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Business
Models
Wednesday, 7 August 13
“I wish I knew that sooner.”
Wednesday, 7 August 13
You’ve got a ton of options
Wednesday, 7 August 13
Early stage strategy is
finding the few that matter.
Wednesday, 7 August 13
4% conversion rate = win!
Wednesday, 7 August 13
4% conversion rate = win?
Wednesday, 7 August 13
We obsess over
the details.
Wednesday, 7 August 13
And miss the big picture.
Wednesday, 7 August 13
Marketing Success!
Wednesday, 7 August 13
Business fail.
Wednesday, 7 August 13
We had a
big picture
problem!
Wednesday, 7 August 13
Alex Osterwalder’s
Business Model Canvas
is the big picture.
Wednesday, 7 August 13
What happened? Let’s look at the business model...
Wednesday, 7 August 13
Wednesday, 7 August 13
Your business model has holes
Wednesday, 7 August 13
Wednesday, 7 August 13
We wanted more users, so
we marketed...
Wednesday, 7 August 13
...which was rendered
worthless by our retention.
Wednesday, 7 August 13
Stuff’s going wrong...
Let’s embrace it!
Wednesday, 7 August 13
Test the
scary bits first.
(not the fun bits)
Wednesday, 7 August 13
Navigating through options, hypotheses
& environmental changes.
Understanding dynamics between
parts & articulating a clear story.
Parts
Whole
Progress
Checklists & dashboards1
2
3
Wednesday, 7 August 13
Changing something
changes everything.
Wednesday, 7 August 13
A “simple”
change.
Wednesday, 7 August 13
You can’t think
about any one part
without thinking
about the rest.
Wednesday, 7 August 13
Wednesday, 7 August 13
Faster production
Production
Wednesday, 7 August 13
Clothing
labels &
distributors
Faster production
Production
Wednesday, 7 August 13
Clothing
labels &
distributors
Faster tomarket
Faster production
Production
Wednesday, 7 August 13
Clothing
labels &
distributors
Faster tomarket
Faster production
Production
Production fees
Wednesday, 7 August 13
Wednesday, 7 August 13
Faster production
Production
Wednesday, 7 August 13
Designers
Consumers
Fan Base
Faster production
Production
Wednesday, 7 August 13
Designers
Consumers
Fan Base
You design -
we do the rest.
Faster production
Production
Pool of talent
Wednesday, 7 August 13
Designers
Consumers
Fan Base
You design -
we do the rest.
Faster production
Production
Online
tools
Pool of talent
Wednesday, 7 August 13
Designers
Consumers
Fan Base
You design -
we do the rest.
Faster production
Production
Personal
support
Online
tools
Pool of talent
Wednesday, 7 August 13
Designers
Consumers
Fan BaseFacebookFacebook
You design -
we do the rest.
Faster production
Production
Personal
support
Online
tools
Pool of talent
Wednesday, 7 August 13
Designers
Consumers
Fan Base
Selling Clothes
FacebookFacebook
You design -
we do the rest.
Faster production
Production
Personal
support
Online
tools
Pool of talent
Wednesday, 7 August 13
Designers
Consumers
Fan Base
Selling Clothes
FacebookFacebook
You design -
we do the rest.
Faster production
Production
Personal
support
Online
tools
Pool of talent
Wednesday, 7 August 13
Designers
Consumers
Fan Base
Selling Clothes
FacebookFacebook
You design -
we do the rest.
Faster production
Production
Personal
support
Online
tools
Pool of talent
Wednesday, 7 August 13
You can’t think
about any one part
without thinking
about the rest.
Wednesday, 7 August 13
Use the Canvas as
X-Ray goggles.
Wednesday, 7 August 13
Wednesday, 7 August 13
What on earth are
you on about?
Wednesday, 7 August 13
Pick my brain.
PAIRS
Wednesday, 7 August 13
Wednesday, 7 August 13
Present
their model
ON
STAGE
Wednesday, 7 August 13
How did you do?
Explains the business?
Focused on the main bits?
Used fewest post-its?
Good, engaging story?
Wednesday, 7 August 13
Wednesday, 7 August 13
Good for vision,
inventing and improving.
Bad for getting stuck on
specifics that don’t work.
Tenacity
Wednesday, 7 August 13
Platform Platform
Wednesday, 7 August 13
Platform Platform
Mass customisation
Value-based
pricing
App sale +
in-app purchase
Subscription
Transactional
Multi-sided
market
Licensing
Crowdsource
Ad-supported
Event-supported
SaaS
Bundling
Viral
Direct-over-viral
Purchase-timing
Wednesday, 7 August 13
Know your options.
Wednesday, 7 August 13
Wednesday, 7 August 13
What’s the
big opportunity?
W
RITE
IT
DOW
N
Wednesday, 7 August 13
Business model prototyping
No writing on the canvas - use post-its
Use the post-its as you discuss. Move them around.
3 minutes max per model - quantity over quality
Wednesday, 7 August 13
Business model prototyping
No writing on the canvas - use post-its
Use the post-its as you discuss. Move them around.
