[Lean starter kit] workbook ver2.7 for New Business Modeling Entrepreneurial Culture Center

1. Business Model Generation
송 정 현 ( 宋 正 賢 , B u d h e r S o n g )
Entrepreneurial Culture Creator

2. The Business Model ‘Lean Starter Kit’ 4 Tech-preneur’s canvases being proposed in this
workbook were revised and bettered according to the copyright held by Creative Commons
-- Attribute-ShareAlike 3.0 Unported-- on
1.“Business model canvas” introduced in “Business Model Generation” authored by Alexander
Oswalter and Yez Peignor
2.“Lean canvas” introduced in “Tunning Lean” by Ash Maurya,
3.“business model starter kit” developed by the CEO of Ignite Spark, Hwan Jin Choi
Reference website: http://creativecommons.org/licenses/by-sa/3.0/)
<People who made this workbook>
Architect : Budher Song, Creative Director of Entrepreneurial Culture Center
Adviser : Hwan Jin Choi, CEO of Ignite Spark
Illustrator: Jun Ho Lee, Cartoonist

3. Why we made this workbook

4. Why we made this workbook

5. Startup
is
Science
Why we made this workbook

6. Why we made this workbook
Entrepreneurial process
is
a Scientific System

7. Starter Kit for Tech-preneur’s canvases
Problem-Solution
Canvas
Customer question
Canvas
UVP
Canvas
Channel Canvas
Key metrics
Canvas
Competitive
advantage
Canvas
Profit Structure
Canvas
Cost Structure
Canvas
MVP
Canvas
For education and cultural diffusion of systematic problem-solving
method in Lean startup, we develop a Canvas composed of 9 blocks on
the basis of the corresponding methodology.

8. •
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Main targets of the workbook

9. Major scope of the Workbook
Problem/Solution
fit
.
Product/Market
fit
. .
Scale
. . .
Before Product/Market fit After Product/Market fit
Focus : Qualified learning
Experiment : Pivoting
Focus : Growth
Experiment : Optimization
Great fit Good fit
The 3 stage of a Startup Reference : ‘Running LEAN’ by Ash Maurya

10. Major scope of the Workbook
Problem/Solution
Fit
.
Product/Market
fit
. .
Scale
. . .
Before product/market fit After product/market fit
• Focus : Qualified learning
• Experiment : Pivoting
• Focus : Growth
• Experiment : Optimization
The 3 stage of startup and repeating meta pattern
Usage of New BMS kit 4 Tech-preneur
Reference : ‘Running LEAN’ by Ash Maurya

11. Design Your Business Model
Practice plan of the curriculum
Set Plan A
Find the most
dangerous part in
the plan
Systematically test the plan
(Work on the spot and learn customers)
Understand the
problem
Define a
solution
Qualitative
verification
Quantitative
identification
-Customer brainstorming
-Make lean canvas
-Prioritize the danger
-Business model interview
-Find possible customers
-Problem interview
-Build a demo
-Solution interview
-Build MVP
-Build a dashboard
-MVP interview
-Realize UVP
-Verify the entire life
cycle
-Function restrictions
-Estimate the progress
-Secure initial pulling
capacity
-Understand the growth
engine
-Scale up
Practice
process
Practical
tasks
Reference : ‘Running LEAN’ by Ash Maurya

12. [PrimaryExercise Canvas]
Design Your Business Model
Problem-Solution
Canvas
UVP
Canvas
Key Metrics
Canvas
MVP
Canvas
Customer
Question
Canvas

13. [PrimaryExercise Canvas]
Design Your Business Model
Customer
Question
Canvas
UVP
Canvas
Channel Canvas
Competitive
Advantage
Canvas
MVP
Canvas

14. [PrimaryExercise Canvas]
Design Your Business Model
UVP
Canvas
Competitive
Advantage
Canvas
Profit Structure
Canvas
Cost Structure
Canvas
Key Metrics
Canvas

