Surviving and Thriving in Silicon Valley

PRESTON WILLS GROUP<br />

Toto, I have a<br />

feel<strong>in</strong>g we’re not <strong>in</strong><br />

Kansas anymore.<br />

<strong>Surviv<strong>in</strong>g</strong> <strong>and</strong> <strong>Thriv<strong>in</strong>g</strong> <strong>in</strong><br />

<strong>Silicon</strong> <strong>Valley</strong><br />

Michael Douglas<br />

© 2014 PWG Partners<br />

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Outl<strong>in</strong>e<br />

Objective: Improve your odds of<br />

succeed<strong>in</strong>g <strong>in</strong> the U.S. market<br />

1. Two Myths<br />

2. Seven Lessons Learned<br />

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20 years market<strong>in</strong>g <strong>in</strong> 70 countries<br />

13 years sales, market<strong>in</strong>g <strong>and</strong> management<br />

WW management at Sun Microsystems<br />

– Go-to-market<br />

– Dem<strong>and</strong> creation<br />

– New product <strong>in</strong>tros <strong>and</strong> launches<br />

– Field communications <strong>and</strong> management systems<br />

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PWG: All about help<strong>in</strong>g firms scale<br />

• Tech Execs<br />

• Startups | SMB | F500<br />

• International experience<br />

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What we do: improve the odds<br />

Plann<strong>in</strong>g<br />

• We exam<strong>in</strong>e<br />

possibilities<br />

25%<br />

75%<br />

Execution<br />

• We deliver<br />

outcomes<br />

1. Market entry & expansion<br />

2. Sales development & enablement<br />

3. Go-to-market<br />

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The allure of tech <strong>in</strong> the U.S.<br />

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Two Myths about the U.S.<br />

# 1 – It’s more<br />

than big enough<br />

# 2 – It’s similar<br />

enough<br />

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Myth #1 – It’s more than big enough<br />

U.S. share of<br />

$175B WW<br />

software market<br />

55%<br />

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But it’s a crowded field<br />

110,000 SW companies <strong>in</strong> the U.S.<br />

10,000 <strong>in</strong> the Bay Area<br />

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Myth #2 – It’s similar enough<br />

… just bigger<br />

Degree of adaptation<br />

required is often<br />

underestimated<br />

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Statistics serve up a cautionary tale<br />

63% fail<br />

with<strong>in</strong> 4 years<br />

StatisticsBra<strong>in</strong>, Entrepreneur Weekly, Small Bus<strong>in</strong>ess Development Center, Bradley University<br />

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Be<strong>in</strong>g part of the 37% that succeed<br />

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1. A network is as valuable as $$<br />

Startups come to SV look<strong>in</strong>g for 3 th<strong>in</strong>gs:<br />

Fund<strong>in</strong>g Expertise Contacts<br />

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2. Don’t confuse vision <strong>and</strong> reality<br />

Tomorrow’s vision<br />

PAM<br />

(Potential Available<br />

Market)<br />

TAM<br />

(Total Addressable<br />

Market)<br />

SAM<br />

(Served Addressable<br />

Market)<br />

Today’s reality<br />

Target Market<br />

(Serviceable <strong>and</strong><br />

Obta<strong>in</strong>able)<br />

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3. Obsessively study your ecosystem<br />

Channels<br />

Competitors<br />

Regulators<br />

Industry practices<br />

Industry analysts<br />

F<strong>in</strong>ancial analysts<br />

Influential buyers<br />

Writers, bloggers<br />

Thought leaders<br />

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4. You are Chief Revenue Officer<br />

Customer-fac<strong>in</strong>g bus<strong>in</strong>ess<br />

development is one of your<br />

key tasks<br />

• Who are you?<br />

• What do you st<strong>and</strong> for?<br />

• Why should I buy from you?<br />

• Why should I believe you?<br />

Target: 20% of your time<br />

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5. Leverage Resources of Others<br />

A manager allocates resources with<strong>in</strong> control.<br />

An entrepreneur allocates resources not with<strong>in</strong> control.<br />

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6. Your value proposition is everyth<strong>in</strong>g<br />

1. Product<br />

2. Service/support<br />

3. Br<strong>and</strong><br />

4. Price & Incentives<br />

5. Sales, promotion<br />

6. Channels<br />

• More than a statement. It is an implied promise.<br />

• Manage, cultivate <strong>and</strong> adapt it to the U.S. market<br />

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7. Be Persistent<br />

Stephen K<strong>in</strong>g<br />

Seth God<strong>in</strong><br />

Harlan S<strong>and</strong>ers<br />

James Dyson<br />

“Carrie” was<br />

rejected 29<br />

times<br />

His first book was<br />

followed by 900<br />

rejections.<br />

The 1,009 th<br />

restaurant f<strong>in</strong>ally<br />

bought the<br />

“secret herbs<br />

<strong>and</strong> spices”<br />

He got it right<br />

on the 5,127 th<br />

prototype<br />

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PRESTON WILLIS GROUP<br />

<strong>Surviv<strong>in</strong>g</strong> <strong>and</strong> <strong>Thriv<strong>in</strong>g</strong> <strong>in</strong><br />

<strong>Silicon</strong> <strong>Valley</strong><br />

Michael Douglas<br />

© 2014 PWG Partners<br />

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