3 minutes max per model - quantity over quality
Tip - aim for around 4-7 post-its per model
IN
TEAM
S
Wednesday, 7 August 13
Platform Platform
Wednesday, 7 August 13
Platform Platform
Mass customisation
Value-based
pricing
App sale +
in-app purchase
Subscription
Transactional
Multi-sided
market
Licensing
Crowdsource
Ad-supported
Event-supported
SaaS
Bundling
Viral
Direct-over-viral
Purchase-timing
Wednesday, 7 August 13
Navigating through options, hypotheses
& environmental changes.
Understanding dynamics between
parts & articulating a clear story.
Parts
Whole
Progress
Checklists & dashboards1
2
3
Wednesday, 7 August 13
Nail down your business model,
one bit at a time.
Option cards
Wednesday, 7 August 13
Wednesday, 7 August 13
One dynamic per card.
2 -3 dots per card.
How do
authors
prebuild
customer lists?
CLINIC
Wednesday, 7 August 13
One dynamic per card.
2 -3 dots per card.
How do
authors
prebuild
customer lists?
Will ppl buy pet
food on
Facebook?
CLINIC
Wednesday, 7 August 13
One dynamic per card.
2 -3 dots per card.
How do
authors
prebuild
customer lists?
Evan can intro
me to Joe at
Initrode.Will ppl buy pet
food on
Facebook?
CLINIC
Wednesday, 7 August 13
One dynamic per card.
2 -3 dots per card.
How do
authors
prebuild
customer lists? Sell to y2k
software houses
through Initrode
Evan can intro
me to Joe at
Initrode.Will ppl buy pet
food on
Facebook?
CLINIC
Wednesday, 7 August 13
Wednesday, 7 August 13
Wednesday, 7 August 13
You’ve built a great app.
Users use the free trial.
They love it. They use it
every day. When the free
trial expires, they don’t buy.
Why?
DISCUSSION
Wednesday, 7 August 13
Scaffolding
Wednesday, 7 August 13
Understanding our options.
IN
TEAM
S
Wednesday, 7 August 13
Who will our next 10 customers be?
Where are they looking? And for what?
Wednesday, 7 August 13
What needs do your customers have?
How do they solve them now?
Wednesday, 7 August 13
To multiply my customer base by 10, I can attract
them through _____________ .
Wednesday, 7 August 13
What are the different ways we can make money?
Wednesday, 7 August 13
How would our business change if we could only
charge 5% of we’re planning to?
Wednesday, 7 August 13
How would our business change if we didn’t have
a web site or app?
Wednesday, 7 August 13
When customers have this problem, or are
tackling this task, where do they seek help and
advice?
Wednesday, 7 August 13
Which customers have different expectations
about service levels or relationship?
Wednesday, 7 August 13
What are our possible revenue streams? What
customers pay for that, in that way, and why?
Wednesday, 7 August 13
Are there customers at the low-end who would
pay less for lower performance? What if they
were our ONLY customer?
Wednesday, 7 August 13
How could we increase switching costs?
Wednesday, 7 August 13
Who are the people in our network that can fast-
track our business? How?
Wednesday, 7 August 13
Balancing focus &
opportunity
Wednesday, 7 August 13
What I
can do
What I’ve
got
Small partnerships.
Affordable Loss.
IN
TEAM
S
Wednesday, 7 August 13
“I wish I knew that sooner.”
Wednesday, 7 August 13
Pick a
learning goal
What big make-or-break risks
or idea is the one you want to
nail down this week?
(Hint: use the Canvas or
metrics to make sure it’s
relevant.)
Wednesday, 7 August 13
Your
Validation
heartbeat.
Wednesday, 7 August 13
Build
Learn
Measure
Your
Validation
heartbeat.
Wednesday, 7 August 13
Build
Learn
Measure
1) Start with your
learning goal.
Wednesday, 7 August 13
Build
Learn
Measure
1) Start with your
learning goal.
Wednesday, 7 August 13
Build
Learn
Measure
1) Start with your
learning goal.
Learn Confirm
Wednesday, 7 August 13
Build
Learn
Measure
1) Start with your
learning goal.
2) Then decide what you need to
measure or observe.
Learn Confirm
Wednesday, 7 August 13
Build
Learn
Measure
1) Start with your
learning goal.
2) Then decide what you need to
measure or observe.
3) Then only build what it takes.
Learn Confirm
Wednesday, 7 August 13
Minimum Viable
What is the minimum thing I need to build
to prove or disprove this?
Wednesday, 7 August 13
Limit your
work in progress.
Wednesday, 7 August 13
Salim Virani
@SaintSal
salim@saintsal.com
www.foundercentric.com
Thanks!
Wednesday, 7 August 13
Wednesday, 7 August 13
Bonus!
Wednesday, 7 August 13
Meeting every week with fellow founders to share our
weekly progress, and get advice to stay on track.
Braintrust
Wednesday, 7 August 13
Braintrust
3 minutes each to present
your learning & goals. 5
minutes each for feedback.
Feedback is focused on risks,
learning methods &
environment - not your ideas!
Wednesday, 7 August 13
Take 3 minutes to prepare at:
foundercentric.com/
learningprogress
Wednesday, 7 August 13
What you learned.
Progress
Obstacles in reaching your learning goal.
Problems
What will you learn by next week?
Learning Goal
Wednesday, 7 August 13
Investor relations
Transparency & clarity on
where they can help.
Wednesday, 7 August 13
Make the accelerator accelerate you!
Lead time
Wednesday, 7 August 13

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Advanced business models i catapult