New Rules for the New Bubble<br />Steve Blank<br />Stanford - School of Engineering<br />U.C. Berkeley - Haas School Of  B...
I Write a Blog  <br />www.steveblank.com<br />
I Drew This<br />CustomerDiscovery<br />Company <br /> Building<br />CustomerValidation<br />Customer Creation<br />Pivot<...
I Called It:Customer Development<br />CustomerDiscovery<br />Company <br /> Building<br />CustomerValidation<br />Customer...
I Wrote This<br />
A Few People Read It<br />
This Talk is Based On<br />Business Model Generation<br />Four Steps to the Epiphany<br />Lean Startup<br />
Premise<br />Beginning of another tech bubble<br />Rules are different in a bubble<br />What are they?<br />How do they di...
A Few Short Stories<br />
How Did We Get Here?<br />
Paths to Startup Liquidity<br />1970 – 1995 	build a business (revenue)<br />1995 – 2000	flip the business (concept IPO)<b...
1970 – 1995Building a BusinessStartups Are Small Versions of A Large Company<br />
1970 - 1995 Building a Startup the Hard Way<br />$Millions’sto start				 (Proprietary hdwr/sftwr)<br />Long product dev cy...
1970 - 1995Making Money the Hard Way<br />Goal was long term company success<br />VC’s/Founders were company builders<br /...
1970 – 1995  Playbook<br />
Product Introduction Model<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />
Product Introduction Model<br />The Leading Cause of Startup Death<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Be...
Product Introduction Model:Two Implicit Assumptions<br />Customer Problem: known<br />Concept/Seed Round<br />Product Dev....
Tradition – Hire Marketing<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />...
Tradition – Hire Sales<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />- Cr...
 Hire Sales VP
 Hire 1st  Sales Staff</li></ul>Sales<br />
Tradition – Hire Bus Development<br />Concept<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />- Cre...
 Hire Sales VP
 Pick distribution   Channel</li></ul>Sales<br />Business <br />Development<br /><ul><li> Hire First   Bus Dev
 Do deals for FCS</li></li></ul><li>Tradition – Hire Engineering<br />Concept<br />Product Dev.<br />Alpha/Beta Test<br />...
 Hire Sales VP
 Pick distribution   Channel</li></ul>Sales<br />Business <br />Development<br /><ul><li> Hire First   Bus Dev
 Do deals for FCS</li></ul>Engineering<br /><ul><li> Write MRD
 Waterfall
 Q/A
Tech Pubs</li></li></ul><li>More startups fail from a lack of customers than from a failure of product development<br />
1995 – 2000Flipping A BusinessThe Dot.comBubble <br />
1995 - 2000The Dot-com Bubble<br />10’s $millions to start			(get big fast, create a brand)<br />Long product dev cycle 	(...
1995 - 2000The Dot-com Bubble – Making Money<br />Goal = short term exit<br />VC’sengineering financial transactions<br />...
1995 – 2000 Playbook<br />Netscape<br />
2001 – 2010Why Startups Are Not Small Versions of A Large Company<br />
2001 - 2010The Lean Startup<br />≤ $½ million to start		   (open source, commodity hdwr)<br />Short product dev cycle (Agi...
Scalable<br />Startup<br />Large Company<br /><ul><li>Business Model found
 i.e. Product/Market fit</li></ul>- Repeatable sales model<br />- Managers hired<br />What’s A Startup?<br />Search <br />...
What VC’s Don’t Tell You:The Transition – Founders Leave<br />Scalable<br />Startup<br />Transition<br />Large Company<br ...
 Professional Mgmt
 Process
 Beginning of scale</li></li></ul><li>Startups Search and Pivot<br />The Search for the Business Model<br />Scalable<br />...
Startups Search, Companies Execute<br />The Execution of the Business Model<br />The Search for the Business Model<br />Sc...
 Product/Market fit</li></ul>- Repeatable sales model<br />- Managers hired<br />
Metrics Versus Accounting<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<b...
 Cash Flow Statement
 Income Statement</li></li></ul><li>Metrics Versus Accounting<br />The Search for the Business Model<br />The Execution of...
 Viral coefficient
 Customer Lifetime Value
 Average Selling Price/Order Size
 Monthly burn rate
 etc.  </li></ul>Traditional Accounting<br /><ul><li> Balance Sheet
 Cash Flow Statement
 Income Statement</li></li></ul><li>Customer Validation Versus Sales<br />The Execution of the Business Model<br />Scalabl...
 Scalable
 Price List/Data Sheets
 Revenue Plan</li></li></ul><li>Customer Validation Versus Sales<br />The Search for the Business Model<br />The Execution...
 Pricing/Feature unstable
 Not yet repeatable
“One-off’s”</li></ul>Sales<br /><ul><li> Sales Organization
 Scalable
 Price List/Data Sheets
 Revenue Plan</li></li></ul><li>Engineering Versus Agile Development<br />The Execution of the Business Model<br />Scalabl...
 Waterfall Development
 QA
 Tech Pubs</li></li></ul><li>Engineering Versus Agile Development<br />The Search for the Business Model<br />The Executio...
 Waterfall Development
 QA
 Tech Pubs</li></ul>Agile Development<br /><ul><li> Continuous Deployment
 Continuous Learning
 Self Organizing Teams
 Minimum Feature Set
 Pivots</li></li></ul><li>Startups Model, Companies Plan<br />The Execution of the Business Model<br />Scalable<br />Start...
 features
 customers/markets
 business model</li></li></ul><li>Startups Model, Companies Plan<br />The Search for the Business Model<br />The Execution...
 describes “unknowns”
customer needs
 feature set
 business model
 found by iteration
Plan describes “knowns”
 Known features for line extensions
 Known customers/markets
 Known business model</li></li></ul><li>2001 - 2010The Lean Startup<br />IPO market ~closed, M&A liquidity path<br />Build...
2001 - 2010 Playbook<br />Four Steps to the Epiphany<br />Many Agile Texts<br />
But We Were Still Using This<br />
No Business Plan survives first contact with customers<br />
So Search for a Business Model<br />
The Business Model:<br />Any company can be described in 9 building blocks<br />
CUSTOMER SEGMENTS<br />which customers and users are you serving? <br />which jobs do they really want to get done?<br />
VALUE PROPOSITIONS<br />what are you offering them? what is that <br />getting done for them? do they care?<br />
CHANNELS<br />how does each customer segment want to be reached? through which interaction points?<br />
CUSTOMER RELATIONSHIPS<br />what relationships are you establishing with each segment? personal? automated? acquisitive? r...
REVENUE STREAMS<br />what are customers really willing to pay for? how? <br />are you generating transactional or recurrin...
KEY RESOURCES<br />which resources underpin your business model? which assets are essential?<br />
KEY ACTIVITIES<br />which activities do you need to perform well in your business model? what is crucial?<br />54<br />
KEY PARTNERS<br />which partners and suppliers leverage your model? <br />who do you need to rely on?<br />
COST STRUCTURE<br />what is the resulting cost structure? <br />which key elements drive your costs?<br />
value proposition<br />customer relationships<br />key activities<br />customer segments<br />key partners<br />cost struc...
How Do Startups Search For A Business Model?<br /><ul><li>The Search is Customer Development
The Implementation is Agile Development
The Sum is the Lean Startup</li></li></ul><li>Customer Development<br />
Customer Development<br />The founders<br />^<br />Get Out of the Building<br />
Customer DevelopmentThe Search For the Business Model<br />Company<br />Building<br />CustomerDiscovery<br />CustomerValid...
Customer Discovery<br />CustomerDiscovery<br />CustomerValidation<br />Company<br />Building<br />CustomerCreation<br />St...
Test Hypotheses:<br /><ul><li>Product
 Market Type
 Competition</li></ul>Turning Hypotheses to Facts<br />
Test Hypotheses:<br /><ul><li>Problem
 Customer
 User
 Payer</li></li></ul><li>Test Hypotheses:<br /><ul><li>Channel</li></li></ul><li>Test Hypotheses:<br /><ul><li>Demand Crea...
 Customer
 User
 Payer</li></ul>Test Hypotheses:<br /><ul><li>Product
 Market Type
 Competitive</li></ul>Test Hypotheses:<br /><ul><li>Channel
 (Customer)
 (Problem)</li></ul>Test Hypotheses:<br /><ul><li>Channel</li></ul>Test Hypotheses:<br /><ul><li>Pricing Model / Pricing</...
 Validate Business Model</li></li></ul><li>Test Hypotheses:<br /><ul><li>Demand Creation</li></ul>Test Hypotheses:<br /><u...
 Customer
 User
 Payer</li></ul>Agile Development<br />Test Hypotheses:<br /><ul><li>Product
 Market Type
 Competitive</li></ul>Test Hypotheses:<br /><ul><li>Channel
 (Customer)
 (Problem)</li></ul>Customer Development Team<br />Test Hypotheses:<br /><ul><li>Channel</li></ul>Test Hypotheses:<br /><u...
 Validate Business Model</li></li></ul><li>Test Hypotheses:<br /><ul><li>Demand Creation</li></ul>Test Hypotheses:<br /><u...
 Customer
 User
 Payer</li></ul>Agile Development<br />Test Hypotheses:<br /><ul><li>Product
 Market Type
 Competitive</li></ul>Test Hypotheses:<br /><ul><li>Channel
 (Customer)
 (Problem)</li></ul>Customer Development Team<br />Test Hypotheses:<br /><ul><li>Channel</li></ul>Test Hypotheses:<br /><u...
 Validate Business Model</li></li></ul><li>The Minimum Viable Product (MVP)<br /><ul><li> Smallest feature set that gets y...
MVP + Customer are the first two you need to nail
 MVP is just 1 of the 9 parts of your model</li></li></ul><li>The Pivot<br /><ul><li>The heart of Customer Development
Iteration without crisis
Fast, agile and opportunistic</li></li></ul><li>How Does This Really Work?Stanford Lean LaunchPad Class<br />
Pivot ExampleOn-line Social Buying Platform<br />Talked to 250 Customers in 8 weeks<br />
OURCRAVE is an online social shopping platform where customers can make their own deals on products or services of their c...
