The risk of failure is high for businesses trying to get and keep clients, and for startups at any stage. What if there was a way to minimize that risk? The Business Model Canvas is quickly becoming the standard in how business models are designed. But a Business Model Canvas is often based on assumptions. Executing a business model based on assumptions will likely lead to failure. In this workshop/talk, we'll cover an agile step-by-step process to identify those assumptions, validate them, and end up with a business model based on facts. This is an opportunity for leadership teams to really get the essence of using this agile process to maximize their chances of success.
Similar to How to turn a guesstimate business model canvas into a fact-based one, and considerably minimize the risk of failure - By William Choukeir (20)
10. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
11. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
12. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
WEBSITE
13. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
WEBSITE
SELF
SERVICE
14. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
WEBSITE
SELF
SERVICE
ALGORITHM
15. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
WEBSITE
SELF
SERVICE
ALGORITHM
SERVERS
16. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
WEBSITE
SELF
SERVICE
ALGORITHM
SERVERS
IMPROVE
17. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
WEBSITE
SELF
SERVICE
ALGORITHM
SERVERS
IMPROVE
$$$
18. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
WEBSITE
SELF
SERVICE
ALGORITHM
SERVERS
IMPROVE
$$$ $ZERO
19. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
WEBSITE
SELF
SERVICE
ALGORITHM
SERVERS
IMPROVE
$$$ $ZERO
MARKETEERS
20. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
WEBSITE
SELF
SERVICE
ALGORITHM
SERVERS
IMPROVE
$$$ $ZERO
MARKETEERSEYES
21. EVERYONE
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
FIND
Google
WEBSITE
SELF
SERVICE
ALGORITHM
SERVERS
IMPROVE
$$$ $ZERO
MARKETEERSEYES
$$$$$$
26. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
27. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
28. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
29. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
CALL FROM
ANYWHERE
30. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
CALL FROM
ANYWHERE
SATELLITES
31. SATELLITES
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
CALL FROM
ANYWHERE
$3000
EACH
32. SATELLITES
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
CALL FROM
ANYWHERE
$3000
EACH
$7 / MIN
33. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
CALL FROM
ANYWHERE
$3000
EACH
$7 / MIN
15
ROCKETS SATELLITES
34. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
CALL FROM
ANYWHERE
$3000
EACH
$7 / MIN
15
ROCKETS SATELLITES
66
SATELLITES
35. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
CALL FROM
ANYWHERE
$3000
EACH
$7 / MIN
15
ROCKETS SATELLITES
66
SATELLITES
SALES
36. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
CALL FROM
ANYWHERE
$3000
EACH
$7 / MIN
15
ROCKETS SATELLITES
66
SATELLITES
SALES
MAINTENANCE
37. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
CALL FROM
ANYWHERE
$3000
EACH
$7 / MIN
15
ROCKETS SATELLITES
66
SATELLITES
SALES
MAINTENANCE
GOVERNMENTS
38. The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com
Iridium 1991
DEEP
POCKETS
PERSONAL
ASSITANCE
CALL FROM
ANYWHERE
$3000
EACH
$7 / MIN
15
ROCKETS SATELLITES
66
SATELLITES
SALES
MAINTENANCE
GOVERNMENTS
$6
BILLION
44. Validate Problem
Validate Solution
Validate Business Model
Get Ready To Sell
Sell
Develop Company
& Product Position
Deep Assessment:
Pivot-or-proceed
Do We Have Facts That
The Company Can Scale?
PHASE 3
Grow Customer
Base & Demand
Preparation Develop Business
Model & Hypotheses
◉ Estimate the total market opportunity for the company
◉ Set long-term vision, product strategy, and 18-month schedule
◉ Develop hypotheses for customer segments, value proposition, product features
and benefits and what’s a high fidelity MVP like?
