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Sxsw New Rules for the New Bubble 031211

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  • Mike
  • Stevia
  • (gray out non bolded items)Talk about highlightsSingle Family Homeowners: Target customer are single family homeownerPayback period: We offer a renewable electricity generation device that has a much faster payback period than competitors. Manufacturing: We can offer this because our product is cheaper than competitors, due to our unique manufacturing process, without compromising performance and aesthetics. Direct Sales: We will sell our product directly to the customer to maximize savings to the customer. Partners: In order simplify the installation of our product, we will need to partner with local permitting officials to facilitate the permitting process. The idea is once the planning department is comfortable with our product, then there no longer needs to be a lengthy review for each installation.
  • Due to many limitations with residential market for wind turbine applications – decided not right market
  • Week 6 – ChannelsWhat we learnedNew customer segment -> cities instead of home-ownersRetrofit streetlights with VAWT, with faster payback period than alternatives and competitorsDecrease customer acquisition costChange relationship with City Council – need to get their approvalHOA not as powerful
  • Interviewed city staff members and utility commissioner to understand if they are interested in product (Assistant Director of Utilities,Purchasing Admin,Project Manager LED-Retrofit,Former City Council Member and Mayor)Came to understand city and its processes to see how to sell to city.City has long review process for project. Large projects need to fit under cities budget plan, which are planned out 2-5 years in advanceSaboteurs can include staff members or city residents who don’t want changeCity’s typically not interested in owning large amount of electrical generation assets, In CA, utilities also typically do not own their own generation units b/c of decoupling industry?Wind developer would own assets, potentially funded through investment bank or nontraditional sourcesDo we want to be manufacturer or wind developer?We will need to initially be the developer for initial pilot projects to prove concept works, before getting large amounts of investments to scale-up businessHigh liability to be developer b/c wind potential difficult to predictBusiness model that relies on cities to own asset is problem They don’t have the budgetConstantly evaluate your value prop
  • Week 1-2
  • Week 3 – Value Prop
  • Week 4 - Customers
  • Week 5 – Customer Acquisition
  • Week 6 – Channels
  • Week 7 – Revenue Model
  • Week 8 - Partners
  • Transcript

    • 1. New Rules for the New Bubble
      Steve Blank
      Stanford - School of Engineering
      U.C. Berkeley - Haas School Of Business
      www.steveblank.com
      Twitter: sgblank
    • 2. I Write a Blog
      www.steveblank.com
    • 3. I Drew This
      CustomerDiscovery
      Company
      Building
      CustomerValidation
      Customer Creation
      Pivot
    • 4. I Called It:Customer Development
      CustomerDiscovery
      Company
      Building
      CustomerValidation
      Customer Creation
      Pivot
    • 5. I Wrote This
    • 6. A Few People Read It
    • 7. This Talk is Based On
      Business Model Generation
      Four Steps to the Epiphany
      Lean Startup
    • 8. Premise
      Beginning of another tech bubble
      Rules are different in a bubble
      What are they?
      How do they differ from what you did before?
    • 9. A Few Short Stories
    • 10. How Did We Get Here?
    • 11. Paths to Startup Liquidity
      1970 – 1995 build a business (revenue)
      1995 – 2000 flip the business (concept IPO)
      2001 – 2010 build a business (M&A)
      2011 – 2014 flip a built business (M&A / IPO)
    • 12. 1970 – 1995Building a BusinessStartups Are Small Versions of A Large Company
    • 13. 1970 - 1995 Building a Startup the Hard Way
      $Millions’sto start (Proprietary hdwr/sftwr)
      Long product dev cycle (Waterfall)
      Thousands customers (Businesses)
      Liquidity = IPO (5qtrsrevenue/profit)
      No repeatable methodology(Smallerbig company)
    • 14. 1970 - 1995Making Money the Hard Way
      Goal was long term company success
      VC’s/Founders were company builders
      Exits were IPO’s
      Founders and VC success ≤ $10 million
    • 15. 1970 – 1995 Playbook
    • 16. Product Introduction Model
      Concept/Seed Round
      Product Dev.
      Alpha/Beta Test
      Launch/
      1st Ship
    • 17. Product Introduction Model
      The Leading Cause of Startup Death
      Concept/Seed Round
      Product Dev.
      Alpha/Beta Test
      Launch/
      1st Ship
    • 18. Product Introduction Model:Two Implicit Assumptions
      Customer Problem: known
      Concept/Seed Round
      Product Dev.
      Alpha/Beta Test
      Launch/
      1st Ship
      Product Features: known
    • 19. Tradition – Hire Marketing
      Concept/Seed Round
      Product Dev.
      Alpha/Beta Test
      Launch/
      1st Ship
      - Create Demand
      - Launch Event
      - “Branding”
      - Hire PR Agency
      - Early Buzz
      • Create Marcom
      Materials
      - Create Positioning
      Marketing
    • 20. Tradition – Hire Sales
      Concept/Seed Round
      Product Dev.
      Alpha/Beta Test
      Launch/
      1st Ship
      - Create Demand
      - Launch Event
      - “Branding”
      - Hire PR Agency
      - Early Buzz
      • Create Marcom
      Materials
      - Create Positioning
      Marketing
      • Build Sales Organization
      • 21. Hire Sales VP
      • 22. Hire 1st Sales Staff
      Sales
    • 23. Tradition – Hire Bus Development
      Concept
      Product Dev.
      Alpha/Beta Test
      Launch/
      1st Ship
      - Create Demand
      - Launch Event
      - “Branding”
      - Hire PR Agency
      - Early Buzz
      • Create Marcom
      Materials
      - Create Positioning
      Marketing
      • Build Sales Channel / Distribution
      • 24. Hire Sales VP
      • 25. Pick distribution Channel
      Sales
      Business
      Development
      • Hire First Bus Dev
      • 26. Do deals for FCS
    • Tradition – Hire Engineering
      Concept
      Product Dev.
      Alpha/Beta Test
      Launch/
      1st Ship
      - Create Demand
      - Launch Event
      - “Branding”
      - Hire PR Agency
      - Early Buzz
      • Create Marcom
      Materials
      - Create Positioning
      Marketing
      • Build Sales Channel / Distribution
      • 27. Hire Sales VP
      • 28. Pick distribution Channel
      Sales
      Business
      Development
      • Hire First Bus Dev
      • 29. Do deals for FCS
      Engineering
    • More startups fail from a lack of customers than from a failure of product development
    • 33. 1995 – 2000Flipping A BusinessThe Dot.comBubble
    • 34. 1995 - 2000The Dot-com Bubble
      10’s $millions to start (get big fast, create a brand)
      Long product dev cycle (ship beta, 1st mover adv)
      Millions customers (1st consumer internet wave)
      Liquidity - IPO (Little/no revenue, no profits)
      Repeatable methodology(brand, hype, flip or IPO)
    • 35. 1995 - 2000The Dot-com Bubble – Making Money
      Goal = short term exit
      VC’sengineering financial transactions
      Founders hyped their company
      “Musical Chairs” – last one standing looked dumb
      Everyone else got absurdly rich
    • 36. 1995 – 2000 Playbook
      Netscape
    • 37. 2001 – 2010Why Startups Are Not Small Versions of A Large Company
    • 38. 2001 - 2010The Lean Startup
      ≤ $½ million to start (open source, commodity hdwr)
      Short product dev cycle (Agile Development)
      100’s millions Customers (Social networks, consumer)
      Liquidity -M&A(revenue & network of users)
      Repeatable methodology(Agile + Cust Dev)
    • 39. Scalable
      Startup
      Large Company
      • Business Model found
      • 40. i.e. Product/Market fit
      - Repeatable sales model
      - Managers hired
      What’s A Startup?
