Market Research-Teten 201202 FI

8/3/2019 Market Research-Teten 201202 FI

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© 2012 David Teten. More at ffvc.com and teten.com

Free Market Research for Entrepreneurs

and Other Cheapskates

http://www.flickr.com/photos/roblee/133498854/

David Teten

Partner, ff Venture Capitalffvc.comblog: teten.com@dtetenNew York, [email protected]




Don’t Take Notes!

Download these slides from:teten.com/market-research



Intro Tools Signals Network Next Steps


• Introduction

• Tools of the Trade

• Signals of Potential Customers• Growing Your "Network 2.0"

• Next Steps





Investment Search Process (# Companies)

Business plans receivedHighland data: Economist, Global Heroes: A Report on Entrepreneurship, March 14, 2009, page 9.

TA Associates data: The Big Issue: Deal Origination, Corporate Financier, October 2006

First Round Capital data: Aktihanoglu , Murat. “NYC Entrepreneur Week Events Take-aways.” May 3, 2009. http:/ /centrl.com/blog/?p=53 . Angelsoft data: Website, March 17, 2010.

Highland

Capital(2008)

TA

Assoc-

iates(2006)

First

Round

Capital(2009)

Angels on

Gust(2010)

Typical

Entre-preneur

Profiled Initially - - 2,500 20,850 3

Targets selected 10,000* 8,000 500 1,315 - Met 1,000 750 NA 1,047 -

Negotiated with - - NA NA -

Due diligence - - 100 577 2

Acquired/invested

10-20 10-12 20 541 1





ff Venture Capital (ffvc.com)

• Early-stage technology venture capital fund• Founded 1999, with over 150 investments in over 50 companies

• Focus on early stage web-based services companies with disruptive models,including SaaS, video gaming, digital media, social, mobile and VoIP

• First investments typically $50-$250K at valuations of <$5m pre-money

• 50% of fund reserved for follow-on investments

• Prominent angel investments include:Cornerstone OnDemand (IPO); Quigo Technologies (sold to AOL for reported$340m); Klout; BetterWorks

• Partners: John Frankel (21 years Goldman Sachs);David Teten (serial entrepreneur; Chair,Harvard Business School Angels of New York);

Alex Katz (CFO); 1 Venture Partner (Michael Yavonditte)





• Market Research is the systematic, objective collection andanalysis of data about a particular target market, competition, and/or environment.

• Always incorporates some form of data collection, whether it besecondary or primary research.

Definition of Market Research

http://www.marketresearchworld.net/index.php?Itemid=38&id=14&option=com_content&task=view . http://www.flickr.com/photos/niosh/2492013803/





Why Private Information About Opportunities Is More Valuable

Info is PrivateFew Competitors

Inspired by Robert Bruner, Applied Mergers & Acquisitions , page 186

Ability of entrepreneur

to exploitopportunity

Info is PublicMany Competitors

Sweet spot of

highest returns

Customers payhigh prices

Customers paylow prices



Signals Network Next StepsIntro Tools


• Introduction


• Signals of Potential Customers• Growing Your "Network 2.0"

• Next Steps





Google Search Hacks

• Filetype:pdf

• Filetype:ppt

• Filetype:doc

• Books.Google.com

http://flickr.com/photos/neilt/2517652/sizes/o/

http://flickr.com/photos/neilt/2517652/sizes/o/

eDonkey—search hard drives





Major Research Databases

• Often available freefor students

• Public libraries alsooften offer free access

• D&B

• Hoovers

• Factiva

• LexisNexis

http://www.flickr.com/photos/kodomut/3728718035/sizes/l/





Wall Street Research

Charles Schwab account

http://www.flickr.com/photos/kodomut/3728718035/sizes/l/





• Slideshare – presentation slidesfrom conferences/events

• Scribd, Docstoc, Edocr – general• Wepapers – focus on students• Twidox – focus on academics• Archive.org – Web archives

