1. Business Model Canvas- A one sheet summary of your venture -Krishnan + Nag, IIMA CIIE, Sep „12
2. Story of the $5billion start-up
3. Cautionary tale
4. 1987 1990 1997 1998 $5.2b investmentIridium Spun out Launch Bankrupt 15 rocketsfounded of 72 satellites Motorola
5. Target price: $7/min Viable price: $0.5/minTarget users: 42million Actual users: 30,000 1987 1990 1997 1998 $5.2b investmentIridium Spun out Launch Bankrupt 15 rocketsfounded of 72 satellites Motorola
6. Traditional start-up model Build product Big-BangDevelop concept Build product Alpha /test Alpha beta Customer test Launch after Shipment Get funding and offering Market test 3 yearsWrite business plan Build the product Test / fix Ship / fix Planning / collateral PR / plan launch Launch / Demand gen. Initial sales rep Build sales team / selling
7. “Big Up Front Design”Develop concept Build product Build product Alpha /test Alpha beta Customer Big-Bang Get funding and offering test Market test Shipment LaunchUnbridled False sense of Rude Resetting Predictableenthusiasm security awakening expectations disaster
8. The traditional methods of start-ups aren‟t working 90-95% of new ventures fail to meet projections (assumptions up front, market contact at the end)
9. Story of the Rs. 500 start-up
10. Who is this legendary entrepreneur? Karsanbhai Patel Nirma
11. How do you compete with a Rs. 200cr brand? Answer: Start on a bicycle!
12. Lessons from Karsanbhai and Nirma Start with a strong vision, but start small Clear value-prop for untapped segment Constantly validate all assumptions in the market Iterate and learn
13. 2 stages of start-ups Search ScaleFocus on Focus onExperimentation ExecutionSource: Steve Blank
14. Finding your business modelLimited planning, more experimentation and exploration
15. Search Principle # 1: Business Model Canv KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS PROPOSITION KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMSSource: “Business Model Generation”, Osterwalder & Pigneur
16. Search Principle #2: Minimum Viable Product Minimum + Viable Fertile area for new products Minimum ViableToo-basic products Incumbentno one wants products
17. Excel competitor: Minimum Viable ?
18. Minimum Viable ?
19. Minimum Viable Product for Google Docs Value prop
20. Search Principle #3: Focus on exploration Ideas (BMC) Learn Build Minimise the total time through the loop Data Offering Measure
21. How it all fits togetherAgile software development
22. BMC examples…
23. What are the children carrying? Godrej ChotuKool
24. Vision: “Refrigeration for rural India” KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS R&D ThroughMicrofinance PR retailers Indianinstitutions Advertising Economical, households effective, with incomeSarpanchs portable KEY of RESOURCES cooling CHANNELS Rs.10,000/m solution o whom Frugal Rural retailers Village traditional engineering (constraints of electricity, ambassadors refrigerators experts space, cost don‟t serve solved) COST STRUCTURE REVENUE STREAMS Factory, raw material, SG&A Unit sales