◉ Develop hypotheses for distribution channels
◉ Set an initial Market Type and positioning hypothesis
◉ Develop hypotheses for customer relationships: Strategies and tactics to Get,
Keep, and Grow customers
◉ Identify key resources required, and develop hypotheses for what each will cost,
and how it’ll be found and secured
◉ Develop hypotheses for key partners, and the company's 'Value exchange' with
each
◉ Develop revenue and pricing hypotheses and pricing tactics
◉ Design experiments for testing the hypotheses
◉ Develop a process to collect results and analyse the data
◉ Continuously run the experiments
◉ Build a low fidelity MVP to quantify interest in a solution to the problem
◉ Run low fidelity MVP, collect data, and reinforce learnings with live interviews
◉ Gather and gain in-depth understanding of customer segments
◉ Gather and gain in-depth understanding of the market environment
◉ Assemble all learnings, assess the data and determine whether to pivot or proceed
◉ Update the business model canvas, team, and 18-month delivery schedule
◉ Design a high fidelity MVP to quantify the intensity of customers’
enthusiasm for the product
◉ Identify critical metrics to determine customer enthusiasm and build
them into the high fidelity MVP
◉ Assemble all learnings from day one, assess the data (focused around
customer enthusiasm) and determine whether to pivot or proceed
◉ Update the business model canvas, team, and 18-month delivery
schedule accordingly
◉ Begin to identify initial list of advisory board members
◉ Pause all efforts to verify Product/Market Fit. Deeply assess each question: Serious
problem/need? Does product addresses problem/need? Are there enough
customers? Pivot or proceed. Update the business model canvas accordingly
◉ Develop a detailed understanding of who the customers are, how we reach them, and
what it costs to get them. Update the business model canvas accordingly
◉ Determine if the company can be profitable: Reasonable estimate of the company’s
revenue forecast across 4–8 quarters. Update the business model canvas accordingly
◉ Collect all learnings for all-hands-on-deck pivot or proceed meeting
◉ All stakeholders meet to deeply assessment whether the modified hypotheses
provide a solid foundation for moving forward to larger-scale testing and test-selling
(How much can the company scale and how?)
◉ Craft company positioning statement: clear, compelling message explaining why
the company is different and the product is worth buying
◉ Devise plans for getting customers to the app to sign up or buy: Aquire and
activation plans
◉ Create a polished High Fidelity MVP which will be used to generate a steady stream
of customer and product behavior data to refine the business model and product
◉ Determine which key business metrics to measure and develop a system or
dashboard for collecting and monitoring data
◉ Hire a dedicated analytics expert on the senior management team
◉ Formally engage advisors who can facilitate high-level introductions and are
top-notch “out of the box” thinkers
◉ Assemble all data, reports, questionnaires, map, diagrams, business model
components, etc., for full review
◉ Use facts gathered to validate the business model and ensure all business model
hypotheses have been converted into facts
◉ Ensure the startup can become a profitable, scalable business before it runs out of
money
◉ Further validate the business model to determine if the company is making the best bet
possible, and that the revenue is as high and costs as low as they can realistically be
◉ Decide whether to execute the business model and start creating demand and building
a user base
◉ Agreement among investors, founders, and team on commitment to the process outlined here.
◉ Initial agreement on Market Type & appropriate funding needs (Re-segmented Market)
◉ Cash burn rate in # of months (Runway). Is there enough funding for 2-3 pivots?
◉ Agree on approximate time frame
◉ Agree on exit criteria for customer discovery
◉ Agreement on founders being present during customer interviews
◉ Agreement on who leads the team
◉ Agreement on responsibilities and roles-to-be-aquired (Is this the right team)
◉ Agreement on 3 to 5 Core Values of the founding team. What does the company believe in?
◉ Develop a plan that defines acquisition metrics to optimize,
and how customer behavior will be monitored and optimized
◉ Implement the plan and optimise continuously by testing
and improving the plan
◉ Optimize “Keep” And “Grow” Results, and validate sales
potential of app
◉ Test Sell Traffic Partners: Get deals or firm commitments from
prospective traffic partners
◉ Formalize the product’s positioning through customer validation
◉ Ensure product positioning matches company’s market type through customer
validation
◉ Develop Company Positioning statement that fully articulates the company’s
vision and mission
◉ Validate product and company positioning, and product features through detailed
feedback about the marketplace and product from key analysts and influencers
PHASE 1
Validate
Problem,
Solution, &
Business
Model
PHASE 2:
Validate
How Much
We Can Scale
& How
46. Validate Problem
Validate Solution
Validate Business Model
Get Ready To Sell
Sell
Develop Company
& Product Position
Deep Assessment:
Pivot-or-proceed
Do We Have Facts That
The Company Can Scale?
PHASE 3
Grow Customer
Base & Demand
Preparation Develop Business
Model & Hypotheses
◉ Estimate the total market opportunity for the company
◉ Set long-term vision, product strategy, and 18-month schedule
◉ Develop hypotheses for customer segments, value proposition, product features
and benefits and what’s a high fidelity MVP like?
