Maine "Top Gun" Customer Development Broadcast  021512
 

Like this? Share it with your network

Share

Maine "Top Gun" Customer Development Broadcast 021512

on

  • 1,439 views

 

Statistics

Views

Total Views
1,439
Views on SlideShare
1,413
Embed Views
26

Actions

Likes
7
Downloads
47
Comments
0

4 Embeds 26

http://www.linkedin.com 13
https://twimg0-a.akamaihd.net 9
http://www.twylah.com 2
https://bb.csub.edu 2

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • 80% positive response
  • 75% positive response
  • 20% response rate

Maine "Top Gun" Customer Development Broadcast 021512 Presentation Transcript

  • 1. How to Build a Startup Steve Blank www.steveblank.com Twitter: @sgblank
  • 2. This Talk is Based On• Business Model Generation • Four Steps to to Epiphany•The Four Stepsthe Epiphany
  • 3. This Talk is Based On• Business Model Generation • Four Steps Owners Manual•The Startup to the Epiphany
  • 4. But First,…
  • 5. Lesson 1 WHAT’S A STARTUP?
  • 6. Lifestyle Startups Work to Live their Passion Startup• Serve known customer with known product• Work for their passion
  • 7. Small Business Startups Work to Feed the Family Small Startup Business• Serve known customer with known product• Feed the family
  • 8. Small Business Startups Work to Feed the Family Small Startup Business Exit Criteria• known customer - Business Model found known product - Profitable business• Feed the family - Existing team < $500K in revenue
  • 9. Social Entrepreneurship Startups Social Large Startup Non-Profit• Solve pressing social problems• Social Enterprise: Profitable• Social Innovation: New Strategies
  • 10. Scalable Startup Search Execute Scalable Large Startup CompanyGoal is to solve for: unknown customer and unknown features
  • 11. Scalable Startup Search Execute Scalable Large Startup CompanyGoal is to solve for: Exit Criteria unknown customer and - Business model found unknown features - Total Available Market > $500m - Can grow to $100m/year
  • 12. Buyable Startup Born to Be Big Search Sell Scalable $2 to $50M Startup AcquisitionGoal is to solve for: Sell to larger company Internet, Mobile, Gaming Apps
  • 13. Lesson 2 THE DELUSIONS OF ENTREPRENEURSHIP
  • 14. I Have a Vision
  • 15. I Have the “Right Stuff”
  • 16. I Know What Needs to Be Done
  • 17. Lets Start A Company!
  • 18. #1I Know Who The Customer Is
  • 19. #2I Know Exactly the Product They Need
  • 20. #3I Know the Problem They Have
  • 21. #4All I Need to Do is Execute the Plan
  • 22. #5Now Let’s Raise Money
  • 23. #6Let’s Do It Like a Large Company
  • 24. #7We Can Fix It After We Ship It All
  • 25. Lesson 3 HOW TO GET STARTUPS WRONG
  • 26. Large Company Product Introduction Model Concept/ Product Alpha/Beta Launch/Seed Round Dev. Test 1st Ship
  • 27. When Adopted by Startups =The Leading Cause of Startup Death Concept/ Product Alpha/Beta Launch/Seed Round Dev. Test 1st Ship
  • 28. Product Introduction Model: Two Implicit Assumptions Customer Problem: known Concept/ Product Alpha/Beta Launch/Seed Round Dev. Test 1st Ship Product Features: known
  • 29. Execute the Business Plan
  • 30. Large Company Method – Hire Marketing Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship - Create Marcom - Hire PR Agency - Create DemandMarketing Materials - Early Buzz - Launch Event - Create Positioning - “Branding”
  • 31. Large Company Method – Hire Sales Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship - Create Marcom - Hire PR Agency - Create DemandMarketing Materials - Early Buzz - Launch Event - Create Positioning - “Branding” • Hire Sales VP • Build SalesSales • Hire 1st Sales Staff Organization
