MEMSI June: Disciplined Entrepreneurship Introduction
•
2 likes•477 views
In this talk, we introduce the Disciplined Entrepreneurship framework as well as the DE canvas. We end with a challenge to the founding team: "Why are you in business?"
Recommended
More Related Content
What's hot
What's hot (20)
Similar to MEMSI June: Disciplined Entrepreneurship Introduction
Similar to MEMSI June: Disciplined Entrepreneurship Introduction (20)
More from Elaine Chen
More from Elaine Chen (20)
Recently uploaded
Recently uploaded (20)
MEMSI June: Disciplined Entrepreneurship Introduction
- 1. MIT Entrepreneurship and Maker Skills Integrator Disciplined Entrepreneurship Introduction June 4, 2017
- 3. A few Iconic MIT businesses 3 Over 26K companies, 3M jobs, $2T revenues/yr
- 4. What makes a good entrepreneur? 4
- 6. 6 Spirit + Skills Successful Entrepreneurship
- 7. DE: 6 Themes, 24 Steps
- 8. Theme 1: Who is your customer?
- 9. Why do you think we start here? 9
- 10. Example 1 10
- 11. Timeline 11 • 2009 – Google X founded, Google Glass started in stealth • 2011 – Time runs an article on Google X • 2012 – Google Glass Explorer Edition announced - $1,500 per device. 2,000 pre-orders. Wildly hyped. • 2013 – Starting to get complaints about bugs, poor battery life, and above all, lack of a “killer app” • 2014 – Available to the public at £1,000 • 2015 – Google ended the Beta period of Glass. Product is back in house under new leadership. => Be careful with a tech-led approach
- 12. Example 2 12
- 13. Timeline 13 • Early 1990’s – DEKA starts working on self-balancing technology – first appearing in a self-balancing wheelchair • 2001 – Segway unveiled. Wildly hyped. “Cities will be built around it”. Backed by $90M from investors. DEKA expected to sell 10,000 / week by end of 2002. That’s 70,000+/year. • 2002 – Available at $4,950 • 2003 – Sold 6,000 to date • 2008 – Sold 30,000 to date • 2009 - 2016 – Segway sold several times – now owned by Chinese company Ninebot => After $100m+ R&D – not a great biz
- 14. Example 3 14
- 15. Example 3 15 • 2012 – Husband and wife team began investigating a startup to design, manufacture and sell luxury bed linens. Primary market research with 500 people shopping at big box stores. • 2014 – Raised $236,888 on Kickstarter (Goal: $50,000). Started shipping products by end of year. • 2015 – $750,000 revenue, hires first employee • 2016 – $6M revenue to date, tracking to close the year at $10M • VC Money Raised: $0 => This is what you can do if you focus on the market and the customer
- 16. Knowing your market and customer is a pre- requisite to building a good business 16
- 17. But… just that is not enough • You need to know how to solve customer problems with a great product 17 Problem Solution Problem-solution fit
- 18. But… even that is not enough 18 • You have to get customers to pay • You have to make more money than you spend • You have to build a company that lasts
- 19. Benefits of DE Approach • Comprehensive yet Practical • Integrated • Proven & Tested – To Stand the Test of Time • Sequential/Prescriptive • Creates Common Language for Knowledge Transfer and Accumulation 19
- 20. ① ④ ⑨⑤ ⑧ Raison d’Être Why are you in business? Competitive Advantage Why you? Customer Acquisition How does your customer acquire your product? Overall Economics Does your product make money at a company level? Design & Build How do you produce the product? ③ ⑩⑦⑥②Initial Market Who is your customer? Value Creation What can you do for you customer? Product Unit Economics Can you make money at the product level? Sales How do you sell your product? Scaling How do you scale your business?
