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Starting Up Going Global Lessons Learned  From A Startup Andy Harjanto andy@guppers.com Wish you were here
Agenda We Have Launched,  What’s Next? New Global Opportunities For All of Us Lessons Learned From Starting up Globally
What We Learn From Starting UP Globally  - Guppers.COM
Start with Observations Billions of Texting DeliveredEveryday, Everywhere in the world!
Why Texting Is Always P2P? Would Group Texting Be Better?  How About Directory Services for SMS?  How about Premium Content? Exclusive Membership?
Prototypes, Hypothesis Validation  Cloud Services People in a few pilot countries really like the service
But What’s Wrong? Dealing with local telephone provider was hard for a startup. They protect their cash cow. They’d ratherbuild services internally, as opposed to form a partnership. Lesson #1 Dependency on large companies is the kiss of death for many startups* *unless you know the key players inside the company
But What’s Wrong? (Cont’d) End consumers in many countries arevery cost-conscious  Credit card is not usedto pay bills in many countries. Mobile payment is not as easy to integrate Lesson #2 Think thru end-to-end customer experience for each region
One Door Closes, Another Opens.. Businesses are using our service! High stickiness  Many usages that we’ve never thoughtbefore Less issue on payment and prices. Credit cards and invoice are common Lesson #3 Do not resist opportunities, even if your product is not design that way  Each region presents unique opportunities
Unexpected Shift Happens Global Economy Meltdown 2008-? Promise of Cloud Computing (Cost Elasticity) The Rise Of Social Computing (Productivity) Lesson #4 Mobility Accelerated Ride the global wave early,  offer compelling solutions
…Back to Drawing Board The new Guppers.com was born… Cloud Computing Ready The Use of Social Computing  Heavily Focus on Mobility  Effortless Collaboration, just use your daily tool (SMS, Email, Browser) Social Media Ready  Does this work?  It’s early to tell, but we’re hopeful  from looking at the data
OK, Let’s Find Beta Customers.. Easy, Right? Not really.   ,[object Object],trust is pre-requisite to using your service ,[object Object]
Tight hand-holding is required   Lesson #5 Expect to spend more time and resource with customers in different parts of the world. US is not the barometer
Understand Their Daily Life Work Day Evening Hours Social Engagement continues well into the night
Guppers Usage By Region Mostly SMS Online and Email dominated Mix SMS and Online
Does Social Media Work Outside US? Although Asia has the highest Internet population and growth, US companies have little tractions. Online services are dominated by local online services (CyWorld, Baidu, Mixi) Lesson #6 In Asia and Europe, co-workers’, friends’ recommendations are much more important
Distribution Channel: What Work For Us Outside US? Lesson #8 Partner or hire  local connectors Local Connectors, Influencers
Why Is Hiring Local Very Important? ,[object Object]
Business is very personal in many different countries; without body, you’re nobody
They know local laws and regulations
Do not under-estimate the cultural differences between regions, such as business ethics, deal making process,[object Object]
How To Find Local Connectors and Influencers? (Cont’d) Secondary Option:  Issue:  Unknown personal quality
Getting Your Business Funded Global organic growth is possible, but it’s unlikely in the first year  VC Funding dries up in the US, Why not outside US?
Money Waiting To Be Invested In Asia, unprecedented amount of savings ready to be invested.  However, they’re wary of US recent economy meltdown
Your Customers Are PotentialInvestors ,[object Object]
In Asia, personal trust is especially important  Lesson #7 Earntrust, Customers will come,  they might be your  best investors
Other Source of Funding:Government Grants ,[object Object]
Establish local a company with your local member and hire local.