  • 32. Large Company Method – Hire Business Development Concept Product Alpha/Beta Launch/ Dev. Test 1st Ship - Create Marcom - Hire PR Agency - Create Demand Marketing Materials - Early Buzz - Launch Event - Create Positioning - “Branding” • Hire Sales VP • Build Sales Channel / Sales • Pick distribution Distribution Channel Business • Hire First • Do deals for FCSDevelopment Bus Dev
  • 33. Large Company Method – Hire Engineering Concept Product Alpha/Beta Launch/ Dev. Test 1st Ship - Create Marcom - Hire PR Agency - Create Demand Marketing Materials - Early Buzz - Launch Event - Create Positioning - “Branding” • Hire Sales VP • Build Sales Channel / Sales • Pick distribution Distribution Channel Business • Hire First • Do deals for FCSDevelopment Bus DevEngineering • Write MRD • Waterfall • Q/A •Tech Pubs
  • 34. Lesson 4 WHAT DO WE NEED TO GET STARTUPS RIGHT?
  • 35. Is It Big Enough?
  • 36. Is It Big Enough?How Do You Know?
  • 37. Do You Have What it Takes?
  • 38. Do You Have What it Takes? Resilient Relentless Agile Curious Passionate Driven
  • 39. Do You Know Why Startups Fail?
  • 40. More startups fail froma lack of customers than from afailure of product development
  • 41. Do You Know What a Startup Is?
  • 42. A Startup is a temporary organization
  • 43. A Startup is a temporary organization designed to search
  • 44. A Startup is a temporary organizationdesigned to search for a repeatable and scalable business model
  • 45. Startups Are Not Smaller Versions of Large Companies
  • 46. Startups Are Not Smaller Versions of Large Companies
  • 47. Startups Are Not Smaller Versions of Large Companies Large Companies Execute Known Business Models
  • 48. Startups Are Not Smaller Versions of Large Companies Startups Search for Unknown Business Models
  • 49. Startups Fail Because TheyConfuse Search with Execute
  • 50. Startups need their own tools, different from those used in existing companies
  • 51. Startups need their own tools, different from those used in existing companies
  • 52. Lesson 5 THE 3 TOOLS FOR STARTUPS
  • 53. Startup Tool #1:The Business Model
  • 54. All I Need to Do is Execute the Plan
  • 55. No Business Plan Survives First Contact With Customers
  • 56. CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done?
  • 57. VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care?
  • 58. CHANNELShow does each customer segment want to be reached? through which interaction points?
  • 59. CUSTOMER RELATIONSHIPSwhat relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
  • 60. REVENUE STREAMS what are customers really willing to pay for? how?are you generating transactional or recurring revenues?
  • 61. KEY RESOURCESwhich resources underpin your business model? which assets are essential?
  • 62. KEY ACTIVITIESwhich activities do you need to perform well in your business model? what is crucial? 62
  • 63. KEY PARTNERSwhich partners and suppliers leverage your model? who do you need to rely on?
  • 64. COST STRUCTURE what is the resulting cost structure?which key elements drive your costs?
  • 65. key activities value customer proposition relationships key customerpartners segments cost revenuestructure key streams resources channels 65 images by JAM
  • 66. sketch out yourbusiness model
  • 67. Business Model Canvas – Any BusinessKEY KEY OFFER CUSTOMER CUSTOMERPARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS KEY CHANNELS RESOURCESCOST STRUCTURE REVENUE STREAMS (c)2010 K+S Ranch Consulting Inc. 67 67 www.steveblank.com
  • 68. 9 Guesses GuessGuess Guess Guess Guess Guess Guess Guess Guess
  • 69. Startup Tool #2:The Agile Development
  • 70. Agile Development is How We Build Startups
  • 71. Startup Tool #3:Customer Development
  • 72. Customer Development is How We Search for the Business Model
  • 73. Lesson 5 CUSTOMER DEVELOPMENT
  • 74. Customer DevelopmentThere are no facts inside your building So get the heck out
