My presentation for students of the Sustainable Entrepreneurship Course of Utrecht University on Business modeling and Lean.

1. Business modeling and Lean
an introduction in both
Marcellien Breedveld
Sustainable Entrepreneurship
19 november 2012

2. What’s a Startup?

3. What’s a Startup?

4. What
is
a
business
model?
A
business
model
describes
how
a
company
creates
and
delivers
Value
for
its
customers
and
captures
value
for
itself

5. How not to use the business model canvas

6. For whom are we creating value?
Who are your most important customers?
Customer
segments
1) Everybody
who
you
create
value
for
2) Make
an
archetype/persona
of
every
segment
3) In
a
mul?-­‐sided
plaBorm
every
segment
has
its
own
value
proposi?on
4) How
do
they
solve
the
problem
now?
What
does
it
cost?
Who are you creating value for?
Sketch your customers’ persona’s / archetypes
Describe a day out of their live

7. The core of your business model
The
Value
Proposi>on
1) Which
problem
are
you
solving,
or
which
need
are
you
fulfilling?
2) What
is
your
solu?on
to
solve
your
customers’
problem/need?
3) Which
customer
value
do
you
create
with
this
solu?on?
1. Which
problem
are
you
solving?
2. What
is
your
solu?on?
3. Which
customer
value
do
you
create?

8. Visie UtrechtInc
the business model canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Entrepreneurs Intensive personal contact
connecting Accelerating the startup Starting Entrepreneurs
process, reducing the Community - ambitious
Investors
facilitating Accelera?ng
risk and increasing
Presence within the KI
Startup
- innovative
- scalable
the chance of success
Professional Service
Providers sharing startup expertise startup
Utrecht VC
Network events
Entrepreneurs
Knowledge Institutions ____________ process,
Newsletter
Newsletter
Knowledge Institutions
Image > more students
Business coaches communication - pr reducing
risk,
Entrepreneurial atmosphere
Personal messages
Company visits
Knowledge
Knowledge valorisation
Trainers
increasing
--> more Ins?tu?ons
Media partners /
Key Resources
chance
of
Channels
Education, Events,
Companies
journalists Strong incubation team success
Potential customers
Web, Social Media
Other startup support High quality office space
BM
To
be
part
of
a
Social responsibility We’re there where Companies
organisations Image you’re looking
Preseed Fund successfull
Other (international)
We deliver through 1-on-1
meetings, networking events. Government
Incubators Network Imagecommunity/
UtrechtVC - UtrechtCE
Stimulating economy
Creating jobs scene
startup
Media - guest lectures - visits Government
Media - website
Media - Reports - visits
Cost Structure Revenue Streams
Housing: 300k / year Overhead: 80k / year incl housing incubation only Yearly in kind contribution
fee/sq.M/yr fee/yr housing: 300k
Personnel: 300k / year Marketing / yr 1: 200 600
communication: 50k / year yr 2: 250 900 Sponsoring: 25k /yr (Rabobank)
Incubation: 60k / year yr 3: 300 1.200
Subsidy: - city 100k
fee for training - province 100k
and coaching Total in 2011: 125k - national 150k
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/
www.businessmodelgeneration.com or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

9. Channels
• How
do
you
reach
your
customers?
• How
do
they
want
to
be
reached?
How
are
they
currently
reached
through
which
(distribu?on)
channels?
And
what
does
not
work
or
why
does
it
1) Communica+on
work?
2) Distribu+on
• How
much
do
you
channels
cost
you?
3) Technical
customer
service

10. Customer relationships
Customer
rela>onships
• How
do
you
want
to
relate
with
your
customer?
• How
will
you
engage
them
to
your
website
/
product?
• How
costly
is
your
rela?onship?
• How
do
your
customers
currently
work
with
your
compe?tors?
What
does
not
work,
what
does
work?
1) The
type
of
rela?onship
a
company
establishes
with
the
customer
2) How
in?mate
do
you
want
to
be
with
your
customers
3) Acquisi?on,
reten?on
and
upselling
1) What
type
of
rela?onship
do
you
build
with
your
customer
2) How
in?mate
do
you
want
to
be
with
your
customers
3) Acquisi?on,
reten?on
and
upselling