      Search
      Execute
      A Startup is a temporary organization used to search for a repeatable and scalable business model
    • 41. What VC’s Don’t Tell You:The Transition – Founders Leave
      Scalable
      Startup
      Transition
      Large Company
      Build
    • Startups Search and Pivot
      The Search for the Business Model
      Scalable
      Startup
      Transition
      Large Company
      Business Model found by founders
      • customer needs/product features found
      i.e. Product/Market fit
      • Repeatable sales model
      - Managers hired
    • 45. Startups Search, Companies Execute
      The Execution of the Business Model
      The Search for the Business Model
      Scalable
      Startup
      Transition
      Large Company
      - Cash-flow breakeven
      - Profitable
      - Rapid scale
      - New Senior Mgmt
      ~ 150 people
      • Business Model found
      • 46. Product/Market fit
      - Repeatable sales model
      - Managers hired
    • 47. Metrics Versus Accounting
      The Execution of the Business Model
      Scalable
      Startup
      Transition
      Large
      Company
      Traditional Accounting
      • Balance Sheet
      • 48. Cash Flow Statement
      • 49. Income Statement
    • Metrics Versus Accounting
      The Search for the Business Model
      The Execution of the Business Model
      Scalable
      Startup
      Transition
      Large
      Company
      Startup Metrics
      • Customer Acquisition Cost
      • 50. Viral coefficient
      • 51. Customer Lifetime Value
      • 52. Average Selling Price/Order Size
      • 53. Monthly burn rate
      • 54. etc.
      Traditional Accounting
      • Balance Sheet
      • 55. Cash Flow Statement
      • 56. Income Statement
    • Customer Validation Versus Sales
      The Execution of the Business Model
      Scalable
      Startup
      Transition
      Large
      Company
      Sales
      • Sales Organization
      • 57. Scalable
      • 58. Price List/Data Sheets
      • 59. Revenue Plan
    • Customer Validation Versus Sales
      The Search for the Business Model
      The Execution of the Business Model
      Scalable
      Startup
      Transition
      Large
      Company
      Customer Validation
      • Early Adopters
      • 60. Pricing/Feature unstable
      • 61. Not yet repeatable
      • 62. “One-off’s”
      Sales
      • Sales Organization
      • 63. Scalable
      • 64. Price List/Data Sheets
      • 65. Revenue Plan
    • Engineering Versus Agile Development
      The Execution of the Business Model
      Scalable
      Startup
      Transition
      Large Company
      Engineering
    • Engineering Versus Agile Development
      The Search for the Business Model
      The Execution of the Business Model
      Scalable
      Startup
      Transition
      Large Company
      Engineering
      Agile Development
      • Continuous Deployment
      • 72. Continuous Learning
      • 73. Self Organizing Teams
      • 74. Minimum Feature Set
      • 75. Pivots
    • Startups Model, Companies Plan
      The Execution of the Business Model
      Scalable
      Startup
      Transition
      Large Company
      Business Plan
      • describes “knowns”
      • 76. features
      • 77. customers/markets
      • 78. business model
    • Startups Model, Companies Plan
      The Search for the Business Model
      The Execution of the Business Model
      Scalable
      Startup
      Transition
      Large Company
      • Business Model
      • 79. describes “unknowns”
      • 80. customer needs
      • 81. feature set
      • 82. business model
      • 83. found by iteration
      • 84. Plan describes “knowns”
      • 85. Known features for line extensions
      • 86. Known customers/markets
      • 87. Known business model
    • 2001 - 2010The Lean Startup
      IPO market ~closed, M&A liquidity path
      Build for long term but take short term sale
      Founders learn Lean skills
      Focus on building customers
      Minimum hype
    • 88. 2001 - 2010 Playbook
      Four Steps to the Epiphany
      Many Agile Texts
    • 89. But We Were Still Using This
    • 90. No Business Plan survives first contact with customers
    • 91. So Search for a Business Model
    • 92. The Business Model:
      Any company can be described in 9 building blocks
    • 93. CUSTOMER SEGMENTS
      which customers and users are you serving?
      which jobs do they really want to get done?
    • 94. VALUE PROPOSITIONS
      what are you offering them? what is that
      getting done for them? do they care?
    • 95. CHANNELS
      how does each customer segment want to be reached? through which interaction points?
    • 96. CUSTOMER RELATIONSHIPS
      what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
    • 97. REVENUE STREAMS
      what are customers really willing to pay for? how?
      are you generating transactional or recurring revenues?
    • 98. KEY RESOURCES
      which resources underpin your business model? which assets are essential?
    • 99. KEY ACTIVITIES
      which activities do you need to perform well in your business model? what is crucial?
      54
    • 100. KEY PARTNERS
      which partners and suppliers leverage your model?
      who do you need to rely on?
    • 101. COST STRUCTURE
      what is the resulting cost structure?
      which key elements drive your costs?
    • 102. value proposition
      customer relationships
      key activities
      customer segments
      key partners
      cost structure
      revenue streams
      key
      resources
      channels
      57
      images by JAM
    • 103. How Do Startups Search For A Business Model?
      • The Search is Customer Development
      • 104. The Implementation is Agile Development
      • 105. The Sum is the Lean Startup
    • Customer Development
    • 106. Customer Development
      The founders
      ^
      Get Out of the Building
    • 107. Customer DevelopmentThe Search For the Business Model
      Company
      Building
      CustomerDiscovery
      CustomerValidation
      Customer Creation
      Pivot
    • 108. Customer Discovery
      CustomerDiscovery
      CustomerValidation
      Company
      Building
      CustomerCreation
      Stop selling, start listening
      Test your hypotheses
      Continuous Discovery
      Done by founders
    • 109. Test Hypotheses:
      Turning Hypotheses to Facts
    • 112. Test Hypotheses:
    • Test Hypotheses:
      • Channel
    • Test Hypotheses:
      • Demand Creation
      Test Hypotheses:
      Test Hypotheses:
      Test Hypotheses:
      Test Hypotheses:
      • Channel
      Test Hypotheses:
      • Pricing Model / Pricing
      Test Hypotheses:
      • Size of Opportunity/Market
      • 123. Validate Business Model
    • Test Hypotheses:
      • Demand Creation
      Test Hypotheses:
      Agile Development
      Test Hypotheses:
      Test Hypotheses:
      Customer Development Team
      Test Hypotheses:
      • Channel
      Test Hypotheses:
      • Pricing Model / Pricing
      Test Hypotheses:
      • Size of Opportunity/Market
      • 131. Validate Business Model
    • Test Hypotheses:
      • Demand Creation
      Test Hypotheses:
      Agile Development
      Test Hypotheses:
      Test Hypotheses:
      Customer Development Team
      Test Hypotheses:
      • Channel
      Test Hypotheses:
      • Pricing Model / Pricing
      Test Hypotheses:
      • Size of Opportunity/Market
      • 139. Validate Business Model
    • The Minimum Viable Product (MVP)
      • Smallest feature set that gets you the most …orders, learning, feedback, failure…
      • 140. MVP + Customer are the first two you need to nail
      • 141. MVP is just 1 of the 9 parts of your model
    • The Pivot
      • The heart of Customer Development
      • 142. Iteration without crisis
      • 143. Fast, agile and opportunistic
    • How Does This Really Work?Stanford Lean LaunchPad Class
    • 144. Pivot ExampleOn-line Social Buying Platform
      Talked to 250 Customers in 8 weeks
    • 145. OURCRAVE is an online social shopping platform where customers can make their own deals on products or services of their choosing with sellers who can offer them in bulk at a discounted price.