Business Canvas #1<br />Seller: - Access to large online customer pool<br />- Bulk sales with reduced commission<br />Buye...
Seller Side Test with a fake E-MAIL<br />Give me a quote<br />for a bulk sale!<br />Electronics Sellers on Amazon/Ebay<br ...
22% paid 5~10% transaction fee
78% agreed it was too much
33% actually provided discount proportional to group size</li></li></ul><li>Seller Side<br />Interview with Industry Speci...
User Side<br />: Online User Survey<br />Power to choose products<br />Discount on products<br />Buyer community feedback<...
Business Canvas #2<br />Seller: - More customer traffic<br />- Bulk sales with reduced commission<br />Buyer: - Better dis...
 Sellers who need more traffic</li></ul>- Server providers<br />- Automated services- Communities of buyers and sellers- C...
Key Question for Business Canvas #2<br />HOW CAN WE ATTRACT BUYERS?<br />CUSTOMER ACQUISION COST?<br />
Buyer Demand Test<br />Best Marketing Channel for having buyers is Facebook Wall<br />: 144 Unique Visits, 10 e-mail subsc...
Business Canvas #3<br />Seller: - More customer traffic<br />- Bulk sales with reduced commission<br />Buyer: - Better dis...
Server providers</li></ul>Established services- Online Marketing : Google/Facebook<br />- Automated services- Communities ...
 Online social networks
 Online advertising</li></ul>- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communit...
Key Question for Business Canvass #3<br />HOW CAN WE ATTRACT SELLERS?<br />COOPERATION WITH SELLERS?<br />
Seller Contact<br />Deal with sellers failed because no group pricing or discount too low.<br />Organize Real Group Deal<b...
3 products: HD camera, protein drink, videogame
Videogame was for pre-order</li></ul>Result<br /><ul><li>Most sellers: no group discounts
Discounts offered < 10%
With shipping and tax still >= Amazon price
David vs. Goliath problem</li></li></ul><li>To Pivot or Not to Pivot?<br />Although dismayedat seller response, we did not...
Seller problem intractable?
Teaching staff: Pivot or else…</li></ul>Beaten, but not defeated<br /><ul><li>Lost one battle, but not the war!
Only contacted larger sellers
Sellers need more value
Show them a real website</li></ul>Filter advice and stay determined!<br />No Pivot Yet<br />
Solution 1 : Rapid Implementation<br />Implement seller & buyer side features to give sellers  fuller experience. <br />Si...
Buyer facebook login
Online social networking integration
Seller login and registration
Seller bidding
Seller group deal creation page</li></li></ul><li>Solution 1 : Rapid Implementation<br />Humble beginnings <br />
Solution 1 : Rapid Implementation<br />The Real Deal <br />
Solution 1 : Rapid Implementation<br />Main page<br />Facebook connect<br />Deal creation by sellers<br />Bidding dialog<b...
Solution 2 : More seller value & spamming<br />Add value for sellers based on mentor and industry expert interviews<br />A...
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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 -&gt; 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
  • Sxsw New Rules for the New Bubble 031211

    1. 1. New Rules for the New Bubble<br />Steve Blank<br />Stanford - School of Engineering<br />U.C. Berkeley - Haas School Of Business<br />www.steveblank.com<br />Twitter: sgblank<br />
    2. 2. I Write a Blog <br />www.steveblank.com<br />
    3. 3. I Drew This<br />CustomerDiscovery<br />Company <br /> Building<br />CustomerValidation<br />Customer Creation<br />Pivot<br />
    4. 4. I Called It:Customer Development<br />CustomerDiscovery<br />Company <br /> Building<br />CustomerValidation<br />Customer Creation<br />Pivot<br />
    5. 5. I Wrote This<br />
    6. 6. A Few People Read It<br />
    7. 7. This Talk is Based On<br />Business Model Generation<br />Four Steps to the Epiphany<br />Lean Startup<br />
    8. 8. Premise<br />Beginning of another tech bubble<br />Rules are different in a bubble<br />What are they?<br />How do they differ from what you did before?<br />
    9. 9. A Few Short Stories<br />
    10. 10. How Did We Get Here?<br />
    11. 11. Paths to Startup Liquidity<br />1970 – 1995 build a business (revenue)<br />1995 – 2000 flip the business (concept IPO)<br />2001 – 2010 build a business (M&A)<br />2011 – 2014 flip a built business (M&A / IPO)<br />
    12. 12. 1970 – 1995Building a BusinessStartups Are Small Versions of A Large Company<br />
    13. 13. 1970 - 1995 Building a Startup the Hard Way<br />$Millions’sto start (Proprietary hdwr/sftwr)<br />Long product dev cycle (Waterfall)<br />Thousands customers (Businesses)<br />Liquidity = IPO (5qtrsrevenue/profit)<br />No repeatable methodology(Smallerbig company)<br />
    14. 14. 1970 - 1995Making Money the Hard Way<br />Goal was long term company success<br />VC’s/Founders were company builders<br />Exits were IPO’s<br />Founders and VC success ≤ $10 million<br />
    15. 15. 1970 – 1995 Playbook<br />
    16. 16. Product Introduction Model<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />
    17. 17. Product Introduction Model<br />The Leading Cause of Startup Death<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />
    18. 18. Product Introduction Model:Two Implicit Assumptions<br />Customer Problem: known<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br /> Product Features: known<br />
    19. 19. Tradition – Hire Marketing<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />- Create Demand<br />- Launch Event<br />- “Branding”<br />- Hire PR Agency<br />- Early Buzz<br /><ul><li> Create Marcom </li></ul> Materials<br />- Create Positioning<br />Marketing<br />
    20. 20. Tradition – Hire Sales<br />Concept/Seed Round<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />- Create Demand<br />- Launch Event<br />- “Branding”<br />- Hire PR Agency<br />- Early Buzz<br /><ul><li> Create Marcom </li></ul> Materials<br />- Create Positioning<br />Marketing<br /><ul><li> Build Sales Organization
    21. 21. Hire Sales VP
    22. 22. Hire 1st Sales Staff</li></ul>Sales<br />
    23. 23. Tradition – Hire Bus Development<br />Concept<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />- Create Demand<br />- Launch Event<br />- “Branding”<br />- Hire PR Agency<br />- Early Buzz<br /><ul><li> Create Marcom </li></ul> Materials<br />- Create Positioning<br />Marketing<br /><ul><li> Build Sales Channel / Distribution
    24. 24. Hire Sales VP
    25. 25. Pick distribution Channel</li></ul>Sales<br />Business <br />Development<br /><ul><li> Hire First Bus Dev
    26. 26. Do deals for FCS</li></li></ul><li>Tradition – Hire Engineering<br />Concept<br />Product Dev.<br />Alpha/Beta Test<br />Launch/<br />1st Ship<br />- Create Demand<br />- Launch Event<br />- “Branding”<br />- Hire PR Agency<br />- Early Buzz<br /><ul><li> Create Marcom </li></ul> Materials<br />- Create Positioning<br />Marketing<br /><ul><li> Build Sales Channel / Distribution
    27. 27. Hire Sales VP
    28. 28. Pick distribution Channel</li></ul>Sales<br />Business <br />Development<br /><ul><li> Hire First Bus Dev
    29. 29. Do deals for FCS</li></ul>Engineering<br /><ul><li> Write MRD
    30. 30. Waterfall
    31. 31. Q/A
    32. 32. Tech Pubs</li></li></ul><li>More startups fail from a lack of customers than from a failure of product development<br />
    33. 33. 1995 – 2000Flipping A BusinessThe Dot.comBubble <br />
    34. 34. 1995 - 2000The Dot-com Bubble<br />10’s $millions to start (get big fast, create a brand)<br />Long product dev cycle (ship beta, 1st mover adv)<br />Millions customers (1st consumer internet wave)<br />Liquidity - IPO (Little/no revenue, no profits)<br />Repeatable methodology(brand, hype, flip or IPO)<br />
    35. 35. 1995 - 2000The Dot-com Bubble – Making Money<br />Goal = short term exit<br />VC’sengineering financial transactions<br />Founders hyped their company<br />“Musical Chairs” – last one standing looked dumb<br />Everyone else got absurdly rich<br />
    36. 36. 1995 – 2000 Playbook<br />Netscape<br />
    37. 37. 2001 – 2010Why Startups Are Not Small Versions of A Large Company<br />
    38. 38. 2001 - 2010The Lean Startup<br />≤ $½ million to start (open source, commodity hdwr)<br />Short product dev cycle (Agile Development)<br />100’s millions Customers (Social networks, consumer)<br />Liquidity -M&A(revenue & network of users)<br />Repeatable methodology(Agile + Cust Dev)<br />
    39. 39. Scalable<br />Startup<br />Large Company<br /><ul><li>Business Model found
    40. 40. i.e. Product/Market fit</li></ul>- Repeatable sales model<br />- Managers hired<br />What’s A Startup?<br />Search <br />Execute<br />A Startup is a temporary organization used to search for a repeatable and scalable business model <br />
    41. 41. What VC’s Don’t Tell You:The Transition – Founders Leave<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Build<br /><ul><li>Founders depart
    42. 42. Professional Mgmt
    43. 43. Process
    44. 44. Beginning of scale</li></li></ul><li>Startups Search and Pivot<br />The Search for the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br /> Business Model found by founders<br /><ul><li> customer needs/product features found</li></ul> i.e. Product/Market fit<br /><ul><li> Repeatable sales model</li></ul>- Managers hired<br />
    45. 45. Startups Search, Companies Execute<br />The Execution of the Business Model<br />The Search for the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />- Cash-flow breakeven<br />- Profitable<br />- Rapid scale<br />- New Senior Mgmt<br />~ 150 people<br /><ul><li>Business Model found
    46. 46. Product/Market fit</li></ul>- Repeatable sales model<br />- Managers hired<br />
    47. 47. Metrics Versus Accounting<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Traditional Accounting<br /><ul><li>Balance Sheet
    48. 48. Cash Flow Statement
    49. 49. Income Statement</li></li></ul><li>Metrics Versus Accounting<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Startup Metrics<br /><ul><li> Customer Acquisition Cost
    50. 50. Viral coefficient
    51. 51. Customer Lifetime Value
    52. 52. Average Selling Price/Order Size
    53. 53. Monthly burn rate
    54. 54. etc. </li></ul>Traditional Accounting<br /><ul><li> Balance Sheet
    55. 55. Cash Flow Statement
    56. 56. Income Statement</li></li></ul><li>Customer Validation Versus Sales<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Sales<br /><ul><li>Sales Organization
    57. 57. Scalable
    58. 58. Price List/Data Sheets
    59. 59. Revenue Plan</li></li></ul><li>Customer Validation Versus Sales<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large<br />Company<br />Customer Validation<br /><ul><li> Early Adopters
    60. 60. Pricing/Feature unstable
    61. 61. Not yet repeatable
    62. 62. “One-off’s”</li></ul>Sales<br /><ul><li> Sales Organization
    63. 63. Scalable
    64. 64. Price List/Data Sheets
    65. 65. Revenue Plan</li></li></ul><li>Engineering Versus Agile Development<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Engineering<br /><ul><li> Requirements Docs.
