Stephen Salyer, SAC 09

1. SALZBURG ACADEMY ON MEDIA
AND GLOBAL CHANGE
“Media Entrepreneurship: Financing Change
in a Digital World”
Stephen Salyer, President, Salzburg
Global Seminar

2. QUESTIONS FOR THIS MORNING’S
SESSION:
What is the difference between social entrepreneurship and
business entrepreneurship?
Which revenue sources might “sustain” future digital media?
How might I persuade someone to “invest” in my idea?
2

3. WHAT EXPERIENCE
AM I DRAWING ON?
“Starting Things”
1974 Salzburg Seminar – “Non-profit entrepreneur”
Training in law and public policy (1974–79)
Television production, educational publishing (1979-88)
WNET Learning Lab (1983 – 86)
Radio news – Public Radio International (1988-2005)
Digital news and service provider – Public Interactive, LLC
(1999-2005)
Encouraging media innovation – Salzburg Global Seminar
(2007 - present)
Board of Internews: https://internews.org/ 3

4. COMMON THREADS
1. Breaking new ground - no precise model to replicate.
2. Defining a need to be met before designing a solution.
3. Creative collaboration.
4. Distinctive media application.
5. Convincing others to “invest” in the idea.
4

5. SOCIAL V. BUSINESS
ENTREPRENEUR
Problem-driven
Social value foremost
Economic sustainability
secondary
Relies on donor startup $
Depends on diversified
revenue sources
Difficult to measure success
Often slow to scale
Need-driven
Economic return foremost
Public value secondary
Relies on investors or
shareholders
Relies on market / consumer
adoption
Market metrics
Often fast to scale or failure
Social Entrepreneur Business Entrepreneur
5

6. EXAMPLE #1: MINNPOST (LOCAL)
Target market: Minnesota, USA
Launch: 2007
Full time employees: ~17
Annual budget: $2M
Startup capital: $850,000 from 4 families
Current revenue sources:
Subscribers / members
Foundation grants
Advertising / corporate sponsorships
In-person events
Model: Diversified community support 6

7. MINNPOST MAY BE FOUND AT:
HTTPS://WWW.MINNPOST.COM/
7

8. EXAMPLE #2 (Global)
Bright Simons, m-Pedigree Network
Mission: eliminate counterfeit drugs from the market
Launch: 2007
Leverage cell phone technology to eliminate counterfeit
drugs
Territories: East Africa, West Africa, South Africa, South
Asia
Partners: 2 dozen telecos, regulatory agencies,
pharmas, regional health organizations
Supporters: Ashoka Innovators for the Public, World
Economic Forum, TED
Model: Give Away the Solution and money will come
8

9. M-PEDIGREE MAY BE FOUND AT:
http://mpedigree.net/mpedigreenet/
9

10. EXAMPLE #3 (glocal)
TED TALKS
Started as design conference
Effective marketing of exclusive event
Simple, recognizable format
Megaphone for new ideas
Free marketing via uTube / podcasts / broadcasts
Localizing global concept
Licensing organization, web developer
Strong brand, tested methodology
Sell tickets
Model: Franchising 10

11. GROUP WORK HYPOTHETICALS
Hypothetical: Sam’s video platform
1. Read Hypothetical
2. At your table, decide on:
a. what product Sam should offer
first?
b. 3 forms of revenue to sustain his
business?
c. who might invest in Sam’s idea?
d. what might they receive in return?
11

12. WHICH QUESTIONS APPLY TO NON-PROFIT
VERSUS FOR-PROFIT BUSINESS PLANS?
What need are you trying to meet?
Will your concept produce high social value?
Who are your customers?
Why will they want your product?
How will customers access your offer?
Who will pay for its development?
Who will sustain its availability?
When will investors receive a ‘return’?
12

13. WHAT DISTINGUISHES A FOR-
PROFIT PLAN?
Competition and differentiation – e.g., first to market, unique
features, exclusive partners, cool tech, branding
Pathway to profitability – a plausible revenue model
Return on Investment (ROI) – a way for investors to get their
money back plus a “return” worth the risk taken
13

14. WHAT DISTINGUISHES A NON-
PROFIT BUSINESS PLAN?
Powerful argument for social value creation
Convincing explanation why the market can’t
meet the need
Metrics beyond profitability for assessing success
14

15. WHAT MAKES FOR A POWERFUL ELEVATOR
SPEECH?
Be Specific
What exactly is the need and opportunity?
What makes your solution superior to others?
What will drive movement to scale?
Connect strategy and outcome
• A credible implementation path from here to there
Capture significance
How BIG could this become?
Make it compelling
Why is it essential to move now?
15

16. BUSINESS PLAN V. ELEVATOR
SPEECH
Much more detail
What supports your needs assessment?
How is your ‘solution’ superior to what exists (e.g., cheaper,
faster, better)?
What is required to bring it to market (e.g., talent, technology,
rights)?
How can your concept be tested / proven?
Who are your competitors?
What risks do you and your investors face?
What is the track record of you and partners?
What signposts will say you are moving in the right direction?
16

17. INVESTMENT
What investment(s) do you require?
What and how long will that buy?
How will the next stage be supported?
When and how will investors receive a “return”?
What role will investors have in future decisions?
17

18. THE BOTTOM LINE
You will need to innovate your whole life
You may need to invent your next job
You will need to convince others to succeed
An effective business plan
helps you develop a pathway to success for your idea,
inspires confidence you (the entrepreneur) can execute, and
convinces others to join you in your journey. 18