Business models week_2_jvdm_04.12.2018

© 2018 Jen van der Meer. All rights reserved unless otherwise indicated as CC
Business models +
entrepreneurial
strategy
Jen van der Meer
Assistant Professor
Strategic Design & Management
WEEK 2: TEAM FORMATION

Business Models
& Entrepreneurial
Strategy
Course Map
START
TEAM
FORMATION
CUSTOMER
DISCOVERY VALUE
PROPOSITION
VALUES
VISION
MOTIVATION
CUSTOMER
RELATIONSHIP
/ CHANNELS
HOW TO  
ANALYZE
MIDTERM
LESSONS
LEARNED
FINAL
LESSONS
LEARNED
PITCH DAY
PITCH
PRACTICE
INVESTMENT
STRATEGY
THE
BACKSTAGE
THE MONEY
COST/REVS STORYTELLING

1/3 Learning
in Classroom
START
TEAM
FORMATION
CUSTOMER
DISCOVERY VALUE
PROPOSITION
VALUES
VISION
MOTIVATION
CUSTOMER
RELATIONSHIP
/ CHANNELS
HOW TO  
ANALYZE
MIDTERM
LESSONS
LEARNED
FINAL
LESSONS
LEARNED
PITCH DAY
PITCH
PRACTICE
INVESTMENT
STRATEGY
THE
BACKSTAGE
THE MONEY

2/3 Learning
Outside the
Classroom
With customers
Advisors
Experts
START
TEAM
FORMATION
CUSTOMER
DISCOVERY VALUE
PROPOSITION
VALUES
VISION
MOTIVATION
CUSTOMER
RELATIONSHIP
/ CHANNELS
HOW TO  
ANALYZE
MIDTERM
LESSONS
LEARNED
FINAL
LESSONS
LEARNED
PITCH DAY
PITCH
PRACTICE
INVESTMENT
STRATEGY
THE
BACKSTAGE
THE MONEY

TEAM
FORMATION
Last week on Business
Models:
Quick Pitches
5 minutes per team:
What? To Whom?
Round 1 Workshop:
Business Model Canvas
Version 1.0

TEAM
FORMATION
This week on business models:
Quick Pitches: 2 min pitch, 3 min feedback 40 Min
What - for whom?
Repeat “birds of a feather” 15 min
Re-form teams
Mini history of lean startup 10 min
Round 1 Workshop: 15 min
Customers
Customer Segments,
Personas
Round 2 Workshop: 15 min
Identify Your Strengths
Round 3 Workshop 15 min
TAM 
SAM
TM
CUSTOMER
DISCOVERY

WHAT’S
CHANGED
BUSINESS MODELS +
ENTREPRENEURIAL
STRATEGY

WHAT WE”RE NOT DOING
NO BUSINESS PLANS
WHY?

IS STARTUP STRATEGY NEW?
LEAN: WHAT IS OLD IS NEW AGAIN

CLASS BOUNDARIES
STARTING A BUSINESS BY SEARCHING FOR A BUSINESS MODEL
Out of bounds for this class:  
No Movements that have no
identifiable business model
No “change the regulation” concepts
that have no business model
No campaigns / public service / raise
awareness / change behavior concepts
that have no business model
!!!You can use these types of ideas
within your business model, but you
need to find a business model!!!
No mini hypersmall ideas (< $1 MM
total addressable market)
Yes:
For profit company concepts
Not-for-profit organizations that
define a sustainable customer-derived
revenue source
Social impact company compacts
(benefit corps, coops, other new
forms of company) with sustainable
revenue source
Clear target market and sizable
addressable market
Path to validate revenue streams
Identifiable revenue streams

LET’S BEGIN
HOW TO DRAW ON A BLANK SHEET

LET’S BEGIN
HOW TO DRAW ON A BLANK SHEET
H H

LET’S BEGIN
Customer
Segments
Customer
Relationships
Value
Proposition
Key ActivitiesPartners
Key
Resources
Customer
Channels
RevenuesCosts
Source: Strategyzer Osterwalder, Pigneur
THE BUSINESS MODEL CANVAS:

CREATED BY: CREATED FOR: VERSION:
Customer
Segments
Customer
Relationships
Value
Proposition
Key
Resources
Customer
Channels
RevenuesCosts
Adapted from: Strategyzer Osterwalder, Pigneur
HOW WILL YOUR BUSINESS WORK?
Whom do
you help?
What pains
do you
solve?
What do
you
uniquely
offer?
Distinct
segmentsWhere do
we reach
them?
How do we
get keep
and grow?
How will
you
charge?
What will
it cost?
What do
you need
to have?
How do
you do it?
Who will
help you?

CUSTOMER
HYPOTHESES
BUSINESS MODELS +
ENTREPRENEURIAL
STRATEGY

ALWAYS START WITH THE CUSTOMER:
Customer
Segments
Customer
Relationships
Value
Proposition
Key Resources
Customer
Channels
RevenuesCosts
WHOM ARE YOU HERE
TO SERVE?

ALWAYS START WITH THE CUSTOMER:
Customer
Segments
Customer
Relationships
Value
Proposition
Key Resources
Customer
Channels
RevenuesCosts
WHO PAYS?
WHO INFLUENCES?
WHO DOESN’T PAY?
In priority order, who are the most important customer types?
WHOM ARE YOU HERE
TO SERVE?