    • 146. Business Canvas #1
      Seller: - Access to large online customer pool
      - Bulk sales with reduced commission
      Buyer: - Better discounts
      - Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand
      - Powerful sellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller:
      Pro-sellers in Amazon and eBay who sell electronicsBuyer:
      Online shoppers
      • Web & App sales
      -Online social networks
      - Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
    • 147. Seller Side Test with a fake E-MAIL
      Give me a quote
      for a bulk sale!
      Electronics Sellers on Amazon/Ebay
      FAKE CEO
      (Steve Feiberg)
      57%
      showed interest
      90%
      sell products
      on Amazon
      • 56% paid 10~20% transaction fee
      • 148. 22% paid 5~10% transaction fee
      • 149. 78% agreed it was too much
      • 150. 33% actually provided discount proportional to group size
    • Seller Side
      Interview with Industry Specialist (LG Electronics)
      Main Target
      Bestbuy
      Target,
      Walmart
      25%
      Associations of
      RegionalBig Sellers
      25%
      40%
    • 151. User Side
      : Online User Survey
      Power to choose products
      Discount on products
      Buyer community feedback
    • 152. Business Canvas #2
      Seller: - More customer traffic
      - Bulk sales with reduced commission
      Buyer: - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      - Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand
      • Powerful sellers
      • 153. Sellers who need more traffic
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller:
      Trustworthy online sellers with verifiable websitesBuyer:
      Online shoppers who are willing to wait to get significant discounts on products
      • Web & App sales
      -Online social networks
      - Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
    • 154. Key Question for Business Canvas #2
      HOW CAN WE ATTRACT BUYERS?
      CUSTOMER ACQUISION COST?
    • 155. Buyer Demand Test
      Best Marketing Channel for having buyers is Facebook Wall
      : 144 Unique Visits, 10 e-mail subscriptions for 3 days
      Facebook Wall
      Google Adwords
      Facebook Ads
      5%
      0.08%
      0.005%
      (CTR)
      $7.52
      $4.88
      $0
      (COST)
    • 156. Business Canvas #3
      Seller: - More customer traffic
      - Bulk sales with reduced commission
      Buyer: - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      - Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand
      • Sellers who need more traffic
      • 157. Server providers
      Established services- Online Marketing : Google/Facebook
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller:
      Trustworthy online sellers with verifiable websitesBuyer:
      Online shoppers who are willing to wait to get significant discounts on products
      • Web & App sales
      • 158. Online social networks
      • 159. Online advertising
      - Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness
      Seller side:- transaction fees
      Buyer side:- targeted ads
      • Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
      - Online ad campaigns
    • 160. Key Question for Business Canvass #3
      HOW CAN WE ATTRACT SELLERS?
      COOPERATION WITH SELLERS?
    • 161. Seller Contact
      Deal with sellers failed because no group pricing or discount too low.
      Organize Real Group Deal
      • Contact popular online sellers
      • 162. 3 products: HD camera, protein drink, videogame
      • 163. Videogame was for pre-order
      Result
      • Most sellers: no group discounts
      • 164. Discounts offered < 10%
      • 165. With shipping and tax still >= Amazon price
      • 166. David vs. Goliath problem
    • To Pivot or Not to Pivot?
      Although dismayedat seller response, we did not give up.
      What do do?
      • Deal with sellers disappointing
      • 167. Seller problem intractable?
      • 168. Teaching staff: Pivot or else…
      Beaten, but not defeated
      • Lost one battle, but not the war!
      • 169. Only contacted larger sellers
      • 170. Sellers need more value
      • 171. Show them a real website
      Filter advice and stay determined!
      No Pivot Yet
    • 172. Solution 1 : Rapid Implementation
      Implement seller & buyer side features to give sellers fuller experience.
      Site Upgrade Frenzy
      • Improved site design
      • 173. Buyer facebook login
      • 174. Online social networking integration
      • 175. Seller login and registration
      • 176. Seller bidding
      • 177. Seller group deal creation page
    • Solution 1 : Rapid Implementation
      Humble beginnings
    • 178. Solution 1 : Rapid Implementation
      The Real Deal
    • 179. Solution 1 : Rapid Implementation
      Main page
      Facebook connect
      Deal creation by sellers
      Bidding dialog
    • 180. Solution 2 : More seller value & spamming
      Add value for sellers based on mentor and industry expert interviews
      Add Seller Value
      • Low transaction fees
      • 181. Customer contact information
      • 182. Cross-selling products
      • 183. Ad banners
      • 184. Power to create group deal
      The Art of Spam
      • Massive seller e-mail campaign (16,000 in total)
      • 185. Stanford takes notice and issues warning (oops)
      • 186. Enumerate value propositions
      • 187. Show live website
      • 188. Hand out registration codes
    • Seller Invitation Result
      180 sellers
      # of sellers who signed up
      # of deals made by sellers
      80 deals
      (below Amazon price)
    • 189. Seller Invitation Result
      # of sellers who replied to our email
      200 sellers
      # of sellers who made suggestions on OURCRAVE
      50 sellers
    • 190. Business Canvas #4
      - Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand
      Seller: - More customer traffic
      • Bulk sales with reduced commission
      - Access to customer contact information
      • Cross-sell their products.- Site advertising- Power to create deals
      Buyer: - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      • Sellers who need more traffic
      • 191. Server providers
      Established services- Online Marketing : Google/Facebook
      -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller:
      Trustworthy online sellers with verifiable websitesBuyer:
      Online shoppers who are willing to wait to get significant discounts on products
      • Web & App sales
      • 192. Online social networks
      • 193. Online advertising
      - Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness
      Seller side:- transaction fees
      Buyer side:- targeted ads
      • Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
      - Online ad campaigns
    • 194. Key Question for Business Canvass #4
      Key Activities for Next Stage
      Can we make enough money?