  • 75. Customer Development is how you search for the model Search ExecutionCustomer Customer Customer CompanyDiscovery Validation Creation Building Pivot
  • 76. Customer Development The Search For the Business Model SearchCustomer CustomerDiscovery Validation Pivot
  • 77. Customer Development ExecutionCustomer Customer Customer CompanyDiscovery Validation Creation Building Pivot
  • 78. Customer Discovery Search Customer Customer Customer Company Discovery Validation Creation Building Pivot Execution• Articulate and Test your hypotheses• Design experiments, start listening• Continuous Discovery• Done by founders
  • 79. Discovery• How big is the market?• Who’s the customer? – What’s their problem/need• What’s the product/service/need? – Does it solve the customers problem?• How do you create demand?• How do you deliver the product?• How do you make money?
  • 80. Customer Development = process to searchBusiness Model Canvas = the ScorecardAgile Engineering is How•ResearchLabs •Technology Design •Marketing •Cost •Farming conventions. •Demo, dem o, and •Organic •Demo and Reduction We Build Startups•EquipmentManufacturers customer feedback •Remove labor force demo!! •Proximity is paramount Farmers •Weeding Service•Distributio pains •IP – Providersn Network •Eliminate Patents •Conventio•Service •Video bio-waste •Dealers nal FarmersProviders Classifier hazards •Direct Service Files •Indirect Service • … then Dealers •Robust Technology Value- •Asset Sale Driven •Direct Service with equipment rental •… then Asset Sale
  • 81. Customer Validation Search Customer Customer Customer Company Discovery Validation Creation Building Pivot Execution• Repeatable and scalable business model?• Passionate earlyvangelists?• Pivot back to Discovery if no customers
  • 82. The Minimum Viable Product (MVP) •Smallest feature set that gets you the most … - orders, learning, feedback, failure… - incremental and iterative
  • 83. Hypotheses Testing and Insight
  • 84. The Pivot Search Customer Customer Discovery Validation Pivot•The heart of Customer Development•Iteration without crisis•Fast, agile and opportunistic
  • 85. Pivot Cycle Time Matters Search ExecutionCustomer Customer Customer CompanyDiscovery Validation Creation Building Pivot•Speed of cycle minimizes cash needs•Minimum feature set speeds up cycle time• Near instantaneous customer feedback drives feature set
  • 86. Web/Mobile Versus Physical Customer Customer Discovery Validation Pivot•Web/Mobile startups run faster•Different process steps for web vs. physical•Customer Relationships are radically different
  • 87. Customer Discovery Phase 1 & 2
  • 88. Customer Relationships
  • 89. Customer RelationshipsPhysical Products – Get Customers
  • 90. Customer RelationshipsPhysical Products – Keep Customers
  • 91. Customer RelationshipsPhysical Products – Grow Customers
  • 92. Customer RelationshipsPhysical Products – Get/Keep/Grow
  • 93. Customer RelationshipsWeb/Mobile Products– Get Customers
  • 94. Customer RelationshipsWeb/Mobile Products– Keep Customers
  • 95. Customer RelationshipsWeb/Mobile Products– Grow Customers
  • 96. Customer RelationshipsWeb/Mobile Products Get/Keep/Grow
  • 97. Customer RelationshipsPhysical & Web Mobile Are Different
  • 98. Lesson 6 HOW DOES THIS REALLY WORK? LEAN LAUNCHPAD CLASS
  • 99. How Does This Really Work? Lean LaunchPad Class National Science Foundation
  • 100. Pivot Example Robotic WeedingTalked 75 Customers in 8 Weeks
  • 101. Our initial plan Confidential
