how to build a viable business model - piyush chaplot

How to build a viable business model:An Investor’s perspectives

Piyush Chaplot

[email protected]

1

Piyush’s Background

2©2012 Innosight Ventures Pte. Ltd. www.innosightventures.com

Innosight Ventures – Background


Innosight (US) founded by Prof. Clayton Christensen of Harvard Business School in 2000 to help clients apply the theories of Disruptive Innovation, “jobs to be done” and “emergent strategy”

Strategy consulting engagements, primarily with Fortune 500 companies (e.g., P&G, J&J, Medtronic, Microsoft , Unilever, …)

Innosight Ventures (Singapore) Incubate startup companies which we

believe have Disruptive Innovation potential Backed by National Research Foundation Focus on Singapore-based early-stage startups Investments up to S$600K Board participation, hands-on involvement Started in 2009. 6 startup investments to date.

http://www.amazon.com/exec/obidos/tg/detail/-/1591391857/qid=1092965580/sr=8-1/ref=pd_ka_1/002-0083204-8588808?v=glance&s=books&n=507846

Great idea = Great Business?


Software-based audio mixing console. Breakthrough usability, cost effective, disruptive to a large industry. (approx. $1 billion) Tried, and tried, to sell

through traditional pro-audio distribution channels

Industry space with few high-visibility acquisitions

The pro-audio geeks like their complex mix consoles. Was this product really a pain killer they wanted?

Company failed after 3 years

Turning an idea into a viable business


Kiosk-based laundry services for the masses. Clear job to be done in emerging markets. Multi billion dollar opportunity.

Started with kiosk based model. Very competent CEO. Unit economics working but not enough to cover overheads.

Tried Hub and Spoke but failed. Tried franchising but failed. Successfully pivoted to a home

delivery solution now and raised Series A from independent investors.

Investor’s delight

• Proven Unit economics • Creative customer acquisition strategies• Getting paid particularly in B2B type

businesses• Shorter product development lifecycles.• Overall bottoms up business plan that makes

sense. • Raising enough to survive for 18 months • Not just a very local/lifestyle business (Scalability)• Real planning (not just for investors)


Stages of business model implementation


Questions?

Piyush Chaplot

Innosight Ventures

[email protected]


mailto:[email protected]

Pause to Ponder


how to build a viable business model - piyush chaplot

Economy & Finance