1. Business Modeling for Start-Ups –
Module 1
Yorkville Media Centre (YMC)
Monday, January 17, 2011
Facilitator:
Norm Tasevski (norm@venturedeli.com)
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2. Why am I here?
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3. Expectations…
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Me
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5. Business Modelling for Start-Ups…
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A Caveat…
“In the coffee “Talk to
shop/ people”
basement” stuff…
stuff…
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A Second Caveat…
“Business
“Business Form/Legal
Model” Structure”
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A Third Caveat…
“Business “Business
Model” Plan”
Business Model 1st!!!
(Business Plan 2nd)
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11. Why Should I “Model 1st” and
“Plan 2nd”?
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Because…
It is a cure for “We Need a Plan-itis”
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And…
It is a Quick way to assess Profitability/Sustainability
– Why spend months building a plan if you don’t have a real
sense of profitability/sustainability?
– If your model doesn’t make money, even with the most
ideal conditions…
…STOP! (…and rethink your business model)
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One more…
It breaks down highly complex business ideas into
easily digestible (and visual) chunks
– Gets to the heart of what you need to know to:
Make a Go No-Go
Decision
Set Strategy
Make Potential
Investors/funders
(and business
partners) Happy :)
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Business Plans
Business Models
Are big and complex
Are small and visual
(often 50-100+ pages)
(1 page with about 10 supporting
pages)
Cover many topics
Focus on a few topics
(business description, financials,
marketing strategy, HR strategy,
(Will you make $$? How do the
Operations Strategy management team, pieces fit together?)
etc, etc, etc)
Take weeks/months to Take a few days (possibly
create
hours) to create
Are necessary for Feed the business plan!!
investors, funders,
business partners, etc
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16. “In the coffee shop/basement” stuff…
How do I create a business model?
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user networks!
franchising!
freemium! web ads!
etc…etc…etc…!
licensing!
retail! micro-finance!
subscription! loyalty!
open-source!
nonprofit (donation)!
solution shops!
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What you need to care about is…
– Customer “Pain”
– Difference between a “customer” and a “client”
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Quick…
What is the last thing you bought?
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What you need to care about is…
– The “value” you are creating for customers (in terms of products/services), and
the “pain” you are alleviating
– The exchange of value
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23. Break
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What you need to care about is…
– How the customer receives the offer/value prop
– The physical “movement” of the offer into the hands of the customer
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What you need to care about is…
– Personal and impersonal interaction with the customer
– The “movement” of information (e.g. marketing, communication)
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What you need to care about is…
– Cash!!! (specifically, how cash flows into the enterprise) – “Money In”
– Pricing models
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What you need to care about is…
– Assets…
– …and how these assets create value
– Includes human, physical, intellectual, and financial resources
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What you need to care about is…
– Actions (specifically, the actions you plan to take to generate value)
– Both “direct” and “indirect”
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What you need to care about is…
– People/organizations that are integral to enabling you to do business
– How you partner, and what you partner on
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31. What makes a good partnership?
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Common A
Vision! Commitment
to Invest in
the
Partnership!
Same Core
Values!
Discreet
Missions!
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What you need to care about is…
– Fixed costs, variable costs, economies of scale…
– …basically, “money out”
– At this stage, focus on your cost assumptions! (don’t worry about actual $$)
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36. So…what
does the
Starbucks
Business
Model
Look
Like???
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“Here’s how it works…”
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-Hire staff
-Personal
-Long hours
ce
(Baristas)
-Maintain spa sign
-Store front
-Coffee
ing
-Access to -Wireless
roasting/brew -35 yr old You
ng
-Coffee n
space
-Interior desig professional
that
suppliers
to
wants a place
k
relax and wor
quietly
-Locations
-Coffee shop
s
g
-Coffee makin
equipment
-Furniture
-Internet
g
-Baristas
-Staff trainin -In-store
-Asset Purchases
acquisition
(multiple per
-Marketing
visit)
-Rent
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Tip…
• Be a Business Model “Alchemist” – You need to go
through the business model process many times in
order to figure out which model best fits
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40. Break
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41. “Talk to people” stuff…
Who do I talk to/What do I talk about?
And who/what do I listen to?
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42. What do we know?
What do we not Know?
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“Sticky Ideation”…
What we know! What we Don’t
Know!
Bridging the Gap!
(turning what we
don’t know into what
we know)!
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What Do You Need?
Data!!!
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Data Sources
Call key industry players
Search databases
(suppliers, competitors, etc)
(industry, scholastic, etc)
Ask people!!! Conduct web search
(friends, potential customers, etc) 45
(Google, etc)

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A point on “asking people”…
There are…
Lovers Haters Don’t give a
%&$#ers
Listen to HALF of what they say!!! 46

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What did we learn?
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