  • 102. 20 interviews, 6 site visits… We got OUR Boots dirtyMowingInterviewed:• Golf: Stanford Golf course• Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)• Toro dealer (large mower manufacturer)• User of back-yard mowing system• Maintenance Services for City of Los Altos• Colony Landscaping (Mowing service for stadiums)WeedingVisited two farms in Salinas Valley to better understand problemInterviewed:• Bolthouse Farms, Large Agri-Industry in Bakersfield• White Farms, Large Peanut farmer in Georgia• REFCO Farms, large grower in Salinas Valley• Rincon Farms, large grower in Salinas Valley• Small Organic Corn/Soy grower in Nebraska• Heirloom Organics, small owner/operator, Santa Cruz Mts• Two small organic farmers at farmers market• Ag Services of Salinas, Fertilizer applicator
  • 103. Business Plan Autonomous Vehicles for Mowing & Weeding - Innovation Dealers Mowing- Dealers - Customer We reduce sell, installs and - Owners of(Mowing and Education operating cost supports public orAg) - Dealer training - Labor reduction customer commercially- Vehicle OEMs - Better used green(John utilization of Co. trains spaces (e.g. golfDeere, Toro, Jac assets (eg mow dealers, supports courses)obsen, etc) or weed at dealers - Landscaping Engineers on nights) - Mowing service provider- Research labs Autonomous - Improved Dealers vehicles, GPS, performance - Ag Dealers Weeding path-planning (less - Farmers with rework, food manual weeding safety) operationsDealer discount Asset saleCOGS seek a 50-60% Gross Margin Our revenue stream derives from selling theHeavy R&D investment equipment
  • 104. Found weeding in organic crops is HUGE problem; 50 - 75% of costs Crews of 100s-1000 Back-breaking task (Ilegal) labor harder to get 1-5 weedings per year/field $250-3,500 per acre and increasing Food contamination risk
  • 105. Decision to make – mowing vs weedingApplication If ROI is < 1 Labor costs Autonomous TAM yr they will significant? would solve buy problem?Mowing of Yes. Yes Yes Adjusted up to Professionally xxxlarge fields run organizationsWeeding in Agri Industry: YES! for TAM increased YES! organic crops Not necessarily to $2.6 B (TotalAgriculture organic) Large They are Key need is Growers: Yes spending weed vs. crop Target Market $500/ac! differentiation (organic Small specialty) Growers: No 162 M/yr 18%/yr growth
  • 106. Autonomous vehiclesWEEDING - Innovation Dealers - Low density- Ag Dealers - Customer We reduce sell, installs and vegetable- Ag Service Education operating cost supports growersproviders - Dealer training - Labor reduction customer - High density (100 to 1) vegetable- Research labs - Reduced risk of Co. trains growers contamination dealers, supports - Thinning - Mitigate labor dealers operations Engineers on availability - Ag Dealers - Conventional Machine Vision concerns - Ag Service vegetables Two problems: providers - Identification - EliminationDealer discount Asset saleCOGS seek a 50-60% Gross Margin Our revenue stream derives from selling theHeavy R&D investment equipment
  • 107. 1 Week – 1 CarrotBot Confidential
  • 108. CarrotBot• Machine Vision data collection platform – Monochrome & Color Cameras – Laser-line sweep (depth measurement) – Encoders CarrotBot 1.0 (position/velocity) – Onboard data acquisition & power
  • 109. The Business Plan Canvas Updated •Technology •Farming Design conventions. •Marketing •Demo, demo, a •Demo and nd demo!! customer •Cost •Proximity is •Organic•Research Labs feedback paramount Farmers Reduction•Equipment •Weeding •Remove laborManufacturers Service force pains•Distribution Providers •Eliminate bio-Network •Conventional waste hazards•Service •IP – Patents FarmersProviders •Video •Dealers Classifier Files •Direct Service •Robust •Indirect Service Technology • … then Dealers •Asset Sale Value-Driven •Direct Service with equipment rental •… then Asset Sale
  • 110. Visit Highlights Carrot vs. WeedsDue to small root systems, carrots have no chance against weeds
  • 111. Visit HighlightsOrganic Broccoli, closelycultivated. Weeds close toplants are hand-picked
  • 112. Visit HighlightsState of the Art in Weeding Technology for OrganicCrops