    66. 66. Waterfall Development
    67. 67. QA
    68. 68. Tech Pubs</li></li></ul><li>Engineering Versus Agile Development<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Engineering<br /><ul><li> Requirements Docs.
    69. 69. Waterfall Development
    70. 70. QA
    71. 71. Tech Pubs</li></ul>Agile Development<br /><ul><li> Continuous Deployment
    72. 72. Continuous Learning
    73. 73. Self Organizing Teams
    74. 74. Minimum Feature Set
    75. 75. Pivots</li></li></ul><li>Startups Model, Companies Plan<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br />Business Plan<br /><ul><li> describes “knowns”
    76. 76. features
    77. 77. customers/markets
    78. 78. business model</li></li></ul><li>Startups Model, Companies Plan<br />The Search for the Business Model<br />The Execution of the Business Model<br />Scalable<br />Startup<br />Transition<br />Large Company<br /><ul><li>Business Model
    79. 79. describes “unknowns”
    80. 80. customer needs
    81. 81. feature set
    82. 82. business model
    83. 83. found by iteration
    84. 84. Plan describes “knowns”
    85. 85. Known features for line extensions
    86. 86. Known customers/markets
    87. 87. Known business model</li></li></ul><li>2001 - 2010The Lean Startup<br />IPO market ~closed, M&A liquidity path<br />Build for long term but take short term sale<br />Founders learn Lean skills<br />Focus on building customers<br />Minimum hype<br />
    88. 88. 2001 - 2010 Playbook<br />Four Steps to the Epiphany<br />Many Agile Texts<br />
    89. 89. But We Were Still Using This<br />
    90. 90. No Business Plan survives first contact with customers<br />
    91. 91. So Search for a Business Model<br />
    92. 92. The Business Model:<br />Any company can be described in 9 building blocks<br />
    93. 93. CUSTOMER SEGMENTS<br />which customers and users are you serving? <br />which jobs do they really want to get done?<br />
    94. 94. VALUE PROPOSITIONS<br />what are you offering them? what is that <br />getting done for them? do they care?<br />
    95. 95. CHANNELS<br />how does each customer segment want to be reached? through which interaction points?<br />
    96. 96. CUSTOMER RELATIONSHIPS<br />what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?<br />
    97. 97. REVENUE STREAMS<br />what are customers really willing to pay for? how? <br />are you generating transactional or recurring revenues?<br />
    98. 98. KEY RESOURCES<br />which resources underpin your business model? which assets are essential?<br />
    99. 99. KEY ACTIVITIES<br />which activities do you need to perform well in your business model? what is crucial?<br />54<br />
    100. 100. KEY PARTNERS<br />which partners and suppliers leverage your model? <br />who do you need to rely on?<br />
    101. 101. COST STRUCTURE<br />what is the resulting cost structure? <br />which key elements drive your costs?<br />
    102. 102. value proposition<br />customer relationships<br />key activities<br />customer segments<br />key partners<br />cost structure<br />revenue streams<br />key <br />resources<br />channels<br />57<br />images by JAM<br />
    103. 103. How Do Startups Search For A Business Model?<br /><ul><li>The Search is Customer Development
    104. 104. The Implementation is Agile Development
    105. 105. The Sum is the Lean Startup</li></li></ul><li>Customer Development<br />
    106. 106. Customer Development<br />The founders<br />^<br />Get Out of the Building<br />
    107. 107. Customer DevelopmentThe Search For the Business Model<br />Company<br />Building<br />CustomerDiscovery<br />CustomerValidation<br />Customer Creation<br />Pivot<br />
    108. 108. Customer Discovery<br />CustomerDiscovery<br />CustomerValidation<br />Company<br />Building<br />CustomerCreation<br />Stop selling, start listening<br />Test your hypotheses<br />Continuous Discovery<br />Done by founders<br />
    109. 109. Test Hypotheses:<br /><ul><li>Product
    110. 110. Market Type
    111. 111. Competition</li></ul>Turning Hypotheses to Facts<br />
    112. 112. Test Hypotheses:<br /><ul><li>Problem
    113. 113. Customer
    114. 114. User
    115. 115. Payer</li></li></ul><li>Test Hypotheses:<br /><ul><li>Channel</li></li></ul><li>Test Hypotheses:<br /><ul><li>Demand Creation</li></ul>Test Hypotheses:<br /><ul><li>Problem
    116. 116. Customer
    117. 117. User
    118. 118. Payer</li></ul>Test Hypotheses:<br /><ul><li>Product
    119. 119. Market Type
    120. 120. Competitive</li></ul>Test Hypotheses:<br /><ul><li>Channel
    121. 121. (Customer)
    122. 122. (Problem)</li></ul>Test Hypotheses:<br /><ul><li>Channel</li></ul>Test Hypotheses:<br /><ul><li>Pricing Model / Pricing</li></ul>Test Hypotheses:<br /><ul><li>Size of Opportunity/Market
    123. 123. Validate Business Model</li></li></ul><li>Test Hypotheses:<br /><ul><li>Demand Creation</li></ul>Test Hypotheses:<br /><ul><li>Problem
    124. 124. Customer
    125. 125. User
    126. 126. Payer</li></ul>Agile Development<br />Test Hypotheses:<br /><ul><li>Product
    127. 127. Market Type
    128. 128. Competitive</li></ul>Test Hypotheses:<br /><ul><li>Channel
    129. 129. (Customer)
    130. 130. (Problem)</li></ul>Customer Development Team<br />Test Hypotheses:<br /><ul><li>Channel</li></ul>Test Hypotheses:<br /><ul><li>Pricing Model / Pricing</li></ul>Test Hypotheses:<br /><ul><li>Size of Opportunity/Market
    131. 131. Validate Business Model</li></li></ul><li>Test Hypotheses:<br /><ul><li>Demand Creation</li></ul>Test Hypotheses:<br /><ul><li>Problem
    132. 132. Customer
    133. 133. User
    134. 134. Payer</li></ul>Agile Development<br />Test Hypotheses:<br /><ul><li>Product
    135. 135. Market Type
    136. 136. Competitive</li></ul>Test Hypotheses:<br /><ul><li>Channel
    137. 137. (Customer)
    138. 138. (Problem)</li></ul>Customer Development Team<br />Test Hypotheses:<br /><ul><li>Channel</li></ul>Test Hypotheses:<br /><ul><li>Pricing Model / Pricing</li></ul>Test Hypotheses:<br /><ul><li>Size of Opportunity/Market
    139. 139. Validate Business Model</li></li></ul><li>The Minimum Viable Product (MVP)<br /><ul><li> Smallest feature set that gets you the most …orders, learning, feedback, failure…
    140. 140. MVP + Customer are the first two you need to nail
    141. 141. MVP is just 1 of the 9 parts of your model</li></li></ul><li>The Pivot<br /><ul><li>The heart of Customer Development
    142. 142. Iteration without crisis
    143. 143. Fast, agile and opportunistic</li></li></ul><li>How Does This Really Work?Stanford Lean LaunchPad Class<br />
    144. 144. Pivot ExampleOn-line Social Buying Platform<br />Talked to 250 Customers in 8 weeks<br />
    145. 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.<br />
    146. 146. Business Canvas #1<br />Seller: - Access to large online customer pool<br />- Bulk sales with reduced commission<br />Buyer: - Better discounts<br />- Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand <br />- Powerful sellers<br />- Server providers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller:<br />Pro-sellers in Amazon and eBay who sell electronicsBuyer:<br />Online shoppers<br /><ul><li> Web & App sales </li></ul>-Online social networks<br />- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness<br />Seller side:- transaction fees <br />Buyer side:- targeted ads<br />- Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries <br />
    147. 147. Seller Side Test with a fake E-MAIL<br />Give me a quote<br />for a bulk sale!<br />Electronics Sellers on Amazon/Ebay<br />FAKE CEO<br />(Steve Feiberg)<br />57%<br />showed interest<br />90%<br />sell products <br />on Amazon<br /><ul><li>56% paid 10~20% transaction fee
    148. 148. 22% paid 5~10% transaction fee
    149. 149. 78% agreed it was too much
    150. 150. 33% actually provided discount proportional to group size</li></li></ul><li>Seller Side<br />Interview with Industry Specialist (LG Electronics)<br />Main Target<br />Bestbuy<br />Target,<br />Walmart<br />25%<br />Associations of <br />RegionalBig Sellers<br />25%<br />40%<br />
    151. 151. User Side<br />: Online User Survey<br />Power to choose products<br />Discount on products<br />Buyer community feedback<br />
    152. 152. Business Canvas #2<br />Seller: - More customer traffic<br />- Bulk sales with reduced commission<br />Buyer: - Better discounts<br />- Power to choose product deal<br />- Buyer community feedback on products and sellers<br />- Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand <br /><ul><li> Powerful sellers
    153. 153. Sellers who need more traffic</li></ul>- Server providers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller:<br />Trustworthy online sellers with verifiable websitesBuyer:<br />Online shoppers who are willing to wait to get significant discounts on products<br /><ul><li> Web & App sales </li></ul>-Online social networks<br />- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness<br />Seller side:- transaction fees <br />Buyer side:- targeted ads<br />- Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries <br />
    154. 154. Key Question for Business Canvas #2<br />HOW CAN WE ATTRACT BUYERS?<br />CUSTOMER ACQUISION COST?<br />
    155. 155. Buyer Demand Test<br />Best Marketing Channel for having buyers is Facebook Wall<br />: 144 Unique Visits, 10 e-mail subscriptions for 3 days<br />Facebook Wall<br />Google Adwords<br />Facebook Ads<br />5%<br />0.08%<br />0.005%<br />(CTR)<br />$7.52<br />$4.88<br />$0<br />(COST)<br />
    156. 156. Business Canvas #3<br />Seller: - More customer traffic<br />- Bulk sales with reduced commission<br />Buyer: - Better discounts<br />- Power to choose product deal<br />- Buyer community feedback on products and sellers<br />- Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand <br /><ul><li> Sellers who need more traffic
    157. 157. Server providers</li></ul>Established services- Online Marketing : Google/Facebook<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller:<br />Trustworthy online sellers with verifiable websitesBuyer:<br />Online shoppers who are willing to wait to get significant discounts on products<br /><ul><li> Web & App sales
    158. 158. Online social networks
    159. 159. Online advertising</li></ul>- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness<br />Seller side:- transaction fees <br />Buyer side:- targeted ads<br /><ul><li>Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries </li></ul>- Online ad campaigns<br />
    160. 160. Key Question for Business Canvass #3<br />HOW CAN WE ATTRACT SELLERS?<br />COOPERATION WITH SELLERS?<br />
    161. 161. Seller Contact<br />Deal with sellers failed because no group pricing or discount too low.<br />Organize Real Group Deal<br /><ul><li>Contact popular online sellers
    162. 162. 3 products: HD camera, protein drink, videogame
    163. 163. Videogame was for pre-order</li></ul>Result<br /><ul><li>Most sellers: no group discounts
    164. 164. Discounts offered < 10%
    165. 165. With shipping and tax still >= Amazon price
    166. 166. David vs. Goliath problem</li></li></ul><li>To Pivot or Not to Pivot?<br />Although dismayedat seller response, we did not give up.<br />What do do?<br /><ul><li>Deal with sellers disappointing
    167. 167. Seller problem intractable?