Online Document Repositories/Marketplace for files,

publications, presentations, and whitepapers

http://www.flickr.com/photos/sookie/94778946/





• Astragy

• Attaain

• Compete • Rivalmap

• Socialtalk

• SpyFu

• Tracked

• Workstreamer

Tools for Tracking Competitors





• Alterian SM2 – Socialmedia data aggregation,comprehensive analytics• Boardreader – Online community search• Boardtracker – Tracks conversations on discussion boards• Blogpulse – Trend identificationfor blogs• SocialMention – Real timesocial media keyword search

Free Social Media Monitoring Tools





• Prestige

• Open doors

• Education

• Substantive experience

• Target marketing

How to Woo Interns

http://www.flickr.com/photos/uaeincredible/3333223048/sizes/o/





• Business Schools

– Columbia Business SchoolSmall Business ConsultingProgram

– Insite NY

– Levin Institute JumpStart

– NYU EEX

• Colleges

• Student Special Interest Groups

• IIM Ahmedabad Forum for Industry Interaction

Intern Sources in New York

http://flickr.com/photos/foundphotoslj/1134148114/




© 2012 David Teten. More at ffvc.com and teten.com http://www.flickr.com/photos/superrabbit/319538167/

Customers

• Observe customers in action• In-depth interviews• Snowball sampling

• Ask for referrals topotential buyers to builda sample

• Online surveys

• Bleeding-edge users





Recommended:• Google Docs – can be used for surveys• Surveymonkey – leading polling service• Polldaddy – easy interface and comprehensive analytics

Also:

• ask500people • buzzdash• buzzvote• Pollgenius • pollpub• toluna • Twiigs • urtak • quibblo

Polling

http://www.flickr.com/photos/extraketchup/748452643/sizes/o/





• Introduction


•

Signals of Potential Customers• Growing Your "Network 2.0"

• Next Steps





Grossly Simplified Entrepreneur’s Market Map:

Social Networking, mid 2005

This chart is purely illustrative and is not intended to be exhaustive.

Geography

TargetMarket

US Europe LatAm

Business

Dating

Social

LinkedIn Xing

Facebookmyspace

Orkut

Match.com Plentyoffish





Other Sample Market Maps

Quality

Products

Customer Segment

DistributionChannel

Contextual info about each company to Include

• Management strength• Product strength

• Client desirability• Financial returns



Signals Network Next Steps

Character – Competence – Relevance – Strength – Information – Number – Diversity

Intro Tools


• Introduction


•


• Next Steps





Intro Tools


= D * ! (Chn*Con *Rn* Sn*In)

Ch = Character

Co = Your Firm’s Competence

R = Relevance of the contact

S = Strength of your relationshipI = Information

N = Number of people

D = Diversity

Network Valuation Formula

N

n=1

David Teten and Scott Allen, The Virtual Handshake: Opening Doors and Closing Deals Online (www.TheVirtualHandshake.com)





Intro Tools


Biography Analysis Software

• Jigsaw

• Honestly

• Pipl

• ZoomInfo





Intro Tools


Corporate Analysis Software

• Glassdoor

• TheFunded





Intro Tools


• Affinity

• Information

• Others' Credibility

• Ego Boost

How to Get People to Return Your Calls

http://www.nus.edu.sg/oam/studentprofiles.html





Intro Tools


Organizing / Speaking

at Conferences

http://www.flickr.com/photos/programmerman/2315566040/sizes/l/

• Alumni organizations





Intro Tools


Online meets Offline





Intro Tools


Learn from People Who’ve Been There

• Ex-Employees• Customers who’ve

analyzed multiplevendors

http://flickr.com/photos/h-k-d/2898797929/sizes/o/





Intro Tools


Customer Relationship Management (CRM)

http://flickr.com/photos/misterdna/49841409/sizes/l/





Intro Tools


• IERGOnline.com

• Executive-Forum.org

• INMobile.org

• Sermo.com

Platforms

• LinkedIn

• Ning

• Xing

• Groups.Yahoo.com

• Grouply

Gated Communities for Executives





Intro Tools


Take One Step

• By industry

• By geography

• By personal

characteristics

http://flickr.com/photos/extranoise/169187125/sizes/l/





• Introduction


•


• Next Steps





Any questions ?

slides at

teten.com/market-research

Documents

Market Research-Teten 201202 FI