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Start a Business!
Novistiar Rustandi
Adeos Rules of Startenomics
1. $ = t (cash = time)
2. You will never have enough
3. Be the clock
4. Always be high on expenses
and low on revenues
5. Investors dont care about
your numbers
How Do You Plan to Make Money?
Traditional vs. new:
1. Traditional
Sell goods
Sell services
Valuation: 2x 5x earnings
2. New
Ads/sponsors (Apps that have tens of millions of
retained users who will use it regularly for years. Rev.
< $1.50 per thousand impressions)
Membership/subscription services (App that provides
constant new contents, file storage, etc.)
Surveys & reports (Plus survey sponsors)
Paid apps
How Do You Plan to Make Money?
Traditional vs. new:
2. New
Freemium (90% of total app downloads in 2012)
Con: Provides a large segment of its users with an
inferior experience or service
In-app purchase (30% of apps by 2016)
A single moment in the usage of free apps where
users have a massive amount of pain or desire
(Premium Content, Premium Features, Cheats, Hints,
Weapons, Lives, Unlimited Usage)
In-app advertising/affiliated marketing
Lead generation
Valuation: Active monthly subscribers/users
What is your startup?
ResepDokter.com is a mobile
application for patients with a
smartphone to buy their
prescription and save money
without going to and waiting at
the pharmacy
Who are your stakeholders?
Resep
Dokter
.com
Patients Pharmacies
Pharma
Companies
Insurance
Companies
Doctors
What are your values for them?
Resep
Dokter
.com
Patients Pharmacies
Pharma
Companies
Insurance
Companies
Rp Savings
Time
Customers
Branding
Doctors
Rp Revenues
Rp Savings
Sales Data
Sales Data
How do you charge them?
Membership
(Total number of pharmacies =
12,774 = Rp. 320 million)
ResepDokter.com
Sales Leads
(Total number of
prescriptions = 35.5 million =
Rp. 35.5 billion)
Commissions
(Total sales = Rp. 17 T =
Rp. 336 billion)
Pharmacies
Freemium?
Premium?
Launching Strategy & Market Data
Description
Data
Average price per prescription Rp. 473,000
Annual number of prescriptions 4,600,000
Number of pharmacies 2,615
Average annual pharmacy sales Rp. 832,000,000
Average number of prescription per pharmacy 1,760
Apotek K-24 56
Apotek Kimia Farma 51
Century Healthcare 105
Guardian Pharmacy 46
Launching in Jakarta
Revenue
Revenues are impossible
to forecast
Adeo Ressi
Revenue Projection Steps
1. Identify a key metric
2. Determine pricing
3. Determine a
distribution/marketing strategy
4. Project marketing
effectiveness/growth
5. Watch closely your stats
6. Update your projection
Sample of key metrics
1. Number of unique visitors
2. Number of new members
3. Number of prescription
submissions
4. Number of quote submissions
5. Number of purchases
6. Average number of submissions
per member/pharmacy
Costs
Expenses are easy to
forecast
Adeo Ressi
Key cost components
1. System Architect: Rp. 20M-25M
2. Senior Mobile Developer: Rp. 8.5M-16M
3. Senior Web Developer: Rp. 7.5M-15M
4. Senior UI Designer: Rp. 7.5M-15M
5. Junior Developer: Rp. 3.5M-5M
6. Junior QA: Rp. 3.5M-5M
7. Server Costs (5M Unique Visitors + 12M
Visits + 50M Page Views): USD 5,250
Cash flows
Cash flow is king
Rp = time
Financial Projection
ResepDokter.com
Financial Projection
Month Year 1
1 2 3 4 5 6 7 8 9 10 11 12 I II III
Revenues
Number of clicks (Facebook ads) - - 14,815 14,815 14,815 14,815 14,815 14,815 14,815 14,815 14,815 14,815 148,148
Number of potential users - - 444 444 444 444 444 444 444 444 444 444 4,444
Number of potential users who visit a doctor - - 67 67 67 67 67 67 67 67 67 67 667
Number of prescriptions - 200 400 800 1,200 1,800 3,600 7,200 10,800 16,200 24,300 36,450 102,950
Total sales - 94,599,156 189,198,312 378,396,624 567,594,937 851,392,405 1,702,784,810 3,405,569,620 5,108,354,430 7,662,531,646 11,493,797,468 17,240,696,203 48,694,915,612
Total revenues - 1,891,983 3,783,966 7,567,932 11,351,899 17,027,848 34,055,696 68,111,392 102,167,089 153,250,633 229,875,949 344,813,924 973,898,312

Metrics
Number of pharmacies 258 268 278 288 298 308 328 348 368 388 408 428 428
Number of prescriptions 37,820 39,286 40,752 42,218 43,684 45,150 48,082 51,013 53,945 56,877 59,809 62,741 581,377
Market share (partner pharmacies) - 0.01 0.01 0.02 0.03 0.04 0.07 0.14 0.20 0.28 0.41 0.58 0.18
Market share (all pharmacies) - 0.00 0.00 0.00 0.00 0.00 0.01 0.02 0.03 0.04 0.06 0.10 0.022

Costs
Application development 50,000,000 25,000,000 75,000,000
Computer hardware 15,000,000 5,000,000 20,000,000
Office rent 75,000,000 75,000,000
Incorporation 15,000,000 15,000,000
Legal expenses 25,000,000 25,000,000
Other startup expenses 15,000,000 15,000,000
Salary - Full-time Sales 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 60,500,000
Salary - Full-time Sales 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 33,000,000
Salary - Full-time Social Media Specialist 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 60,500,000
Salary - Full-time Social Media Specialist 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 60,500,000
Salary - Founders 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 90,000,000
Hosting expenses 1,500,000 1,500,000 1,500,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 28,500,000
Marketing expenses 35,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 235,000,000
Other admin expenses 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 36,000,000
Total costs 130,500,000 63,500,000 48,500,000 48,500,000 50,000,000 50,000,000 160,500,000 55,500,000 55,500,000 55,500,000 55,500,000 55,500,000 829,000,000

Profits (130,500,000) (61,608,017) (44,716,034) (40,932,068) (38,648,101) (32,972,152) (126,444,304) 12,611,392 46,667,089 97,750,633 174,375,949 289,313,924 144,898,312

Cash flow
Beginning balance 0 269,500,000 207,891,983 163,175,949 122,243,882 83,595,781 50,623,629 (75,820,675) (63,209,283) (16,542,194) 81,208,439 255,584,388 -
Cash in-flow 400,000,000 - - - - - - - - - - - 400,000,000
Cash out-flow (130,500,000) (61,608,017) (44,716,034) (40,932,068) (38,648,101) (32,972,152) (126,444,304) 12,611,392 46,667,089 97,750,633 174,375,949 289,313,924 144,898,312
Ending balance 269,500,000 207,891,983 163,175,949 122,243,882 83,595,781 50,623,629 (75,820,675) (63,209,283) (16,542,194) 81,208,439 255,584,388 544,898,312 544,898,312