    168. 168. Teaching staff: Pivot or else…</li></ul>Beaten, but not defeated<br /><ul><li>Lost one battle, but not the war!
    169. 169. Only contacted larger sellers
    170. 170. Sellers need more value
    171. 171. Show them a real website</li></ul>Filter advice and stay determined!<br />No Pivot Yet<br />
    172. 172. Solution 1 : Rapid Implementation<br />Implement seller & buyer side features to give sellers fuller experience. <br />Site Upgrade Frenzy<br /><ul><li>Improved site design
    173. 173. Buyer facebook login
    174. 174. Online social networking integration
    175. 175. Seller login and registration
    176. 176. Seller bidding
    177. 177. Seller group deal creation page</li></li></ul><li>Solution 1 : Rapid Implementation<br />Humble beginnings <br />
    178. 178. Solution 1 : Rapid Implementation<br />The Real Deal <br />
    179. 179. Solution 1 : Rapid Implementation<br />Main page<br />Facebook connect<br />Deal creation by sellers<br />Bidding dialog<br />
    180. 180. Solution 2 : More seller value & spamming<br />Add value for sellers based on mentor and industry expert interviews<br />Add Seller Value<br /><ul><li>Low transaction fees
    181. 181. Customer contact information
    182. 182. Cross-selling products
    183. 183. Ad banners
    184. 184. Power to create group deal</li></ul>The Art of Spam<br /><ul><li>Massive seller e-mail campaign (16,000 in total)
    185. 185. Stanford takes notice and issues warning (oops)
    186. 186. Enumerate value propositions
    187. 187. Show live website
    188. 188. Hand out registration codes</li></li></ul><li>Seller Invitation Result<br />180 sellers<br /># of sellers who signed up<br /># of deals made by sellers<br />80 deals<br />(below Amazon price)<br />
    189. 189. Seller Invitation Result<br /># of sellers who replied to our email<br />200 sellers<br /># of sellers who made suggestions on OURCRAVE<br />50 sellers<br />
    190. 190. Business Canvas #4<br />- Maintainingonline buyer/seller communities and credibilityof transactions- Promotionof website and brand <br />Seller: - More customer traffic<br /><ul><li>Bulk sales with reduced commission</li></ul>- Access to customer contact information <br /><ul><li> Cross-sell their products.- Site advertising- Power to create deals</li></ul>Buyer: - Better discounts<br />- Power to choose product deal<br />- Buyer community feedback on products and sellers<br /><ul><li> Sellers who need more traffic
    191. 191. Server providers</li></ul>Established services- Online Marketing : Google/Facebook<br />-Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller:<br />Trustworthy online sellers with verifiable websitesBuyer:<br />Online shoppers who are willing to wait to get significant discounts on products<br /><ul><li> Web & App sales
    192. 192. Online social networks
    193. 193. Online advertising</li></ul>- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness<br />Seller side:- transaction fees <br />Buyer side:- targeted ads<br /><ul><li>Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries </li></ul>- Online ad campaigns<br />
    194. 194. Key Question for Business Canvass #4<br />Key Activities for Next Stage<br />Can we make enough money?<br />
    195. 195. Key Activity – Seller Management<br />We should manage main feedbacks from sellers by making basic function, <br />1. Convenient System<br /><ul><li>Auto Sales Tax Calculator
    196. 196. Bulk List Uploading Function
    197. 197. Notification to Sellers </li></ul> for relevant cravebags<br />2. Building credibility<br /><ul><li>FAQ List for Sellers
    198. 198. Share buyer information
    199. 199. F2F meeting with big sellers</li></ul>3. More Incentives<br /><ul><li>Cross selling Option
    200. 200. Seller Advertisement Feature</li></li></ul><li>Key Activity – Initial Advertisement<br />By price comparison site and online ads, test our early service model. Then, Crazy deals needed for jumping<br />2nd Active : Crazy Deals<br /><ul><li>20~30 % sales for Promotion Deals
    201. 201. Very very very famous products</li></ul>1st Passive : Online Ads<br /><ul><li>Google / Facebook / Yahoo Ads
    202. 202. Price Comparison Site ( very important)</li></li></ul><li>Key Activity – Encouraging Buyer’s Viral<br />We will implement incentive system for sharing deals and help buyers communicate with each other in our service<br />Incentive for sharing<br />Buyer Community<br />14%<br />22%<br />People who willing to share deals in FB*<br />People who shared deals<br />In FB*<br /><ul><li>OurCrave Point
    203. 203. Extra Discount
    204. 204. Free shipping or tax Coupon
    205. 205. Live comment on cravebags
    206. 206. Weekly Best cravebag vote
    207. 207. Youtube Ads Competition</li></ul>* OurCrave User Survey in 2/3 weeks<br />
    208. 208. Revenue / Cost Source<br />Revenue<br />Cost<br />Product Ads<br />Transaction Fee ( Main )<br />Float Money<br />Site Maintenance <br />Marketing ( Main )<br />Customer Support<br />Server/Traffic<br />/Mobie Apps<br />15% of transaction<br />Ads for buyer<br />Seller Management<br />3~5% ( paypal)<br />Outsourcing<br />20%/60days*<br />* google/groupon’s rule, we are asking sellers about this rule.<br />
    209. 209. Business Canvas Final<br />Seller: - More customer traffic<br /><ul><li>Bulk sales with reduced commission</li></ul>- Access to customer contact information <br /><ul><li> Cross-sell their products.- Site advertising- Power to create deals</li></ul>Buyer: - Better discounts<br />- Power to choose product deal<br />- Buyer community feedback on products and sellers<br /><ul><li> Sellers who need more traffic
    210. 210. Server providers</li></ul>Established services- Online Marketing : Google/Facebook<br />- Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br /><ul><li> Growing and maintaining online buyer/seller communities and credibilityof transactions- Promotionof website and brand </li></ul>- Establishing credibility<br />Multi-sided platformSeller:<br />Trustworthy online sellers with verifiable websitesBuyer:<br />Online shoppers who are willing to wait to get significant discounts on products<br /><ul><li> Web & App sales
    211. 211. Online social networks
    212. 212. Online advertising</li></ul>- Physical resources (IT infrastructure)- Existing social networks -Buyer and seller communities,- Brand awareness<br />Seller side:- transaction fees <br />Buyer side:- targeted ads<br />- float money<br /><ul><li>Variable costs: server and traffic maintenance costs- Fixed Cost: rent, salaries </li></ul>- Online ad campaigns<br />
    213. 213. Business Canvas – Week 1<br />Seller : - More customer traffic<br />- Bulk sales- Lower transaction feesBuyer : - Better discounts<br />- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand <br />- Powerful sellers<br />- Server providers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller :pro-sellers on Amazon and eBayBuyer :Online shoppers<br />- Web & App sales <br />- Online social networks<br />- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness<br />- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries<br />Seller side:- transaction fees <br />Buyer side:- targeted ads <br />
    214. 214. Business Canvas – Week 2<br />Seller : - More customer traffic<br />- Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts<br />- Power to choose product deal<br />- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand <br />- Powerful sellers<br />- Server providers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller :pro-sellers on Amazon and eBayBuyer :Online shoppers<br />- Web & App sales <br />- Online social networks<br />- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness<br />- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries<br />Seller side:- transaction fees <br />Buyer side:- targeted ads <br />
    215. 215. Business Canvas – Week 3<br />Seller : - More customer traffic<br />- Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts<br />- Power to choose product deal<br />- Buyer community feedback on products and sellers<br />- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand <br />- Powerful sellers<br />-Regionalsellers<br />- Server providers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller :<br />Sellers on Amazon and eBayBuyer :Online shoppers who are willing to waitto get significant discounts on products<br />- Web & App sales <br />- Online social networks<br />- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness<br />- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries<br />Seller side:- transaction fees <br />Buyer side:- targeted ads <br />
    216. 216. Business Canvas – Week 4<br />Seller : - More customer traffic<br /><ul><li>Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts</li></ul>- Power to choose product deal<br />- Buyer community feedback on products and sellers<br />- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand <br />- Sellers who need more traffic<br />-Regionalsellers<br />- Server providers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller :<br />Sellers on Amazon and eBayBuyer :Online shoppers who are willing to waitto get significant discounts on products<br />- Web & App sales <br />- Online social networks<br />- Onlineadvertising<br />- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness<br />- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries<br />Seller side:- transaction fees <br />Buyer side:- targeted ads <br />