15. New BM Starter kit 4 Tech-preneur
- Workbook -

16. Relation between BMS kit 4 tech-prenuer and ‘Lean’ canvas
Problem-Solution
Canvas
Customer
Question
Canvas
UVP
Canvas
Channel Canvas
Key Metrics
Canvas
Competitive
Advantage
Canvas
Profit Structure
Canvas
Cost Structure
Canvas
MVP
Canvas

17. Preparation for BMS kit 4 Tech-preneur
•
•
•

18. Preparation for BMS kit 4 Tech-preneur
•
•
•
•
•
•
•

19. Practice(experiment) methods
(Reference : ‘Running LEAN’ by Ash Maurya)
•
•

20. Practice(experiment) methods
•
•
•

21. Practice(experiment) methods
(Reference : ‘Running LEAN’ by Ash Maurya)velocity
focus
study

22. Practice(experiment) methods
velocity
focuslearning
optimum learning loop
(1)standstill
(2)Resource exhaustion
(3)Hasty optimization
Obstacles in velocity, learning, focus optimization process
(Reference : ‘Running LEAN’ by Ash Maurya)
Meaningless situation which progresses
quickly and maintains focus but has
no achievement.
Optimum situation which progresses
quickly, maintains focus, and creates
meaningful achievement
Resource exhaustion or fall behind situation which
maintains focus and has learning but has no velocity
Hasty optimization situation which progresses
and learns quickly but has no focus.

23. Practice(experiment) methods
속도
초점학습
How to optimize velocity, learning, focus
(자료 : 린 스타트업(Running LEAN), 애시 모리아 저, 한빛미디어)

24. Practice(experiment) methods
(Reference : ‘Running LEAN’ by Ash Maurya)
• Practice procedure
1. Optimization of velocity, study, focus
2. Concentrate on velocity and focus
3. Concentrate on study and focus
4. Concentrate on velocity and study
5. Understand a key indicator or an objective
6. Learn from the least possible works
7. Set up the verifiable hypothesis
8. Qualitative verification and quantitative identification
9. Check whether you can relate the results to certain activities or not
10. Discuss frequently the thing you learned
11. Make a dashboard : Share the result of experiments with your company for the transparency and objectivity of
company
advisorscustomers
investorscompetitors
entrepreneur
team
Through a series of conversations

25. Practice(experiment) methods

26. Practice(experiment) methods
Systematically Test Your Model!

27. New BM Starter kit 4 Tech-preneur
- Workbook -

28. List your top 3 problems
List how these problems are
solved today
You don’t have to define
the solution from the
beginning because still
there are lots of unverified
things.
Just write down as you
sketch the simple solution
to the problem. Defining
solution after verification of
problems is recommended.
List the key numbers that tell
you how your business is
doing. Maybe there is a
variety of things, but sum up it
using the following materials.
Acquisition : the interesting part of the
product for users
Activation : offering users satisfactory
experiences
Retention : case that the user use the
product constantly
Revenue : case that user pay the
product
Referral : arise of new Acquisition from
the user’s opinion.
List target customers and
distinguish users from
customers. For example, in
the case of toddler’s shoes,
“toddler” is user and
“parent” is customer.
Consider top 3 problems
you have to solve and reify
the target customers of
your product/service. At this
point, the target customers
are the early adopters who
will use your
product/service
Describe how you are unique,
and therefore differentiate you
and your product/service from
your competitors in your
market. Caution – UVP must
be directly related to the
problems you have to solve.
Especially, give concrete shape
to value for early adopters.
Focus on the benefits that
customer have from the
function of the product rather
the function of the product
itself.
For example, when you make
the “resume website”, the
function of the service would
be “a professionally designed
template”, and the benefits
would be “an eye catching
design resume”. Finally,
customers get “Job” they
wanted. Choose your word
prudently, list your UVP using
who/what/why. Refer to other
UVP templates. Making High-
level concept pitch is
recommended.
Can’t be easily copied or
bought
Internal information
Support of the ‘real’ professional
Best team & teamwork
Personal authority on the field
Big network effect
Community
Existing customers
Search ranking
Many Startups hit the skids
because they couldn’t make
their own channel to meet
their customers. As the initial
object of the Startup is
Learning rather than Scale-up,
the channel that can meet
potential customers is
appropriate. If your business
doesn’t need lots of
customers ,however, you
should consider Scale-up.
If you are not going to launch your product for free, you should charge for
your product when you launch your MVP. Price is the part of the product.
Price defines the customers. It means that a $1 product and a $10 product
bring different customers. By payment of customer, you can verify your
product/service in the fastest way. Although charging for your
product/service is a hard work, it will be a certain and the fastest way to
verify your product/service if customers pay for it.
List all the cost when you release your product in market. It might be hard
to anticipate the exact cost, but write down it based on the current
circumstances.
How much does it cost to interview about 30~50 customer?
How much does it cost to make and launch MVP?
How much does the operating expense cost? Write down using fixed costs
and variable costs.

