Entrepreneurship Lesson 6 0

Agenda Topics: Review Entrepreneurship Building a Business Creating your Business Model Case Study: Angry Birds Activity: Create your team’s Business Plan 1

Can you recognize these entrepreneurs? 2

You’re Right! Steve Jobs Mark Zuckerberg Oprah Winfrey Mary Kay Ash 3

Do you know any female entrepreneurs? Caterina Flake is the founder of Flickr and Hunch Gabrielle "Coco" Bonheur Chanel founded Channel Robin Chase is a co- founder and former CEO of Zipcar Sandy Jen is is a co- founder of Meebo, a social media platform 4

Think-Pair-Share: What do you think are the personal characteristics of an entrepreneur? What do you think it would take for you to become an entrepreneur when you are older? Think-Pair-Share 5

What does it take to build a profitable business? Elements of a business plan: 1.Value Proposition 2.Market Size 3.Revenue Streams 4.Cost structure 5.Distribution Channels Review page 18 of the workbook for a list of terms. 6

Case Study: Angry Birds Angry Birds – a mobile phone application puzzle game 7

Value Proposition What value do we deliver to the customer? Which one of your customer’s problems are you helping to solve? 8

Angry Birds: Value for users Angry Birds frees people from boring situations and provides entertainment 9

Value Proposition Example Value propositions look like this: For target customer who statement of the need or opportunity, (product/service name) is product category that statement of benefit. 10

Market Size You want to build a business where there are enough people who would buy the product to make you money. These can be both paying and non- paying customers. 11

Angry Birds: Market Size Entertainment through games Multiple versions available Accessible on different platforms 12

Revenue Streams Paid Apps Advertising and In-game purchases 13

Angry Birds: Revenue Streams 1.Advertising 2.Paid application 3.In-app purchase 4.Angry Bird merchandise 14

Cost Structure What are the most important costs in your business? If you were to turn this app into a real business, what else would you have to pay for? Think-Pair-Share 15

Angry Birds: Cost Structure The game took $122,880 to program in total Pay a cost to platforms Operations: Rent for office building Raw materials for merchandise Salaries for Employees Computers and Development Software Source: winner?page=all 16

Distribution Channels How are you reaching your customers? Which ones work best? Which are the most cost-efficient? 17

Angry Birds: Distribution Channels December 2009, Angry Birds hit the App Store Apple App Store, Android Market, Angry Birds Website, Facebook platform, Roku platforms Stores for Angry Bird merchandise 18

Business Model Summary Value Propositions Market Size Revenue Streams Cost structure Distribution Channels 19

Activity: Business Model In your workbook, write down the following: What is your target market? How big is your market? What will your revenue streams be? Cost Structure? Distribution Channels? Record your ideas in pages of the workbook 20

Task List Complete the business model for your app. You’ll need it to finalize your business plan. Continue to work on the functionality of each individual screen in your prototype, starting with the easiest components. 21

Business Model Canvas ProblemSolutionUnique Value Proposition Unfair Advantage Customer Segments Cost StructureRevenue Streams Key Activity/ Metrics Channels Date:__________ Version:_________ Top 3 problemsTop 3 features Single, clear, compelling message Why you are different & worth buying. Can't be easily copied or bought. Target Customers Activity that drives retention/revenue. Path to customers Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Model Lifetime value Revenue Gross Margin Name_____________________________ Project____________________________       Alternatives

23 Business Model Canvas WHAT is the Problem You’re Trying to Solve WHO Has the Problem HOW How do you solve this problem? How big is the market? How are you going to reach the customer? How do you drive demand? How will you make money?

Business Model Canvas Track the current Business Model of your Startup. Repeat for each iteration of your business model. Don‘t delete the prior slides; it‘s important to be able to see the evolution of the ideas. 1.Product - Briefly describe the top 3 problems you are addressing 2.Customer Segments Who are the customers/users of this system - Can they be further segmented? Ex: amateur photographers vs. pro photographers. Create a separate canvas for multiple target customers. Different problem, solution, 3.Unique Value Proposition Product’s tagline or primary reason you are different & worth buying? 4.Solution - What is the minimum feature set (MVP) that demonstrates the UVP up above? 5.Key Activity - Describe the key action users take that maps to revenue or retention? Ex: if you are a blogging platform, posting a blog entry would be a key activity. 6.Channels - List the FREE and PAID channels you can use to reach your customer. 7.Cost Structure - List out all your fixed and variable costs. 8.Revenue Streams Identify your revenue model – subscription, ads, freemium, etc. and outline your back-of- the-envelope assumptions for life time value, gross margin, break-even point, etc. 9.Unfair Advantage This is the hardest - What are you doing that can not be easily copied or bought?

25 Resources 10 Qualities of Successful Entrepreneurs (and How to Nurture Them in YOU) entrepreneurs-and-how-to-nurture-them-in-you-3/ entrepreneurs-and-how-to-nurture-them-in-you-3/ Starting a Business in 2014 (Yes, YOU!) 5 Essential Rules for App Idea Generationhttp:// rules-for-app-idea-generation/ rules-for-app-idea-generation/ 10 Practical Techniques for Generating App Ideashttp:// techniques-generating-app-ideas/ techniques-generating-app-ideas/ Creating a Business Model Canvas For An Apphttp:// lean-canvas-app/ lean-canvas-app/ Marketing Your App With a Website: How to Get Startedhttp://blog.sensortower.com/blog/2013/07/24/marketing-your-app-with- a-website-how-to-get- started/?utm_content=bufferb7e6a&utm_medium=social&utm_source=twitter.co m&utm_campaign=bufferhttp://blog.sensortower.com/blog/2013/07/24/marketing-your-app-with- a-website-how-to-get- started/?utm_content=bufferb7e6a&utm_medium=social&utm_source=twitter.co m&utm_campaign=buffer