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TiE Workshop Startup 101: Finding your business model Pallav Barah Nagarjun Kandukuru Krishnan Natarajan Manish Govind Pillewar
| Date post: | 06-May-2015 |
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2. ObjectiveA guidebook for startupsExperiential, hands on learningValue derived is through your effort 3. AgendaFriday Oct 5Oct 6 - 12Friday Oct 129:30 10:00Customer investigation in the 9:30 10:30Welcome / agenda / introductionsfield Retrospective10:00 10:30 10:30 1:00Startup modelsTeam presentations10:30 11:00 1:00 2:00Business Model Canvas (BMC) & Lunchexamples11:00 1:002:00 3:00Exercise: BMC Guest speaker: VC1:00 1:30 3:00 3:30MVP & examplesSummary / wrapup1:30 2:30Lunch2:30 4:00Exercise: MVP4:00 5:00Best practices for customer investigation5:00 5:30Networking 4. Startup models 5. Story of the $23 million startup 6. Cautionary tale 7. 1998 19981998199919992000 2000 Mar Jun Oct Jan SepMarch JunAnalytics No investorShift to Start Launch Shut down Liquid-platform traction E-commercecompany web siteationfor Telecom 8. 2 focus group sessions Telecom carrierNo customer contactnegotiations 1998 1998 19981999 19992000 2000 Mar JunOct JanSepMarch JunAnalytics No investor Shift to StartLaunch Shut down Liquid-platform tractionE-commercecompanyweb siteation for Telecom 9. Who was that entrepreneur? 10. Traditional start-up model Build product Big-BangDevelop conceptBuild productAlpha /testAlpha beta Customertest Launch after ShipmentGet funding and offeringMarket test3 yearsWrite business plan Build the product Test / fixShip / fix Planning / collateral PR / plan launchLaunch / Demand gen. Initial sales rep Build sales team / selling 11. Big Up Front DesignDevelop concept Build productBuild productAlpha /test Alpha beta CustomerBig-BangGet fundingand offeringtest Market testShipment LaunchUnbridled False sense ofRude Resetting Predictableenthusiasmsecurityawakeningexpectationsdisaster 12. Traditional start-up practices arent working90-95% of new ventures fail to meet projections 13. Story of the Rs. 500 start-up 14. Who is this legendary entrepreneur?Karsanbhai Patel Nirma 15. How do you compete with a Rs. 200cr brand?Answer: Start on a bicycle! 16. Lessons from Karsanbhai and NirmaStart small, but with a strong visionClear value-prop for untapped segmentConstantly validate all assumptions in the marketIterate and learn 17. Finding your business model 18. 2 stages of start-upsSearchScaleFocus on Focus onExperimentationExecutionSource: Startup Owners Manual, Blank & Dorf 19. When to use this approachAppropriate Limited valueNew markets / new product Established categoriesBootstrap businessesCapital intensive industriesDisruptive businesses Established businessesExamples: web, mobile Examples: retail store,car company 20. Search Principle # 1: Business Model Canvas KEYKEY VALUE CUSTOMERCUSTOMER PARTNERS ACTIVITIESRELATIONSHIPS SEGMENTSPROPOSITION KEY RESOURCESCHANNELSCOST STRUCTUREREVENUE STREAMSSource: Business Model Generation, Osterwalder & Pigneur 21. Search Principle #2: Minimum Viable ProductMinimum + Viable Fertile area for new products Minimum ViableToo-basic productsIncumbentno one wantsproducts 22. Excel competitor: Minimum Viable ? 23. Minimum Viable ? 