Maine "Top Gun" Customer Development Broadcast 021512

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Maine "Top Gun" Customer Development Broadcast 021512

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

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