Introducing Go To Market Strategy for B2B Startups

Introducing
Go To Market Strategy
For B2B Startups
Hugh Mason
Co-founder and CEO, JFDI.Asia
hugh@jfdi.asia @hughmason
Brought to you by:

Hugh Mason 9 OCT 2020 hugh@jfdi.asia
2
Introductions
Coming Up
1
Defining Go To Market Strategy
M
2
Getting to What Market?3
Why and How Businesses Buy4
Turning Strategy into Action5
Q&A6

3
● Born in UK, PR, Resident in Singapore since 2009
● BSc Physics with Physical Electronics
● Electronic Engineering Apprentice - GEC Marconi
● BBC, Discovery Channel TV Producer
● MA Leading Innovation and Change
● 25 Years Entrepreneur, Investor, Innovation Mentor. First
Startup Accelerator in SE Asia: backed 70 digital businesses
● Open Innovation Advocate with BOSCH, NXP, NTUC, BP, SPH,
Munich Re, OCBC, Singtel
● Adjunct Associate Professor, NUS Institute of Engineering
Leadership, Mentor @ NUS Enterprise
A/Prof Hugh Mason

4
Typical B2B Tech Startup Challenges
1. Lead Generation
2. Gathering Market Data
3. Building Credibility, Trust and a Brand
4. Hiring great talent
5. Long Sales Cycle
6. Constant Change in Technology
7. Partnership Decisions

5
All JFDI.Asia’s Successful Investments are all Tech B2B

6
B2B Startups Really Matter: Yet Many Fall at Each Hurdle

7
‘Marketing’ Issues Underlie Most Startup Failures

8
Deep Tech Startups Face Additional Challenges
1. A tension between the priority of building
products versus building a business
2. Challenges in articulating the nature and
value of the technology
3. Different agendas among academia,
product development teams and
investors
4. Different expectations regarding style of
presentation among stakeholders
5. A perception amongst founders that
“marketing” is limited to “promotion to
customers”.

9
Introductions
Coming Up
1
M
2
Q&A6

10
Go To Market Strategy Relates to Innovation
Innovation Succeeds Here
IDEO

11
If Tech is Over Here ...

12
… Then “Going To Market” is ⅔ of Success

13
Strategy is a Plan to do it: Many Approaches Possible

14
Startups, Scaleups and Small Businesses
“A startup is a
temporary
organization formed
to search for a
repeatable and
scalable business
model”
Blank

15
Strategy Evolves as a Startup becomes a Scaleup

16
This Presentation Focuses on the Period before PMF
Rachitsky

17
From Discovery to Growth
Startup Strategy
is about Discovery
Scaleup Strategy
is about Growth
Steve Blank
Product Market Fit

18
Different Tools for Different Times
Product Market Fit
Gartner
Startup Strategy
is about Discovery
Scaleup Strategy
is about Growth

19
In Practice PMF is a Phase not a Moment
Rachitsky
Watch for:
1. Visible
Excitement
2.Willingness to
Pay Now
before the
product is
ready
Watch for:
1. Retention
2. Feedback
3. Exponential
Organic Growth
4. Cost-efficient
Growth
5. LTV>CAC
6. Customer Clamour
7. Customer use even
when it’s broken

20
Success Story: Silent Eight
Focus on KYC as the use-case means Silent Eight:
- Saves Money
- Makes Money by creating a better experience
- Helps with compliance

21
Introductions
Coming Up
1
M
2
Q&A6

22
It’s 1876. Does Your Business Need a Telephone?

23
Product-Market Fit for the Telephone Took Decades

24
Some Features of The Telephone
Features
Transmits Sound
Private, Intimate
Direct
Works across
Distance
No Skill Required
Instantaneous

25
Features Offer Benefits
Benefits Convey
Speech
Convey Music
Allow
Conversation
Share
Emotion
Stay
Connected
Anyone Can
Use it
Transmits Sound ✔ ✔ ✔ ✔
Private, Intimate
Direct
✔ ✔ ✔
Works across
Distance
✔
No Skill Required ✔
Instantaneous ✔

26
Benefits Suggest Use Cases
Use Cases Convey
Speech
Convey Music
Allow
Conversation
Share
Emotion
Stay
Connected
Anyone Can
Use it
Family / Friend
Chat
✔ ✔ ✔ ✔ ✔
Business
Coordination
✔ ✔ ✔ ✔ ✔
Sharing
Entertainment
✔ ✔ ✔ ✔
Shopping From
Home
✔ ✔ ✔ ✔
Accurate Time ✔ ✔

27
Use Cases Suggest Markets
Markets Domestic Offices Factories Military Transport
Opera /
Theatre
Family / Friend
Chats
✔
Business
Coordination
✔ ✔ ✔ ✔
Sharing
Entertainment
✔
Shopping From
Home
✔ ✔
Accurate Time ✔ ✔ ✔ ✔ ✔

