Hom e Assignm ent!!! Slide 1: Cover slide (Team member names, Team - - PowerPoint PPT Presentation
In your groups Develop a business model canvas on any one idea The key is the thought process of developing the canvas versus the ingenuity of the idea itself If you cannot think of an idea . Develop an Ice-Cream shop chain
In your groups Develop a business model canvas on any one idea The key is the thought process of developing the canvas versus
the ingenuity of the idea itself
If you cannot think of an idea…
.
Thursday – 10 minute presentations 4 – 5 groups
Slide 1: Cover slide (Team member names, Team name, Team
number, 1 to 2 sentence description of your product and the number of customer contacts you’ve made or think you should make)
Slide 2: Current business model canvas with any changes marked Slide 3: Tell us about your Market size (TAM/ SAM/ Target) Slide 4: What type of business are you building?: IP
, licensing, startup, unknown
Slide 5: What are your proposed experiments to test customer
segment, value proposition, channel and revenue model of the hypotheses: What constitutes a pass/ fail signal for each test (e.g. at what point would you say that your hypotheses wasn’t even close to correct)?
“What’s a Startup? First Principles,”
http: / / steveblank.com/ 2010/ 01/ 25/ whats-a-startup-first- principles/
“Make No Little Plans – Defining the Scalable Startup,”
http: / / steveblank.com/ 2010/ 01/ 04/ make-no-little-plans-–- defining-the-scalable-startup/
“A Startup is Not a Smaller Version of a Large Company”,
http: / / steveblank.com/ 2010/ 01/ 14/ a-startup-is-not-a-smaller- version-of-a-large-company/
Mark Pincus, “Quick and Frequent Product Testing and
Assessment” http: / / ecorner.stanford.edu/ authorMaterialInfo.html?mid= 2313
Agile development: I terative and incremental development, where solutions evolve through collaboration
Business Model Canvas - BMC: template for developing and documenting new business models, made up of 9 key building blocks
Customer archetype: fictional character created to represent the different user types within a targeted demographic, attitude and/ or behavior set that might use a site, brand or product in a similar way.
Customer discovery: Process of asking questions to understand needs and pain points of potential customers
Peer Review Document: An online document for comments, suggestions and
SAM: Served Available Market
TAM: Total Available Market
MVP: Minimum Viable Product; the basic product (or service) you can take to market
Teaching Team: The instructors; usually serial entrepreneurs, entrepreneurial educators and technologists
Peer Review Document: An online document for comments, suggestions and
Value Proposition: What value do we deliver to the customer? What customer needs are we satisfying?
Building a successful business is every entrepreneur's goal – but
Why do Startups fail? The Startup Genome Project analyzed data from 3,200 companies and came up with some answers. At the core
A good product and A large market for the product. In other words, a startup should be able to scale. And to scale properly, it must balance the growth of five core dimensions : The dominant reason for failure : prem ature scaling of those dim ensions
Custom ers
Product Team Business Model Funding
Everyone has a business plan till they get punched in the mouth
Business Model
success
Typical Approach Preferred Approach
You wont learn anything about problems in the market while sitting at your desk
My buyers tell me that.. I have a neighbor in my industry and she said I met a competitors customer and he said… I recently attended a conference and met… I made a cold call and heard… Our user group said…
Product team quantifies the problem Development solves the problem Communication promotes the product Sales helps people buy
Product Team Sales Dev Com m
Find the quiet 80% Know all levels of customers – vendor, distributor, seller, buyer, user Engage customers as well as potentials Ask and Observe them Engage recent evaluators
market experts
sales effort
and that the market will pay to solve.
