Don’t build your product until you’ve learned the secrets of the Business Model Canvas. This simple tool, used correctly, drastically improves your chances of becoming a successful entrepreneur. Following on from part 1. In this session we give you techniques for using the BMC to find a validated business model for your idea so you can be sure you’re investing your time and money in building the right product.

1. Be one of the 10%
How to have a successful startup
Part 2
Alice Sowerby + Steve Clark
@SowerbyAlice + @ResourceSteve

2. Session outcomes
● Understand why the BMC is useful in (lean) startups
● Understand importance of
1) Finding product-market fit
2) Planning early for monetisation and value capture
3) Understanding what to do yourself and when to buy or partner
● Knowing some key techniques to validate your BMC

4. The Business Model Canvas (BMC)
● One-page business model
● Created by Alexander Osterwalder in 2008
● Lean startup template AND strategic management
template
● Widely adopted, extended and adapted
● Quick, lightweight, easily iterated

6. Techniques to use with the BMC

7. Product-market fit

8. Revenue model

9. Back end

10. Product-market fit
Finding your customers’ unmet needs
● Real pains
● Jobs to be done
● Valued gains
Meeting these needs with a product or service that
● Relieves pain
● Facilitates jobs to be done
● Delivers valued gain over current solutions

11. Customer Development process

12. Product-market fit activities
● You have some cards with the details of an activity you can do to help find
product-market fit.
● Take each card and place it somewhere along the spectrum between these
two stages:
Understanding likely
customers and needs
Understanding likely
problem-solution fit

13. Revenue model

14. Revenue model
How will you build your product and business to:
● Reach the right customers
● Achieve maximum lifetime value

15. Relationships - Get, Keep, Grow

16. Hot trigger in the path of a motivated person

17. Revenue model

18. Channel Economics
Some channel types
● Direct
● Indirect
● Reseller
● OEM
Costs to consider per channel
● Cost of goods
● R&D
● Selling costs + channel fees
● General and admin
● Discounts

19. Revenue Streams
Your model could include
● Asset sale
● Licence sale
● Subscription
● Usage fee
● Rental
● Referral fee
● Advertising
More ways to monetise
● B2B offering
● Sell the sawdust (the byproduct
of your business e.g. data)
● Wholesale
● Franchise
● Consulting
● Marketplace

20. Back end

21. Making a viable business
(back end)
Looking at your cost structure, where will you
● Produce goods and services directly
● Buy goods and services in
● Partner with other companies to provide goods and services

23. Your
email
address!
Get the workshop materials and further reading list
Pop your email address on a Post-it note and we will
send you all the materials, answers to the questions
we captured and a list of further reading.
Join us at meetup.com → Ecopreneurs

24. Be one of the 10%
How to have a successful startup
Part 2
Alice Sowerby + Steve Clark
@SowerbyAlice + @ResourceSteve