30. List the problems that you
have to solve.
-Important problem
-Urgent problem
-Frequent problem, Etc.
List problems first on
customer’s position
List circumstances or
problems which cause
customers pain,
complaints,
dissatisfactions.
Write down the practical
profits, and benefits to
customers from the
solution.
After understanding the
customer problem, pain
points, needs and desire,
and cause of the problem,
suggest a definite solution
to the problem.
Predict and list
prospective customer
groups. You should
distinguish users from
customers. By interview,
you can check whether
he/she is a good
customer or not.
Write down the eventual
effective value that the
solution offers.
Understand what
customers need and
concrete customer’s desire.
Compare and analyze customer response(pains, complaints,
dissatisfactions) with customer needs and desires. Examine the cause of
the problem. (‘As-Is’ vs ‘To-Be’)
When you perform problem solving, there are a lot of problems to occur.
Write down anticipated tasks you have to do during problem solving
process. List every issues and think about the reaction plan for
threatening elements.

32. Before listing the interview
questions, set up the
purposes and objectives
of the questions. You can
verify and identify your
hypothesis through
interview.
Select primary target
customers(Innovator, Early
Adaptor) as the main
targets of the interview
and develop a
questionnaire that tells
the demographic
information and contact
number of the
interviewees.
List functions, processes,
forms, or methods for
further management of
customer relationship and
develop the questionnaire
that can show how
effective the methods are.
(Community, CS, AS etc.)
Write down the main
functions and value of the
product/service that you
will introduce to
interviewees. Develop
questionnaire that can
verify whether the main
functions and value are
useful or meaningful to
customer.
If you match and analyze
the customer
characteristics with their
most important value and
function, you can extract
some information that can
be used for your future
marketing strategy as
each customer has
different criteria for the
value and main function.
Check out interviewee
whether he/she will pay
for the product/service or
not. Ask them additional
questions about
improvements of payable
function or value. Ask why
he/she doesn’t want to
pay for the
product/service.
Make a questionnaire that
can identify the payable
price range of the
product/service by
categories or entire
product/service. Through
questions, investigate the
latitude of price
acceptance of the
product/service.
Write down access
channel methods that
customer can appreciate
or buy the product/service.
List useful function or
method and verify if the
channel is effective.
Write down an
assumption about the
environmental information
and experiences when the
interviewee uses your
product/service. Verify and
select them through
interview.
Consider the customer’s thoughts about the problem(pains, complaints,
dissatisfactions), and develop the questionnaire that can understand the
existing solutions to the problem. Separately, figure out the opinions of
the customers and make use it to understand the problems, problem
solutions, and which part the customers are interested.
Arrange key data(key hypothesis, matter to be verified) item by item and
check out whether there were some missing parts during the interview.

34. List all the functions and
benefits of the solution
Compare and analyze
‘customer complaints &
expectations‘ and
‘functions & benefits of
the solution’. List
unnecessary parts and
parts to be reduced from
the point of view of
provider(who provides the
solution) and customer.
Write down functions,
benefits and characteristic
values that existing
competitors offer
It is very useful to ask
some questions to
customers or related
people in charge and
understand the
corresponding values.
Arrange mutual valuable
functions and benefits for
you and customers.
Summarize and describe
your final UVP in 1~3
sentences on the basis of
the analyses of each block.
Arrange functions/benefits
that you offer, what your
differentiated
functions/benefits/value
and advantages are, and
which to cover or highlight.
Compare and analyze
‘customer complaints &
expectations‘ and
‘functions & benefits of
the solution’. List
necessary(valuable) parts
and parts to be improved
from the point of view of
both provider(who
provides the solution) and
customer.
List circumstances or problems which cause customers pain, complaints,
dissatisfactions.
Grasp what customers require, and desire from each problem. List
satisfaction elements with existing solutions and expectation about the
new solution to the problem.

