BMC Workshop

André Marquet, Nov 2014

MY VIDEO TUTOR #1 CASE STUDY

1. Think about a cool name that encompasses what you want to provide.

2. Grasp the overall technical ambition to show an MVP on Sunday (negotiate with developers).

3. Braindump by having everyone discuss the level approach towards the solution.

4. Define a roadmap of tasks (use Kanban).

FRIDAY

MY VIDEO TUTOR #2 a.k.a. tutor.co

1. Sketch the first version of BM canvas, research competitors.

2. Design the offline/ online questionnaires.

3. Get out to the street to validate assumptions, and board on potential customers/ users.

4. Plan on how acquire your first customers, incorporate assumptions.

5. Sketch on paper the early user interfaces.

6. Do a landing page, social media.

7. Thinking about systems architecture (e.g. how to integrate w/ FIWARE).

SATURDAY

The offer for the free .CO domain registration can be redeemed at www.go.co/startupweekend using the

following code: SW141103361

VTUTOR.IO #3

1. Sketch the second version of BM canvas.

2. Do the first sales to fools, friends and family

3. If no computer MVP is possible have a mechanical turk one instead

4. Prepare your pitch deck

5. Train your pitch

6. Upload your pitch deck

7. Convince the jury you should win!

SUNDAY

Judging Criteria

ValidationExecution & Design

Business Model

LIFE IS NOT FAIR

Judging Criteria

•Did your team get out and talk to customers? Are you actually solving a problem?

•What’s your clear value proposition to that customer?

ValidationExecution & Design

Business Model

Judging Criteria

•Did you work well as a team? •Do you have a prototype (paper is ok)? •Do you have an MVP to present (can you demo)? •Design Matters!

ValidationExecution & Design

Business Model

Judging Criteria

•Does your solution solve a core need? •Why is it unique? •How will you differentiate yourself from your

competition (did you identify competition)?

ValidationExecution & Design

Business Model

• Project Planning • Business Plan Workshop

Agenda

Business Plan?

No Plan Survives the Impact with Reality

We Need a Leaner Approach

“Design the business model is as much or even more important

that building the product”

Alex Osterwalder

Exercice #1

“Define what is a Business Model in 1 minute”

Exercice #1

“What elements were on your definition?”

Key Activities

Customer Relationship

Customer Segments

Key Partnerships

Cost Structure

Key Resources

Value Proposition Distribution

Channels

Revenue Streams

Only Hypothesis

How to fill it?

Customer Segments

Answer 5 questions

1. Who are our most important customers?

2. Who are our users? 3. Who’s influencing them? Who

decides? 4. Which are the customers’

more important habits? 5. What type of customer

segments should we address?

Persona Example for Customer Segment

• Representation as realistic as possible of the main characteristics of our customers.

• It is recommended to create at least one persona per each customer segment.

Value Proposition

Answer 5 questions

1. What exact problem are we trying to solve?

2. Is this a relevant (real) problem?

3. What is the solution that are developing?

4. How much value are we delivering to the client?

5. Are are the main features of our value proposition?

How to answer them? Testing hypothesis.

How to validate assumptions?

We can use 2 approaches:

• Interviews

• Surveys

Interviews: Solving a Real Problem?

Hypothesis List of problems

Test

Interview 20 people and verify if there is a match between the problems the team has identified and the answers.

It is validated if There is a positive match for the top 5 problems.

Interviews: Creating a Real Solution?

Hypothesis List of solutions

Test

Interview 20 people and verify if there is a match between the solutions the team has identified and the answers.

It is validated if There is a positive match for the top 5 solutions.

Surveys• Serve to test different

hypothesis, namely those related with customer segments, value proposition, distribution channels, partnerships, and revenue streams.

• They are also a good source of email addresses for direct email marketing.

• There are lot of online tools, but you can always do street surveys as well.

Surveys: 5 Best Practices

1. Don’t do more than 10 questions.

2. Ask the most important questions at the beginning of the survey

3. Use direct and clear phrasing

4. Only ask 1 open question per survey.

5. Ask demographic questions at the end of the survey

Distribution Channels

Answer 5 questions

1. How are we going to communicate the value proposition?

2. How are we going to deliver the product to the customer?

3. What are the customer favorite channels?

4. Is there any integration between different channels?

5. What are the channels that deliver the most bang for buck?

Channels StreamMarketing

Sales

Distribution

Post-sales Support

Free Marketing Channels

Company Customer

Web Site

Email Marketing

Blogs

Social Media

Communities

Search Engine Optimization

Viral Marketing

Paid Marketing Channels

Company Customer

PPC

Direct Mail

Tele-Marketing

Search Engine Marketing

Press & Online Advertising

Events & Fairs

TV/ Radio

Sales Channels

Company Customer

Internet

Phone-sales

Sales Force

Value-Added Resellers (VARs)

Agents

Distributors

Retailers

Customer Relationships

Answer 5 questions

1. How are we going to get customers?

2. How are we going to retain customers?

3. How are we going to grow our customer base?

4. What kind of relationship do customers prefer?

5. Is there any integration with the rest of the business model?

Revenue Sources

Answer 5 questions

1. What are types of revenue sources? (examples)

2. What are the pricing models? 3. How much are customers

willing to pay? 4. What customers value the

most? 5. What it the share of each

source on the total revenue?