    217. 217. Business Canvas – Week 5<br />- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand <br />Seller : - More customer traffic<br />- Bulk sales- Lower transaction fees- Brand name marketing<br /> - Access to customer contact information<br /> - Ability to cross-sell products<br /> - Site advertising<br />Buyer : - Better discounts<br />- Power to choose product deal<br />- Buyer community feedback on products and sellers<br />- Sellers who need more traffic<br />-Regionalsellers<br />- Server providers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller :<br />Sellers on Amazon and eBayBuyer :Online shoppers who arewilling to waitto get significant discounts on products<br />- Web & App sales <br />- Online social networks<br />- Onlineadvertising<br />- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness<br />- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries<br />- Online ads<br />Seller side:- transaction fees <br />Buyer side:- targeted ads<br />
    218. 218. Business Canvas – Week 6<br />Seller : - More customer traffic<br />- Bulk sales- Lower transaction fees- Access to customer contact information <br />- Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers <br />- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand <br />- Sellers who need more traffic<br />-Regionalsellers<br />- Server providers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller :<br />Sellers on Amazon and eBayBuyer :Online shoppers who arewilling to waitto get significant discounts on products<br />- Web & App sales <br />- Online social networks<br />- Onlineadvertising<br />- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness<br />- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries<br />- Online ads<br />Seller side:- transaction fees <br />Buyer side:- targeted ads<br />- float money<br />
    219. 219. Business Canvas – Week 7<br />Seller : - More customer traffic<br />- Bulk sales- Lower transaction fees- Access to customer contact information <br />- Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers <br />- Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- Promotion of website and brand <br />- Sellers who need more traffic<br />- Regionalsellers<br />- Server providers<br />Established services- Online Marketing : Google/Facebook -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platformSeller :Sellers on Amazon and eBay<br />Seller: <br />Trustworthy sellers with verifiable websites.Buyer :Online shoppers who arewilling to waitto get significant discounts on products<br />- Web & App sales <br />- Online social networks<br />- Onlineadvertising<br />- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness<br />- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries<br />- Online ads<br />Seller side:- transaction fees <br />Buyer side:- targeted ads<br />- float money<br />
    220. 220. Business Canvas – Week 8<br />Seller : - More customer traffic<br />- Bulk sales- Lower transaction fees- Access to customer contact information <br />- Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers <br />- Platform/Networkmanagement (maintaining and growing online buyer/seller communities and credibility)- Promotion of website and brand<br />- Establishing credibility<br />- Sellers who need more traffic<br />Established services- Online Marketing : Google/Facebook -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers<br />- Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback <br />Multi-sided platform<br />Seller: <br />Trustworthy sellers with verifiable websites.Buyer :Online shoppers who are willing to wait to get significant discounts on products<br />- Web & App sales <br />- Online social networks<br />- Onlineadvertising<br />- Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness<br />- Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries<br />- Online ads<br />Seller side:- transaction fees <br />Buyer side:- targeted ads<br />- float money<br />
    221. 221. Pivot ExampleRobotic Weeding<br />Talked 75 Customers in 8 Weeks<br />
    222. 222. Our initial plan<br />Confidential<br />
    223. 223. 20 interviews, 6 site visits…We got OUR Boots dirty<br />Weeding<br />Visited two farms in Salinas Valley to better understand problem<br />Interviewed:<br /><ul><li>Bolthouse Farms, Large Agri-Industry in Bakersfield
    224. 224. White Farms, Large Peanut farmer in Georgia
    225. 225. REFCO Farms, large grower in Salinas Valley
    226. 226. Rincon Farms, large grower in Salinas Valley
    227. 227. Small Organic Corn/Soy grower in Nebraska
    228. 228. Heirloom Organics, small owner/operator, Santa Cruz Mts
    229. 229. Two small organic farmers at farmers market
    230. 230. Ag Services of Salinas, Fertilizer applicator</li></ul>Mowing<br />Interviewed:<br /><ul><li>Golf: Stanford Golf course
    231. 231. Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)
    232. 232. Toro dealer (large mower manufacturer)
    233. 233. User of back-yard mowing system
    234. 234. Maintenance Services for City of Los Altos
    235. 235. Colony Landscaping (Mowing service for stadiums)</li></ul>Confidential<br />
    236. 236. Business Plan Autonomous Vehicles for Mowing & Weeding<br />Dealers sell, installs and supports customer<br />Co. trains dealers, supports dealers<br />- Innovation<br />- Customer Education<br />- Dealer training<br />Mowing<br />- Owners of public or commercially used green spaces (e.g. golf courses)<br />- Landscaping service provider<br />Weeding<br />- Farmers with manual weeding operations<br />We reduce operating cost<br />- Labor reduction<br />- Better utilization of assets (eg mow or weed at nights)<br />- Improved performance (less rework, food safety)<br />- Dealers (Mowing and Ag)<br />- Vehicle OEMs (John Deere, Toro, Jacobsen, etc)<br />- Research labs<br />- Mowing Dealers<br />- Ag Dealers<br />Engineers on Autonomous vehicles, GPS, path-planning<br />Dealer discount <br />COGS seek a 50-60% Gross Margin<br />Heavy R&D investment <br />Asset sale<br />Our revenue stream derives from selling the equipment<br />
    237. 237. Autonomous vehiclesWEEDING<br />Dealers sell, installs and supports customer<br />Co. trains dealers, supports dealers<br />- Innovation<br />- Customer Education<br />- Dealer training<br />- Low density vegetable growers<br />- High density vegetable growers<br />- Thinning operations<br />- Conventional vegetables<br />We reduce operating cost<br />- Labor reduction (100 to 1)<br />- Reduced risk of contamination<br />- Mitigate labor availability concerns<br />- Ag Dealers<br />- Ag Service providers<br />- Research labs<br />- Ag Dealers<br />- Ag Service providers<br />Engineers on Machine Vision<br />Two problems:<br />- Identification<br />- Elimination<br />Dealer discount <br />COGS seek a 50-60% Gross Margin<br />Heavy R&D investment <br />Asset sale<br />Our revenue stream derives from selling the equipment<br />
    238. 238. 1 Week – 1 CarrotBot<br />Confidential<br />
    239. 239. The Business Plan Canvas Updated<br /><ul><li>Technology Design
    240. 240. Marketing
    241. 241. Demo and customer feedback
    242. 242. Farming conventions.
    243. 243. Demo, demo, and demo!!
    244. 244. Proximity is paramount
    245. 245. Organic Farmers
    246. 246. Weeding Service Providers
    247. 247. Conventional Farmers
    248. 248. Cost Reduction
    249. 249. Remove labor force pains
    250. 250. Eliminate bio-waste hazards
    251. 251. Research Labs
    252. 252. Equipment Manufacturers
    253. 253. Distribution Network
    254. 254. Service Providers
    255. 255. IP – Patents
    256. 256. Video Classifier Files
    257. 257. Robust Technology
    258. 258. Dealers
    259. 259. Direct Service
    260. 260. Indirect Service
    261. 261. … then Dealers
    262. 262. Asset Sale
    263. 263. Direct Service with equipment rental
    264. 264. … then Asset Sale</li></ul>Value-Driven<br />
    265. 265. The Business Plan Canvas Updated<br /><ul><li>Technology Design
    266. 266. Marketing
    267. 267. Demo and customer feedback
    268. 268. Farming conventions.
    269. 269. Demo, demo, and demo!!
    270. 270. Proximity is paramount
    271. 271. Mid/Large Organic Farmers
    272. 272. Agricultural corporations
    273. 273. Weeding Service Providers
    274. 274. Mid/Large Conventional Farmers
    275. 275. Cost Reduction
    276. 276. Remove labor force pains
    277. 277. Eliminate bio-waste hazards
    278. 278. Research Labs
    279. 279. Equipment Manufacturers
    280. 280. Distribution Network
    281. 281. Service Providers
    282. 282. IP – Patents
    283. 283. Video Classifier Files
    284. 284. Robust Technology
    285. 285. Direct Service
    286. 286. Indirect Service
    287. 287. … then Dealers
    288. 288. Direct Service with equipment rental
    289. 289. ($1,500/d; 120d/yr )
    290. 290. Low density: $1,500/d
    291. 291. High density: $6,000/d</li></ul>Value-Driven<br />
    292. 292. World Ag Expo interviews:the need is real and wide spread<br />10+ interviews at show<br />Everyone confirmed the need<br />Robocrop, UK based, crude competitor sells for $171 K<br />Revenue Stream<br />Mid to small growers prefer a service<br />Large growers prefer to buy, but OK with service until technology is proven<br />Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability)<br />Confidential<br />
    293. 293. The Business Plan Canvas Updated<br /><ul><li>Technology Design
    294. 294. Marketing
    295. 295. Demo and customer feedback
    296. 296. Farming conventions.
    297. 297. Demo, demo, and demo!!