36. List all offline channels in
which you can approach
customers and customer
groups.
List all direct offline
channels in which you can
approach customers and
customer groups.
List all direct
online/mobile channels in
which you can approach
customers and customer
groups.
First, list the products and
services you want to offer.
At the bottom, list
prospective target
customers and customer
groups.
List all online/mobile
channels in which you can
approach customers and
customer groups.
List all indirect
online/mobile channels in
which you can approach
customers and customer
groups.
List all indirect offline
channels in which you can
approach customers and
customer groups.
Find the channels which should be proceeded step by step from the
above-listed offline channels, and place them in order with the course of
time. List the required resources simply.
Find the channels which should be proceeded step by step from the
above-listed online channels, and place them in order with the course of
time. List the required resources simply.

38. Write a basic plan about
your own product/service
sales methods and price
approval condition. List
stakeholders related to
direct sales and draw up a
plan which reflects their
needs.
Write mass sale plans and
price approval condition
for the product/service.
List stakeholders related
to direct sales and draw
up a plan which reflects
their needs.
Write a plan to create
profits through
products/services of your
alliances/partnerships and
establish the price
approval condition of
them.
Write a plan on how to
create profits and
establish your price
approval condition
considering not only
simple product/service
sales but also
installation/construction
and maintenance/AS
Especially, you should
weigh up the revenue
structures of maintenance
and AS carefully.
List methods of online
product/service sales and
establish your price
approval condition.
List other sources of revenue
and write the price approval
condition.
There are many unexpected
sources about which you
had never thought.
Other general sources of
revenue in manufacturing
business : (lease, installment,
real estate, etc.)
Write small quantity sale
plans and price approval
condition for the
product/service. List
stakeholders related to
direct sales and draw up a
plan which reflects their
needs.
Organize the way to secure each source of revenue step-by-step and
define the initial source of income(which should be secure first on
strategic purpose) and the major source of income(which will be the most
important source in the future). List required resources for the strategies
simply.
Establish detail implementation plans for price/margin rate/collection of
the initial source of revenue and prepare a countermeasure against the
expected problems and tasks.

40. List equipment/facilities
costs for product/service
production and
maintenance
List necessary costs and
resources for product
/service development
Appropriate
publicity/marketing costs of
the product/service.
Unfortunately, additional
costs are usually incurred
and that make the
publicity/marketing costs
higher than expected.
Appropriate 20~30 percent
of actual expense as an
additional cost for smooth
your cash flow prediction.
Calculate and list all
personnel expenses of
each department
(management, research &
development, manufacture
& production, marketing,
etc.) and position. Also,
appropriate a special
bonus or additional
allowances. Appropriate
them monthly, quarterly,
yearly and calculate the
total expense.
List all the costs from
business management and
operation. Office rent,
office supplies expenses,
food expense,
transportation expenses,
premium, cost of
contracting out(judicial
affairs/taxation/accounting
), communication fare,
commissions and utility
bills, tax, etc.
Appropriate distribution
costs of product/service.
Unfortunately, additional
costs are usually incurred
and that make your
appropriated distribution
costs higher than expected.
Appropriate 20~100
percent of actual business
expense as an additional
cost for your smooth cash
flow prediction.
List cost of production
and manufacture like the
cost of materials and
running.
Organize the initial investment cost and operation expense from the
above items and establish quarterly cost schedule and cash flow
management plan.
Write resourcing methods by time period and a plan for securing reserve
operating expenses.