  • 113. Customer HypothesisPre-Test Large Growers Us Dealer Industrial Growers Hypothesis Confirmed • Growers interested in own Industrial equipment Growers • Industrial (10,000s of acres) Post-Test • Large (1,000s of acres) Large • Willing to pay $100k for one unit Growers Us Dealer • Smaller growers (100s of acres) Service usually subcontract the labor Providers services or rent equipment Equipment • All purchases through local dealers Rental •Customer service is essential
  • 114. Customer Map #1 – Industrial GrowersExample: Bolthouse Farms – Large Industrial Carrot Producer – 8K acres/yr End User • Equipment Operator Influencer • Local Farm Mgr • Cliff Kirkpatrick, visited Recommender • Director, Ag Equipment Operator Technology • Justin Grove, interviewed Decision • VP, Growing Maker Operations Approver • CFO, CEO (Jeff Dunn) Cliff, Farm Mgr
  • 115. Customer Map #2 – Service ProvidersExample: Ag Services – Service Provider, Salinas Valley End User • Equipment Operator Influencer • GrowerRecommender • Service Mgr Me (left), Marty (middle, Service Mgr), Doug (right, Grower)Decision Maker • ?? (service mgr’s & Approver boss)
  • 116. The Business Plan Canvas Updated •Technology •Farming Design conventions. •Marketing •Demo, demo, a •Mid/Large •Demo and nd demo!! Organic Farmers customer •Cost •Proximity is •Agricultural•Research Labs feedback paramount Reduction corporations•Equipment •Remove labor •Weeding ServiceManufacturers force pains Providers•Distribution •Eliminate bio-Network•Service •IP – Patents waste hazards •Mid/LargeProviders •Video •Direct Service Conventional Classifier Files •Indirect Service Farmers •Robust • … then Dealers Technology •Direct Service with equipment rental Value-Driven •($1,500/d; 120d/yr ) •Low density: $1,500/d •High density: $6,000/d
  • 117. World Ag Expo interviews:the need is real and wide spread • 10+ interviews at show – Everyone confirmed the need – Robocrop, UK based, crude competitor sells for $171 K • Revenue Stream – Mid to small growers prefer a service – Large growers prefer to buy, but OK with service until technology is proven – Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability) Confidential
  • 118. The Business Plan Canvas Updated •Technology •Farming Design conventions. •Marketing •Demo, demo, a •Mid/Large•Research Labs •Demo and nd demo!! Organic Farmers•Equipment customer •Cost •Proximity is •AgriculturalManufacturer feedback Reduction paramount corporations•Distribution •Remove labor •Weeding ServiceNetwork force pains Providers•Service •Eliminate bio-Providers •IP – Patents waste hazards •Mid/Large•2 or 3 Key •Video •Direct Service ConventionalFarms Classifier Files •Indirect Service Farmers •Robust • … then Dealers Technology Value-Driven •Direct Service with • R&D equipment rental • Bill of Materials •Low density: $1,500/d • Training & Service •High density: $6,000/d • Sales
  • 119. Autonomous weeding - Final - Innovation Direct - Low density- Ag Service - Customer We reduce - Provide high vegetableproviders Education operating cost quality service at growers - Dealer training - Labor reduction competitive price - High density- Research (100 to 1) vegetableInstitutes (eg - Reduced risk of growersUC Davis, Laser contamination - ThinningZentrum - Mitigate labor operationsHannover) Engineers on availability Direct - Conventional Machine Vision concerns - Alliance with vegetables- 3-4 key farms Two problems: service - Identification providers - Elimination - Eventually sell through dealersCosts for service provision Service provisionCOGS seek a 50-60% Gross Margin - Charge by the acre with modifier according toHeavy R&D investment weed density - Eventually move to asset sale
  • 120. Pivot Example Autonomous RobotTalked 75 Customers in 8 Weeks
  • 121. Our initial plan
