Powerbridge Customer Discovery and Markets

Overall Considerations Keep in mind: – Why Now? – Solution or Idea – Market Size – Revenue Model – Competition – Go to Market – Team – Milestones – Vision

Context for Product Market Fit The Myths – The Single Entrepreneur Myth Bigger Teams = Better Odds – Charisma is everything – Clear, recruits and can sell – There is an entrepreneurship personality type Skills and Ambition enable the process

What Makes a Scalable Biz Small and Medium Sized Enterprise Vs Innovation Driven Enterprise SME – Local – Linear Growth – Capital and growth

What Makes a Scalable Biz (cont) Innovation Driven Enterprise – Competitive Advantage – Scalable – Global – External Capital – Exponential Growth

Good Definition of Innovation for our Purposes Innovation = Invention X Commercialization Innovation can come in many forms – Technology – Process – Business Model – Positioning

Finding a Business Model You know: – Market – Customers – Product/services – Channel – Pricing

Types of New Ventures Idea – Bring clean water to the world Technology – Invisible Cloak Passion – Great Coder with no idea User Entrepreneurship – The Upside – You know the problem – The Downside – There is only one of you

“A startup is a temporary organization designed to search for a repeatable, scalable business model” – Steve Blank

Product Market Fit The Holy Grail – Finding it will require to get real and be specific Top down approach (China example) – One paying customers Must have a market where there is more than one paying customer Everyone needs something different – Feature Matrix or different market

Finding A Market You are looking for a specific Opportunity – Brainstorm Industries – Potential end users Sub categories of users What tasks do they perform? – Who is the customer? Multi-sided market

Criteria to Consider Customer has money? Can you get to your customers? Pain or need? Provide a complete solution? – Need to partner? Understand the incumbent competition if any? Adjacent Opportunities Do you believe?

Customer Interviews GET OUT OF THE BUILDING! One on One to learn the nuances Don’t lead the witness – Trying to initially figure out what they need, then you can focus on the solution

The Matrix of Finding a Market 1.End User – Who will use it? (not always payer) 2.Application – What task will be improved? 3.Benefits – What is gained? Time? Cost? 4.Lead Customer – Who are the lighthouse customers? 5.Market Characteristics – Help or hinder? Macro. 6.Partners/Players – Other companies to provide complete solution? Will they partner? 7.Size of Market – How many customers in 100% of YOUR market (TAM). 8.Competition – Direct and Adjacent? 9.Partners/Complementary Pieces Necessary – Could be similar to above or platform need (Xbox)

The Beachhead You must choose a discrete opportunity – Your best guess at a viable market that you can get started Not always the biggest but can lead other places Defining a Market – All customers buy similar products – Similar sales cycles and similar needs – There is a tangible community to approach Word of mouth

Business Model Canvas

The Business Model Canvas 1.Value Proposition-Its benefits and MVP 2.Customer Segments-who the customer is and what problem does product solve 3.Distribution Channels for Value Prop. – how will the product be distributed and sold 4.Customer Relationships – how to create demand 5.Revenue Streams – Revenue sources and size 6.Resources Needed – suppliers and other essential elements of the business 7.Partners and their incentives – Other companies essential to success 8.Activities Necessary to implement – What needs for go to market 9.Cost Structure – Basic costs and types of costs

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Mini-Case Keep in mind – Target Customer has a budget – Can you reach them – Need? – Complete solution – Current competition – Adjacent opportunities – Believe?

Keep in Mind Part I – Brainstorm on possible market segments Part II – GET OUT OF THE BUILDING You must speak directly to potential customers Part III – Detail one on one interviews – Create a market matrix Part IV – Choose an initial market and explain why Listen and be skeptical of your own beliefs