It’s a win-win situation,[object Object]
Does Localization Matter? ,[object Object]
French, German, Italy, Spain: Localize it
Asia: It depends -
Business App, High Tech, Highly Educated: English Acceptable
End-Consumers: Must be localized Lesson #8 Localization matters, but not for all countries and  not for all customer segment . Keep your cost low
Single or Multiple Hosting? ,[object Object],not reliable in a few countries ,[object Object],consider for hosting servers in a few countries.  ,[object Object],Lesson #9 As you design the system,  take into account the possibilities that you have to host your services in a few countries. Cloud Computing will help in the future
The “Digital Divide” ,[object Object],access to digital and information technology ,[object Object]
Cell phones are very affordablein many countries.
It is also common to seea person carries more thanone cell phone,[object Object]
Global Team? Good Idea? Guppers team members span over 5 different time zones
Working Globally: Communication ,[object Object]
Tools are effectively free or inexpensive
Nothing beats human face to face meetings; but today’s tools are good enoughWhat we’re using…. Live Meeting Conversation via SMS, Email, Online Personal Status Group Conference Call Email Hosting Screen Sharing
Lesson #10 Take Advantage Of Cloud Computing ,[object Object]
The cost of building and maintaining data center is too expensive for startups
Cloud Computing offers “Pay As You Go” model, which works well for usWhat we’re using (pilot)
Eat Your Own Dog Food! Lesson #11 ,[object Object]
At Guppers,
We’re THE #1 customer
We heavily depend on this product to run our business ,[object Object],[object Object]
Skype allows online users to talk directly to you,[object Object]
Pick only a few countries
Ensure the end-to-end scenarios work first
Expand to the other regions slowly

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Going Global? Lessons Learned from A Startup

  • 1. Starting Up Going Global Lessons Learned From A Startup Andy Harjanto andy@guppers.com Wish you were here
  • 2. Agenda We Have Launched, What’s Next? New Global Opportunities For All of Us Lessons Learned From Starting up Globally
  • 3. What We Learn From Starting UP Globally - Guppers.COM
  • 4. Start with Observations Billions of Texting DeliveredEveryday, Everywhere in the world!
  • 5. Why Texting Is Always P2P? Would Group Texting Be Better? How About Directory Services for SMS? How about Premium Content? Exclusive Membership?
  • 6. Prototypes, Hypothesis Validation Cloud Services People in a few pilot countries really like the service
  • 7. But What’s Wrong? Dealing with local telephone provider was hard for a startup. They protect their cash cow. They’d ratherbuild services internally, as opposed to form a partnership. Lesson #1 Dependency on large companies is the kiss of death for many startups* *unless you know the key players inside the company
  • 8. But What’s Wrong? (Cont’d) End consumers in many countries arevery cost-conscious Credit card is not usedto pay bills in many countries. Mobile payment is not as easy to integrate Lesson #2 Think thru end-to-end customer experience for each region
  • 9. One Door Closes, Another Opens.. Businesses are using our service! High stickiness Many usages that we’ve never thoughtbefore Less issue on payment and prices. Credit cards and invoice are common Lesson #3 Do not resist opportunities, even if your product is not design that way Each region presents unique opportunities
  • 10. Unexpected Shift Happens Global Economy Meltdown 2008-? Promise of Cloud Computing (Cost Elasticity) The Rise Of Social Computing (Productivity) Lesson #4 Mobility Accelerated Ride the global wave early, offer compelling solutions
  • 11. …Back to Drawing Board The new Guppers.com was born… Cloud Computing Ready The Use of Social Computing Heavily Focus on Mobility Effortless Collaboration, just use your daily tool (SMS, Email, Browser) Social Media Ready Does this work? It’s early to tell, but we’re hopeful from looking at the data
  • 12.
  • 13. Tight hand-holding is required Lesson #5 Expect to spend more time and resource with customers in different parts of the world. US is not the barometer
  • 14. Understand Their Daily Life Work Day Evening Hours Social Engagement continues well into the night
  • 15. Guppers Usage By Region Mostly SMS Online and Email dominated Mix SMS and Online
  • 16. Does Social Media Work Outside US? Although Asia has the highest Internet population and growth, US companies have little tractions. Online services are dominated by local online services (CyWorld, Baidu, Mixi) Lesson #6 In Asia and Europe, co-workers’, friends’ recommendations are much more important
  • 17. Distribution Channel: What Work For Us Outside US? Lesson #8 Partner or hire local connectors Local Connectors, Influencers
  • 18.
