Slide 1

VENTURE LAB Session 1 Part 3

Slide 2

Exercise: Facebook business model Sketch the business model with your team members

Slide 3

Facebook business model

Slide 4

Example: Gillette ( razor and blades ) Business Model

Slide 5

Slide 6

Team Exercise: Describe your product

Slide 7

I have

Slide 8

Your Product is NOT the Product

Slide 9

Slide 10

Entrepreneurship in a lean startup is really a series of MVPs Eric Ries

Slide 11

Slide 12

Slide 13

Slide 14

Slide 15

Slide 16

Slide 17

Slide 18

Slide 19

Slide 20

Slide 21

Slide 22

Slide 23

Slide 24

Slide 25

Slide 26

Slide 27

Slide 28

Slide 29

Slide 30

Slide 31

Slide 32

Slide 33

Slide 34

Slide 35

Slide 36

Slide 37

Slide 38

Slide 39

Slide 40

Slide 41

Slide 42

Slide 43

Slide 44

Slide 45

Slide 46

Customer Development and Product Development

Slide 47

Concept/ Bus. Plan Product Dev. Alpha/Beta Test Launch/1st Ship Product Development

Slide 48

Customer Development and Product Development Concept/ Bus. Plan Product Dev. Alpha/Beta Test Launch/1st Ship Product Development

Slide 49

Customer Development The Search for the repeatable and scalable Business Model

Slide 50

Customer Development The Search For the Business Model Company Building Customer Discovery Customer Validation Customer Creation Pivot

Slide 51

Is this fail proof ?

Slide 52

Pivot

Slide 53

The Pivot The heart of Customer Development Iteration without crisis Fast, agile and opportunistic

Slide 54

Pivot Cycle Time Matters Speed of cycle minimizes cash needs Minimum feature set speeds up cycle time Near instantaneous customer feedback drives feature set

Slide 55

Video Hyptheses

Slide 56

Customer Discovery Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed

Slide 57

Customer Discovery Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed TAM/SAM Product MVP Customers Channel Market Type Customer Relationships: Get/Keep/Grow Key Resources Partners Pricing

Slide 58

Customer Discovery - Physical Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed TAM/SAM Low Fidelity MVP Customers Channel Market Type Cust Relationships Traffic Partners Pricing Customer Contacts Problem Understanding Customer Understanding Market Knowledge

Slide 59

Customer Discovery - Physical Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed TAM/SAM Low Fidelity MVP Customers Channel Market Type Cust Relationships Traffic Partners Pricing Update Bus Model Create Prototype/Prod Presentation Test Solution with Customer Update Business Model 1 st Advisory Board Members

Slide 60

Customer Discovery Web/Physical Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed Verify the: Value Prop Cust Segment Cust Relationships Channel Revenue Model Pivot or Proceed TAM/SAM Low Fidelity MVP Customers Channel Market Type Cust Relationships Traffic Partners Pricing Customer Engagement Test Low Fidelity MVP Customer Understanding Traffic & Competitive Analysis

Slide 61

Customer Validation Get Ready to Sell Sell, Sell, Sell Positioning Pivot or Proceed Craft Positioning Develop Sales Materials Hire Sales Closer Sales Channel Action Plan Refine the Sales Roadmap Formalize advisory board

Slide 62

Customer Validation Get Ready to Sell Sell, Sell, Sell Positioning Pivot or Proceed Craft Positioning Acquire/Activate Plans Build High Fidelity MVP Build Metrics Toolset Hire data analytics chief Formalize advisory board Find Earlyvangelists Test Sell Out of the Building Refine Sales Roadmap Test Sell Channel Partners

Slide 63

Customer Validation Get Ready to Sell Sell, Sell, Sell Positioning Pivot or Proceed Craft Positioning Acquire/Activate Plans Build High Fidelity MVP Build Metrics Toolset Hire data analytics chief Formalize advisory board Prepare Optimization Plans Out of the building Activation Test Measure and Optimize Results Test Sell Traffic Partners Company Positioning Product Positioning Validate Positioning

Slide 64

Customer Validation Get Ready to Sell Sell, Sell, Sell Positioning Pivot or Proceed Craft Positioning Acquire/Activate Plans Build High Fidelity MVP Build Metrics Toolset Hire data analytics chief Formalize advisory board Prepare Optimization Plans Out of the building Activation Test Measure and Optimize Results Test Sell Traffic Partners Assemble Data Validate Business Model Validate Financial Model Pivot or Proceed

Slide 65

Team Deliverable by Next Session ( MAR 10 th @ 4) 1. Hypotheses for each part of business model 2. Test for each of the hypotheses What constitutes a pass/fail signal for the test (e.g. at what point would you say your hypotheses wasn t even close to correct? 3. Plan to get out of the building to test the hypotheses Summarized in a 10 Minute PowerPoint Presentation Business Model Canvas Getting out of the building plan Dont Over Think Your Hypotheses

Slide 66

Out of the building ! YALLA

Slide 67

VENTURE LAB Session 1