    • 195. Key Activity – Seller Management
      We should manage main feedbacks from sellers by making basic function,
      1. Convenient System
      • Auto Sales Tax Calculator
      • 196. Bulk List Uploading Function
      • 197. Notification to Sellers
      for relevant cravebags
      2. Building credibility
      • FAQ List for Sellers
      • 198. Share buyer information
      • 199. F2F meeting with big sellers
      3. More Incentives
      • Cross selling Option
      • 200. Seller Advertisement Feature
    • Key Activity – Initial Advertisement
      By price comparison site and online ads, test our early service model. Then, Crazy deals needed for jumping
      2nd Active : Crazy Deals
      • 20~30 % sales for Promotion Deals
      • 201. Very very very famous products
      1st Passive : Online Ads
      • Google / Facebook / Yahoo Ads
      • 202. Price Comparison Site ( very important)
    • Key Activity – Encouraging Buyer’s Viral
      We will implement incentive system for sharing deals and help buyers communicate with each other in our service
      Incentive for sharing
      Buyer Community
      14%
      22%
      People who willing to share deals in FB*
      People who shared deals
      In FB*
      • OurCrave Point
      • 203. Extra Discount
      • 204. Free shipping or tax Coupon
      • 205. Live comment on cravebags
      • 206. Weekly Best cravebag vote
      • 207. Youtube Ads Competition
      * OurCrave User Survey in 2/3 weeks
    • 208. Revenue / Cost Source
      Revenue
      Cost
      Product Ads
      Transaction Fee ( Main )
      Float Money
      Site Maintenance
      Marketing ( Main )
      Customer Support
      Server/Traffic
      /Mobie Apps
      15% of transaction
      Ads for buyer
      Seller Management
      3~5% ( paypal)
      Outsourcing
      20%/60days*
      * google/groupon’s rule, we are asking sellers about this rule.
    • 209. Business Canvas Final
      Seller: - More customer traffic
      • Bulk sales with reduced commission
      - Access to customer contact information
      • Cross-sell their products.- Site advertising- Power to create deals
      Buyer: - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      • Sellers who need more traffic
      • 210. Server providers
      Established services- Online Marketing : Google/Facebook
      - Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      • Growing and maintaining online buyer/seller communities and credibilityof transactions- Promotionof website and brand
      - Establishing credibility
      Multi-sided platformSeller:
      Trustworthy online sellers with verifiable websitesBuyer:
      Online shoppers who are willing to wait to get significant discounts on products
      • Web & App sales
      • 211. Online social networks
      • 212. Online advertising
      - Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - float money
      • Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries
      - Online ad campaigns
    • 213. Business Canvas – Week 1
      Seller : - More customer traffic
      - Bulk sales- Lower transaction feesBuyer : - Better discounts
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      - Powerful sellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :pro-sellers on Amazon and eBayBuyer :Online shoppers
      - Web & App sales
      - Online social networks
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      Seller side:- transaction fees
      Buyer side:- targeted ads
    • 214. Business Canvas – Week 2
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts
      - Power to choose product deal
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      - Powerful sellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :pro-sellers on Amazon and eBayBuyer :Online shoppers
      - Web & App sales
      - Online social networks
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      Seller side:- transaction fees
      Buyer side:- targeted ads
    • 215. Business Canvas – Week 3
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      - Powerful sellers
      -Regionalsellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :
      Sellers on Amazon and eBayBuyer :Online shoppers who are willing to waitto get significant discounts on products
      - Web & App sales
      - Online social networks
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      Seller side:- transaction fees
      Buyer side:- targeted ads
    • 216. Business Canvas – Week 4
      Seller : - More customer traffic
      • Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      - Sellers who need more traffic
      -Regionalsellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :
      Sellers on Amazon and eBayBuyer :Online shoppers who are willing to waitto get significant discounts on products
      - Web & App sales
      - Online social networks
      - Onlineadvertising
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      Seller side:- transaction fees
      Buyer side:- targeted ads
    • 217. Business Canvas – Week 5
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Brand name marketing
      - Access to customer contact information
      - Ability to cross-sell products
      - Site advertising
      Buyer : - Better discounts
      - Power to choose product deal
      - Buyer community feedback on products and sellers
      - Sellers who need more traffic
      -Regionalsellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :
      Sellers on Amazon and eBayBuyer :Online shoppers who arewilling to waitto get significant discounts on products
      - Web & App sales
      - Online social networks
      - Onlineadvertising
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      - Online ads
      Seller side:- transaction fees
      Buyer side:- targeted ads
    • 218. Business Canvas – Week 6
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Access to customer contact information
      - Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand
      - Sellers who need more traffic
      -Regionalsellers
      - Server providers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :
      Sellers on Amazon and eBayBuyer :Online shoppers who arewilling to waitto get significant discounts on products
      - Web & App sales
      - Online social networks
      - Onlineadvertising
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      - Online ads
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - float money
    • 219. Business Canvas – Week 7
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Access to customer contact information
      - Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers
      - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- Promotion of website and brand
      - Sellers who need more traffic
      - Regionalsellers
      - Server providers
      Established services- Online Marketing : Google/Facebook -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platformSeller :Sellers on Amazon and eBay
      Seller:
      Trustworthy sellers with verifiable websites.Buyer :Online shoppers who arewilling to waitto get significant discounts on products
      - Web & App sales
      - Online social networks
      - Onlineadvertising
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      - Online ads
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - float money
    • 220. Business Canvas – Week 8
      Seller : - More customer traffic
      - Bulk sales- Lower transaction fees- Access to customer contact information
      - Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers
      - Platform/Networkmanagement (maintaining and growing online buyer/seller communities and credibility)- Promotion of website and brand
      - Establishing credibility
      - Sellers who need more traffic
      Established services- Online Marketing : Google/Facebook -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers
      - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback
      Multi-sided platform
      Seller:
      Trustworthy sellers with verifiable websites.Buyer :Online shoppers who are willing to wait to get significant discounts on products
      - Web & App sales
      - Online social networks
      - Onlineadvertising
      - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness
      - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries
      - Online ads
      Seller side:- transaction fees