  • 122. Business Plan Autonomous Vehicles for Mowing - Innovation Dealers Mowing- Dealers (Mowing - Customer We reduce sell, installs and - Owners ofand Ag) Education operating cost supports customer public or- Vehicle OEMs - Dealer training - Labor reduction commercially(John - Better Co. trains used greenDeere, Toro, Jacob utilization of dealers, supports spaces (e.g. golfsen, etc) assets (eg mow dealers courses) or weed at - Landscaping- Research labs Engineers on nights) - Mowing service provider Autonomous - Improved Dealers vehicles, GPS, performance - Ag Dealers Weeding path-planning (less - Farmers with rework, food manual weeding safety) operationsDealer discount Asset saleCOGS seek a 50-60% Gross Margin Our revenue stream derives from selling theHeavy R&D investment equipment
  • 123. 20 interviews, 6 site visits… We got OUR Boots dirtyMowingInterviewed:• Golf: Stanford Golf course• Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)• Toro dealer (large mower manufacturer)• User of back-yard mowing system• Maintenance Services for City of Los Altos• Colony Landscaping (Mowing service for stadiums)WeedingVisited two farms in Salinas Valley to better understand problemInterviewed:• Bolthouse Farms, Large Agri-Industry in Bakersfield• White Farms, Large Peanut farmer in Georgia• REFCO Farms, large grower in Salinas Valley• Rincon Farms, large grower in Salinas Valley• Small Organic Corn/Soy grower in Nebraska• Heirloom Organics, small owner/operator, Santa Cruz Mts• Two small organic farmers at farmers market• Ag Services of Salinas, Fertilizer applicator
  • 124. Decision to make – mowing vs weedingApplication If ROI is < 1 Labor costs Autonomous TAM yr they will significant? would solve buy problem?Mowing of Yes. Yes Yes Adjusted up to Professionally xxxlarge fields run organizationsWeeding in Agri Industry: YES! for TAM increased YES! organic crops Not necessarily to $2.6 B (TotalAgriculture organic) Large They are Key need is Growers: Yes spending weed vs. crop Target Market $500/ac! differentiation (organic Small specialty) Growers: No 162 M/yr 18%/yr growth
  • 125. Autonomous vehiclesWEEDING - Innovation Dealers - Low density- Ag Dealers - Customer We reduce sell, installs and vegetable- Ag Service Education operating cost supports customer growersproviders - Dealer training - Labor reduction - High density (100 to 1) Co. trains vegetable- Research labs - Reduced risk of dealers, supports growers contamination dealers - Thinning - Mitigate labor operations Engineers on availability - Ag Dealers - Conventional Machine Vision concerns - Ag Service vegetables Two problems: providers - Identification - EliminationDealer discount Asset saleCOGS seek a 50-60% Gross Margin Our revenue stream derives from selling theHeavy R&D investment equipment
  • 126. 1 Week – 1 CarrotBot Confidential
  • 127. CarrotBot• Machine Vision data collection platform – Monochrome & Color Cameras – Laser-line sweep (depth measurement) – Encoders CarrotBot 1.0 (position/velocity) – Onboard data acquisition & power
  • 128. Visit Highlights Carrot vs. WeedsDue to small root systems, carrots have no chance against weeds
  • 129. Visit HighlightsOrganic Broccoli, closelycultivated. Weeds close toplants are hand-picked
  • 130. The Business Plan Canvas Updated •Technology •Farming Design conventions. •Marketing •Demo, demo, a •Demo and nd demo!! customer •Cost •Proximity is •Organic•Research Labs feedback paramount Farmers Reduction•Equipment •Weeding •Remove laborManufacturers Service force pains•Distribution Providers •Eliminate bio-Network •Conventional waste hazards•Service •IP – Patents FarmersProviders •Video •Dealers Classifier Files •Direct Service •Robust •Indirect Service Technology • … then Dealers •Asset Sale Value-Driven •Direct Service with equipment rental •… then Asset Sale
