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Business 101.1
A class in business. And entrepreneurship.
Fall 2016
NYU ITP
October 24, 2016
Josh Knowles
Jen van der Meer
Extra love from Tom Igoe
And the Leslie E-Lab
Syllabus Map
START +
Form
Teams
Business
Models
Customer
Development
How to
Interview
Value
+ The Purpose
of Business
Values
Motivation
Team
Customer
Relationships
+ Channels
Analytics
Key Resources
Activities
Partners
Biggest Vision
Analyze Test
The Money
Plan MVP
Turning
Insights Into
Features
More MVP
How small,
How big?
Launch MVP
Lessons
Learned
Go/No Go?
Sketch
Paper
Prototype
Oz Test
Smallest MVP
Tech
Architecture
Customer relationships
Story telling
Team lightning rounds
Customer channels
Midpoint: running a test
Customer
Relationships
Channels
oz test
CUSTOMER
RELATIONSHIPS
CUSTOMER RELATIONSHIPS
Customer
Segments
Customer
Relationships
Value
Proposition
Key ActivitiesPartners
Key
Resources
Customer
Channels
RevenuesCosts
CUSTOMER RELATIONSHIPS AND CHANNELS
RELATIONSHIPS
WHY DO WE BUILD RELATIONSHIPS?
▸ get
▸ keep
▸ grow
▸ and let the mismatched ones find another company
THE FUNNEL
OLD SCHOOL FUNNELS
THE FUNNEL
THE NEW SCHOOL BOWTIE FUNNEL
=
here are the formulas
CAC < LTV BY 3 OR MORE
NPS > 8
K VALUE
CAC < LTV BY 3 OR MORE
COST OF CUSTOMER
ACQUISITION
LIFETIME VALUE
LIFETIME VALUE:
PREDICTION OF LIFETIME
PROFIT OVER TIME
CITIBANK?
NYU?
AT&T?
SPOTIFY?
COST OF
CUSTOMER
ACQUISITION
CAC < LTV BY 3 OR MORE
NET
PROMOTER
SCORE (NPS)
IS A PROXY
WOULD YOU REFER US TO A FRIEND
The viral co-efficient:
the average number
of invitations sent by each existing user
times the conversion rate of invitation
to new USErs.
The viral coefficient is referred to as the
K value.
THE MAGIC ACCELERATOR: THE VIRAL LOOP
THE VIRAL
COEFFICIENT
= LOVE
THE MAGIC ACCELERATOR: THE VIRAL LOOP
TEST VALUE BEFORE YOU BEGIN MAKING
HOW DID THEY TEST
HOW WILL YOU TEST?
TEAM ROUNDS
STORYTELLING
STORY TELLING
3 STORIES TO TELL?
STORY TELLING
STORIES TO TELL
TESTING
WHAT ARE WE DOING?
▸ Testing getting to midterms in 2 weeks
▸ What are your core hypotheses
▸ What tests do you want to run
▸ What do you believe to be true
▸ What story are you writing
CUSTOMER
CHANNELS
WHAT ARE CHANNELS
CHANNELS
▸ Channels describe all your customer interfaces through
which you reach your customer segments, communicate
with them and through which you deliver your value
propositions.
WHICH CHANNEL?
FIRST EASY DECISIONS: WHERE TO SELL, WHERE TO MARKET?
COMPLEX SELLING AND MARKETING DECISIONS
OMNICHANNEL WORLD
Targeting blogs (get written up)
Publicity / PR
Unconventional PR
Search engine marketing
Online ads (social, display, blogs)
Offline ads
Search engine optimization
Content marketing
Email (build your own list)
Referral marketing
Engineering marketing
(microsites, widgets)
Affiliate Programs
Educational marketing (webinars)
Existing platforms (app store, FB)
Trade shows
Offline events
Speaking engagements
Community building
Direct sales through web
Direct sales through mobile
Sales through app store
Sales through messaging apps
In game or in app purchases
Direct sales on the dark web
Direct sales on virtual reality
PHYSICAL SALES TRACTION
CHANNELS
DIGITAL SALES
Direct sales through salesforce
OEM
Systems Integrator
Dealer
Deliver through owned retail
Distribute to retailer
Mail order
Value added resellers
Sell to distributor
Aggregator
Pop up shop
Other
Business 101.1 class 6 NYU ITP
TESTING TO LEARN YOUR ADVANTAGE
TRACTION
▸ Traction: quantitative evidence of
customer demand. - Naval Ravikant
▸ “many startups experimented with
multiple channels until they found
the ones that worked”
▸ most founders pick the channel with
which they are already familiar
▸ “it’s hard to predict a traction
channel that will work best” -
Gabriel Weinberg and Justin Mares
TRACTION CHANNEL TEST
Sprint 1 Sprint 2 Sprint 3
Twitter ads x
Earned PR
Facebook ads x x
Trade Show x
Flyers
Drip email x x
Events
Speaking
Content x
NEXT TIME
MIDWAY PREP
RUN A TEST
▸ Test your value proposition.
▸ “We believe”
▸ How will you test?
▸ What channel will you test?
END
Business 101.1 class 6 NYU ITP

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