Stepehn Salyer for SAC 08, July 29, Tuesday

1. SALZBURG ACADEMY ONSALZBURG ACADEMY ON
MEDIA AND GLOBALMEDIA AND GLOBAL
CHANGECHANGE
““Media Entrepreneurship: Financing ChangeMedia Entrepreneurship: Financing Change
in a Digital World”in a Digital World”
Stephen Salyer, President, Salzburg
Global Seminar

2. QUESTIONS FOR THIS MORNING’S
SESSION:
 When does social entrepreneurship become business
entrepreneurship?
 What sources of revenue might “sustain” future digital media?
 How might my project become a “business”?
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3. WHAT EXPERIENCE
AM I DRAWING ON?
 Early work on population and development (1970–79)
 1974 Salzburg Seminar – “Non-profit entrepreneur”
 Training in law and public policy (1974–79)
 Television production (1980-88)
 International news – Public Radio International (1988-2005)
 Web news and service provider – Public Interactive, LLC
(1999-2005)
 Encouraging support for media innovation – Salzburg Global
Seminar (2007 - present)
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4. 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.
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5. SOCIAL V. BUSINESS
ENTREPRENEUR
 Problem-driven
 Social good foremost
 $ return secondary
 Relies on government or
donor adoption
 Grant investment
 Limited risk
 Slow to scale
 Need-driven
 $ return foremost
 Public good secondary
 Relies on market / consumer
adoption
 Investor/shareholders
 Risk / competition
 Fast to scale
Social Entrepreneur Business Entrepreneur
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6. EXAMPLE #1
 Indie Voices
 Need to raise startup funds for small media projects
 Many projects lost on larger crowdsourcing platforms
 Transactional website / automated updates
 Small donors interested in media development
 Progress reports in place of “financial return”
Targeted, crowd-sourcing model?
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7. INDIE VOICES MAY BE FOUND AT:
https://indievoic.es/#!/
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8. EXAMPLE #2
 Bright Simons, m-Pedigree Network
 Huge global health delivery problem
 Need to eliminate counterfeit drugs from the market
 App developer, pharmas, distributors, government
 Leveraging cell phone technology
 Attracting support, spreading the word
Give Away the Solution Model
v.
Transactions Model?
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9. M-PEDIGREE MAY BE FOUND AT:
http://mpedigree.net/mpedigreenet/
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10. EXAMPLE #3
 Rock Band – The Grateful Dead [Early pic of GD
 Web services threaten music
publishers monopoly
 Need for new model to get paid
 Bypass publishers – give music away free
 Raise prices for concerts and tour a lot
 Secondary effects
Free content / pay at the gate model?
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11. EXAMPLE #4
 TED TALKS
 Localizing global concept
 Megaphone for new ideas
 Licensor, licensee/organizer, web developer, publicity
 Strong brand, tested methodology
 Sell tickets
Franchising model?
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12. EXAMPLE #5
 GUIDESTAR
 Create public interest database (NGO tax filings)
 Invest in unique database / provide free reports
 Needed by donors, law enforcement, money managers
 Collect supplemental information from NGOs
 Offer paid search for comparative info/analytics
 License info / analytics to private and public groups
Public / Private platform model?
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13. GUIDESTAR MAY BE FOUND AT:
https://www.guidestar.org/
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14. GROUP WORK HYPOTHETICALS
Hypothetical #1: Sam’s video platform
Hypothetical #2: Irmgard’s human resources co.
Please see the individual handouts at each table
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15. WHAT MAKES IT A BUSINESS PLAN?
 Competition and differentiation – e.g., first to market,
branding, unique features, exclusive partners, cool tech
 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
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16. 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?
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17. 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?
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18. 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?
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19. THE BOTTOM LINE
 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.
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