  • 131. Customer HypothesisPre-Test Large Growers Us Dealer Industrial Growers Hypothesis Confirmed • Growers interested in own Industrial equipment Growers • Industrial (10,000s of acres) Post-Test • Large (1,000s of acres) Large • Willing to pay $100k for one unit Growers Us Dealer • Smaller growers (100s of acres) Service usually subcontract the labor Providers services or rent equipment Equipment • All purchases through local dealers Rental •Customer service is essential
  • 132. Customer Map #1 – Industrial GrowersExample: Bolthouse Farms – Large Industrial Carrot Producer – 8K acres/yr End User • Equipment Operator Influencer • Local Farm Mgr • Cliff Kirkpatrick, visited Recommender • Director, Ag Equipment Operator Technology • Justin Grove, interviewed Decision • VP, Growing Maker Operations Approver • CFO, CEO (Jeff Dunn) Cliff, Farm Mgr
  • 133. Customer Map #2 – Service ProvidersExample: Ag Services – Service Provider, Salinas Valley End User • Equipment Operator Influencer • GrowerRecommender • Service Mgr Me (left), Marty (middle, Service Mgr), Doug (right, Grower)Decision Maker • ?? (service mgr’s & Approver boss)
  • 134. The Business Plan Canvas Updated •Technology •Farming Design conventions. •Marketing •Demo, demo, a •Mid/Large •Demo and nd demo!! Organic Farmers customer •Cost •Proximity is •Agricultural•Research Labs feedback paramount Reduction corporations•Equipment •Remove labor •Weeding ServiceManufacturers force pains Providers•Distribution •Eliminate bio-Network•Service •IP – Patents waste hazards •Mid/LargeProviders •Video •Direct Service Conventional Classifier Files •Indirect Service Farmers •Robust • … then Dealers Technology •Direct Service with equipment rental Value-Driven •($1,500/d; 120d/yr ) •Low density: $1,500/d •High density: $6,000/d
  • 135. World Ag Expo interviews:the need is real and wide spread • 10+ interviews at show – Everyone confirmed the need – Robocrop, UK based, crude competitor sells for $171 K • Revenue Stream – Mid to small growers prefer a service – Large growers prefer to buy, but OK with service until technology is proven – Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability)
  • 136. The Business Plan Canvas Updated •Technology •Farming Design conventions. •Marketing •Demo, demo, a •Mid/Large•Research Labs •Demo and nd demo!! Organic Farmers•Equipment customer •Cost •Proximity is •AgriculturalManufacturer feedback Reduction paramount corporations•Distribution •Remove labor •Weeding ServiceNetwork force pains Providers•Service •Eliminate bio-Providers •IP – Patents waste hazards •Mid/Large•2 or 3 Key •Video •Direct Service ConventionalFarms Classifier Files •Indirect Service Farmers •Robust • … then Dealers Technology Value-Driven •Direct Service with • R&D equipment rental • Bill of Materials •Low density: $1,500/d • Training & Service •High density: $6,000/d • Sales
  • 137. Autonomous weeding - Final - Innovation Direct - Low density- Ag Service - Customer We reduce - Provide high vegetableproviders Education operating cost quality service at growers - Dealer training - Labor reduction competitive price - High density- Research (100 to 1) vegetableInstitutes (eg - Reduced risk of growersUC Davis, Laser contamination - ThinningZentrum - Mitigate labor operationsHannover) Engineers on availability Direct - Conventional Machine Vision concerns - Alliance with vegetables- 3-4 key farms Two problems: service - Identification providers - Elimination - Eventually sell through dealersCosts for service provision Service provisionCOGS seek a 50-60% Gross Margin - Charge by the acre with modifier according toHeavy R&D investment weed density - Eventually move to asset sale
  • 138. Genesis of the Idea
  • 139. Business Model Canvas
