Jay Jamison Business Model Presentation -- Founders Institute 2009

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Jay Jamison

Business Technologie

Keep It Simple “Invest in businesses that an idiot could run, because at some point, an idiot will.”

Know What To Look For Understandable business Strong, passionate team Defensible moats Models that generate cash Tonight’s Scope

Moats (in 2009) Deliver users something they want. Build share & leadership. Improve value to users & repeat. Attract second stakeholder group to reinforce value to users.

Users want PCs that are cheap, lots of apps. Developers build for Windows. WinTel gains share. Developers need audience for their products

Apple builds Iphone. Developers build for Iphone. Users drool & buy. Apple offers developers a platform.

Google offers outstanding search product. Ad revenue funds improvements in search. Google grabs share. Advertisers need to spend most effectively.

Users are drawn to service with best teachers Teachers create and market great classes 20% royalty to teachers. Megastudy Large user base & commissions draw best teachers.

Build something children love, parents value Reinforce core value with more fun content, better results to parents Grow share & credibility Moonshoot Collect data on children & learning, reinforce value to parents, educators, and children.

Build something users love Reinforce core value Grow share Your Company Attract another stakeholder to build on your value.

Types of Business Models Figure it out later / Ads Market maker Freemium & Subscription Virtual goods Price for product or service Others

“Know Your Numbers” Ask tons of questions, do the analysis Connect with customers & market Build conviction that model works Close to pin works

Recent Example Entrepreneur’s Estimate to VC: “Microsoft Small Business Server has an Installed Base of 30M” --Unsourced analyst Jay’s Estimate VC emails me. Microsoft Small Business Server has an Installed Base of around 4M

Closing Moats ABC: Always Be Constructing Business Models Draft model should be in place ASAP Monetization can be later Industry Model Always be hungry to learn more But work to stay grounded in reality

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Jay Jamison Business Model Presentation -- Founders Institute 2009

1. Revenue Jay Jamison Co-Founder & President, Moonshoot Founder’s Institute – June 23, 2009

2. Microsoft 1973

3. My Thoughts on Revenue Its Nice!

4. Keep It Simple “Invest in businesses that an idiot could run, because at some point, an idiot will.”

5. Know What To Look For Understandable business Strong, passionate team Defensible moats Models that generate cash Tonight’s Scope

6. Moats & Models

7. Moats (in 1559)

8. Moats (in 2009) Deliver users something they want. Build share & leadership. Improve value to users & repeat. Attract second stakeholder group to reinforce value to users.

9. Users want PCs that are cheap, lots of apps. Developers build for Windows. WinTel gains share. Developers need audience for their products

10. Apple builds Iphone. Developers build for Iphone. Users drool & buy. Apple offers developers a platform.

11. Google offers outstanding search product. Ad revenue funds improvements in search. Google grabs share. Advertisers need to spend most effectively.

12. Users are drawn to service with best teachers Teachers create and market great classes 20% royalty to teachers. Megastudy Large user base & commissions draw best teachers.

13. Build something children love, parents value Reinforce core value with more fun content, better results to parents Grow share & credibility Moonshoot Collect data on children & learning, reinforce value to parents, educators, and children.

14. Build something users love Reinforce core value Grow share Your Company Attract another stakeholder to build on your value.

15. Models—Part I

16. Types of Business Models Figure it out later / Ads Market maker Freemium & Subscription Virtual goods Price for product or service Others

17. Figure it out later / Ads

18. Market Maker

19. Freemium & Subscription

20. Virtual goods

21. Price per user or copy

22. Models—Part II

23. “Know Your Numbers” Ask tons of questions, do the analysis Connect with customers & market Build conviction that model works Close to pin works

24. Recent Example Entrepreneur’s Estimate to VC: “Microsoft Small Business Server has an Installed Base of 30M” --Unsourced analyst Jay’s Estimate VC emails me. Microsoft Small Business Server has an Installed Base of around 4M

25. Closing Moats ABC: Always Be Constructing Business Models Draft model should be in place ASAP Monetization can be later Industry Model Always be hungry to learn more But work to stay grounded in reality

Jay Jamison Business Model Presentation -- Founders Institute 2009

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