A lecture for Monash's ACCELERATOR

1. BusinessModels,
Go To Market
Strategies & Exit
Strategies
Generator
THE
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2. Business
Models

3. a plan for the successful
operation of a business,
identifying sources of revenue,
the intended customer base,
products

5. 4Basic Types of
Business Models
MANUFACTURER
Distributor
Retailer
Franchise

6. But, you need a bit more
granularity than that…

7. The LICENSING MODEL
Sign over rights to commercialisation to another party

8. The Add-On Model
Competitively priced core offering
Numerous extras that drive up the final price

9. The Advertising Model
Offer advertisers access to highly targeted consumer
niches (often in the absence of selling their goods or
services)

10. The AFFILIATE MODEL
Someone who helps sell a product in return for
commission, even if they never actually take ownership
(or even handle) the product

11. The BAIT AND HOOK MODEL
Disproportionate amounts of the value are captured on
components, refills, etc.
Switching costs results in monopolistic pricing

12. The FREEMIUM MODEL
Give away something for free in return for your personal
details so they can then market to you so you will buy from
them in the future

13. The LOW COST MODEL
Drive significant volumes of customers by charging a very low
price

14. The LOSSLEADER MODEL
You lose money selling at that price, but it enables a different
lucrative opportunity

15. The PREMIUM MODEL
You charge so much for it (either vanity or necessity drivers)
that your profit margins are astronomical and cover the fact
that your customer base is quite limited

16. The PAY AS YOU GO MODEL
Actual usage is metered and you pay on the basis of what you
consume

17. The RECURRING REVENUE MODEL
Secure the customer on a long term contract so that they are
consuming your product or service well into the future

18. The DEMAND AGGREGATION MODEL
Assemble all the sellers and buyers for some stuff in the same
virtual location

19. The PERSON-TO-personexchanges
Connect one person that has something someone else wants
with the person who wants it

20. The ONE-OFFEXPERIENCE MODEL
Nowism offering unique experiences to customers at a given
place during a specific event
Social media + offline event organisers, pop-up stores, online
retailers

21. Disruption
It is happening everywhere
• Education ► TED Ed
• Finance ► Bitcoin, ApplePay
• Technology ► Nest
• Media ► Spotify, Netflix
• Telco ► WhatsApp
• Medical ► Automata
• Travel ► Airbnb

22. So… what’syour
businessmodel?

23. GO TO MARKET
STRATEGIES
AND TECHNOLOGY ROADMAPSTOO

24. A go-to-market strategy (GTM strategy) is an
action plan that specifies how a company will
reach customers and achieve competitive
advantage. The purpose of a GTM strategy is
to provide a blueprint for delivering a
product or service to the end customer,
taking into account such factors as pricing
and distribution.

25. WHAT…
Who…
How…
Where…
…to sell

26. Go-To-Market Strategy
1. Define market value proposition
2. Identify primary target market
3. Review existing market channels
4. Create detailed channel approach

27. 8Basic
building blocks
Business Summary
ProductStrategy
ChannelStrategy
Marketing Strategy
Customer experience
Technicalrequirements
Evaluation
Timeline & Execution

28. Ready
fire
aim

29. Strategic objectives
o Create awareness, first customers
o Maximize market share
o Defend market share (against competitors)
o Maximum profitability

30. Technology Roadmaps

31. Technology roadmaps
A planning process for a specific product or
service to identify
o Technical processes
o Technology gaps
o Opportunities & risks
o Critical requirements, targets
o Technology alternatives
o Milestones for meeting those targets

32. 7Basic
building blocks
Business & technical assets
Cost/complexitydrivers
Producthypothesis
Productrequirements
Productplanning
Timeline
Risk & mitigation strategies

33. High level example
1. Product that is the focus
of the roadmap
2. Critical system
requirements & their
targets
3. Major technology areas
4. Technology drivers &
their targets
Energy-efficient vehicle
MPG, reliability, safety, cost
Targets: 100mgp by 2017 &
150mpg by 2025
Materials, engine controls,
sensors, modeling,
simulation

34. High level example
5. Technology alternatives
6. Recommend technology
to pursue
7. Create the technology
roadmap report
Technology alternatives
that can satisfy these
targets identified with
estimated timeline for how
it will mature with respect
to the technology driver
targets. Identify decision
points for when it will be
dropped from further
consideration.

35. Technology roadmaps
A planning process for a specific product or
service to identify
o Technical processes
o Technology gaps
o Opportunities & risks
o Critical requirements, targets
o Technology alternatives
o Milestones for meeting those targets

36. EXIT
STRATEGIES

37. An exit strategy is a contingency
plan that is executed by an investor,
trader, venture capitalist or business
owner to liquidate a position in a
financial asset or dispose of tangible
business assets once certain
predetermined criteria for either has
been met or exceeded

38. Merger & Acquisition(M&A)
• Win-win for bordering companies with complementary skills, assets,
resources
• Large company can more quickly grow revenue or access customers
than create new products organically

39. Initial public offering(IPO)
• Offering sale of stock in the business on public markets (like the ASX)

40. Sell to anotherperson
• Offering sale of stock in the business on public markets (like the ASX)

41. Sell to YourEmployees
• An employee stock option plan can direct payroll into a trust to
purchase investments, like company stock

42. Milking the cow
• Distribute profits as dividends to investors
• Pay off investors
• Hire someone else to run it

43. Liquidation& close
• Close the business doors and liquidate assets

44. Exit Tips
• Most of the time, companies are sold, not
bought, and require an active sales process
• Deals can unravel if they drag on – cold feet
phenomenon
• Every step should have a deadline
• Establish trust and open communication –friction
is the enemy
• Clean house before the visitors arrive

45. Exit Tips
• Don’t get greedy – holding out for all increases
your chances of getting none
• Plan for the exit early – the end game should be
part of your overall operating strategy
• Negotiate tough but fair – remember that you
may be working for the acquirer when the dust
settles

46. Strategy foryourexit strategy
• Deal Strategy – who? When? How? Why?
• Positioning & Pitch – making them want you
• Packaging & Valuation – the whole nine yards
• Process Management – Set meetings, generate momentum,
manage communications
• Execution – get heat on the deal

47. WANT TO KNOWMORE?
GET IN TOUCH!
www.monash.edu/entrepreneurship
@monashGENERATOR
Facebook.com/monashGENERATOR
7 Innovation Walk AG01-04 (Clayton Campus)
entrepreneurship@monash.edu