Leasing

Sale

Pay per usage

Fixed Rent

Pre-paid

Royalties

Freemium

IntermediationAdvertising

Key Activities

Answer 5 questions

1. What are the critical activities of our business?

2. How can they be optimized? 3. Which activities can we

automate? 4. Which activities should we

outsource? 5. Which activities should we

keep doing once in a while to keep in touch with reality?

Key Resources

Answer 5 questions

1. What are the critical resources?

2. How can I minimize risk? 3. What are the common

characteristics of critical resources?

4. How can I obtain my critical resources?

5. How can I keep my critical resources?

Key Partnerships

Answer 5 questions

1. Who are our critical partners? 2. Who are our critical suppliers? 3. Which key resources are we

buying from suppliers and partners?

4. What kind of partnerships should we seek?

5. What is the best cluster/ supply-chain where I should be located?

Cost Structure

Answer 5 questions

1. What is the resulting cost structure?

2. Which resources have the most impact on the costs?

3. What are the most expensive activities?

4. Can you cut some costs via partnerships?

5. Can you have a leaner cost structure?

Nespresso

Exercice #2

NespressoNespresso radically changed the business model of expresso coffee.

Instructions• Each member puts up to 3 post-is on the spaces

corresponding to each component of the Business Model (15 mins)

• Don’t forget to validate the consistency of the model by taking out post-its that are duplicated.

• Point a team leader to do the presentation of the BM

• Present the Business Model to the group (5 mins)

empresas

particulares (fãs do Expresso)

87#

Expresso em Case

empresas

Expresso na Empresa

particulares (fãs do Expresso)

88"

Expresso em Casa

empresas

Expresso na Empresa

particulares (fãs do Expresso)

central telefónica

Nespresso.com

lojas Nespresso

encomenda via correio

…lojas de “retail”

89#

Expresso em Casa

empresas

Expresso na Empresa

particulares (fãs do Expresso)

Clube Nespresso

central telefónica

Nespresso.com

lojas Nespresso

encomenda via correio

…lojas de “retail”

90#

Expresso em Casa

empresas

Expresso na Empresa

particulares (fãs do Expresso)

Clube Nespresso

vendas de maquinas

Nespresso venda de cápsulas

Nespresso

central telefónica

Nespresso.com

lojas Nespresso

encomenda via correio

…lojas de “retail”

91#

Expresso em Casa

empresas

Expresso na Empresa

particulares (fãs do Expresso)

Clube Nespresso

distribuição “B2C”

marketing

produção

vendas de maquinas

Nespresso venda de cápsulas

Nespresso

central telefónica

Nespresso.com

lojas Nespresso

encomenda via correio

…lojas de “retail”

92#

Expresso em Casa

empresas

Expresso na Empresa

particulares (fãs do Expresso)

Clube Nespresso

distribuição “B2C”

marketing

produção

canais de distribuição

patentes instalações de

produção

vendas de maquinas

Nespresso venda de cápsulas

Nespresso

central telefónica

Nespresso.com

lojas Nespresso

encomenda via correio

…lojas de “retail”

93#

Expresso em Casa

empresas

Expresso na Empresa

particulares (fãs do Expresso)

Clube Nespresso

fabricantes de

maquinas de café

distribuição “B2C”

marketing

produção

canais de distribuição

patentes instalações de

produção

vendas de maquinas

Nespresso venda de cápsulas

Nespresso

central telefónica

Nespresso.com

lojas Nespresso

encomenda via correio

…lojas de “retail”

94#

Expresso em Casa

empresas

Expresso na Empresa

particulares (fãs do Expresso)

Clube Nespresso

fabricantes de

maquinas de café

distribuição “B2C”

marketing

produção

canais de distribuição

patentes instalações de

produção

produção

distribuição “B2C” marketing

vendas de maquinas

Nespresso venda de cápsulas

Nespresso

central telefónica

Nespresso.com

lojas Nespresso

encomenda via correio

…lojas de “retail”

95#

NOW GO FOR THE WIN!