Startup Acceleration Step III: Market Model

I. Why market model?

Based upon the nature of the startup, that is going to determine the market model necessary to get to $100M in annual revenue and a $1bn valuation. The market method is going to determine the primary method for acquiring users and customers.

II. Market model process

1. Market Model Math
2. Impact on Platform Structure
3. Impact on Sales Structure
4. Impact on Customer Acquisition Costs (CAC)

III. Market model math

1. Enterprise – 1,000 @ $100,000 per year
2. Mid Market – 10,000 @ $10,000 per year
3. SMB – 100,000 @ $1,000 per year
4. Professional Consumers – 1M @ $100 per year
5. Consumers – 10M @ $10 per year

IV. Impact on platform structure

1. Enterprise – Highest custom mods & solutions
2. Mid Market – High custom mods & solutions
3. SMB – Moderate custom mods & solutions
4. Professional Consumers – Low custom mods & solutions
5. Consumers – Lowest custom mods & solutions

V. Impact on sales structure

1. Enterprise – Complex Sales
2. Mid Market – Complex Sale
3. SMB – Rep Assisted Self Service Transactional Sale Clearinghouse
4. Professional Consumers – Rep Assisted Self Service Transactional Sale
5. Consumers – Self Service

V. Impact on Customer acquisition cost (CAC)

1. Enterprise – Highest CAC
2. Mid Market – High CAC
3. SMB – Moderate CAC
4. Professional Consumers – Low CAC
5. Consumers – Lowest CAC