11. Visie UtrechtInc
the business model canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Entrepreneurs Intensive personal contact
connecting Accelerating the startup Starting Entrepreneurs
process, reducing the Community - ambitious
Investors
facilitating Accelera?ng
risk and increasing Intensive,
Presence within the KI
Startup
- innovative
- scalable
the chance of success
Professional Service
Providers sharing startup expertise startup
Utrecht VC
personal
Network events
Entrepreneurs
Knowledge Institutions ____________ process,
contact
Newsletter
Knowledge Institutions
Image > more students Newsletter
Business coaches communication - pr reducing
risk,
Entrepreneurial atmosphere
Personal messages
Company visits
Knowledge
Knowledge valorisation
Trainers
increasing
--> more Ins?tu?ons
Media partners /
Key Resources
chance
of
Channels
Education, Events,
Companies
journalists Strong incubation team success
Potential customers
Web, Social Media
Other startup support High quality office space
BM
To
be
part
of
a
Social responsibility
Educa?on,
We’re there where Companies
organisations Image you’re looking
Preseed Fund successfull
We events,
web,
deliver through 1-on-1
Other (international) Government
Incubators Network Imagecommunity/ social
media,
meetings, networking events.
UtrechtVC - UtrechtCE
Stimulating economy
Creating jobs scene
startup
word2mouth
Media - guest lectures - visits Government
Media - website
Media - Reports - visits
Cost Structure Revenue Streams
Housing: 300k / year Overhead: 80k / year incl housing incubation only Yearly in kind contribution
fee/sq.M/yr fee/yr housing: 300k
Personnel: 300k / year Marketing / yr 1: 200 600
communication: 50k / year yr 2: 250 900 Sponsoring: 25k /yr (Rabobank)
Incubation: 60k / year yr 3: 300 1.200
Subsidy: - city 100k
fee for training - province 100k
and coaching Total in 2011: 125k - national 150k
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/
www.businessmodelgeneration.com or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

12. Building blocks – revenue streams
Revenue
streams
1) Revenue
model
2) Actual
prices

13. Building blocks – key resources
Key
resources
1) Physical
2) Intellectual
3) Financial
4) Human

14. Visie UtrechtInc
the business model canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Entrepreneurs Intensive personal contact
connecting Accelerating the startup Starting Entrepreneurs
process, reducing the Community - ambitious
Investors
facilitating Accelera?ng
risk and increasing Intensive,
Presence within the KI
Startup
- innovative
- scalable
the chance of success
Professional Service
Providers sharing startup expertise startup
Utrecht VC
personal
Network events
Entrepreneurs
Knowledge Institutions ____________ process,
contact
Newsletter
Knowledge Institutions
Image > more students Newsletter
Business coaches communication - pr reducing
risk,
Entrepreneurial atmosphere
Personal messages
Company visits
Knowledge
Knowledge valorisation
Trainers
increasing
--> more Ins?tu?ons
Media partners /
Key Resources
chance
of
Channels
Education, Events,
Companies
journalists Strong
team
Strong incubation team success
Potential customers
Web, Social Media
Other startup support Superb
office
High quality office space
BM
To
be
part
of
a
Social responsibility
Educa?on,
We’re there where Companies
organisations Image you’re looking
Preseed space
Fund successfull
We events,
web,
deliver through 1-on-1
Other (international) Government
Incubators Pre-­‐seed
Network Imagecommunity/ social
media,
meetings, networking events.
UtrechtVC - UtrechtCE fund
Stimulating economy
Creating jobs scene
startup
word2mouth
Media - guest lectures - visits Government
Media - website
Network
Media - Reports - visits
Cost Structure Revenue Streams
Housing: 300k / year Overhead: 80k / year incl housing incubation only Yearly in kind contribution
Housing
/
startup
support
300k
fee/sq.M/yr fee/yr housing:
Personnel: 300k / year Marketing / yr 1: 200 600
communication: 50k / year In
kind
contribu?on
yr 2: 250 900 Sponsoring: 25k /yr (Rabobank)
Incubation: 60k / year yr 3: 300 1.200
Sponsoring
fee for training
Subsidy: - city
- province 100k
100k
Subsidy
Total in 2011: 125k - national 150k
and coaching
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/
www.businessmodelgeneration.com or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

15. Building blocks – key activities
What
are
the
most
important
things
you
must
excell
at
in
order
to
create
and
deliver
the
value
proposi?on
and
to
mone?ze
on
it.