Depth of Investment Impact to Customer HIGH HIGH LOW
9. Positioning focuses on the problems you solve
Market Problems Feature - Function - Benefit Product Features
personas’ problems are different
Positioning by Persona Positioning by Industry
The test of innovation lies not in its novelty, its scientific content or it’s
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Business Plan Position ing Marketin g Plan Market Definiti
Pricing Buying Process Customer Acquisit ion Market Problems Technolo gy Assessme nt Use Scenario s Thought Leadersh ip Collater al “Special ” Calls Win/Loss Analysis Distribu tion Strategy Buy, Build,
Partner Buyer Personas Customer Retentio n Product Portfoli
Profitab ility User Personas Program Effectiv eness Distinct ive Competen ce Market Focus Business Planning Programs Readines s Support Product Roadmap Innovati
Requirem ents Launch Plan Competit ive Landscap e Sales Process Presenta tions & Demos Status Dashboar d Lead Generati
Sales Tools Event Support Referral s & Referenc es Channel Training Channel Support Strategy Execution
Other Ideas Innovation through Internal Lens Innovation through customer
Pragmatic Marketing Framework
Products
100 Customer Interviews
1. 2. 3. 4. 5. 6.
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Key Partners Key Activities Value Propositions Custom er Relationships Custom er Segm ents Key Resources Channels Cost Structure Revenue Stream s
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Key Partners Key Activities Value Propositions Custom er Relationships Custom er Segm ents Key Resources Channels Cost Structure Revenue Stream s
1. What core value do you deliver to the customer? 2. Which customer needs are you satisfying?
What is your product or service? How does it differ from an idea? Why will people want it? Who’s the competition and how does your customer view
these competitive offerings?
Where’s the market? What’s the minimum feature set? What’s the Market Type? What was your inspiration or impetus? What assumptions drove you to this? What unique insight do you have into the market dynamics
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Key Partners Key Activities Value Propositions Custom er Relationships Custom er Segm ents Key Resources Channels Cost Structure Revenue Stream s
1. Who are your key partners/suppliers? 2. What are the motivations for the partnerships?
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Key Partners Key Activities Value Propositions Custom er Relationships Custom er Segm ents Key Resources Channels Cost Structure Revenue Stream s
1. Key activities required by value proposition? 2.
distribution channels, customer relationships, revenue stream…?
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Key Partners Key Activities Value Propositions Custom er Relationships Custom er Segm ents Key Resources Channels Cost Structure Revenue Stream s
1. What relationship that the target customer expects you to establish? 2. How can you integrate that into your business in terms of cost and format?
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Key Partners Key Activities Value Propositions Custom er Relationships Custom er Segm ents Key Resources Channels Cost Structure Revenue Stream s
1. Which classes are you creating values for? 2. Who is your most important customer?
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Key Partners Key Activities Value Propositions Custom er Relationships Custom er Segm ents Key Resources Channels Cost Structure Revenue Stream s
1. What key resources does your value proposition require? 2. What resources are important the most in distribution channels, customer relationships, revenue stream…?
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Key Partners Key Activities Value Propositions Custom er Relationships Custom er Segm ents Key Resources Channels Cost Structure Revenue Stream s
1. Through which channels that your customers want to be reached? 2. Which channels work best? How much do they cost? How can they be integrated into your and your customers’ routines?
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Key Partners Key Activities Value Propositions Custom er Relationships Custom er Segm ents Key Resources Channels Cost Structure Revenue Stream s
1. What are the most cost in your business? 2. Which key resources/ activities are most expensive?
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Key Partners Key Activities Value Propositions Custom er Relationships Custom er Segm ents Key Resources Channels Cost Structure Revenue Stream s
1. Who are your key partners/suppliers? 2. What are the motivations for the partnerships? 1. Key activities required by value proposition? 2.
distribution channels, customer relationships, revenue stream…? 1. What core value do you deliver to the customer? 2. Which customer needs are you satisfying? 1. What relationship that the target customer expects you to establish? 2. How can you integrate that into your business in terms of cost and format? 1. Which classes are you creating values for? 2. Who is your most important customer? 1. What key resources does your value proposition require? 2. What resources are important the most in distribution channels, customer relationships, revenue stream…? 1. Through which channels that your customers want to be reached? 2. Which channels work best? How much do they cost? How can they be integrated into your and your customers’ routines? 1. What are the most cost in your business? 2. Which key resources/ activities are most expensive? 1. For what value are your customers willing to pay? 2. What and how do they recently pay? How would they prefer to pay? 3. How much does every revenue stream contribute to the overall revenues?
Customer Discovery and Customer Validation are key The days of a pure business plan based funding for a startup are gone – some real work and progress must be demonstrated