      Buyer side:- targeted ads
      - float money
    • 221. Pivot ExampleRobotic Weeding
      Talked 75 Customers in 8 Weeks
    • 222. Our initial plan
      Confidential
    • 223. 20 interviews, 6 site visits…We got OUR Boots dirty
      Weeding
      Visited two farms in Salinas Valley to better understand problem
      Interviewed:
      • Bolthouse Farms, Large Agri-Industry in Bakersfield
      • 224. White Farms, Large Peanut farmer in Georgia
      • 225. REFCO Farms, large grower in Salinas Valley
      • 226. Rincon Farms, large grower in Salinas Valley
      • 227. Small Organic Corn/Soy grower in Nebraska
      • 228. Heirloom Organics, small owner/operator, Santa Cruz Mts
      • 229. Two small organic farmers at farmers market
      • 230. Ag Services of Salinas, Fertilizer applicator
      Mowing
      Interviewed:
      • Golf: Stanford Golf course
      • 231. Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)
      • 232. Toro dealer (large mower manufacturer)
      • 233. User of back-yard mowing system
      • 234. Maintenance Services for City of Los Altos
      • 235. Colony Landscaping (Mowing service for stadiums)
      Confidential
    • 236. Business Plan Autonomous Vehicles for Mowing & Weeding
      Dealers sell, installs and supports customer
      Co. trains dealers, supports dealers
      - Innovation
      - Customer Education
      - Dealer training
      Mowing
      - Owners of public or commercially used green spaces (e.g. golf courses)
      - Landscaping service provider
      Weeding
      - Farmers with manual weeding operations
      We reduce operating cost
      - Labor reduction
      - Better utilization of assets (eg mow or weed at nights)
      - Improved performance (less rework, food safety)
      - Dealers (Mowing and Ag)
      - Vehicle OEMs (John Deere, Toro, Jacobsen, etc)
      - Research labs
      - Mowing Dealers
      - Ag Dealers
      Engineers on Autonomous vehicles, GPS, path-planning
      Dealer discount
      COGS seek a 50-60% Gross Margin
      Heavy R&D investment
      Asset sale
      Our revenue stream derives from selling the equipment
    • 237. Autonomous vehiclesWEEDING
      Dealers sell, installs and supports customer
      Co. trains dealers, supports dealers
      - Innovation
      - Customer Education
      - Dealer training
      - Low density vegetable growers
      - High density vegetable growers
      - Thinning operations
      - Conventional vegetables
      We reduce operating cost
      - Labor reduction (100 to 1)
      - Reduced risk of contamination
      - Mitigate labor availability concerns
      - Ag Dealers
      - Ag Service providers
      - Research labs
      - Ag Dealers
      - Ag Service providers
      Engineers on Machine Vision
      Two problems:
      - Identification
      - Elimination
      Dealer discount
      COGS seek a 50-60% Gross Margin
      Heavy R&D investment
      Asset sale
      Our revenue stream derives from selling the equipment
    • 238. 1 Week – 1 CarrotBot
      Confidential
    • 239. The Business Plan Canvas Updated
      Value-Driven
    • 265. The Business Plan Canvas Updated
      Value-Driven
    • 292. 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
    • 293. The Business Plan Canvas Updated
      Value-Driven
    • Autonomous weeding - Final
      Direct
      - Provide high quality service at competitive price
      - Innovation
      - Customer Education
      - Dealer training
      - Low density vegetable growers
      - High density vegetable growers
      - Thinning operations
      - Conventional vegetables
      We reduce operating cost
      - Labor reduction (100 to 1)
      - Reduced risk of contamination
      - Mitigate labor availability concerns
      - Ag Service providers
      - Research Institutes (eg UC Davis, Laser Zentrum Hannover)
      - 3-4 key farms
      Direct
      - Alliance with service providers
      - Eventually sell through dealers
      Engineers on Machine Vision
      Two problems:
      - Identification
      - Elimination
      Costs for service provision
      COGS seek a 50-60% Gross Margin
      Heavy R&D investment
      Service provision
      - Charge by the acre with modifier according to weed density
      - Eventually move to asset sale
    • 323. 2011 – 2014Rules for the New Bubble
    • 324. New Bubble Hypotheses
      We’re in one
      Rules are different in 2011 then 2006
      Exits will be IPO and M&A
      Unlike last bubble initial IPO’s will be “real”
      Quality of IPO pipeline will diminish rapidly
      Acquirers can be “targeted”
      You can “engineer for an acquisition”
    • 325. 2011 – 2014The New Bubble
      Short product dev cycle (Agile Development)
      Customers 10’s/100’s millions(Social networks, consumer)
      Liquidity through M&A & IPO(revenue & network of users)
      Repeatable methodology (Agile + Cust Dev + Bus Model)
      Target acquirers (Adoption, Visibility, order of battle)
    • 326. 2011 - 2014Rules for the New Bubble
      Founders/VC’s can engineer financial transactions
      Transactions economically or usage accretive
      Still require Agile, Cust Dev & Bus Model
      Add: Adoption, Order of Battle and Visibility
    • 327. 2011 - 2014 Playbook
      Business Model Generation
      Four Steps to the Epiphany
      Lean Startup
      Liquidity Strategy
    • 328. Lean & Pivots is the Minimum Entry
      • Continuous Customer Discovery
      • 329. Rapid Bus Model iteration
      • 330. Extreme Agile Development
    • 2011 – 2014Order of Battle
      Each market has a finite number of acquirers
      Each with a finite number of deal makers
      Each looking to fill specific product/market holes
      Each read/go to finite number of blogs/conferences
      This is not an NP-complete problem
    • 331. 2011 – 2014Adoption
      Get wide adoption (freemium, low costs, etc)
      Go for massive distribution
      Monetize later
      Can only be done Lean, requires Pivots
    • 332. 2011 – 2014Visibility
      Be everywhere
      Look larger than life
      Conference, blogs, social networks
      PR is your best friend, invest in it
    • 333. Closing Thoughts
      We’re at the beginning of another tech bubble
      Rules for making money are different in a bubble
      Founders & VC’s can engineer financial transactions
      Transactions need to be economically or usage accretive
      Still require Agile, Cust Dev & Bus Model
      Add: Adoption, Order of Battle and Visibility
    • 334. Thanks
      www.steveblank.com
    • 335. BACKUP
    • 336. Pivot ExamplePersonal Libraries
      Talked to 75 Customers in 8 weeks
    • 337. Version 1.0: Personal Libraries
    • 338. something-something-something.com
      Original idea
      Invincible Business Model: Version 1.0
      SHORT TERMResearchers
      Lawyers
      Scientists
      LONG TERMAvid book readers
      Professionals
      FB/TW posts from users you know
      Company blog, FB, TW, support forums
      Import, organize and share thousands of papers
      Targeted marketing
      Product development
      Constant iteration & testing
      Libraries, Universities, Research Centers
      Bloggers and media targeting customer segment
      Academic Database providers
      Affiliate program
      SEO/SEM/SM
      IE/FF/Chrome App Stores
      Developers
      Marketers
      Affiliate program fees
      Licensing
      Subscription fees
      Ad revenue
      AWS Infrastructure
      SEM
      Eng & Marketing OpEx
    • 339. Got out of the building
    • Version 2.0: Trusted Advice
    • 348. something-something-something.com
      Original idea
      Invincible Business Model: Version 2.0
      Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)
      FB/TW posts from users you know
      Company blog, FB, TW accounts
      Discover online goods recommended by friends at the lowest possible price from trusted vendors
      Developing trusted advice and advisors
      Web marketing
      Affiliate partnerships
      Constant iteration & testing
      Bloggers and Media targeting customer segment
      Retail marketing partners
      IE/FF/Chrome teams
      Affiliate Program Providers
      Affiliate program
      SEO/SEM/SM
      IE/FF/Chrome App Stores
      Developers
      Marketers
      Content Library
      Install base
      Readership base
      Affiliate program fees
      Licensing
      Subscription fees
      Ad revenue