    298. 298. Proximity is paramount
    299. 299. Mid/Large Organic Farmers
    300. 300. Agricultural corporations
    301. 301. Weeding Service Providers
    302. 302. Mid/Large Conventional Farmers
    303. 303. Research Labs
    304. 304. Equipment Manufacturer
    305. 305. Distribution Network
    306. 306. Service Providers
    307. 307. 2 or 3 Key Farms
    308. 308. Cost Reduction
    309. 309. Remove labor force pains
    310. 310. Eliminate bio-waste hazards
    311. 311. IP – Patents
    312. 312. Video Classifier Files
    313. 313. Robust Technology
    314. 314. Direct Service
    315. 315. Indirect Service
    316. 316. … then Dealers
    317. 317. Direct Service with equipment rental
    318. 318. Low density: $1,500/d
    319. 319. High density: $6,000/d</li></ul>Value-Driven<br /><ul><li> R&D
    320. 320. Bill of Materials
    321. 321. Training & Service
    322. 322. Sales</li></li></ul><li>Autonomous weeding - Final<br />Direct<br />- Provide high quality service at competitive price<br />- Innovation<br />- Customer Education<br />- Dealer training<br />- Low density vegetable growers<br />- High density vegetable growers<br />- Thinning operations<br />- Conventional vegetables<br />We reduce operating cost<br />- Labor reduction (100 to 1)<br />- Reduced risk of contamination<br />- Mitigate labor availability concerns<br />- Ag Service providers<br />- Research Institutes (eg UC Davis, Laser Zentrum Hannover)<br />- 3-4 key farms<br />Direct <br />- Alliance with service providers<br />- Eventually sell through dealers<br />Engineers on Machine Vision<br />Two problems:<br />- Identification<br />- Elimination<br />Costs for service provision<br />COGS seek a 50-60% Gross Margin<br />Heavy R&D investment <br />Service provision<br />- Charge by the acre with modifier according to weed density <br />- Eventually move to asset sale<br />
    323. 323. 2011 – 2014Rules for the New Bubble<br />
    324. 324. New Bubble Hypotheses<br />We’re in one<br />Rules are different in 2011 then 2006<br />Exits will be IPO and M&A<br />Unlike last bubble initial IPO’s will be “real”<br />Quality of IPO pipeline will diminish rapidly<br />Acquirers can be “targeted”<br />You can “engineer for an acquisition”<br />
    325. 325. 2011 – 2014The New Bubble<br />Short product dev cycle (Agile Development)<br />Customers 10’s/100’s millions(Social networks, consumer)<br />Liquidity through M&A & IPO(revenue & network of users)<br />Repeatable methodology (Agile + Cust Dev + Bus Model)<br />Target acquirers (Adoption, Visibility, order of battle)<br />
    326. 326. 2011 - 2014Rules for the New Bubble<br />Founders/VC’s can engineer financial transactions<br />Transactions economically or usage accretive<br />Still require Agile, Cust Dev & Bus Model<br />Add: Adoption, Order of Battle and Visibility<br />
    327. 327. 2011 - 2014 Playbook<br />Business Model Generation<br />Four Steps to the Epiphany<br />Lean Startup<br />Liquidity Strategy<br />
    328. 328. Lean & Pivots is the Minimum Entry<br /><ul><li> Continuous Customer Discovery
    329. 329. Rapid Bus Model iteration
    330. 330. Extreme Agile Development</li></li></ul><li>2011 – 2014Order of Battle<br />Each market has a finite number of acquirers<br />Each with a finite number of deal makers<br />Each looking to fill specific product/market holes<br />Each read/go to finite number of blogs/conferences<br />This is not an NP-complete problem<br />
    331. 331. 2011 – 2014Adoption<br />Get wide adoption (freemium, low costs, etc) <br />Go for massive distribution<br />Monetize later<br />Can only be done Lean, requires Pivots<br />
    332. 332. 2011 – 2014Visibility<br />Be everywhere<br />Look larger than life<br />Conference, blogs, social networks<br />PR is your best friend, invest in it<br />
    333. 333. Closing Thoughts<br />We’re at the beginning of another tech bubble<br />Rules for making money are different in a bubble<br />Founders & VC’s can engineer financial transactions<br />Transactions need to be economically or usage accretive<br />Still require Agile, Cust Dev & Bus Model<br />Add: Adoption, Order of Battle and Visibility<br />
    334. 334. Thanks<br />www.steveblank.com<br />
    335. 335. BACKUP<br />
    336. 336. Pivot ExamplePersonal Libraries<br />Talked to 75 Customers in 8 weeks<br />
    337. 337. Version 1.0: Personal Libraries<br />
    338. 338. something-something-something.com<br />Original idea<br />Invincible Business Model: Version 1.0<br />SHORT TERMResearchers<br />Lawyers<br />Scientists <br />LONG TERMAvid book readers<br />Professionals <br />FB/TW posts from users you know<br />Company blog, FB, TW, support forums<br />Import, organize and share thousands of papers<br />Targeted marketing<br />Product development<br />Constant iteration & testing<br />Libraries, Universities, Research Centers<br />Bloggers and media targeting customer segment<br />Academic Database providers<br />Affiliate program<br />SEO/SEM/SM<br />IE/FF/Chrome App Stores<br />Developers<br />Marketers<br />Affiliate program fees<br />Licensing<br />Subscription fees<br />Ad revenue<br />AWS Infrastructure<br />SEM<br />Eng & Marketing OpEx<br />
    339. 339. Got out of the building<br /><ul><li>100+ Interviews
    340. 340. Extensive Surveys
    341. 341. 33,000+ Adwords
    342. 342. Compete Review
    343. 343. Market Sizing
    344. 344. 50 bloggers
    345. 345. 6 Social Networks
    346. 346. Usability Tests
    347. 347. Rapid Iteration</li></li></ul><li>Version 2.0: Trusted Advice<br />
    348. 348. something-something-something.com<br />Original idea<br />Invincible Business Model: Version 2.0<br />Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)<br />FB/TW posts from users you know<br />Company blog, FB, TW accounts<br />Discover online goods recommended by friends at the lowest possible price from trusted vendors<br />Developing trusted advice and advisors<br />Web marketing <br />Affiliate partnerships<br />Constant iteration & testing<br />Bloggers and Media targeting customer segment<br />Retail marketing partners<br />IE/FF/Chrome teams<br />Affiliate Program Providers<br />Affiliate program<br />SEO/SEM/SM<br />IE/FF/Chrome App Stores<br />Developers<br />Marketers<br />Content Library<br />Install base<br />Readership base<br />Affiliate program fees<br />Licensing<br />Subscription fees<br />Ad revenue<br />AWS Infrastructure<br />SEM<br />Eng & Marketing OpEx<br />
    349. 349. New Hypotheses<br />
    350. 350. Here’s What We Did<br />Version 2.0: Trusted Advice<br />
    351. 351. Got out of the building, again<br /><ul><li>40+ Interviews
    352. 352. Extensive Surveys
    353. 353. Landing Page Tests
    354. 354. Market Research
    355. 355. Compete Research
    356. 356. Revenue Analysis
    357. 357. Two Prototypes
    358. 358. Refined Personas</li></li></ul><li>Version 2.0: Trusted Advice<br />Top ~6M US Influentials (~$9B/year)<br />
    359. 359. something-something-something.com<br />Original idea<br />Invincible Business Model: Version 2.0<br />Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)<br />FB/TW posts from users you know<br />Company blog, FB, TW accounts<br />Discover online goods recommended by friends at the lowest possible price from trusted vendors<br />Developing trusted advice and advisors<br />Web marketing <br />Affiliate partnerships<br />Constant iteration & testing<br />Bloggers and Media targeting customer segment<br />Retail marketing partners<br />IE/FF/Chrome teams<br />Affiliate Program Providers<br />Affiliate program<br />SEO/SEM/SM<br />IE/FF/Chrome App Stores<br />Developers<br />Marketers<br />Content Library<br />Install base<br />Readership base<br />Affiliate program fees<br />Licensing<br />Subscription fees<br />Ad revenue<br />AWS Infrastructure<br />SEM<br />Eng & Marketing OpEx<br />
    360. 360. The adventure continuesTrusted Advice 2.0<br />Protection against SEO-spammers<br />Next Experiments: <br /><ul><li>Trusted Lead Gen
    361. 361. Trusted Advice website powered by Shopping Add-in</li></li></ul><li>something-something-something.com<br />Original idea<br />Invincible Business Model: Version 3.0<br />PAT THE PROFESSIONALUpwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)<br />FB/TW posts from users you know<br />Company blog, FB, TW accounts<br />TRUSTED ADVICE Discover online goods recommended by friends at the lowest possible price from trusted vendors<br />Foil advertorial spammers polluting the Interweb with toxic pseudo-content<br />Developing trusted advice and advisors<br />Web marketing <br />Affiliate partnerships<br />Constant iteration & testing<br />Bloggers and Media targeting customer segment<br />Retail marketing partners<br />IE/FF/Chrome teams<br />Affiliate Program Providers<br />Affiliate program<br />SEO/SEM/SM<br />IE/FF/Chrome App Stores<br />Developers<br />Marketers<br />Content Library<br />Install base<br />Readership base<br />Affiliate program fees<br />Licensing<br />Subscription fees<br />Ad revenue<br />AWS Infrastructure<br />SEM<br />Eng & Marketing OpEx<br />
    362. 362. Pivot ExampleCloud Services<br />Talked to 50 Customers in 8 weeks<br />
    363. 363. Week 1<br />
    364. 364. Cloud compute marketplace<br />Build a cloud marketplace<br />Many different customer segments on buy-side and sell-side<br />Direct sales to both buyers and sellers<br />Huge dependency on technical platform<br />
    365. 365. Week 2<br />
    366. 366. Cloud Services Match Maker<br />Pivot away from technical platform<br />Help buyers find the best provider<br />Removed financial, consumer segments<br />Act as channel for sellers<br />
    367. 367. Week 3<br />
    368. 368. Automated Cloud Capacity Planning<br />Pivot 1:<br />Capacity Planning<br />Pivot 2:<br />Focus on enterprises with variable workload<br />
    369. 369. Week 4<br />
    370. 370. Week 5<br />
    371. 371. Week 6<br />
    372. 372. Week 7<br />
    373. 373. Week 8<br />Capacity Planning<br />· High variability in usage <br />Service Matching<br /><ul><li> Companies unfamiliar with using cloud infrastructure</li></ul>SLA Monitoring<br /><ul><li> Companies with high SLA requirements with their customers</li></ul>· For enterprise segment, higher touch model with field sales force<br />· Reduced cloud infrastructure cost· Better compute needs matching<br />· Increased visibility on service level <br />Integrators:<br />· Increased budget for consulting services<br /><ul><li> Design and refine capacity planning and match making algorithms
    374. 374. Develop and maintain cloud infrastructure vendors relationships