16. Building blocks – key partners
Key
partners
1) Suppliers
2) Partners

17. Building blocks – cost structure
Cost
structure
1) Type
2) Amount
3) Fixed
/
variable

18. Visie UtrechtInc
the business model canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Entrepreneurs
Connec?ng,
connecting Accelerating the startup Intensive personal contact Starting Entrepreneurs
process, reducing the Community - ambitious
Investors facilita?ng,
facilitating Accelera?ng
risk and increasing Intensive,
Presence within the KI
Startup
- innovative
- scalable
the chance of success
Investors
Professional Service
Providers
sharing
sharing startup expertise startup
Utrecht VC
personal
Network events
Entrepreneurs
Experts
Knowledge Institutions
startup
____________ process,
contact
Newsletter
Knowledge Institutions
Newsletter
communication - pr
exper?se
Image > more students
Mentors
Business coaches reducing
risk,
Entrepreneurial atmosphere
Personal messages
Company visits
Knowledge
Knowledge valorisation
University
/
Trainers
increasing
--> more Ins?tu?ons
Hogeschool
Media partners /
Key Resources
chance
of
Channels
Education, Events,
Companies
Experienced
journalists Strong
team
Strong incubation team success
Potential customers
Web, Social Media
Superb
BM
To
be
part
of
a
Social responsibility
Educa?on,
We’re there where Companies
entrepreneu
Other startup support
organisations
High quality office space Image you’re looking
Preseed Fund space
office
successfull
We events,
web,
rs
Other (international)
deliver through 1-on-1
Government
Incubators Pre-­‐seed
Network Imagecommunity/ social
media,
meetings, networking events.
UtrechtVC - UtrechtCE fund
Stimulating economy
Creating jobs scene
startup
word2mouth
Media - guest lectures - visits Government
Media - website
Network
Media - Reports - visits
Cost Structure Revenue Streams
Housing: 300k / year Overhead: 80k / year incl housing incubation only Yearly in kind contribution
Housing
/
year
Marketing
/
Overhead
Housing
/
startup
support
300k
fee/sq.M/yr fee/yr housing:
Personnel: 300k yr 1: 200 600
People
60k
/
year
communication: arke?ng
/PR
M 50k / year In
kind
contribu?on
yr 2: 250 900 Sponsoring: 25k /yr (Rabobank)
Incubation: yr 3: 300 1.200
Support
services
Sponsoring
fee for training
Subsidy: - city
- province 100k
100k
Subsidy
Total in 2011: 125k - national 150k
and coaching
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/
www.businessmodelgeneration.com or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

19. Why the Business Model Canvas?
1. Universal
BM
language
for
startups,
established
businesses
2. Forces
to
focus
to
the
essence
3. Shows
connec?on
between
building
blocks
4. Perfect
for
collabora?on
5. Easy
to
adapt

20. How NOT to use the business model canvas
1. As
a
subs?tu?on
for
a
business
plan
2. As
a
sta?c
tool
3. As
a
goal
on
itself
4. As
a
part
of
your
presenta?on
5. As
a
blanks
exercise
6. Do
NOT
use
a
ballpoint
7. Do
NOT
use
the
examples
literally
8. Do
NOT
write
one
Value
Proposi?on
for
different
Customer
Segments

21. Great, such an exercise…
…but
what
is
it
worth?
Can
you
succesfully
execute
on
a
poster
full
of
guesses?
“No
business
plan
survives
first
contact
with
customers”
Steve
Blank

22. Work as a lean startup…
Learn
as
fast
as
possible
Create
maximum
value
for
your
customer
Have
strong
visions
and
are
rigourous
in
tes?ng
Minimise
waste

23. Change assumptions into facts
First test the problem, then the solution

24. Design
the experiment to test your
assumption
What
do
you
want
to
learn?
• Keep
it
simpel
• Pass/fail
experiment
• Set
minimum
criteria
for
valida?on
• Fast
test,
short
cycle
?me

25. Minimum Viable Product (MVP)
An
MVP
is
the
minimum
amount
of
effort
crea?ng
some
value
for
customers
and
needed
to
provide
speedy
feedback
to
determine
the
viability
of
a
product.
Can
be
a
mock-­‐up,
video,
fast
prototype
(3D
prin?ng),
restricted
service,
etc…
An
MVP
naturally
comes
in
later
stages
of
Customer
Development
as
it
is
a
rudimentary
solu?on
to
a
problem
worth
solving.

26. Examples of an MVP
How
Dropbox
started
as
an
MVP?
www.dollarshaveclub.com
hfp://techcrunch.com/2011/10/19/
dropbox-­‐minimal-­‐viable-­‐product/
hfp://www.dollarshaveclub.com/

27. Where are the facts?
There
are
no
answers
inside
your
office

28. So, get out of the building and
listen to customers

29. Take home messages
1. Start,
don’t
worry
to
fail
2. Work
out
the
why?
3. Then
the
business
model
4. Your
idea
will
not
grow
to
a
success
in
your
office
or
lab
5. What
you
have
in
your
mind,
might
not
be
true
in
the
real
world
6. If
you
want
to
realize
your
idea,
do
it
now
7. UtrechtInc
can
be
a
partner
to
begin
your
own
startup,
to
find
a
job
or
for
a
really
great
traineeship
@a
startup!

30. Any questions ?
more information:
Marcellien.breedveld@utrechtinc.nl
www.utrechtinc.nl @UtrechtInc or @marcellien

31. Reading material on starting up your company