1. Introduction to Business Model
« To explore the spectrum of possibilities,
bootstrapping is the most efficient method »
Hubert Reeves - Astrophysicist
Introduction to Business Model

2. 1 Understanding the risks

3. 1 – Understanding The Risks
Probability of success
Consumer product: 19%
B2B product: 27%
Understanding the risks

4. 1 – Understanding The Risks
The different type of failures
Trap: 28%
nobody buys…
“Me-too” : 36%
marginal improvement over existing product
killed by aggressive competition…
Environment.: 7%
legal issues, etc.
Bad product: 15%
doesn’t deliver, quality problem
Price war: 13%
Understanding the risks
78%
Based on the research of JM Choffray, and Gary L. Lilien

5. 2 The core principles

6. Discovery - Exploration
3 – Core Principles
Discovery - Exploration
(pursuing the…) Customer discovery
Understanding the risks
Core Principles
Meeting with customers (“get out of the building”)
How much do they like (my idea) ?
Refine understanding of usage, needs, barriers
Main challenge
Avoid close contacts, friends, family!
Founders must do the job
DO NOT SELL!!!

7. 3 – Core Principles Prototype Test and Experiment a quick & dirty mode
MVP
Test and Experiment a quick & dirty mode
The least number of functions (as rough as possible)!
Something the customer can touch and feel
Allows to collect more (relevant) feedback
DROP box mvp : a video
A spectrometer as a storyboard
A website for kids on paper:
Understanding the risks
Core Principles

8. 3 – Core Principles Driving Principles MVP Understanding the risks

9. 3 – Core Principles Driving Principles MVP Understanding the risks

10. 3 – Core Principles Driving Principles
Understanding the risks
Core Principles
Lean startup approach (Eric Ries)
Test experiment in a cheap/quick & dirty way
On-going roadmap of tests
Validated learning

11. 3 – Core Principles Pivot -Iterate
Understanding the risks
Core Principles
The heart of the Customer Development Process
Multiple iterations without crying
Rapid, agile and opportunistic (capture the unexpected)

12. Pivot 3 – Core Principles Pivot -Iterate Execution Search Time matters
Pivot!!! … as fast as possible
Understanding the risks
Core Principles
Customer Discovery
Customer Validation
Company
Building
Customer Creation
Execution
Pivot
Search
Time matters
MVP must speed up iteration cycle
Short cycles reduce cash burn
Driven by customer feedback!

13. 4 The Business Model Canvas

14. 4 – The Business Model Canvas
What is it about ?
2 very similar opportunities
Startup Opt
The N#1 skill
Driving in the dark – the rules
The Business Model Canvas

15. 4 – The Business Model Canvas
key activities
value proposition
customer relationships
key partners
customer segments
cost structure
revenue streams
key
resources
distribution channels

16. DISTRIBUTION CHANNELS
4 – The Business Model Canvas
PARTNER
NETWORK
KEY
ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER
SEGMENTS
KEY
RESOURCES
DISTRIBUTION CHANNELS
COST STRUCTURE
REVENUE STREAMS

17. DISTRIBUTION CHANNELS
4 – The Business Model Canvas
PARTNER
NETWORK
KEY
ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER
SEGMENTS
KEY
RESOURCES
DISTRIBUTION CHANNELS
COST STRUCTURE
REVENUE STREAMS
images by JAM

18. DISTRIBUTION CHANNELS
4 – The Business Model Canvas
PARTNER
NETWORK
KEY
ACTIVITIES
OFFER
CUSTOMER RELATIONSHIPS
CUSTOMER
SEGMENTS
Hypothèse
Hypothèse
Hypothèse
Hypothèse
Hypothèses
Hypothèse
KEY
RESOURCES
DISTRIBUTION CHANNELS
Hypothèse
Hypothèse
COST STRUCTURE
REVENUE STREAMS
Hypothèse
Hypothèse
Hypothèse

19. Business Model & Strategie
« To explore the spectrum of possibilities,
bootstrapping is the more efficient method »
Hubert Reeves - Astrophysicist
Business Model & Strategie