PERSONA TIME
Source: van der Meer, Reason Street
Context:
Instagram
Snapchat
#stillathome
#notanadultyet
Name:
Peyton
Age:
24
Living with
Mom at
home
Goals:
Independence
Freedom
Apartment
Bike to work
Pay off college loan
Interests:
Roller derby
Raising money for
breast cancer
Jewelry making
Pains:
Can’t seem to save
At breakeven/loss
each month
Bad credit rating
Fears + Secrets:
Afraid of getting
rejected for an
apartment
Really likes
mom’s support
CUSTOMER SEGMENT: 21-30 WITH > $50K STUDENT LOANS
Networks + Memes

PERSONAS ARE FOR CONTINUOUS IMPROVEMENT?
ASK ALWAYS: IS THIS FOR REAL? WHAT
ARE YOU LEARNING?
WHAT’S CHANGING IN THEIR LIVES?
For real?
No?
Revise!
Tech
Changing?
Yes?
Revise!
Julia: Social Worker
Hudson: Patient

CUSTOMER HYPOTHESIS
PERSONA
Context:
Name:
Age:
Family:
Goals: (in order)
Interests:
Pains (in order):
Fears + Secrets: Networks + Memes
Source: van der Meer, Reason Street

FIRST ASSIGNMENT FOR NEXT WEEK
FIND 3 CUSTOMERS THAT FIT YOUR PERSONA
(TALK TO 6)

LEARNING OUTCOMES
NOTE: AS YOU VALIDATE YOUR BUSINESS MODEL,
YOU WILL CHANGE THE TYPE OF CUSTOMER
SEGMENT OR RANK PRIORITIES DIFFERENTLY

SAM
TAM
TM
BUSINESS MODELS +
ENTREPRENEURIAL
STRATEGY

MARKET SIZING
TOTAL AVAILABLE MARKET
Also known as total addressable market - these terms are used interchangeably© 2017 Jen van der Meer. All rights reserved unless otherwise indicated as CC

MARKET SIZING
SERVED AVAILABLE MARKET
Also known as served addressable market - these terms are used interchangeably© 2017 Jen van der Meer. All rights reserved unless otherwise indicated as CC

MARKET SIZING
TARGET MARKET

MARKET SIZING
TOTAL AVAILABLE MARKET
Order of magnitude
assessment -
What is the total
REVENUE potential
of your market
opportunity?

MARKET SIZING
SERVED AVAILABLE MARKET
The % of the
market that is
realistically in your
reach (geography,
technology)

MARKET SIZING
TARGET MARKET
Your target -the easiest
place to start (big pain
point, identifiable)

LEARNING OUTCOMES
As you validate your business model and your
customer target, make sure you still have a big
enough market

SOURCING
HOW TO FIND AND VERIFY YOUR NUMBERS IN A GOOGLE AGE
▸ Top down: industry estimates
▸ Bottoms up: NAICS #s, Census data, raw customer data, government open data
▸ Time stamp your data
▸ Be wary of source. Which do you trust most?
▸ Academic
▸ Think Tank
▸ Government
▸ Market Research Firm
▸ Industry Association
▸ Company

SOURCING
QUICK TEST: LIDS UP
▸ What % of Americans live paycheck to paycheck?

TAM SAM TM
LIDS UP ALLOWED
▸ How many people are in your total market?
▸ Are you limited by geography? technology?
something else?
▸ Where will you start?

HOMEWORK INDIVIDUAL
CHOOSE 1 NEWS SOURCE
▸ 1 new news source
▸ Follow theme, industry, topic on a daily basis
▸ What are your current habits?
▸ When will you ﬁt this in?

STRENGTHS AND
COMPLIMENTARY
SKILLS
BUSINESS MODELS +
ENTREPRENEURIAL
STRATEGY

TEAM COMPOSITION
WHO ARE WE?
WHO CAN CODE? WHO IS THE MOST CONNECTED?
WHO IS THE FINANCIAL WHIZ? WHO HAS THE BEST DESIGN SKILLS?

TEAM COMPOSITION
WHAT DO WE COMMIT?
WHEN WILL WE MEET? HOW WILL WE MEET?
WHAT OTHER COMMITMENTS DO WE HAVE THIS
SEMESTER?
WHAT WILL OUR ROLES BE?

TEAM STRENGTHS
DO WE HAVE:
▸ Can we build what we’re dreaming about?
▸ Can we fake it?
▸ Do we know anyone who would / could be a customer?
▸ Do we know how to hustle to meet those people (ideally 50
people this semester)
▸ Who’s good at ﬁnance/excel, prototypes/proof of concept,
branding/experience, relationships/sales
▸ Let’s take a moment to make sure we have the right team
structure

TEAM COUNT
OUR TEAMS:
TEAM 1 TEAM 2
TEAM 3 TEAM 4

FOR NEXT WEEK:
PLANNING
CUSTOMER
DISCOVERY
BUSINESS MODELS +
ENTREPRENEURIAL
STRATEGY

HOMEWORK TEAM
FIND 5 CUSTOMERS, TALK TO THEM
▸ Pick a topic that you think is a problem for your customers.
▸ Starter questions:
▸ How do you currently solve this problem?
▸ What are the pains and struggles related to this
problem?
▸ What’s a typical day like in your life and how does this
ﬁt in?
▸ What keeps you up at night?

HOMEWORK TEAM
USEFUL BOOK (FREE PDF)
http://www.talkingtohumans.com/

CUSTOMER DISCOVERY PURSUIT
WEEKLY PRACTICE
Date Owner Name Title Company Next step Message
1/27/2017 Jen Coco Perez HR Director Etsy Set up time
“Coco- thank you
for responded o
my linkedin
message…
1/27/2017 Jasmine
Bebe
Johnson
HR Director Kickstarter Send TY note
“Bebe: Thank you for
time two weeks ago I
wanted to follow up
on your offer of
connecting ….
1/27/2017 Becky
1/27/2017 Javier

Business models week_2_jvdm_04.12.2018

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