28
Pick a “Beach Head” Market - Only One!
Factors Domestic Offices Factories Military Transport
Opera /
Theatre
How Big is it? ✔✔✔ ✔✔ ✔ ✔ ✔ ✔
How Profitable
Could it Be?
✔ ✔✔✔ ✔✔ ✔✔✔ ✔ ✔
Easy to Reach
Customers?
✔ ✔✔ ✔✔ ✔ ✔✔✔ ✔
Urgent Customer
Need?
✔ ✔✔ ✔✔ ✔✔✔ ✔ ✔
Quick to Deploy
Technology?
✔ ✔✔ ✔✔✔ ✔ ✔✔✔ ✔

29
Pick a “Beach Head” Market - Only One!
Factors Domestic Offices Factories Military Transport
Opera /
Theatre
How Big is it? ✔✔✔ ✔✔ ✔ ✔ ✔ ✔
How Profitable
Could it Be?
✔ ✔✔✔ ✔✔ ✔✔✔ ✔ ✔
Easy to Reach
Customers?
✔ ✔✔ ✔✔ ✔ ✔✔✔ ✔
Urgent Customer
Need?
✔ ✔✔ ✔✔ ✔✔✔ ✔ ✔
Quick to Deploy
Technology?
✔ ✔✔ ✔✔✔ ✔ ✔✔✔ ✔

30
Be Prepared to Pivot Inside the Beach Head Market
A very successful business borne out of a prior failed startup experience.
Thorough Customer Discovery and a hard but correct early pivot was the key
to getting on the path to Product-Market fit.

31
Introductions
Coming Up
1
M
2
Q&A6

32
It’s 1959. Does Your Business Need a Photocopier?

33
The Problem With Innovation: Great Ideas Look Bad

34
After Nagji and Tuff (2012)
Three Horizons of Innovation
Yesterday’s
Tech
Horizon 3
Likely to Fail
“Experimental”
Horizon 2
Some Risk
Scary for
Managers
And RegulatorsHorizon 1
Low Risk
No Brainer buy
Horizon 3
Very Risky
“Experimental”
The New
Big Thing
Rocket
Science
Technology Risk --->
Stuff We
Do Already
Adjacent
Markets &
Business
Models
Stuff We
haven’t
explored

35
Telephones, Photocopiers, Fax: All Are Yesterday’s Future
Yesterday’s
Tech
Horizon 3
Likely to Fail
“Experimental”
Horizon 2
Some Risk
Scary for
Managers
Low Risk
No Brainer buy
Horizon 3
Very Risky
“Experimental”
The New
Big Thing
Rocket
Science
Stuff We
Do Already
Adjacent
Markets &
Business
Models
Stuff We
haven’t
explored

36
Horizon 1: Procurement. The CFO’s Favourite.
Yesterday’s
Tech
Horizon 3
Likely to Fail
“Experimental”
Horizon 2
Some Risk
Scary for
Managers
Low Risk
No Brainer buy
Horizon 3
Very Risky
“Experimental”
The New
Big Thing
Rocket
Science
Stuff We
Do Already
Adjacent
Markets &
Business
Models
Stuff We
haven’t
explored
Save Money,
Cut Staff!

37
Horizon 2: “Steady as Goes” for Prudent CEOs
Yesterday’s
Tech
Horizon 3
Likely to Fail
“Experimental”
Horizon 2
Some Risk
Scary for
Managers
Low Risk
No Brainer buy
Horizon 3
Very Risky
“Experimental”
The New
Big Thing
Rocket
Science
Stuff We
Do Already
Adjacent
Markets &
Business
Models
Stuff We
haven’t
explored
Achieve
Compliance!
Build on our
Strengths!

38
Horizon 3: Where Agile Startups Have The Edge
Yesterday’s
Tech
Horizon 3
Likely to Fail
“Experimental”
Horizon 2
Some Risk
Scary for
Managers
Low Risk
No Brainer buy
Horizon 3
Very Risky
“Experimental”
The New
Big Thing
Rocket
Science
Stuff We
Do Already
Adjacent
Markets &
Business
Models
Stuff We
haven’t
explored
But I Might
Get Fired!

39
If you Want Businesses to buy, Mitigate Perceived Risk
Horizon 2
Some Risk
Scary for
Managers
And Regulators
Horizon 1
Low Risk
No Brainer buy
Unfamiliar Science/Technology
Unfamiliar Use-cases
Benefits may be hard to explain
Maybe unfamiliar Business Models
May need new regulation
Maybe misinformation
So How?
Yesterday’s
Tech
The New
Big Thing
Rocket
Science
Stuff We
Do Already
Adjacent
Markets &
Business
Models
Stuff We
haven’t
explored

40
Every B2B Salesman’s Story: BeforeSuccess,Joy,$$$
Time
What you do now - meh

41
Every B2B Salesman’s Story: AfterSuccess,Joy,$$$
Time
With My
Product!

But There’s Always a Gap. “I Might Get Fired”
42
Success,Joy,$$$
Time

43
So Businesses Don’t buy Stuff Like You Do At Home

44
Modelling How B2B Sales Happen
1 Determine Need 2 Evaluate Options 3 Make Selection
High
Concern
Low
Concern Graham Lind