      AWS Infrastructure
      SEM
      Eng & Marketing OpEx
    • 349. New Hypotheses
    • 350. Here’s What We Did
      Version 2.0: Trusted Advice
    • 351. Got out of the building, again
    • Version 2.0: Trusted Advice
      Top ~6M US Influentials (~$9B/year)
    • 359. something-something-something.com
      Original idea
      Invincible Business Model: Version 2.0
      Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)
      FB/TW posts from users you know
      Company blog, FB, TW accounts
      Discover online goods recommended by friends at the lowest possible price from trusted vendors
      Developing trusted advice and advisors
      Web marketing
      Affiliate partnerships
      Constant iteration & testing
      Bloggers and Media targeting customer segment
      Retail marketing partners
      IE/FF/Chrome teams
      Affiliate Program Providers
      Affiliate program
      SEO/SEM/SM
      IE/FF/Chrome App Stores
      Developers
      Marketers
      Content Library
      Install base
      Readership base
      Affiliate program fees
      Licensing
      Subscription fees
      Ad revenue
      AWS Infrastructure
      SEM
      Eng & Marketing OpEx
    • 360. The adventure continuesTrusted Advice 2.0
      Protection against SEO-spammers
      Next Experiments:
      • Trusted Lead Gen
      • 361. Trusted Advice website powered by Shopping Add-in
    • something-something-something.com
      Original idea
      Invincible Business Model: Version 3.0
      PAT THE PROFESSIONALUpwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)
      FB/TW posts from users you know
      Company blog, FB, TW accounts
      TRUSTED ADVICE Discover online goods recommended by friends at the lowest possible price from trusted vendors
      Foil advertorial spammers polluting the Interweb with toxic pseudo-content
      Developing trusted advice and advisors
      Web marketing
      Affiliate partnerships
      Constant iteration & testing
      Bloggers and Media targeting customer segment
      Retail marketing partners
      IE/FF/Chrome teams
      Affiliate Program Providers
      Affiliate program
      SEO/SEM/SM
      IE/FF/Chrome App Stores
      Developers
      Marketers
      Content Library
      Install base
      Readership base
      Affiliate program fees
      Licensing
      Subscription fees
      Ad revenue
      AWS Infrastructure
      SEM
      Eng & Marketing OpEx
    • 362. Pivot ExampleCloud Services
      Talked to 50 Customers in 8 weeks
    • 363. Week 1
    • 364. Cloud compute marketplace
      Build a cloud marketplace
      Many different customer segments on buy-side and sell-side
      Direct sales to both buyers and sellers
      Huge dependency on technical platform
    • 365. Week 2
    • 366. Cloud Services Match Maker
      Pivot away from technical platform
      Help buyers find the best provider
      Removed financial, consumer segments
      Act as channel for sellers
    • 367. Week 3
    • 368. Automated Cloud Capacity Planning
      Pivot 1:
      Capacity Planning
      Pivot 2:
      Focus on enterprises with variable workload
    • 369. Week 4
    • 370. Week 5
    • 371. Week 6
    • 372. Week 7
    • 373. Week 8
      Capacity Planning
      · High variability in usage
      Service Matching
      • Companies unfamiliar with using cloud infrastructure
      SLA Monitoring
      • Companies with high SLA requirements with their customers
      · For enterprise segment, higher touch model with field sales force
      · Reduced cloud infrastructure cost· Better compute needs matching
      · Increased visibility on service level
      Integrators:
      · Increased budget for consulting services
      • Design and refine capacity planning and match making algorithms
      • 374. Develop and maintain cloud infrastructure vendors relationships
      • 375. Develop brand as go-to place for cloud lifecycle management
      · Technology partners – cloud vendors, management tools
      · System integrators / Consultants
      · Intellectual property – prediction algorithm· Developers· Inside sales force
      · Field sales force · Biz dev (channel partners and technology partners)
      · Integrators / consultants specialized in cloud infrastructure
      • Inside sales and field sales· Development Costs· Infrastructure costs – AWS· Support costs
      • 376. Subscription charge to buyers
      • 377. Pricing table scales based on # of servers and # of seats, with tiers
    • Cloud Lifecycle Management
      Agora – FINAL
      • Develop capacity planning algorithm
      • 378. Develop IaaS vendor relationships
      • 379. Marketing and sales
      · Technology partners – cloud vendors, management tools
      · System integrators / Consultants
      Partner with Integrators
      Capacity Planning
      · High variability in usage
      Service Matching
      • Companies new to cloud
      SLA Monitoring
      • Companies with high SLA requirements
      · For enterprise, higher touch model with field sales
      Customers
      · Reduced cloud infrastructure cost· Increased visibility on service level
      Integrators:
      · Increased revenue
      Position product for lifecycle management
      Leverage both inside and field sales
      · IP– prediction · Developers· Inside sales force
      · Field sales force · Biz dev (channel and technology partners)
      · IaaS Integrators / consultants
      • Inside and field sales· Development Costs· Infrastructure costs – AWS· Support costs
      • 380. Subscription charge to buyers
      • 381. Pricing table scales based on # of servers and # of seats, with tiers
    • Pivot ExampleUser Generated Real-Time Traffic Info
      Talked to 150 Customers in 8 weeks
    • 382. Initial Product Idea
      Mobile application providing crowd-sourced real time traffic map in developing countries
      Lahore
      Shanghai
      Jakarta
      Bangkok
    • 383. Business Canvas Change Progress
      1
    • 384. Business Canvas Change Progress
      2
    • 385. Business Canvas Change Progress
      3
    • 386. Customer Segment: Corporate
      The Drivers:
      Are you questioning our expertise?
      Archetypes
      Users
      International, local, large, and small companies
      Influencers
      and
      Recommenders
      Economic Buyers,
      Decision Makers
      Saboteurs
    • 387. Pass/Fail
      FAIL
    • 388. Business Canvas Change Progress
      4
    • 389. Business Canvas Change Progress
      5
    • 390. Business Canvas Change Progress
      6
    • 391. Business Canvas Change Progress
      7
    • 392. Business Canvas Change Progress
      FINAL
    • 393. Pivot ExampleResidential Wind Turbines
      Talked to 100 Customers in 8 weeks
    • 394. Business Model Canvas #1
      • Continue R&D
      • 395. Get certifications
      • 396. Get approvals from city councils
      • 397. Cheap wind
      • 398. Green status symbol
      • 399. Diversify energy portfolio
      • 400. Faster payback than alternatives
      • 401. Single family homeowner
      • 402. House rental groups
      • 403. Contractors in home remodeling
      • 404. 5 yr full service Warranty
      • 405. Want re-buy from customers
      • 406. Environmental, bird, wildlife groups (regulations, publicity)
      • 407. City councils (new regulations, permits).
      • 408. Contractors
      • 409. Single family homeowner
      • 410. City councils (new regulations, permits).
      • 411. Faster payback than alternatives
      • 412. Wind
      • 413. Cheap manufacturing process- Intellectual property
      • 414. Need Initial capital
      • 415. Endorsements by environmental groups, and local governments
      • 416. Direct sales
      • 417. Web site
      • 418. Home Depot
      • 419. Direct sales
      • 420. Cost-driven model to provide inexpensive, quality product
      • 421. Asset sales
    • Initial Idea
      Affordable
      New home appliance
      Status
    • 422. Business Model Canvas # 2
      • Continuous advertise and recruit new customers (city councils)
      • 423. Build relationship with city engineers and council members
      • 424. Understand customer, influencers, motivations, problems, competitors
      • 425. Form partnerships for maximum reach
      • 426. Submit bids for city RFPs
      • 427. Continue R&D
      • 428. Get certifications
      • 429. Gain Credibility
      • 430. Retrofit wind turbine for street and highway lamps.