42. Appropriate the number
of people who are
interested in your
product/service.
Visitors on websites/video
which introduce the
product/service, recipients
and subscribers of the
catalog, etc.
Appropriate the number of
people who are interested
in your product/service and
also have detail reaction
(positive or negative) on
your product/service.
Join website, ask simple
question about operation
(confirm price), etc.
Understand the detail
request related to
product/service
maintenance, find out if it
is similar to the expected
request, and also analyze
where the problem incurs
and the cause of the
problem. Compile all of
them into a database, and
reflect them to further
improvements.
Appropriate the number
of the product/service you
will sell.
Understand the
demographic information
and characteristics of
consumers, and identify
them carefully whether
they are in Innovator/Early
Adaptor group or not.
Appropriate how many
given recommendations
from existing customers
and how much the
repurchase rate is.
Analyze all kinds of
recommendations, and
purchase reviews. Collect
demographic information
and characteristics of
customers who repurchase
the product/service and
find some patterns of
loyal customers.
Appropriate the number
of noise traffic on
communication channel
for customers and
investigate meaningful
metrics like distribution,
etc.
Appropriate the number of
active people who are
interested in your
product/service.
Ask not only simple
questions but various
questions about
price/approval conditions
or unknown information,
leave their contact
information, etc.
Find meaningful metrics before customer/service purchase and analyze
how much that are related to purchase rate, and what causes the problem.
Next, establish practical measures of whole management to increase
meaningful key metrics.
Find meaningful metrics directly related to positive/negative reaction
through customer/user feedbacks after customer/service purchase and
analyze the reasons of the results. Next, establish practical measures of
whole management to increase meaningful key metrics.

44. List the pros and cons of
the solution that existing
competitors offer.
Write competitive
elements in whole
management process of
other companies(if
possible) as well as all
functions and benefits of
the existing solution.
List advantages and
effective value of other
product/service from the
standpoint of the
customer.
Find the element that increase
customer satisfaction sharply
by offering unexpected
element to customer.
Identify(anticipate) your unfair
advantages
(compared to other
companies) through the
investigation on what your
customer satisfaction
elements are and the causes.
List the pros and cons,
expected benefits, and
effective value of your
product/service from your
standpoint.
Write competitive
elements in whole
management process of
your company as well as
all functions and benefits
of your product/service. If
possible, compare your
competitiveness with the
other.
Compare and analyze
your product/service with
other(existing)
product/service in terms
of functions, benefits, and
value and identify your
competitive advantages.
Particularly, find the
critical elements of
customer pain and write
the elements which
remove dissatisfactions
and differentiate your
company’s customer
satisfaction elements.
List elements that should be
offered naturally from the
viewpoint of the customer.
Investigate customer
complaint elements and
cause of the elements.
Identify(anticipate) your
unfair advantages
compared to other
companies.
List disadvantages and
dissatisfactions of other
product/service from the
standpoint of the
customer
Strategically choose elements to be secured/reinforced or removed/reduced
from various competitive elements. Find methods to increase effectiveness
during removal/reduction and securement/ reinforcement of particular
elements.
Set coping plans for problems and tasks from competitive advantage
strategy process.

46. List
functions/characteristics/U
SP of the product/service.
You can write down the
functions or characteristics
which are not materialized
yet. You can also add
some factors which can be
offered in the foreseeable
future.
Find and list profit related
factors from expected
functions/characteristics/U
SP.
List perceivable functions
of the product/service.
Consider improvement
functions that make good
effects on your
product/service.
First, adopt criteria on
selection initial MVP from
customer-learning
standpoint based on the
hypotheses about payable
functions which should be
verified for meaningful
learning of your
product/service from
prospective target
customers.
Organize the required
functions of your first
MVP on the basis of the
functions which learn
customers and create
profits.
List necessary
functions/characteristics
regardless of customer
perceptions and develop
MVP for customer
proposal.
List unperceivable
functions of the
product/service. Consider
improvement functions
that make good effects on
your product/service.
Find and list profit
unrelated factors from
expected
functions/characteristics/U
SP.
Set criteria on final MVP functions in customer viewpoint to verify the’
hypothesis’ about product/service from customers, make profits or learn
customer information and then, create USP.
List all problems that can arise during MVP development and find the
solutions and preparation plans for that problems.