1. B A DCA MP
ACCELERATING
2 0 1 2
YOUR
DRUPAL
PRODUCT
BUSINESS
• Jay Batson
2. BIO
• 25 years in tech
(Dev, Prod, Exec)
• 19 in VC-backed startups,
12 in ones I started
• 3x founder (Acquia, Pingtel)
• 18 months as focused mentor
for 20 startups:
13 TechStars
4 MassChallenge
4 FounderMentors
3. BIO
• 25 years in tech
(Dev, Prod, Exec)
• 19 in VC-backed startups,
12 in ones I started
• 3x founder (Acquia, Pingtel)
• 18 months as focused mentor
for 20 startups:
13 TechStars
4 MassChallenge
4 FounderMentors
http://startupdj.com
Remixing classic with new to create sweet new startup companies
4. BIO
• 25 years in tech
(Dev, Prod, Exec)
• 19 in VC-backed startups,
12 in ones I started
• 3x founder (Acquia, Pingtel)
• 18 months as focused mentor
for 20 startups:
13 TechStars
4 MassChallenge
4 FounderMentors
http://startupdj.com
Remixing classic with new to create sweet new startup companies
5. • Co-founders:
Spin-out? Stake of parent? Roles? Ownership?
• Capital:
Yours? Outside?
• Sources:
Angels? Seed investors? Venture Capital?
• Plan:
Business Model? Company culture? Values?
• Go-to-market:
CAC? ASV? LTV? Churn? Cash burn?
• Business model:
Strategy? Pricing? Margins? Operating
metrics?
Where’s the community/help?
9. SWITCHING
• Likely to fail without dramatic stuff
• Consulting ➤ product company issues
• Doesn’t function with startup economics
• Irresistible temptation to do distracting
PS for $
• Spinout issues
• Parent owner creates broken ownership
split
• Lack of vested interest of team
You’ve gotta be a “startup”,
from scratch,
with at-stake people
10. FOUNDERS
• Let there be 2
• There is only one CEO
• Define your roles, and obey them
11. RICH OR KING?
Financial gains
Well below potential Close to potential
Rich
Little
Control of company
Failure
Complete
King Exception
The Founder’s Dilemma (Noam Wasserman, HBS)
19. BIGGEST LESSON
• A product is nothing.
• Successfully going-to-market is everything.
20. GO-TO-MARKET
• How are you going to get customers?
• Advertising? Inbound marketing? Inside sales? Field
sales? In-app virality? Other virality?
• Does that cost the “right” amount? (What’s your margin?)
• What portion of operating costs is sales/mktg?
• How many customers are there?
• SEO / SEM is not a go-to-market strategy.
21. TERMS TO LIVE BY
Key SaaS metrics:
• CAC = Customer Acquisition Cost
• ASV = Annual Subscriber Value
• LTV = LifeTime Value (of customer)
• Churn = % of customers that do not renew
22. TERMS TO LIVE BY
Key SaaS metrics: Startup killer
• CAC = Customer Acquisition Cost
• ASV = Annual Subscriber Value
• LTV = LifeTime Value (of customer)
• Churn = % of customers that do not renew
23. TERMS TO LIVE BY
Key SaaS metrics: Startup killer
• CAC = Customer Acquisition Cost
• ASV = Annual Subscriber Value
• LTV = LifeTime Value (of customer)
• Churn = % of customers that do not renew
http://forentrepreneurs.com
29. POSSIBILITIES
• Drupal PS company with product idea
• Drupalist with idea
• Generic startup who (should) use Drupal
30. WHEN?
• A couple of calendar quarters at least.
• Learning now.
• Is there a “there” there?
31. IS THIS YOU?
• Contact me
• batsonjay@gmail.com
• http://startupdj.com
Editor's Notes
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Two shall be the number thou shalt found with, and the number of the founding shall be two. Three shalt thou not found with, neither found thou with one, excepting that thou then proceed to two. Four is right out. Once founding number of two, being the second number, be reached, then lobbest thou thy Holy Product of Drupal towards thy market, who being exploitable in My sight, shall buy it.\n