- 21. ① ④ ⑨⑤ ⑧ Raison d’Être Why are you in business? Competitive Advantage Why you? Customer Acquisition How does your customer acquire your product? Overall Economics Does your product make money at a company level? Design & Build How do you produce the product? ③ ⑩⑦⑥②Initial Market Who is your customer? Value Creation What can you do for you customer? Product Unit Economics Can you make money at the product level? Sales How do you sell your product? Scaling How do you scale your business? Theme 1
- 22. ① ④ ⑨⑤ ⑧ Raison d’Être Why are you in business? Competitive Advantage Why you? Customer Acquisition How does your customer acquire your product? Overall Economics Does your product make money at a company level? Design & Build How do you produce the product? ③ ⑩⑦⑥②Initial Market Who is your customer? Value Creation What can you do for you customer? Product Unit Economics Can you make money at the product level? Sales How do you sell your product? Scaling How do you scale your business? Theme 2 Theme 2
- 23. ① ④ ⑨⑤ ⑧ Raison d’Être Why are you in business? Competitive Advantage Why you? Customer Acquisition How does your customer acquire your product? Overall Economics Does your product make money at a company level? Design & Build How do you produce the product? ③ ⑩⑦⑥②Initial Market Who is your customer? Value Creation What can you do for you customer? Product Unit Economics Can you make money at the product level? Sales How do you sell your product? Scaling How do you scale your business? Theme 3
- 24. ① ④ ⑨⑤ ⑧ Raison d’Être Why are you in business? Competitive Advantage Why you? Customer Acquisition How does your customer acquire your product? Overall Economics Does your product make money at a company level? Design & Build How do you produce the product? ③ ⑩⑦⑥②Initial Market Who is your customer? Value Creation What can you do for you customer? Product Unit Economics Can you make money at the product level? Sales How do you sell your product? Scaling How do you scale your business? Theme 4 Theme 4 Theme 4
- 25. ① ④ ⑨⑤ ⑧ Raison d’Être Why are you in business? Competitive Advantage Why you? Customer Acquisition How does your customer acquire your product? Overall Economics Does your product make money at a company level? Design & Build How do you produce the product? ③ ⑩⑦⑥②Initial Market Who is your customer? Value Creation What can you do for you customer? Product Unit Economics Can you make money at the product level? Sales How do you sell your product? Scaling How do you scale your business? Theme 5
- 26. ① ④ ⑨⑤ ⑧ Raison d’Être Why are you in business? Competitive Advantage Why you? Customer Acquisition How does your customer acquire your product? Overall Economics Does your product make money at a company level? Design & Build How do you produce the product? ③ ⑩⑦⑥②Initial Market Who is your customer? Value Creation What can you do for you customer? Product Unit Economics Can you make money at the product level? Sales How do you sell your product? Scaling How do you scale your business? Theme 6
- 27. ① ④ ⑨⑤ ⑧ Raison d’Être Why are you in business? Competitive Advantage Why you? Customer Acquisition How does your customer acquire your product? Overall Economics Does your product make money at a company level? Design & Build How do you produce the product? ③ ⑩⑦⑥②Initial Market Who is your customer? Value Creation What can you do for you customer? Product Unit Economics Can you make money at the product level? Sales How do you sell your product? Scaling How do you scale your business? Theme 1 Theme 2 Theme 2 Theme 4 Theme 3 Theme 4 Theme 4 Theme 5 Theme 6
- 28. 28
- 29. 29 Pro Tip:
- 30. 30 Pro Tip: If the customer side is not green…
- 31. 31 Pro Tip: But the money making side is green…
- 32. 32 Pro Tip: Then you might be hallucinating
- 33. ① ④ ⑨⑤ ⑧ Raison d’Être Why are you in business? Competitive Advantage Why you? Customer Acquisition How does your customer acquire your product? Overall Economics Does your product make money at a company level? Design & Build How do you produce the product? ③ ⑩⑦⑥②Initial Market Who is your customer? Value Creation What can you do for you customer? Product Unit Economics Can you make money at the product level? Sales How do you sell your product? Scaling How do you scale your business? Don’t skip ahead to have fun with spreadsheets
- 34. ① ④ ⑨⑤ ⑧ Raison d’Être Why are you in business? Competitive Advantage Why you? Customer Acquisition How does your customer acquire your product? Overall Economics Does your product make money at a company level? Design & Build How do you produce the product? ③ ⑩⑦⑥②Initial Market Who is your customer? Value Creation What can you do for you customer? Product Unit Economics Can you make money at the product level? Sales How do you sell your product? Scaling How do you scale your business? Theme 1 Theme 2 Theme 2 Theme 4 Theme 3 Theme 4 Theme 4 Theme 5 Theme 6 ?
- 35. ”Raison d’etre” – aka Why are you in business? • Mission? • Passions? • Values? • Initial Assets? • Initial Idea? 35
- 36. ”Raison d’etre” – aka Why are you in business? • Mission? • Passions? • Values? • Initial Assets? • Initial Idea? 36 You will be AMAZED to learn how many cofounding teams are not aligned on these existential questions
- 37. This is why our next segment is all about the team 37
- 38. Questions? 38