      • 431. Create own wind turbines with pole manufacturers
      • 432. Be owner of cheap green status symbol
      • 433. Diversify green energy portfolio
      • 434. Fast payback than alternatives
      • 435. Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY
      • 436. Cities
      • 437. Lighting Companies
      • 438. 5 year full service Warranty
      • 439. After 5 years, service charge
      • 440. Utility to manage after warranty expiration
      • 441. Extended warranty option
      • 442. Environmental, bird, wildlife groups (regulations, publicity)
      • 443. City councils not HOA(new regulations, permits).
      • 444. Lighting Manufacturers
      • 445. Electricians and Contractors for Installation/Maintenance
      • 446. Research Labs
      • 447. Turbine Certifiers
      • 448. Build relationship with city engineers and council members
      • 449. Retrofit wind turbine for street and highway lamps.
      • 450. City councils not HOA
      • 451. Cities
      • 452. Cheap manufacturing process- Intellectual property
      • 453. $1.5 MM of capital to start manufacturing and distribution for year 1 and 2
      • 454. Manufacturing Parts
      • 455. Endorsements by environmental groups, and local governments
      • 456. Direct sales to cities
      • 457. Web site
      • 458. Home Depot
      • 459. Direct Sales
      • 460. Service Calls
      • 461. Leasing
      • 462. Cost-driven model to provide inexpensive, quality product
      • 463. Manufacturing costs and customer acquisition costs.
      • 464. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)
    • City Process
      Learn about city approval Process
      City Values
      Planning Commission
      Technical Evaluation and Recommendation
      Back to the envelop metrics
      IDEA
      Request for Quote
      City Council Approval
      City Council “Pet-Project”
      Finance Approval
    • 468. Business Model Canvas – Final
      • Continuously advertise and recruit new customers (city councils)
      • 469. Build relationship with city engineers and council members
      • 470. Understand customer, influencers, motivations, problems, competitors
      • 471. Form partnerships (developers, cities, installers, maintenance) for maximum reach
      • 472. Submit bids for city RFPs
      • 473. Continue R&D
      • 474. Get certifications
      • 475. Gain Credibility
      • 476. Retrofit wind turbine for street and highway lamps.
      • 477. Create own wind turbines with pole manufacturers
      • 478. Be owner of cheap green status symbol
      • 479. Diversify green energy portfolio
      • 480. Fast payback than alternatives
      • 481. Cities (pilot)
      • 482. Cities leasing
      • 483. Lighting Companies
      • 484. Developer -> Utilities -> City
      • 485. 5 year full service Warranty,
      • 486. After 5 years, service charge
      • 487. Utility to manage after warranty expiration
      • 488. Extended warranty option
      • 489. City council (new regulations, permits).
      • 490. Environmental, bird, wildlife groups (regulations, publicity)
      • 491. Lighting Manufacturers
      • 492. Electricians and Contractors for Installation/Maintenance
      • 493. Research Labs
      • 494. Turbine Certifiers
      • 495. Small Wind Developers
      • 496. Utilities
      • 497. Cheap manufacturing process- Intellectual property
      • 498. R&D talent
      • 499. Endorsements by environmental groups, and local governments
      • 500. Finance
      • 501. Direct sales to cities (long term) PILOTS
      • 502. Small Wind Developer
      • 503. Cities leasing
      • 504. Developer -> Utilities -> City
      • 505. Finance
      • 506. Cost-driven model to provide inexpensive, quality product
      • 507. Manufacturing costs and customer acquisition costs.
      • 508. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)
      • 509. Leasing, PPA
      • 510. Direct Sales to wind developers?
      • 511. Leasing, PPA
      • 512. Direct Sales to wind developers?
    • Business Model Canvas – Week 1
      • Continue R&D
      • 513. Get certifications
      • 514. Get approvals from city councils
      • 515. Cheap affordable wind turbine for the everyday American
      • 516. Be owner of cheap green status symbol
      • 517. Diversify energy portfolio,
      • 518. Fast payback than alternatives, < 5 yrs
      • 519. Single family homeowner
      • 520. House rental groups
      • 521. Contractors in home remodelling
      • 522. 5 year full service Warranty
      • 523. Want re-buy from customers
      • 524. Environmental, bird, wildlife groups (regulations, publicity)
      • 525. City councils (new regulations, permits).
      • 526. Contractors
      • 527. Cheap manufacturing process- Intellectual property
      • 528. Need initial capital
      • 529. Endorsements by environmental groups, and local governments
      • 530. Direct sales
      • 531. Web site
      • 532. Home Depot
      • 533. Cost-driven model to provide inexpensive, quality product
      • 534. Sale of Product
    • Business Model Canvas – Week 2
      • Continuous advertise and recruit new customers
      • 535. Continue R&D
      • 536. Get certifications
      • 537. Get approvals from city councils
      • 538. Cheap affordable wind turbine for the everyday American
      • 539. Be owner of cheap green status symbol
      • 540. Diversify energy portfolio,
      • 541. Fast payback than alternatives
      • 542. Single family homeowner in CA, TX ,CO, WI, NY
      • 543. House rental groups
      • 544. Contractors in home remodelling
      • 545. 5 year full service Warranty
      • 546. Want rebuy from customers
      • 547. Environmental, bird, wildlife groups (regulations, publicity)
      • 548. City councils and neighborhood/??? (new regulations, permits).
      • 549. Contractors
      • 550. Cheap manufacturing process- Intellectual property
      • 551. Need Iniitial capital
      • 552. Endorsements by environmental groups, and local governments
      • 553. Direct sales
      • 554. Web site
      • 555. Home Depot
      • 556. Cost-driven model to provide inexpensive, quality product
      • 557. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.
      • 558. Direct Sales
      • 559. Leasing
      • 560. Service Calls
    • Business Model Canvas – Week 3
      • Continuous advertise and recruit new customers
      • 561. Continue R&D
      • 562. Get certifications
      • 563. Get approvals from city councils
      • 564. Gain Credibility
      • 565. Cheap affordable wind turbine for the everyday American
      • 566. Be owner of cheap green status symbol
      • 567. Diversify energy portfolio,
      • 568. Fast payback than alternatives
      • 569. Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY
      • 570. House rental groups
      • 571. Contractors in home remodelling
      • 572. 5 year full service Warranty
      • 573. Additional Maintenance after
      • 574. Want rebuy from customers
      • 575. Environmental, bird, wildlife groups (regulations, publicity)
      • 576. City councils and neighborhood/??? (new regulations, permits).
      • 577. Contractors
      • 578. Cheap manufacturing process- Intellectual property
      • 579. Need Iniitial capital (600k)
      • 580. Manufacturing Facilities and Areas
      • 581. Endorsements by environmental groups, and local governments
      • 582. Direct sales
      • 583. Web site
      • 584. Home Depot
      • 585. Cost-driven model to provide inexpensive, quality product
      • 586. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.
      • 587. Direct Sales
      • 588. Leasing
      • 589. Service Calls
    • Business Model Canvas – Week 4
      • Continuous advertise and recruit new customers
      • 590. Continue R&D
      • 591. Get certifications
      • 592. Get approvals from city councils
      • 593. Gain Credibility
      • 594. Cheap affordable wind turbine for the everyday American
      • 595. Cheap product more readily available
      • 596. Be owner of cheap green status symbol
      • 597. Diversify energy portfolio,
      • 598. Fast payback than alternatives
      • 599. Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY
      • 600. House rental groups
      • 601. Contractors in home remodelling
      • 602. 5 year full service Warranty
      • 603. Additional Maintenance after
      • 604. Want rebuy from customers
      • 605. Environmental, bird, wildlife groups (regulations, publicity)
      • 606. City councils and neighborhood/??? (new regulations, permits).
