how to make a sustainable business

How to sustain your business

Alex Barrera (@abarrera) [email protected]

Photo: Seedlings growing in peat moss pots / Elena Elisseeva

mailto:[email protected]

HELLO MY NAME IS...

http://www.slideshare.net/press42 Alex Barrera (@abarrera)

Photo: Gamble / Fernando Carnielli


Making money IS hard

Photo: Rey Cascabel/ Antonio Tena


Really HARD

Photo: OA6 AtlasV rocket launch by United Launch Alliance / Michael Seeley


Break-Even

Photo: Filament LED / Rambling' Geek


Not what you think

Photo: Hot stuff / Pim van Wingerden


Not the MARKET

Photo: THE ART OF KENDO BY ALAIN DOUANGMANIVANH / Alain Douangmanivanh


Not even competition

Photo: Circles / Bridgette Kistinger


YOURSELF

Photo: Sign free/ Marco Guidi


Photo: Valley of the moon / Leo Olson


No one will use it!

Photo: For sale / Jaromr Chalabala



Sustainable Business Equation

Sales > Costs


SALES = P(Value)

Pricewhere Price > 0



SALES = P(Value)



P(Value) Probability of value for user


SALES = P(Value)



P(value; perception, market size)


SALES = P(Value)



Photo: Register II / Stanislav Novak


Whats value?

Photo: Pyramid / Balzs Vrs


Hierarchy of Engagement


Source: https://news.greylock.com/the-hierarchy-of-engagement-5803bf4e6cfa#.lpgtwvy5k

Photo: Gardener / Jaromr Chalabala


Level I: Growing engaging users

Photo: Color circle of pencils with complementary colours / Tonko Oosterink


CORE

ACTION



?

Photo: Tell me a story / Naomi Anselmo


What they keep coming back for


SNAP

TWEET

PHOTO

VIDEO

Photo: A good story / Monica Rooney


Metrics?

Photo: Mixed race baby boy eating spaghetti / Gable Denims


Analysis?


SNAP

TWEET

PHOTO

VIDEO


P(value; perception, market size)

+ Perception- Perception

+ Market

- Market

Photo:Chess game / Andromachi Mitropoulou


STRATEGIES



Increase market size

Photo: Shifter / Stanislav Novak


Shift something

Photo: Two girls (2-3, 4-5) with magnifying glasses in garden / Shestock


Focus on the BEHAVIOUR

Photo: Two girls (2-3, 4-5) with magnifying glasses in garden / Shestock


WHY??


HYPOTHESIS TESTING



Increase perception

Photo: Hunting Namaqua chameleon (Chamaeleo namaquensis) / Andy-Kim Mller


Identify Target

Photo: Hotel Resort Laptop / kitchbain


Check content &

sources

Photo: Reading with big friend / wichan sumalee


Craft story

Photo: A new life / Marco Dores


Being born isnt news

Photo: Spam filter / Jen Beek


Dont SPAM

Photo: Sunset costanera sur / Miguel Csar


Start early on

Photo: Above the clouds / Alexandre Biau


Not at the end



Change core action


HYPOTHESIS TESTING

Photo: Curly flame / Orlando Parrish


Torch it!


Level II: Retaining users


How to make them stick?


MAX(Value)


Accruing benefits(Implicit)


Accruing benefits(explicit)


Mounting loses


Critical to your job


WHAT ARE

YOU

DOING?


http://www.slideshare.net/press42 Alex Barrera (@abarrera)Photo: Filament LED / Rambling' Geek

Some ideas



BUILD PROPRIETARY DATA


PHYSICAL DATA COLLECTION (Internet of Things)


Crowdsourced data


Get to Give Data


Collect data exhaust (Metadata & behavioural data)

Source: https://blog.gnip.com/data-visualization/


Enrich common content


3 minute rule


3 minute rule

3 minutes before?


3 minute rule

3 minutes before?

3 minutes after?


What prompted the action?


What about after?


Idea ACID test

1. Informs high-value decision 2. Adds significant value to the decision 3. The value can be measured 4. Critical to your job 5. Integrated into you workflow 6. Frequency of the need is high 7. If costs are cut, this wouldnt be cut


Level III: Self-perpetuating


Feedback loops


Network effects


Cohort analysis (Churn) & reactivation


SALES = P(Value)




MONETISATION STRATEGIES


Strategy I: Pay per value


CAP FEATURES


CAP CAPACITY / STORAGE


CAP SPEED (TIME LIMITS)


CAP SUPPORT


CAP EFFORT


WHAT LIMIT TO SET?


Premium


USAGE SUBSCRIPTION (SaaS)

TRANSACTION


Strategy II: Advertising + affiliated


Requires BIG scale


Increase of Micro Targeting


Strategy III: Data monetisation


Tough to package


Strategy IV: Donations / Pay What You Can


Always fund rising


Strategy V: White labelling/Licensing


Corporate clients


Slow sales


Needs great alignment


Strategy VI: VC money


Acquihires


Technology acquisition


Independence?


Bootstrapping


Slower


Independence


Fast closing window


Conclusions



CORE

ACTION


Work on retaining users

Photo: Hunting Namaqua chameleon (Chamaeleo namaquensis) / Andy-Kim Mller


Maximize your perception


MONETISATION STRATEGIES


Rinse & repeat


Sometimes

you scrap it


Pivoting

&

patient


Alex Barrera

[email protected]

mailto:[email protected]