Gear Up: Test Your Business Model Potential Business Models Presented by Tom Kosnik September 15, 2014 Gear Up Model slides by Ramfelt, Kjellberg, and Kosnik (2014), Gear Up: Test Your Business Model Potential and Plan Your Path to Success Business Model Canvas based on: Osterwalder, Alexander and Yves Pigneur (2010), Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers Customer Development from Blank, Steve (2012) The Startup Owner’s Manual

GEAR UP: Your Best Idea Ever BASED ON THE BETA VERSION OF THE BOOK LENA RAMFELT JONAS KJELLBERG TOM KOSNIK BASED ON THE BETA VERSION OF THE BOOK

Gear Up: A System for Creating New Markets and Disrupting Existing Markets Source: Ramfelt, Kjellberg, and Kosnik (2013) Gear Up: Bring Business Opportunities to Life.

Agenda

Agenda

Agenda Two Social Venture Examples Toraja Melo Gear Up Business Model: Playing the Zero Game Business Model Videos Muhammad Yunus Eric Osterwalder and The Business Model Canvas Summary of Business Model

Forming your Teams Form Teams: 4 or 5 people per team: Make sure you have diversity: Men and women Different academic strengths or concentrations If possible, different countries, or regions of Indonesia Why diversity? To increase your understanding about how different people (employees, investors, customers) think and make decisions To prepare you to work in entrepreneurial teams.

Gear Up: A System for Creating New Markets and Disrupting Existing Markets Source: Ramfelt, Kjellberg, and Kosnik (2013) Gear Up: Bring Business Opportunities to Life.

BUSINESS MODEL Source: Ramfelt, Kjellberg, and Kosnik (2013) Gear Up: Bring Business Opportunities to Life.

FROM IDEA TO CASH Source: Ramfelt, Kosnik, and Kjellberg (2011) "Do you Delight?" Closed Beta. Do Not copy or Distribute.c

Source: Ramfelt, Kjellberg, and Kosnik (2013) ”Gear Up: Your Best Idea Ever” Do Not copy or Distribute.

Source: Ramfelt, Kjellberg, and Kosnik (2013) ”Gear Up: Your Best Idea Ever” Do not copy or distribute.

Source: Ramfelt, Kjellberg, and Kosnik (2013) ”Gear Up: Your Best Idea Ever” Do Not copy or Distribute.

Exercise: The Zero Game Work in your teams What are the largest costs for your competitors, if you have a social business or for competitors of: Identify ways to drive the costs to zero – or to a very small number. Prepare to share

Muhammad Yunus on “Social Business Model” http://www.youtube.com/watch?v=0C3XQ3BTd4o

Eric Osterwalder on Business Model Canvas http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2877

The Business Model Canvas key activities value proposition customer relationships key partners customer segments cost structure revenue streams key resources channels http://www.businessmodelgeneration.com/ accessed September 21, 2010. 17 images by JAM

Social Business Model Canvas Adapted by Tom Kosnik from the Business Model Canvas 9 Guesses Beneficiaries Or Customers’ Customers Social Impact Environmental Impact http://www.businessmodelgeneration.com/ accessed September 21, 2010.

Identify your key assumptions – Your “Best Guesses” Beneficiaries Or Customers’ Customers Guess Guess Guess Guess Guess Guess Guess Guess Guess Guess Social Impact Environmental Impact Guess Guess http://www.businessmodelgeneration.com/ accessed September 21, 2010.

Exercise Work in your teams Identify 1 part of the Business Model canvas that you can innovate for your social venture or for: Make a plan to “Get out of the building” to test your innovation with customers & channel partners.

Exercise: Identify at least one part of the business model canvas where you can innovate. “Get out of the building” and test your idea for business model innovation with customers & partners. 9 Guesses Beneficiaries Or Customers’ Customers Social Impact Environmental Impact http://www.businessmodelgeneration.com/ accessed September 21, 2010.

Business Model Summary: Two complementary tools enable effective analysis of your business model: Gear Up & Business Creation: The Zero Game Business Model Canvas What do all the tools have in common? Get out of the building & talk to customers and partners to test your assumptions. Refine your business model or pivot* * “Pivot” is used by Steve Blank and Eric Reis to mean a change in direction - different customer segment or different value proposition.

This Talk is Based On Three Books Gear Up Business Model Generation The Startup Owner’s Manual

Shameless Plug: Gear Up is available on Amazon.com: http://www.amazon.com/Gear-Up-Business-Potential-Success/dp/085708562X/ref=sr_1_1?s=books&ie=UTF8&qid=1400514218&sr=1-1&keywords=ramfelt+gear+up#

Thank You Tom Kosnik +1 650 450 3330 kosnik.tom@gmail.com

Guy Kawasaki on “Business Model” http://www.youtube.com/watch?v=G4O0epfxzq4

A Business Model Shows Your Critical “Guesses,” AKA Assumptions or Hypotheses Conversion rate (from prospect to paying customer) Customer acquisition cost Average selling price per unit Variable cost per unit Material cost Distribution channel margins Length of sales cycle Life time value of a customer Etc. Test your guesses/assumptions/hypotheses about these key numbers before developing elaborate financial projections for a business plan. Adapted from: Blank, Steven B. (2011) “Business Model” Talk delivered at Clean Tech Open Accelerator Workshop.