    375. 375. Develop brand as go-to place for cloud lifecycle management</li></ul>· Technology partners – cloud vendors, management tools<br />· System integrators / Consultants<br />· Intellectual property – prediction algorithm· Developers· Inside sales force<br />· Field sales force · Biz dev (channel partners and technology partners)<br />· Integrators / consultants specialized in cloud infrastructure<br /><ul><li> Inside sales and field sales· Development Costs· Infrastructure costs – AWS· Support costs
    376. 376. Subscription charge to buyers
    377. 377. Pricing table scales based on # of servers and # of seats, with tiers</li></li></ul><li>Cloud Lifecycle Management<br />Agora – FINAL<br /><ul><li> Develop capacity planning algorithm
    378. 378. Develop IaaS vendor relationships
    379. 379. Marketing and sales</li></ul>· Technology partners – cloud vendors, management tools<br />· System integrators / Consultants<br />Partner with Integrators<br />Capacity Planning<br />· High variability in usage <br />Service Matching<br /><ul><li> Companies new to cloud</li></ul>SLA Monitoring<br /><ul><li> Companies with high SLA requirements </li></ul>· For enterprise, higher touch model with field sales<br />Customers<br />· Reduced cloud infrastructure cost· Increased visibility on service level <br />Integrators:<br />· Increased revenue<br />Position product for lifecycle management<br />Leverage both inside and field sales<br />· IP– prediction · Developers· Inside sales force<br />· Field sales force · Biz dev (channel and technology partners)<br />· IaaS Integrators / consultants<br /><ul><li> Inside and field sales· Development Costs· Infrastructure costs – AWS· Support costs
    380. 380. Subscription charge to buyers
    381. 381. Pricing table scales based on # of servers and # of seats, with tiers</li></li></ul><li>Pivot ExampleUser Generated Real-Time Traffic Info <br />Talked to 150 Customers in 8 weeks <br />
    382. 382. Initial Product Idea<br />Mobile application providing crowd-sourced real time traffic map in developing countries<br />Lahore<br />Shanghai<br />Jakarta<br />Bangkok<br />
    383. 383. Business Canvas Change Progress <br />1<br />
    384. 384. Business Canvas Change Progress <br />2<br />
    385. 385. Business Canvas Change Progress <br />3<br />
    386. 386. Customer Segment: Corporate<br />The Drivers:<br />Are you questioning our expertise?<br />Archetypes<br />Users<br />International, local, large, and small companies<br /> Influencers <br /> and <br />Recommenders<br />Economic Buyers, <br />Decision Makers<br />Saboteurs<br />
    387. 387. Pass/Fail <br />FAIL<br />
    388. 388. Business Canvas Change Progress <br />4<br />
    389. 389. Business Canvas Change Progress <br />5<br />
    390. 390. Business Canvas Change Progress <br />6<br />
    391. 391. Business Canvas Change Progress <br />7<br />
    392. 392. Business Canvas Change Progress <br />FINAL<br />
    393. 393. Pivot ExampleResidential Wind Turbines<br />Talked to 100 Customers in 8 weeks<br />
    394. 394. Business Model Canvas #1<br /><ul><li>Continue R&D
    395. 395. Get certifications
    396. 396. Get approvals from city councils
    397. 397. Cheap wind
    398. 398. Green status symbol
    399. 399. Diversify energy portfolio
    400. 400. Faster payback than alternatives
    401. 401. Single family homeowner
    402. 402. House rental groups
    403. 403. Contractors in home remodeling
    404. 404. 5 yr full service Warranty
    405. 405. Want re-buy from customers
    406. 406. Environmental, bird, wildlife groups (regulations, publicity)
    407. 407. City councils (new regulations, permits).
    408. 408. Contractors
    409. 409. Single family homeowner
    410. 410. City councils (new regulations, permits).
    411. 411. Faster payback than alternatives
    412. 412. Wind
    413. 413. Cheap manufacturing process- Intellectual property
    414. 414. Need Initial capital
    415. 415. Endorsements by environmental groups, and local governments
    416. 416. Direct sales
    417. 417. Web site
    418. 418. Home Depot
    419. 419. Direct sales
    420. 420. Cost-driven model to provide inexpensive, quality product
    421. 421. Asset sales</li></li></ul><li>Initial Idea<br />Affordable<br />New home appliance<br />Status<br />
    422. 422. Business Model Canvas # 2<br /><ul><li>Continuous advertise and recruit new customers (city councils)
    423. 423. Build relationship with city engineers and council members
    424. 424. Understand customer, influencers, motivations, problems, competitors
    425. 425. Form partnerships for maximum reach
    426. 426. Submit bids for city RFPs
    427. 427. Continue R&D
    428. 428. Get certifications
    429. 429. Gain Credibility
    430. 430. Retrofit wind turbine for street and highway lamps.
    431. 431. Create own wind turbines with pole manufacturers
    432. 432. Be owner of cheap green status symbol
    433. 433. Diversify green energy portfolio
    434. 434. Fast payback than alternatives
    435. 435. Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY
    436. 436. Cities
    437. 437. Lighting Companies
    438. 438. 5 year full service Warranty
    439. 439. After 5 years, service charge
    440. 440. Utility to manage after warranty expiration
    441. 441. Extended warranty option
    442. 442. Environmental, bird, wildlife groups (regulations, publicity)
    443. 443. City councils not HOA(new regulations, permits).
    444. 444. Lighting Manufacturers
    445. 445. Electricians and Contractors for Installation/Maintenance
    446. 446. Research Labs
    447. 447. Turbine Certifiers
    448. 448. Build relationship with city engineers and council members
    449. 449. Retrofit wind turbine for street and highway lamps.
    450. 450. City councils not HOA
    451. 451. Cities
    452. 452. Cheap manufacturing process- Intellectual property
    453. 453. $1.5 MM of capital to start manufacturing and distribution for year 1 and 2
    454. 454. Manufacturing Parts
    455. 455. Endorsements by environmental groups, and local governments
    456. 456. Direct sales to cities
    457. 457. Web site
    458. 458. Home Depot
    459. 459. Direct Sales
    460. 460. Service Calls
    461. 461. Leasing
    462. 462. Cost-driven model to provide inexpensive, quality product
    463. 463. Manufacturing costs and customer acquisition costs.
    464. 464. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)</li></li></ul><li>City Process<br /><ul><li>Policies
    465. 465. Community Culture
    466. 466. State Mandates
    467. 467. City Budget Plan</li></ul>Learn about city approval Process<br />City Values<br />Planning Commission<br />Technical Evaluation and Recommendation<br />Back to the envelop metrics<br />IDEA<br />Request for Quote<br />City Council Approval<br />City Council “Pet-Project”<br />Finance Approval<br />
    468. 468. Business Model Canvas – Final <br /><ul><li>Continuously advertise and recruit new customers (city councils)
    469. 469. Build relationship with city engineers and council members
    470. 470. Understand customer, influencers, motivations, problems, competitors
    471. 471. Form partnerships (developers, cities, installers, maintenance) for maximum reach
    472. 472. Submit bids for city RFPs
    473. 473. Continue R&D
    474. 474. Get certifications
    475. 475. Gain Credibility
    476. 476. Retrofit wind turbine for street and highway lamps.
    477. 477. Create own wind turbines with pole manufacturers
    478. 478. Be owner of cheap green status symbol
    479. 479. Diversify green energy portfolio
    480. 480. Fast payback than alternatives
    481. 481. Cities (pilot)
    482. 482. Cities leasing
    483. 483. Lighting Companies
    484. 484. Developer -> Utilities -> City
    485. 485. 5 year full service Warranty,
    486. 486. After 5 years, service charge
    487. 487. Utility to manage after warranty expiration
    488. 488. Extended warranty option
    489. 489. City council (new regulations, permits).
    490. 490. Environmental, bird, wildlife groups (regulations, publicity)
    491. 491. Lighting Manufacturers
    492. 492. Electricians and Contractors for Installation/Maintenance
    493. 493. Research Labs
    494. 494. Turbine Certifiers
    495. 495. Small Wind Developers
    496. 496. Utilities
    497. 497. Cheap manufacturing process- Intellectual property
    498. 498. R&D talent
    499. 499. Endorsements by environmental groups, and local governments
    500. 500. Finance
    501. 501. Direct sales to cities (long term) PILOTS
    502. 502. Small Wind Developer
    503. 503. Cities leasing
    504. 504. Developer -> Utilities -> City
    505. 505. Finance
    506. 506. Cost-driven model to provide inexpensive, quality product
    507. 507. Manufacturing costs and customer acquisition costs.
    508. 508. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)
    509. 509. Leasing, PPA
    510. 510. Direct Sales to wind developers?
    511. 511. Leasing, PPA
    512. 512. Direct Sales to wind developers?</li></li></ul><li>Business Model Canvas – Week 1<br /><ul><li>Continue R&D
    513. 513. Get certifications
    514. 514. Get approvals from city councils
    515. 515. Cheap affordable wind turbine for the everyday American
    516. 516. Be owner of cheap green status symbol
    517. 517. Diversify energy portfolio,
    518. 518. Fast payback than alternatives, < 5 yrs
    519. 519. Single family homeowner
    520. 520. House rental groups
    521. 521. Contractors in home remodelling
    522. 522. 5 year full service Warranty
    523. 523. Want re-buy from customers
    524. 524. Environmental, bird, wildlife groups (regulations, publicity)
    525. 525. City councils (new regulations, permits).
    526. 526. Contractors
    527. 527. Cheap manufacturing process- Intellectual property
    528. 528. Need initial capital
    529. 529. Endorsements by environmental groups, and local governments
    530. 530. Direct sales
    531. 531. Web site
    532. 532. Home Depot
    533. 533. Cost-driven model to provide inexpensive, quality product
    534. 534. Sale of Product</li></li></ul><li>Business Model Canvas – Week 2<br /><ul><li>Continuous advertise and recruit new customers
    535. 535. Continue R&D
    536. 536. Get certifications
    537. 537. Get approvals from city councils
    538. 538. Cheap affordable wind turbine for the everyday American
    539. 539. Be owner of cheap green status symbol
    540. 540. Diversify energy portfolio,
    541. 541. Fast payback than alternatives
    542. 542. Single family homeowner in CA, TX ,CO, WI, NY
    543. 543. House rental groups
    544. 544. Contractors in home remodelling
    545. 545. 5 year full service Warranty
    546. 546. Want rebuy from customers
    547. 547. Environmental, bird, wildlife groups (regulations, publicity)
    548. 548. City councils and neighborhood/??? (new regulations, permits).
