In this assignment (1.2) you are going to identify where are your risks in your lean canvas and what is the weighting order for these risks is for your case and your business model. This will help you choose between possible lean canvasses you made in assignment 1.1. (as indicated by different colors of post its) This reader will provide you with essential know how on universal risks in business models But please note that there may be risks specific for your case that you need to address and that are not listed in this reader.

What is risk? (Ash Maurya, running lean) - Uncertainty: the lack of complete certainty, that is, the existence of more than one possibility - Risk: a state of uncertainty where some of the possibilities involve loss, catastrophe, or other undesirable outcome There are three general categories, for each category the key questions are listed we are going to address in the SDtM program that are related to the risks categories: 1. Product risk: getting the product right (boxes 1, 3, 4 and 8): Make sure you have a problem worth solving and define your MVP 2. Customer risk: building a path to customers (boxes 2, 5) First identify who has the pain, who are early adopters 3. Market risk: building a viable business (boxes 1 (alternatives), 6 and 7) Identify competition, set a pricing and test pricing at early adopters In the next slide you will see an overview:

SDtM lean canvas: risks per category (P = product, C=customer, M= market) Probleem P 2 . Klantsegment C 3. Unique value proposition 4. Solution 5. Kanalen 6. Inkomsten stroom M 7. Kosten structuur 8. Gevalideerd leren 9. Unfair advantage PRODUCT MARKT

At the earliest stages of a product, you can rely on tackling some universal risks that apply to almost every product such as making sure your customer/problem assumptions are valid, making sure these problems represent a monetizable pain (revenue stream), and making sure that you have a path or can build a path to customers (channels). Maurya proposed the following weighting order in these universal risks. You can apply this order to rank your business models Customer pain level (problem) Ease of reach (channel) Price/gross margin (cost structure/revenue streams) Market size (customer segments) Technical feasibility (solution = MVP) Can you think of, for you case, specific other risks? Are there things that can or should be changed to strengthen the business model or reduce its risk? In the following slide you see the top 3 universal risks indicated in the lean canvas

Clarify your business model assumptions As a reminder the definition of a business model hypothesis: Something that needs to be true for your idea to work partially or fully but that hasn't been validated yet. How do you know what you wrote in each lean canvas box is true? Have you made an assumption or do you have solid evidence—in the form of documented facts?