24. Minimum Viable Product for Google Docs Value prop 25. Search Principle #3: Focus on exploration Ideas Learn Build Minimize the total time through the loopDataOfferingMeasure 26. How it all fits togetherAgile software development 27. Business Model Canvas 28. What are the children carrying? Godrej ChotuKool 29. Vision: Refrigeration for rural IndiaKEYKEY VALUE CUSTOMERCUSTOMERPARTNERS ACTIVITIESPROPOSITION RELATIONSHIPS SEGMENTS R&D ThroughMicrofinance PRretailers Indianinstitutions AdvertisingEconomical,householdseffective, with incomeSarpanchs portable KEY of RESOURCEScoolingCHANNELSRs.10,000/msolution o whom FrugalRural retailers Village traditional engineering(constraints ofelectricity, ambassadors refrigerators expertsspace, costdont servesolved)COST STRUCTUREREVENUE STREAMS Factory, raw material, SG&AUnit sales 30. Competitive BMCs vs. 31. FlipkartKEYKEYVALUECUSTOMERCUSTOMERPARTNERS ACTIVITIESRELATIONSHIPS SEGMENTS PROPOSITION KEY RESOURCES CHANNELSCOST STRUCTURE REVENUE STREAMS 32. Flipkart: Online shopping for all IndiansKEYKEY VALUE CUSTOMERCUSTOMERPARTNERS ACTIVITIESRELATIONSHIPS SEGMENTS Supply chain optimisation PROPOSITION Through email, onlinePublishers Delivery optimisation chat and database Urban Indian SEO marketing Conveniencebook lovers Auto recommendations Wide selection Cheaper Internet- Trust (CoD)connected KEY people with no RESOURCES CHANNELS credit cards Delivery staffWeb Technology First-time capabilityonline shoppers COST STRUCTUREREVENUE STREAMS Book sales Technology, warehouses, deep discounts 33. CrosswordKEYKEY VALUECUSTOMERCUSTOMERPARTNERS ACTIVITIES RELATIONSHIPS SEGMENTSPROPOSITION KEY RESOURCESCHANNELSCOST STRUCTUREREVENUE STREAMS 34. Crossword: The best browsing experience KEY KEYVALUE CUSTOMER CUSTOMER PARTNERSACTIVITIES RELATIONSHIPSSEGMENTS SourcingPROPOSITION In store, Crossword Publishers Visual merchandisingclub Franchisees Urban Indian Book reading sessions Shoppers Stop Browsingbook lovers Crossword Literary(parent co)Award experience Instant gratification Companies KEY Stationery RESOURCESCHANNELS buyers Real estate Store Phone Casual mall Web visitors InstitutionalCOST STRUCTURE REVENUE STREAMS Book sales CoffeeReal estate, cost of inventory Advertising Trinkets 35. Mid Day: Evening gossip companionKEYKEYVALUECUSTOMERCUSTOMERPARTNERS ACTIVITIESRELATIONSHIPS SEGMENTS Brand buildingPROPOSITION Distribution Transactional Mumbai PTI, AP etc. Deep multi-year NewsgatheringEnglish- high-touch Lightspeaking mass Improving ABC numbersrelationships marketentertainmentin key demographics after/during a busy Office-goersday CommutersKEY 2nd newspaper CHANNELSRESOURCESAdvertisers + Journalists Mumbai-wide Railway platforms Agencies:reach of readers in Kirana shops Mass market Salespeople witha relaxed context Mumbaimedia-planningin a unique time Direct Classifiedknowhow window Discount COST STRUCTURE REVENUE STREAMS Retail offtake (5%) Newsroom, newsprint Advertising (95%) 36. Summary: why BMCs are importantElevator pitch quick summaryMaximize time from your mentors/advisorsCompare with your competitorsThe foundation for your business plans / planning 37. Exercise:Develop BMC / vision statement 38. Vision statement KEY KEY VALUECUSTOMERCUSTOMER PARTNERSACTIVITIES RELATIONSHIPS SEGMENTSPROPOSITION KEY RESOURCESCHANNELSCOST STRUCTUREREVENUE STREAMS 39. Minimum viable product 40. MVP example #1: Demo video 41. MVP example #2: Balsamiq mockup 42. MVP example #3: Mock brochureA lot of technology entrepreneurs, confuseshipping and selling. They are two distinct andseparate activities. You dont need a product totry to sell something. Immerse yourself withprospective clients; understand where their painpoints are.