  • 19. Business is very personal in many different countries; without body, you’re nobody
  • 20. They know local laws and regulations
  • 21.
  • 22. How To Find Local Connectors and Influencers? (Cont’d) Secondary Option: Issue: Unknown personal quality
  • 23. Getting Your Business Funded Global organic growth is possible, but it’s unlikely in the first year VC Funding dries up in the US, Why not outside US?
  • 24. Money Waiting To Be Invested In Asia, unprecedented amount of savings ready to be invested. However, they’re wary of US recent economy meltdown
  • 25.
  • 26. In Asia, personal trust is especially important Lesson #7 Earntrust, Customers will come, they might be your best investors
  • 27.
  • 28. Establish local a company with your local member and hire local.
  • 29.
  • 30.
  • 31. French, German, Italy, Spain: Localize it
  • 33. Business App, High Tech, Highly Educated: English Acceptable
  • 34. End-Consumers: Must be localized Lesson #8 Localization matters, but not for all countries and not for all customer segment . Keep your cost low
  • 35.
  • 36.
  • 37. Cell phones are very affordablein many countries.
  • 38.
  • 39. Global Team? Good Idea? Guppers team members span over 5 different time zones
  • 40.
  • 41. Tools are effectively free or inexpensive
  • 42. Nothing beats human face to face meetings; but today’s tools are good enoughWhat we’re using…. Live Meeting Conversation via SMS, Email, Online Personal Status Group Conference Call Email Hosting Screen Sharing
  • 43.
  • 44. The cost of building and maintaining data center is too expensive for startups
  • 45. Cloud Computing offers “Pay As You Go” model, which works well for usWhat we’re using (pilot)
  • 46.
  • 48. We’re THE #1 customer
  • 49.
  • 50.
  • 51. Pick only a few countries
  • 52. Ensure the end-to-end scenarios work first
  • 53. Expand to the other regions slowly
  • 54.
  • 55.
  • 56. Eastern Europe: Romania, Ukraine, Poland
  • 57.
  • 60. Best bet is to workwith local company
  • 61. Main issue: Generation saving attitudesFar-East
  • 62.
  • 63. China web users alone, outnumber US population
  • 64. Have to visit to understand the magnitude of opportunities, threats, and progress.
  • 65.
  • 66. Layoffs Hit US and Europe Some best and brightest are forced to start their own business
  • 67.
  • 68.
  • 69. Some countries still grow, even at slower pace
  • 70. Competition to produce cheaper goods & service become fiercer
  • 71.
  • 72.
  • 73. The cost could be further reduced by outsourcing to certain parts of the world who have the expertise.
  • 74.
  • 75. How can I trust this person?
  • 76. How do I know if this person is real expert?
  • 77. How do I know I could work well with this person who is 12,000 miles away But we have to start somewhere!
  • 78.
  • 79.
  • 80. Typically, requires no heavy investment
  • 81. Allows to diversify to many different startups
  • 82.
  • 83.
  • 84. At personal level, regardless of countries, the pattern is consistent : many good apples, couple bad ones.
  • 85. Appreciate many cultures so much more. Always expect the unexpected
  • 86.
  • 87. Playing field has been leveled
  • 88. Time and Space have been compressed
  • 89. The cost of going global is a possibility even for a startup and a small business.
  • 91. Building and maintaining relationships to your partners and customers
  • 92.
  • 93. If you would like to contribute, please share your experience; we’ll update & credit your contributions
  • 94. Join discussions in a Linked-in new group. Click here
  • 95. We hope we can network entrepreneurs, connectors, investors, influencer from all over the world.
  • 96. Spread the words, let’s network
  • 97.