◉ Develop hypotheses for distribution channels
◉ Set an initial Market Type and positioning hypothesis
◉ Develop hypotheses for customer relationships: Strategies and tactics to Get,
Keep, and Grow customers
◉ Identify key resources required, and develop hypotheses for what each will cost,
and how it’ll be found and secured
◉ Develop hypotheses for key partners, and the company's 'Value exchange' with
each
◉ Develop revenue and pricing hypotheses and pricing tactics
◉ Design experiments for testing the hypotheses
◉ Develop a process to collect results and analyse the data
◉ Continuously run the experiments
◉ Build a low fidelity MVP to quantify interest in a solution to the problem
◉ Run low fidelity MVP, collect data, and reinforce learnings with live interviews
◉ Gather and gain in-depth understanding of customer segments
◉ Gather and gain in-depth understanding of the market environment
◉ Assemble all learnings, assess the data and determine whether to pivot or proceed
◉ Update the business model canvas, team, and 18-month delivery schedule
◉ Design a high fidelity MVP to quantify the intensity of customers’
enthusiasm for the product
◉ Identify critical metrics to determine customer enthusiasm and build
them into the high fidelity MVP
◉ Assemble all learnings from day one, assess the data (focused around
customer enthusiasm) and determine whether to pivot or proceed
◉ Update the business model canvas, team, and 18-month delivery
schedule accordingly
◉ Begin to identify initial list of advisory board members
◉ Pause all efforts to verify Product/Market Fit. Deeply assess each question: Serious
problem/need? Does product addresses problem/need? Are there enough
customers? Pivot or proceed. Update the business model canvas accordingly
◉ Develop a detailed understanding of who the customers are, how we reach them, and
what it costs to get them. Update the business model canvas accordingly
◉ Determine if the company can be profitable: Reasonable estimate of the company’s
revenue forecast across 4–8 quarters. Update the business model canvas accordingly
◉ Collect all learnings for all-hands-on-deck pivot or proceed meeting
◉ All stakeholders meet to deeply assessment whether the modified hypotheses
provide a solid foundation for moving forward to larger-scale testing and test-selling
(How much can the company scale and how?)
◉ Craft company positioning statement: clear, compelling message explaining why
the company is different and the product is worth buying
◉ Devise plans for getting customers to the app to sign up or buy: Aquire and
activation plans
◉ Create a polished High Fidelity MVP which will be used to generate a steady stream
of customer and product behavior data to refine the business model and product
◉ Determine which key business metrics to measure and develop a system or
dashboard for collecting and monitoring data
◉ Hire a dedicated analytics expert on the senior management team
◉ Formally engage advisors who can facilitate high-level introductions and are
top-notch “out of the box” thinkers
◉ Assemble all data, reports, questionnaires, map, diagrams, business model
components, etc., for full review
◉ Use facts gathered to validate the business model and ensure all business model
hypotheses have been converted into facts
◉ Ensure the startup can become a profitable, scalable business before it runs out of
money
◉ Further validate the business model to determine if the company is making the best bet
possible, and that the revenue is as high and costs as low as they can realistically be
◉ Decide whether to execute the business model and start creating demand and building
a user base
◉ Agreement among investors, founders, and team on commitment to the process outlined here.
◉ Initial agreement on Market Type & appropriate funding needs (Re-segmented Market)
◉ Cash burn rate in # of months (Runway). Is there enough funding for 2-3 pivots?
◉ Agree on approximate time frame
◉ Agree on exit criteria for customer discovery
◉ Agreement on founders being present during customer interviews
◉ Agreement on who leads the team
◉ Agreement on responsibilities and roles-to-be-aquired (Is this the right team)
◉ Agreement on 3 to 5 Core Values of the founding team. What does the company believe in?
◉ Develop a plan that defines acquisition metrics to optimize,
and how customer behavior will be monitored and optimized
◉ Implement the plan and optimise continuously by testing
and improving the plan
◉ Optimize “Keep” And “Grow” Results, and validate sales
potential of app
◉ Test Sell Traffic Partners: Get deals or firm commitments from
prospective traffic partners
◉ Formalize the product’s positioning through customer validation
◉ Ensure product positioning matches company’s market type through customer
validation
◉ Develop Company Positioning statement that fully articulates the company’s
vision and mission
◉ Validate product and company positioning, and product features through detailed
feedback about the marketplace and product from key analysts and influencers
PHASE 1
Validate
Problem,
Solution, &
Business
Model
PHASE 2:
Validate
How Much
We Can Scale
& How