Building a mobile web start-up in South Africa

transcript

Building a mobile web start-up

Nicholas Haralambous and Vincent Maher

We are NOT CEO's

Technical Ninja Operations Ninja

Motribe Mobile Networks

The elevator pitch:

Motribe is a platform that allows anyone on web AND mobile to build, manage and monetize their own mobile social communities.

The difficulty is creating one sentence that sells the product, explains the model and appeals to the problem that you are solving.

This took us MONTHS to get right (and we're still not sure we've got it right).

Assumptions that entrepeneurs make

My idea is unique and brilliant

I can do this alone

Business plans need to be really, really long

My idea will make me rich (no, it's the execution)

Ideas are timeless (timing, timing, timing)

My business has nothing to do with my experience

It's all about sacrifice (it's give-give)

My idea is unique and brilliant

• No, it's not.• NDA's are NOT a dealbreaker• Your idea is not unique• Your idea is not brilliant• Does your idea solve a problem?• Does your idea create a problem and then solve it?

• HOW ARE YOU GOING TO EXECUTE YOUR IDEA???

I can do this alone

• Some people might be able to• Partnerships are imperative• Working alone makes your job much more difficult• Finding the right partner is very tough• Be sure to build in exit clauses

o What if one of you becomes a drug-addicted pimp working out of Hillbrow?

• Be realistic about your expectations• Don't build a relationship while building a business• Does your business partner compliment you or cancel you

Business plans need to be really, really, really long

• Business plans need to explain your business• They need to be concise and to the point• They need to have:

o financial projectso Competitor analysiso Domain relevanceo Market research

• Don't focus on designed (unless your pitching a design company)

My idea will make me successful

• Can love buy you bread?• Execution makes you successful• Money makes you rich• Revenue streams make a business• Ideas WONT get you investment• Investment WONT make you successful• Venture Capital is NOT a business model

Ideas are timeless

• Timing is everything, o nothing lasts forever, o move quickly

• Market analysis and understanding• A second too early and you're "Before your time"• A second too late and you're "Last in". • Timing is everything• You have a small window of opportunity

o This is why we needed money, fast.

My business has nothing to do with my experience

• Domain expertise is imperative• Your idea, your knowledge, your experience, your success

and execution are ALL tied together.• Without experience you seldom encounter problems that

need to be solved• Without domain expertise you are not able to execute• Without execution you don't have a business

For old people it's going to be about sacrifice

• Suffering is a good thing• Suffering is NOT the only thing• You start a business to be free and have fun• Sacrifice is not fun• Building a business is not always fun• A means to an end; sacrifice for a purpose• Have fun

The Motribe time-line

Month 1• Decision to come up with an idea that can become a

business• Brainstorms about ideas

o What problem do we want to sell?o What are we really good at?o What is likely to make a lot of money?o What can we do that doesn't involve reinventing the

wheel or developing completely new IP?• Identify who we need to approach for investment• Write a funding proposal• Find someone to talk to for advice

Month 2• Validation of the proposal• Submit the proposal to several likely investors• Get rejected quickly by all but one for the following stated

reasons:o "too early-stage" - catch 22o "business model won't work" - subjective biaso "I just don't undertand you're business plan" - What?

• Get one hit, in the sense that the answer is not an emphatic no

• Make the decision to resign from comfortable corporate jobs with 6 months notice

• Wife and kids conundrum

Month 2 continued• Investors accept the funding proposal, request a business

plan• Business plan =

o Description of businesso Description of founders and their expertiseo Market analysiso Market positioningo Summary of go-to-market strategy (PR, marketing, launch)o Budgeto Projectionso 10-12 pages, simple language, clearly communicated points.

Almost completely non-technical.

Month 3• Darkness and paranoia

Month 4• Draft of the term sheet agreed• The term sheet:

o Outlines the short form of the agreemento Acts as a blueprint for the long form agreements

Month 7• High-speed action

o Final handovers at current jobo Sign term sheeto Create bank accounto Appoint accountantso Appoint legal firmo Create companyo Sign ± 1000 pageso Relocate to Cape Towno Preparing for the first production sprint

Month 8• Start first sprint• Major components

o Web Siteo Web paymentso Mobile portalo Mobile paymentso Dashboardo CMSo Analytics and reportingo Mobile networkso Device detection and content adaptationo Alerts and notifications

Month 9• Finish sprint and test everything• Complete legal components

o Terms and conditionso Privacy policyo Commercial terms

• Go live on 13th, light PR push• Start mobile marketing campaigns

First month results

42 000 registered users and growing by 1300 a day140 000 unique users (33% conversion rate)65 000 friend requests

Content

4 000 photos4 300 blog posts10 000 comments on photos6 800 comments on blogs14 200 photo ratings

Engagement

45 mins average time per visit90 pages a visit

Assumptions you make looking forward

Look back at your initial plan.

What you sold was good enough to start with, it's good enough now.

What you plan for, what you experience and what happens are all different.

Thank you and discussion

Building a mobile web start-up in South Africa

Technology