Introduction to Business Model « To explore the spectrum of possibilities, bootstrapping is the most efficient method » Hubert Reeves - Astrophysicist Introduction to Business Model

1 Understanding the risks

1 – Understanding The Risks Probability of success Consumer product: 19% B2B product: 27% Understanding the risks

1 – Understanding The Risks The different type of failures Trap: 28% nobody buys… “Me-too” : 36% marginal improvement over existing product killed by aggressive competition… Environment.: 7% legal issues, etc. Bad product: 15% doesn’t deliver, quality problem Price war: 13% Understanding the risks 78% Based on the research of JM Choffray, and Gary L. Lilien

2 The core principles

Discovery - Exploration 3 – Core Principles Discovery - Exploration (pursuing the…) Customer discovery Understanding the risks Core Principles Meeting with customers (“get out of the building”) How much do they like (my idea) ? Refine understanding of usage, needs, barriers Main challenge Avoid close contacts, friends, family! Founders must do the job DO NOT SELL!!!

3 – Core Principles Prototype Test and Experiment a quick & dirty mode MVP Test and Experiment a quick & dirty mode The least number of functions (as rough as possible)! Something the customer can touch and feel Allows to collect more (relevant) feedback DROP box mvp : a video A spectrometer as a storyboard A website for kids on paper: Understanding the risks Core Principles

3 – Core Principles Driving Principles MVP Understanding the risks

3 – Core Principles Driving Principles MVP Understanding the risks

3 – Core Principles Driving Principles Understanding the risks Core Principles Lean startup approach (Eric Ries) Test experiment in a cheap/quick & dirty way On-going roadmap of tests Validated learning

3 – Core Principles Pivot -Iterate Understanding the risks Core Principles The heart of the Customer Development Process Multiple iterations without crying Rapid, agile and opportunistic (capture the unexpected)

Pivot 3 – Core Principles Pivot -Iterate Execution Search Time matters Pivot!!! … as fast as possible Understanding the risks Core Principles Customer Discovery Customer Validation Company Building Customer Creation Execution Pivot Search Time matters MVP must speed up iteration cycle Short cycles reduce cash burn Driven by customer feedback!

4 The Business Model Canvas

4 – The Business Model Canvas What is it about ? 2 very similar opportunities Startup Opt The N#1 skill Driving in the dark – the rules The Business Model Canvas

4 – The Business Model Canvas key activities value proposition customer relationships key partners customer segments cost structure revenue streams key resources distribution channels

DISTRIBUTION CHANNELS 4 – The Business Model Canvas PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS

DISTRIBUTION CHANNELS 4 – The Business Model Canvas PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY RESOURCES DISTRIBUTION CHANNELS COST STRUCTURE REVENUE STREAMS images by JAM

DISTRIBUTION CHANNELS 4 – The Business Model Canvas PARTNER NETWORK KEY ACTIVITIES OFFER CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS Hypothèse Hypothèse Hypothèse Hypothèse Hypothèses Hypothèse KEY RESOURCES DISTRIBUTION CHANNELS Hypothèse Hypothèse COST STRUCTURE REVENUE STREAMS Hypothèse Hypothèse Hypothèse

Business Model & Strategie « To explore the spectrum of possibilities, bootstrapping is the more efficient method » Hubert Reeves - Astrophysicist Business Model & Strategie