1. 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

2. 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

3. 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.

4. Agenda

5. Agenda

6. 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

7. 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.

8. 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.

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

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

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

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

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

14. 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

15. Muhammad Yunus on “Social Business Model”

16. Eric Osterwalder on Business Model Canvas

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

18. Social Business Model Canvas Adapted by Tom Kosnik from the Business Model Canvas
9 Guesses
Beneficiaries Or
Customers’ Customers
Social Impact
Environmental Impact
accessed September 21, 2010.

19. 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
accessed September 21, 2010.

20. 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.

21. 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
accessed September 21, 2010.

22. 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.

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

24. Shameless Plug: Gear Up is available on Amazon.com:

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

26. Guy Kawasaki on “Business Model”

27. 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.