- Greg Gianforte, serial enterpreneur 43. Definitions Version of a new product which allows a team tocollect the maximum amount of validatedlearning about customers with the least effort Anything that helps validate a market for yourproduct 44. Hard for customers to visualiseEasy for customers to visualiseAskCommissionMock Balsamiq DemoRealfriends/ex marketbrochure mock-upvideoproduct pertsresearchEasy to implement, early Hard to do, late learninglearning 45. Making your own MVPMarket risk Executionrisk 46. MVP templateIdentify the #1 market-facing risk for your ideaDesign 1-week experiment that will help you validate the idea,keeping in mind the riskDefine success criteria for the experiment 47. Steve Jobs v. Steve Blank Vision is important; so is validation 48. Exercise:Develop MVP 49. MVP Differentiating features / capabilities: 1 2 Features for viability: 1 2 50. Best practices: customer investigationThere are no facts inside the buildingSource: Startup Owners Manual, Blank & Dorf 51. Customer discoveryAssignment Docu DocumentTestTest Proceed ment hypothesisproblem solution (or pivot) 52. Customer discovery objectivesTalk to minimum 10 prospectsValidate problem 53. Finding customersTarget list of 30+ (to get 10) - Identify specific personasSources: Email contacts / Friends and family / Social media: Linkedin,Facebook/Quora / Warm IntroductionsPitch: Communicate your idea in 10 seconds or less Want to ask for you advice this is not a sales pitch Have been asked to talked to you by TiEShould be able to get useful input in 15 min. 54. Interview principlesCustomers are interested in their problem, not necessarily yoursolutionAsk customers to describe problem(s) in their own wordsFocus on behavior, not preconceived ideas / statementsBe inquisitive, dont challengeAsk open-ended questionsObserve the environment of the customer 55. Interview questionsPoor questions: Do you think this is a good idea? Do you like this (proposed) solution? Would you buy this product? How much would you pay for this?Good questions: How do you currently deal with this problem? What alternatives have you considered? How much does this problem cost you today? Would you pay Rs. 1 crore to solve the problem? 56. Suggestions on how to probeWalk me through the last time you faced this problem.What was the impact on you?How did you feel about the situation?How frequently do you encounter this problem?When the problem occurs, how critical / urgent is it?How are you currently solving the problem?What do you like / dislike the current solution?Ask the Why behind the what. 57. What to observeTime spent talking about a particular issueObserve their body language and expressionsYes means no; Where can I buy it? means maybe; Heres$20 dollars means yes. 58. Concluding ThoughtsTake notes (as quickly as possible)Be prepared to find new problem(s)Thank themAsk for introductions 59. Wrap up 60. Acknowledgementshttp://theleanstartup.com/ www.businessmodelgeneration.com www.steveblank.com 61. Thank [email protected]@[email protected]@thoughtworks.com 62. TiE Workshop:Best practices and practical principles for startups (Day 2)Pallav Barah Krishnan NatarajanManish Govind Pillewar 63. AgendaFriday Oct 5Oct 6 - 12Friday Oct 129:30 10:00Customer investigation in the 9:30 10:30Welcome / agenda / introductionsfield Retrospective10:00 10:30 10:30 1:00Startup modelsTeam presentations10:30 11:00 1:00 2:00Business Model Canvas (BMC) & Lunchexamples11:00 1:002:00 3:00Exercise: BMC Guest speaker: VC1:00 1:30 3:00 3:30MVP & examplesSummary / wrapup1:30 2:30Lunch2:30 4:00Exercise: MVP4:00 5:00Best practices for customer investigation5:00 5:30Networking 64. RetrospectiveHow were you able to find customers?How many assumptions on the BMC were validated?How many BMC assumptions were invalidated?What were your biggest surprises?Was this approach useful? 65. Thank [email protected]@[email protected]
