1. UMSI Entrepreneurship UMSI 663 Fall 2015 11/6/2015 Week #13 Nancy A. Benovich Gilby Ehrenberg Director of Entrepreneurship Clinical Associate Professor School of Information 650-539-8376 nabgilby@umich.edu

2. Team Project Overview 1.Form your team, establish ground rules, Interviews round 1 2.Review Customer Development Round 1 and Potentially Pivot, Competition, Market size 3.Review Customer Development Round 2, Pivot? 4.Review Customer Development Round 3, Pivot? KJ Affinity Diagram, Test with Users 5.Design Thinking for initial brainstorming, wireframe test with users, Skeleton of App 6.Business Model Canvas, Front End Screens in Swift (MVP1) and optional, start prototype language 7.Skelton for prototype starting from Parse examples, Dummy Dataset, (MVP2) Draft pitch and Demo Story, Elevator Pitch, 8.Final Dataset, backend, build app scaffolding, (MVP3) 9.All teams pitch and review, MVP prototype (MVP FINAL) 10.Pitch and demo to VCs, Executives, Entrepreneurs Project Week:

3. Are you having fun yet….MVP1 Swift Code? PAT YOURSELF ON THE BACK, YOU’VE JUST GOTTEN FARTHER THAN 90% of MOST MOBILE ENTREPRENEURS!!!!

4. Today Last month! Storytelling, pitching to investors Shareout – Business Model Canvas, Front end screens in Swift, user scoring Initial full-stack application template using Parse assignment

5. Final Project Demo You must be able to adequately demo your value proposition It must be CLEAR what your 3 top problems/meaningful items were from your KJ and specifically show in your demo how you are addressing them EVERYTHING else is gravy, you can have dummy screens, dummy data etc etc etc, this is NOT a fully working, ready to hand off MVP

6. Final Project Demo/Swift Code Requirements You can choose to do either: –ONE Swift MVP prototype for demo or –BOTH a high-fidelity prototype (Axure, Invision, proto.io) AND a small swift final project (due 12/18) SMALL SWIFT Final project 1.At least 4 screens with segues 2.Takes information from Parse, puts it on the screen 3.Modifies information and saves to Parse 4.At least 1 working control with an action

7. KJ of Note: The main difference is that Affinity Diagram focus on ideas whereas KJ Analysis is focusing on “facts”. MIT Rule of “7” –If you have a crisp target user definition, you only need to interview 7 people and you will start hearing the same things. –Set out to interview 15 or 20 with the end goal you will cull down to 7

8. (Udemy Story telling, pitching)

9. Assignment #19: Top-Line Sustainability/Revenue Model Must get to > $80M in 5 years, territories, products etc that are needed to get there must be clear on your timeline

10. Hockey Stick The VC Revenue Curve Expectation: What is Success?? Big Enough Idea That It’s not Just Another Mouse Trap Time (years) First batch of users Everything is going according to plan Go public, everyone makes millions Users/ Revenue In the Tornado, can barely keep up with customer growth 1 3 5 $100M

11. Assignment #20: Project name, elevator pitch, logo

12. Assignment #21: Draft Pitch / Draft Demo Story Script

13. Assignment #23: MVP2 either: - parse skeleton, log in/out, data tables to front end screens, should all "run" but not much happens OR - Start on high fidelity protototype What every you do here should be easily identifiable in this week's trello board. Really, you don't have to do a whole lot this week, just forward progress.

14. Assignment #22: Trello Board with User Stories to Cover Your Demo Make a trello board with user stories for your demo, backlog, what’s needs to be done this weeks sprint, what it means for those items to be done on the back and by next week, all those items done for an in class standup

15. Pitches 5 minutes pitch & demo 5 minutes of questions/feedback from the judges

16. Start Final Pitch & Demo Incorporate an opening scenario, which sets an urgent narrative, then follow that scenario through in your demo Remember, the most convincing presentations and demos (convincing that your team and your proposition is most likely to be used and to make an impact on those users) will be scored the highest. Make your presentations as indisputable as possible......QUOTE YOUR USERS!!!....use them in building your case!!!

17. Prepare Your Pitch Deck for Questions Appendix –KJ –Additional customer quotes, testimonials –Scores (Importance/Satisfaction from Demo scoring) –Anything else that strengthens your proposition Market data Market landscape News/Blog articles in your area

18. WHAT: Sequoia 10/Art of the Start 10 10 slides for a VC Pitch: 1.Title 2.Problem 3.Solution 4.Business model 5.Underlying magic 6.Marketing and sales 7.Competition 8.Team 9.Projections 10. Status and timeline

19. Your Presentation Format: 5 Minutes http://www.sequoiacap.com/grove/posts/6bzx/writing-a-business-plan We like business plans that present a lot of information in as few words as possible. The following business plan format, within 15–20 slides, is all that’s needed. 1.Company purpose –Define the company/business in a single declarative sentence. 2.Problem –Describe the pain of the customer (or the customer’s customer). –Outline how the customer addresses the issue today. 3.Solution –Demonstrate your company’s value proposition to make the customer’s life better. –Show where your product physically sits. –Provide use cases. 4.Why now –Set-up the historical evolution of your category. –Define recent trends that make your solution possible. 5.Market size –Identify/profile the customer you cater to. –Calculate the TAM (top down), SAM (bottoms up) and SOM. 6.Competition 6.List competitors 7.List competitive advantages 7.Product Detail & Demo o Product line-up (form factor, functionality, features, architecture, intellectual property). o Development timeline roadmap. 6.Team o Founders & Management o Board of Directors/Board of Advisors

20. ShareOut Name Elevator Pitch Best Business or Lean Model Canvas Swift Front End Screens (or mockup) User score

21. Business Model Canvas: 3

22. leanstack.com

23. Lean Model Canvas