      • 607. Contractors
      • 608. Cheap manufacturing process- Intellectual property
      • 609. Need Iniitial capital (600k)
      • 610. Manufacturing Parts
      • 611. Endorsements by environmental groups, and local governments
      • 612. Direct sales
      • 613. Web site
      • 614. Home Depot
      • 615. Cost-driven model to provide inexpensive, quality product
      • 616. Manufacturing costs and customer acquisition costs.
      • 617. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)
      • 618. Direct Sales
      • 619. Leasing
      • 620. Service Calls
    • Business Model Canvas – Week 5
      • Continuous advertise and recruit new customers (city councils)
      • 621. Build relationship with city engineers and council members
      • 622. Understand customer, influencers, motivations, problems, competitors
      • 623. Form partnerships for maximum reach
      • 624. Submit bids for city RFPs
      • 625. Continue R&D
      • 626. Get certifications
      • 627. Gain Credibility
      • 628. Cheap product more readily
      • 629. Retrofit wind turbine for street and highway lamps.
      • 630. Create own wind turbines with pole manufacturers
      • 631. Be owner of cheap green status symbol
      • 632. Diversify green energy portfolio
      • 633. Fast payback than alternatives
      • 634. Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY
      • 635. Cities
      • 636. Lighting Companies
      • 637. Utilities
      • 638. 5 year full service Warranty
      • 639. After 5 years, service charge
      • 640. Utility to manage after warranty expiration
      • 641. Extended warranty option
      • 642. Environmental, bird, wildlife groups (regulations, publicity)
      • 643. City councils and neighborhood/??? (new regulations, permits).
      • 644. Lighting Manufacturers
      • 645. Electricians and Contractors for Installation/Maintenance
      • 646. Cheap manufacturing process- Intellectual property
      • 647. $1.5 MM of capital to start manufacturing and distribution for year 1 and 2
      • 648. Manufacturing Parts
      • 649. Endorsements by environmental groups, and local governments
      • 650. Direct sales to cities (long term)
      • 651. Web site
      • 652. Home Depot
      • 653. Cost-driven model to provide inexpensive, quality product
      • 654. Manufacturing costs and customer acquisition costs.
      • 655. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)
      • 656. Direct Sales
      • 657. Service Calls
      • 658. Leasing
    • Business Model Canvas – Week 6
      • Build relationship with city engineers and council members
      • 659. Understand customer, influencers, motivations, problems, competitors
      • 660. Form partnerships for maximum reach
      • 661. Submit bids for city RFPs
      • 662. Retrofit wind turbine for street and highway lamps.
      • 663. Use competitive, local, renewable energy, strong green symbol
      • 664. Diversify energy portfolio,
      • 665. Fast payback than alternatives.
      • 666. Cities
      • 667. Lighting Companies
      • 668. Utilities
      • 669. County – State Level
      • 670. 5 year maintenance and warranty
      • 671. After 5 years, service charge
      • 672. Utility to manage after warranty expiration
      • 673. Extended warranty option
      • 674. Environmental, bird, wildlife groups (regulations, publicity)
      • 675. City councils (new regulations, permits).
      • 676. Light manufacturers, installers to package product/services
      • 677. Electricians, contractors, light maintenance for additional workforce
      • 678. Cheap manufacturing process- Intellectual property
      • 679. $1.5 MM of capital to start manufacturing and distribution for year 1 and 2
      • 680. Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department
      • 681. Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.
      • 682. Cost-driven model to provide inexpensive, quality product
      • 683. Manufacturing costs and customer acquisition costs.
      • 684. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.
      • 685. Asset sales and service calls
      • 686. Leasing and PPA? (under review)
    • Business Model Canvas – Week 7
      • Build relationship with city engineers and council members
      • 687. Understand customer, influencers, motivations, problems, competitors
      • 688. Form partnerships for maximum reach
      • 689. Submit bids for city RFPs
      • 690. Retrofit wind turbine for street and highway lamps.
      • 691. Use competitive, local, renewable energy, strong green symbol
      • 692. Diversify energy portfolio,
      • 693. Fast payback than alternatives.
      • 694. Cities
      • 695. Utilities
      • 696. County – State Level
      • 697. 5 year maintenance and warranty
      • 698. After 5 years, service charge
      • 699. Utility to manage after warranty expiration
      • 700. Extended warranty option
      • 701. Environmental, bird, wildlife groups
      • 702. City councils (new regulations, permits).
      • 703. Light manufacturers,
      • 704. Installers/maintainers
      • 705. Research Labs
      • 706. Turbine Certifiers
      • 707. Cheap manufacturing process- Intellectual property
      • 708. $1.5 MM of capital to start manufacturing and distribution for year 1 and 2
      • 709. Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department
      • 710. Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.
      • 711. Cost-driven model to provide inexpensive, quality product
      • 712. Manufacturing costs and customer acquisition costs.
      • 713. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.
      • 714. Asset sales and service calls
      • 715. Leasing and PPA (Future)
    • Business Model Canvas – Final
      • Continuously advertise and recruit new customers (city councils)
      • 716. Build relationship with city engineers and council members
      • 717. Understand customer, influencers, motivations, problems, competitors
      • 718. Form partnerships (developers, cities, installers, maintenance) for maximum reach
      • 719. Submit bids for city RFPs
      • 720. Continue R&D
      • 721. Get certifications
      • 722. Gain Credibility
      • 723. Retrofit wind turbine for street and highway lamps.
      • 724. Create own wind turbines with pole manufacturers
      • 725. Be owner of cheap green status symbol
      • 726. Diversify green energy portfolio
      • 727. Fast payback than alternatives
      • 728. Cities (pilot)
      • 729. Cities leasing
      • 730. Lighting Companies
      • 731. Developer -> Utilities -> City
      • 732. 5 year full service Warranty,
      • 733. After 5 years, service charge
      • 734. Utility to manage after warranty expiration
      • 735. Extended warranty option
      • 736. City council (new regulations, permits).
      • 737. Environmental, bird, wildlife groups (regulations, publicity)
      • 738. Lighting Manufacturers
      • 739. Electricians and Contractors for Installation/Maintenance
      • 740. Research Labs
      • 741. Turbine Certifiers
      • 742. Small Wind Developers
      • 743. Utilities
      • 744. Cheap manufacturing process- Intellectual property
      • 745. R&D talent
      • 746. Endorsements by environmental groups, and local governments
      • 747. Finance
      • 748. Direct sales to cities (long term) PILOTS
      • 749. Small Wind Developer
      • 750. Cost-driven model to provide inexpensive, quality product
      • 751. Manufacturing costs and customer acquisition costs.
      • 752. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)
      • 753. Leasing, PPA
      • 754. Direct Sales to wind developers?
      • 755. Leasing, PPA
      • 756. Direct Sales to wind developers?

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