45
The Journey Usually Begins with a Job-to-be-Done
Problem
Solution
Information

46
At First Buyers Seek Information
Information
Problem
Solution
Information

47
Cost is a Worry When They Don’t Understand Benefits
Information
Cost
Problem
Price
Solution
Information

48
But Finally Risk is Likely to be the Key Factor
Information
Cost
Problem
Risk
Risk
Price
Solution
Information

49
Your Strategy Needs to Address All Four Concerns
Information
Cost
Problem
Risk
Risk
Price
Solution
Information

50
Introductions
Coming Up
1
M
2
Q&A6

51
It’s 1993. Does Your Business Need a Tablet?

52
Traditional Corporate
Vision-driven Innovation:
‘Plan & Perfect’, ‘Go to Market’
Waterfall Development, Stage Gates
Startup-style
Discovery-driven Innovation:
‘Launch & Learn’, Led by the Market
Lean Startup, Design Thinking, Agile
After Oke and Goffin (2001)
After Ries (2011)
Take Tech to Market, or Market to Tech?

53
Radical Startup Approaches Often Don’t Translate to B2B

54
And Not Every Innovation Comes From a Startup

55
So Which Comes First? “Could it be done?”

56
Or “Should it be Done?”

57
Perceived Risk: the Barrier for Startups Entering a Market
Horizon 3
Likely to Fail
“Experimental”
Horizon 2
Some Risk
Scary for
Managers
Low Risk
No Brainer buy
Horizon 3
Very Risky
“Experimental”
ShoulditbeDone?
Could it be Done?

58
Traditional Tech-First, ‘Go To Market’ Visionary StrategyShoulditbeDone?
Could it be Done?
1 “Prove the Technology”
2 “Prove
the
Business
Case”

59
A Lower Risk Approach Balances Both FactorsShoulditbeDone?
Could it be Done?
Test and mitigate all three dimensions of risk in parallel

60
What Matters is Alignment with Key Stakeholders
Customers
& Partners
Investors &
Financial Folk
Talent &
Your Team
Regulators,
Media &
The Public

61
Each Stakeholder Group Looks Through Its Own Lens
Customers
& Partners
Investors &
Financial Folk
Talent &
Your Team
Regulators,
Media &
The Public
● Product Benefits
● Opportunities
● Risk-Mitigation
● Something New
● Profit (potential)
● Predictability
● Progress
● Promises Kept
● Safety
● Strategic Benefits
● Compliance
● Excitement
● Opportunities
● Promises Kept
● Being Part of
Something
Exciting

62
Some Ways for B2B Ventures to Connect
Customers
& Partners
Investors &
Financial Folk
Talent &
Your Team
Regulators,
Media &
The Public
● Product Benefits
● Opportunities
● Risk-Mitigation
● Something New
● Profit (potential)
● Predictability
● Progress
● Promises Kept
● Safety
● Strategic Benefits
● Compliance
● Excitement
● Opportunities
● Promises Kept
● Being Part of
Something
Exciting
● Ads
● PR/Content
● Direct
● Communities
● PR/Content
● Direct
● Reports
● Word of
Mouth
● PR/Content
● Events
● Sponsored
Events
● Ads
● PR/Content
● Events
● Communities

63
A Template for a Marketing Action Plan

64
Your Business Summary: example
TrustScan is a company headquartered in Singapore
It offers middleware for the travel industry
That helps all stakeholders from passengers to carriers, airports and government organizations
To figure out what they need to do to comply with travel requirements through COVID-19 and be sure they are
staying compliant all the way from booking to returning home
So that passengers get where they expect to be on time and everyone else can operate efficiently
Using a rules-based engine updated in real time, tracking and digital verification with insurance and a concierge
service to cover unforeseen events

65
Your Business Summary
● We suggest a 3 years time horizon
● Don’t confuse users and customers
● Be specific - who exactly is going to
buy and why?

66
Your Target Market
● What industry are you in?
● What industries could you be in?
● Where can you get data on the size of the market?
● What factors are changing in the next 3-5 years to
affect that market?

67
Your Target Market
● Who exactly are the customers?
● How will you reach them?
● What would incentivise Partners to help you?
● Where do your customers already congregate?
● What can you do to create a community?

68
Your Market Strategy and Messages
Talent &
Your Team
Investors &
Financial Folk
Regulators,
Media &
The Public

69
Your Marketing Channels

70
Your Marketing Initiatives, eg Content and Community
McClure

71
Your Marketing Budget
● Internal or External?
● How will you quantify success?
● What would doubling spend do?
Specialist Agencies
Strategy, Expectation Management
Creative Producers
Scheduling, Budget, Management
Creative Artisans
Words, Pictures
Designs,
Performance
Video, Animation

72
Introductions
Thank You!
1
M
2
Planning and Executing the Strategy5
Q&A6

73
Suggestions for Further Reading, Training and Support

Introducing Go To Market Strategy for B2B Startups

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