    549. 549. Contractors
    550. 550. Cheap manufacturing process- Intellectual property
    551. 551. Need Iniitial capital
    552. 552. Endorsements by environmental groups, and local governments
    553. 553. Direct sales
    554. 554. Web site
    555. 555. Home Depot
    556. 556. Cost-driven model to provide inexpensive, quality product
    557. 557. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.
    558. 558. Direct Sales
    559. 559. Leasing
    560. 560. Service Calls</li></li></ul><li>Business Model Canvas – Week 3<br /><ul><li>Continuous advertise and recruit new customers
    561. 561. Continue R&D
    562. 562. Get certifications
    563. 563. Get approvals from city councils
    564. 564. Gain Credibility
    565. 565. Cheap affordable wind turbine for the everyday American
    566. 566. Be owner of cheap green status symbol
    567. 567. Diversify energy portfolio,
    568. 568. Fast payback than alternatives
    569. 569. Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY
    570. 570. House rental groups
    571. 571. Contractors in home remodelling
    572. 572. 5 year full service Warranty
    573. 573. Additional Maintenance after
    574. 574. Want rebuy from customers
    575. 575. Environmental, bird, wildlife groups (regulations, publicity)
    576. 576. City councils and neighborhood/??? (new regulations, permits).
    577. 577. Contractors
    578. 578. Cheap manufacturing process- Intellectual property
    579. 579. Need Iniitial capital (600k)
    580. 580. Manufacturing Facilities and Areas
    581. 581. Endorsements by environmental groups, and local governments
    582. 582. Direct sales
    583. 583. Web site
    584. 584. Home Depot
    585. 585. Cost-driven model to provide inexpensive, quality product
    586. 586. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.
    587. 587. Direct Sales
    588. 588. Leasing
    589. 589. Service Calls</li></li></ul><li>Business Model Canvas – Week 4<br /><ul><li>Continuous advertise and recruit new customers
    590. 590. Continue R&D
    591. 591. Get certifications
    592. 592. Get approvals from city councils
    593. 593. Gain Credibility
    594. 594. Cheap affordable wind turbine for the everyday American
    595. 595. Cheap product more readily available
    596. 596. Be owner of cheap green status symbol
    597. 597. Diversify energy portfolio,
    598. 598. Fast payback than alternatives
    599. 599. Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY
    600. 600. House rental groups
    601. 601. Contractors in home remodelling
    602. 602. 5 year full service Warranty
    603. 603. Additional Maintenance after
    604. 604. Want rebuy from customers
    605. 605. Environmental, bird, wildlife groups (regulations, publicity)
    606. 606. City councils and neighborhood/??? (new regulations, permits).
    607. 607. Contractors
    608. 608. Cheap manufacturing process- Intellectual property
    609. 609. Need Iniitial capital (600k)
    610. 610. Manufacturing Parts
    611. 611. Endorsements by environmental groups, and local governments
    612. 612. Direct sales
    613. 613. Web site
    614. 614. Home Depot
    615. 615. Cost-driven model to provide inexpensive, quality product
    616. 616. Manufacturing costs and customer acquisition costs.
    617. 617. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)
    618. 618. Direct Sales
    619. 619. Leasing
    620. 620. Service Calls</li></li></ul><li>Business Model Canvas – Week 5<br /><ul><li>Continuous advertise and recruit new customers (city councils)
    621. 621. Build relationship with city engineers and council members
    622. 622. Understand customer, influencers, motivations, problems, competitors
    623. 623. Form partnerships for maximum reach
    624. 624. Submit bids for city RFPs
    625. 625. Continue R&D
    626. 626. Get certifications
    627. 627. Gain Credibility
    628. 628. Cheap product more readily
    629. 629. Retrofit wind turbine for street and highway lamps.
    630. 630. Create own wind turbines with pole manufacturers
    631. 631. Be owner of cheap green status symbol
    632. 632. Diversify green energy portfolio
    633. 633. Fast payback than alternatives
    634. 634. Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY
    635. 635. Cities
    636. 636. Lighting Companies
    637. 637. Utilities
    638. 638. 5 year full service Warranty
    639. 639. After 5 years, service charge
    640. 640. Utility to manage after warranty expiration
    641. 641. Extended warranty option
    642. 642. Environmental, bird, wildlife groups (regulations, publicity)
    643. 643. City councils and neighborhood/??? (new regulations, permits).
    644. 644. Lighting Manufacturers
    645. 645. Electricians and Contractors for Installation/Maintenance
    646. 646. Cheap manufacturing process- Intellectual property
    647. 647. $1.5 MM of capital to start manufacturing and distribution for year 1 and 2
    648. 648. Manufacturing Parts
    649. 649. Endorsements by environmental groups, and local governments
    650. 650. Direct sales to cities (long term)
    651. 651. Web site
    652. 652. Home Depot
    653. 653. Cost-driven model to provide inexpensive, quality product
    654. 654. Manufacturing costs and customer acquisition costs.
    655. 655. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)
    656. 656. Direct Sales
    657. 657. Service Calls
    658. 658. Leasing</li></li></ul><li>Business Model Canvas – Week 6<br /><ul><li>Build relationship with city engineers and council members
    659. 659. Understand customer, influencers, motivations, problems, competitors
    660. 660. Form partnerships for maximum reach
    661. 661. Submit bids for city RFPs
    662. 662. Retrofit wind turbine for street and highway lamps.
    663. 663. Use competitive, local, renewable energy, strong green symbol
    664. 664. Diversify energy portfolio,
    665. 665. Fast payback than alternatives.
    666. 666. Cities
    667. 667. Lighting Companies
    668. 668. Utilities
    669. 669. County – State Level
    670. 670. 5 year maintenance and warranty
    671. 671. After 5 years, service charge
    672. 672. Utility to manage after warranty expiration
    673. 673. Extended warranty option
    674. 674. Environmental, bird, wildlife groups (regulations, publicity)
    675. 675. City councils (new regulations, permits).
    676. 676. Light manufacturers, installers to package product/services
    677. 677. Electricians, contractors, light maintenance for additional workforce
    678. 678. Cheap manufacturing process- Intellectual property
    679. 679. $1.5 MM of capital to start manufacturing and distribution for year 1 and 2
    680. 680. Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department
    681. 681. Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.
    682. 682. Cost-driven model to provide inexpensive, quality product
    683. 683. Manufacturing costs and customer acquisition costs.
    684. 684. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.
    685. 685. Asset sales and service calls
    686. 686. Leasing and PPA? (under review)</li></li></ul><li>Business Model Canvas – Week 7<br /><ul><li>Build relationship with city engineers and council members
    687. 687. Understand customer, influencers, motivations, problems, competitors
    688. 688. Form partnerships for maximum reach
    689. 689. Submit bids for city RFPs
    690. 690. Retrofit wind turbine for street and highway lamps.
    691. 691. Use competitive, local, renewable energy, strong green symbol
    692. 692. Diversify energy portfolio,
    693. 693. Fast payback than alternatives.
    694. 694. Cities
    695. 695. Utilities
    696. 696. County – State Level
    697. 697. 5 year maintenance and warranty
    698. 698. After 5 years, service charge
    699. 699. Utility to manage after warranty expiration
    700. 700. Extended warranty option
    701. 701. Environmental, bird, wildlife groups
    702. 702. City councils (new regulations, permits).
    703. 703. Light manufacturers,
    704. 704. Installers/maintainers
    705. 705. Research Labs
    706. 706. Turbine Certifiers
    707. 707. Cheap manufacturing process- Intellectual property
    708. 708. $1.5 MM of capital to start manufacturing and distribution for year 1 and 2
    709. 709. Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department
    710. 710. Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.
    711. 711. Cost-driven model to provide inexpensive, quality product
    712. 712. Manufacturing costs and customer acquisition costs.
    713. 713. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.
    714. 714. Asset sales and service calls
    715. 715. Leasing and PPA (Future)</li></li></ul><li>Business Model Canvas – Final <br /><ul><li>Continuously advertise and recruit new customers (city councils)
    716. 716. Build relationship with city engineers and council members
    717. 717. Understand customer, influencers, motivations, problems, competitors
    718. 718. Form partnerships (developers, cities, installers, maintenance) for maximum reach
    719. 719. Submit bids for city RFPs
    720. 720. Continue R&D
    721. 721. Get certifications
    722. 722. Gain Credibility
    723. 723. Retrofit wind turbine for street and highway lamps.
    724. 724. Create own wind turbines with pole manufacturers
    725. 725. Be owner of cheap green status symbol
    726. 726. Diversify green energy portfolio
    727. 727. Fast payback than alternatives
    728. 728. Cities (pilot)
    729. 729. Cities leasing
    730. 730. Lighting Companies
    731. 731. Developer -> Utilities -> City
    732. 732. 5 year full service Warranty,
    733. 733. After 5 years, service charge
    734. 734. Utility to manage after warranty expiration
    735. 735. Extended warranty option
    736. 736. City council (new regulations, permits).
    737. 737. Environmental, bird, wildlife groups (regulations, publicity)
    738. 738. Lighting Manufacturers
    739. 739. Electricians and Contractors for Installation/Maintenance
    740. 740. Research Labs
    741. 741. Turbine Certifiers
    742. 742. Small Wind Developers
    743. 743. Utilities
    744. 744. Cheap manufacturing process- Intellectual property
    745. 745. R&D talent
    746. 746. Endorsements by environmental groups, and local governments
    747. 747. Finance
    748. 748. Direct sales to cities (long term) PILOTS
    749. 749. Small Wind Developer
    750. 750. Cost-driven model to provide inexpensive, quality product
    751. 751. Manufacturing costs and customer acquisition costs.
    752. 752. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)
    753. 753. Leasing, PPA
    754. 754. Direct Sales to wind developers?
    755. 755. Leasing, PPA
    756. 756. Direct Sales to wind developers?</li>
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