  • 140. Assumption of Customer Pain 200+ People wereParking is a pain! customers People DO want Bigger Pain even more People want a a guaranteed frustrated with guaranteed spot & would parking at big parking spot. reserve online. events. 80% positive response
  • 141. Business Model Canvas
  • 142. Assumption of Customer Pain 200+ People wereParking is a pain! customers People DO want Bigger Pain even more People want a a guaranteed frustrated with guaranteed spot & would parking at big parking spot. reserve online. events. People will pay Surveyed 75+ extra to have a Customers People will not great, only pay more, they will Validated! guaranteed parking spot. pay a lot more! ($9+)
  • 143. Business Model Canvas
  • 144. Customer Survey/Validation• How much more would you be willing to pay to have a guaranteed close parking spot in the arenas lot or near the arena? – On average- $9.33 – Max of $27.00 145
  • 145. Assumption of Pain 200+ People wereParking is a pain! customers People DO want Bigger Pain even more People want a a guaranteed frustrated with guaranteed spot & would parking at big parking spot. reserve online. events. People will pay Surveyed 75+ extra to have a Customers People will notgreat, guarantee only pay more, they will Validated! d parking spot. pay a lot more! ($9+) 30+ People It is difficult toPeople who have get a mass We needed toextra spaces will number of find a new post spots and people to post solution. make money. enough parking spots.
  • 146. Expert Validation• Tom Lombardi and Greg Bessoni – Online parking reservation experts Partnered with me and put up capital.
  • 147. Business Model Canvas
  • 148. New Assumptions 30+ ParkingParking lots will Lots Yes! Lots have Bigger Painpost spots online been looking for so that people ways to increase can reserve revenue and fill them. up lots. 75% positive response 20% of cash goes missing. Electronic 30+ Parking payments in Lotsadvance through Loved it! Would an online pay about 15% of Validated! reservation posted price. system.
  • 149. Industry Validation
  • 150. Business Model Canvas
  • 151. Business Model Canvas
  • 152. MVP Validation All Pro Parking 30+ personStarted with a Easier ways to Search process very basic (30 lots) focus group post parking & was too hard. reservation track Wanted mobile system. reservations. site as well. All Pro Parking’s Customers With no marketing- Made it even Fixed 50 reservations easier to post search, cleaned in just a few and track up site, mobile months. parking. site in the works.
  • 153. Business Model Canvas
  • 154. Business Model Canvas
  • 155. Our Model 15% of Price$5 Reservation Paid Fee XoomPark We estimate being able to collect about $8 per reservation
  • 156. Go to Market Strategy & Validation 25+ years Talked to TomLombardi, indust experience ry expert. Over 250 lots throughout Lots located all over West Eastern US. Coast and Texas Lots located throughout Parking lots in all 50 states Florida and in Dallas,TX
  • 157. Go to Market Strategy & Validation Tom and Greg’sAffilate Networks 3,000 Affiliates
  • 158. Go to Market Strategy & Validation Focus group of 30+ people Customer’srecommendations for the future
  • 159. Market Size $8.2 Billion USA Parking IndustryTAMSAM $4.5 Billion Parking Facility/ManagementTargetMarket $1.4 Billion Event ParkingApex $240,000 Buffalo and Atlanta
  • 160. Competitors High ParkingCarma ClickandParkUsability GottaPark Parkwhiz Low Low High Reliability
  • 161. Revenue Projections Revenue $20 $18 $16 $14 $12Revenue in $10 Millions $8 $6 $4 $2 $0 Year 1 Year 2 Year 3 Year 4 70% Gross Profit Margin
  • 162. •2 Partners •30+ Parking lots •50+ Reservations •Working Website•Validated Revenue Model
  • 163. How Does This Really Work?The National Science Foundation 8 Weeks From an Idea to a Business
  • 164. I Write a Blogwww.steveblank.com
  • 165. Thankswww.steveblank.com