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

MINNPOST MAY BE FOUND AT:HTTPS://WWW.MINNPOST.COM/

7

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

M-PEDIGREE MAY BE FOUND AT:http://mpedigree.net/mpedigreenet/

9

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