wikipedia
    • del.icio.us and Wikipedia find additional ways
    to work together
    Adding “Tag This” to Wikipedia
    Del.icio.us Publisher API
    • We’ll work with you to develop an API to allow
    you to easily pull and display information about
    your own site and content
    Your Hit List
    • Identify, prioritize and target your hit list
    – Suspects, Prospects, Customers/Partners
    • Who is there and why? Not just quantity.
    – Combination of whales and fishes
    • Potential acquirers
    • TTR - Time to Revenue?
    • What are the next steps?
    • Focus on the metrics – what do you have to
    believe for this deal to return X results?
    • Measure and build a sales culture - Bazaarvoice
    Traps
    • Relying too much on a single partnership or
    deal
    • The larger the company, the longer it takes
    • Beware of startup to startup deals
    • Understanding what it takes to “get over the
    hurdle” internally with your partner
    • "don't take 5 years to get 2 years of
    experience" - Jim Collins
    • “Next!” – the barber
    Selling the dream/vision
    • Focus on the partner pain points
    • Find partners who are willing to work with you
    in the early stage, help shape the product or
    service, are willing to work with beta product.
    – iSocket example with TechCrunch
    • YOUR reputation and brand
    • An example from TED…
    The art of the introduction
    • Goal is a warm intro - "2 degrees of separation"
    • Leverage boards (yours and theirs), investors
    (yours and theirs), existing customers, etc.
    • Follow up and TIMELINESS – do what you say
    you will do
    • DON'T just ask for an intro - send an overview
    that can easily be forwarded
    • Including why you're reaching out and why the
    target should care
    • Make it easy to follow up with you
    The First Call or Meeting
    • “What is your ratio of questions to statements,
    and can you double it?” Jim Collins
    • Should be as much about their needs as your
    offering
    • The power of meeting in person
    – AOL example
    • Gain agreement on next steps
    • Follow up with an email
    Deal terms
    • Decide what you're solving for first
    – Beta customer? Proof points? Revenue?
    • Term Sheets, LOI’s, MOU’s, Verbal
    • Key terms
    – Length, extensions and mutual out clauses
    – Commitments from partner
    – Exclusivity – beware but you can limit it
    – Payment – ask to get up front payment
    – Guarantees and Rev Share
    • Have a great lawyer, but YOU do the deal
    • Forecast and measure the results
    Leverage
    • The Twitter BD Model
    • API's
    • Beware of one-off's
    • Tie development effort into how it can be
    leveraged
    Knowing an industry and getting known
    • Subscribe to industry journals, websites
    • How to work a conference
    • Blog/Twitter/Comment – reach out, ask advice
    • Build your contacts
    – Outlook, LinkedIn, Facebook
    • “Never Eat Alone” – Keith Ferrazzi
    • “Leadership is not what to do, but how to be” –
    Frances Hesselbein
    • “Reputations are not built over a deal, but over a
    career” – Josh Kopelman
    “Go, Make Something Happen” –
    Seth Godin

    Thanks!
    [email protected]

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