Business Plan1. A document your investors make you write that they don’t read2. A useful place for you to collect your guesses about your business • Size of Opportunity • Customers • Channel • Demand Creation • Revenue/Expenses/Profit3. The template to look like everyone else when you do present to VC’s Steve Blank
Product Introduction Model Concept/ Product Alpha/Beta Launch/Seed Round Dev. Test 1st Ship The Leading Cause of Startup Death
Product Introduction Model: Two Implicit Assumptions Customer Problem : known Concept/ Product Alpha/Beta Launch/Seed Round Dev. Test 1st Ship Product Features : known
What Is a Business Model? It describes the rationale of how an organization creates, delivers and captures value A diagram that shows all the flows between your company and its customers All on a single sheet of paper * Alex Osterwalder
What’s A Startup? Search Execute Scalable Large Startup CompanyA Startup is a temporary organization used to search for a repeatable and scalable business model Steve Blank
Startups Model, Companies PlanThe Search for the Business Model The Execution of the Business Model Scalable Large Transition Startup Company- Business Model- describes “unknowns” - customer needs - feature set - business model- found by iteration
Startups Model, Companies Plan The Execution of the Business ModelScalable Large TransitionStartup Company Business Plan - describes “knowns” - features - customers/markets - business model
No Business Plan survives first contact with customersSo Search for a Business Model Steve Blank
The Business Model:Any company can be described in 9 building blocks Customers – Offer – Infrastructure - Financial Viability Alexander Osterwalder
CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done?
VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care?
CHANNELShow does each customer segment want to be reached? through which interaction points?
CUSTOMER RELATIONSHIPSwhat relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
REVENUE STREAMS what are customers really willing to pay for? how?are you generating transactional or recurring revenues?
KEY RESOURCESwhich resources underpin your business model? which assets are essential?
KEY ACTIVITIESwhich activities do you need to perform well in your business model? what is crucial? 19
KEY PARTNERSwhich partners and suppliers leverage your model? who do you need to rely on?
COST STRUCTURE what is the resulting cost structure?which key elements drive your costs?
key activities value customer proposition relationships key customerpartners segments cost revenuestructure key streams resources channels 22 images by JAM
Turning Hypotheses to Facts Test Test Hypotheses: Hypotheses: • Product • Problem • Market Type • Customer • Competition • User • Payer Test Hypotheses: • Pricing Model / Pricing