1. VENTURE LAB Session 1 Part 3

2. Exercise: Facebook business model Sketch the business model with your team members

3. Facebook business model

4. Example: Gillette ( razor and blades ) Business Model

6. Team Exercise: Describe your product

7. I have

8. Your “Product” is NOT the Product

10. “Entrepreneurship in a lean startup is really a series of MVP’s” Eric Ries

46. Customer Development and Product Development

47. Concept/ Bus. Plan Product Dev. Alpha/Beta Test Launch/1st Ship Product Development

48. Customer Development and Product Development Concept/ Bus. Plan Product Dev. Alpha/Beta Test Launch/1st Ship Product Development

49. Customer Development The Search for the repeatable and scalable Business Model

50. Customer Development The Search For the Business Model Company Building Customer Discovery Customer Validation Customer Creation Pivot

51. Is this fail proof ?

52. Pivot

53. The Pivot The heart of Customer Development Iteration without crisis Fast, agile and opportunistic

54. Pivot Cycle Time Matters Speed of cycle minimizes cash needs Minimum feature set speeds up cycle time Near instantaneous customer feedback drives feature set

55. Video Hyptheses

56. Customer Discovery Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed

57. Customer Discovery Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed TAM/SAM Product MVP Customers Channel Market Type Customer Relationships: Get/Keep/Grow Key Resources Partners Pricing

58. Customer Discovery - Physical Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed TAM/SAM Low Fidelity MVP Customers Channel Market Type Cust Relationships Traffic Partners Pricing Customer Contacts Problem Understanding Customer Understanding Market Knowledge

59. Customer Discovery - Physical Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed TAM/SAM Low Fidelity MVP Customers Channel Market Type Cust Relationships Traffic Partners Pricing Update Bus Model Create Prototype/Prod Presentation Test Solution with Customer Update Business Model 1 st Advisory Board Members

60. Customer Discovery – Web/Physical Bus Model Canvas Extract Hypotheses Test Problem Test Solution Pivot or Proceed Verify the: Value Prop Cust Segment Cust Relationships Channel Revenue Model Pivot or Proceed TAM/SAM Low Fidelity MVP Customers Channel Market Type Cust Relationships Traffic Partners Pricing Customer Engagement Test Low Fidelity MVP Customer Understanding Traffic & Competitive Analysis

61. Customer Validation Get Ready to Sell Sell, Sell, Sell Positioning Pivot or Proceed Craft Positioning Develop Sales Materials Hire “Sales Closer” Sales Channel Action Plan Refine the Sales Roadmap Formalize advisory board

62. Customer Validation Get Ready to Sell Sell, Sell, Sell Positioning Pivot or Proceed Craft Positioning Acquire/Activate Plans Build High Fidelity MVP Build Metrics Toolset Hire data analytics chief Formalize advisory board Find Earlyvangelists Test Sell – Out of the Building Refine Sales Roadmap Test Sell Channel Partners

63. Customer Validation Get Ready to Sell Sell, Sell, Sell Positioning Pivot or Proceed Craft Positioning Acquire/Activate Plans Build High Fidelity MVP Build Metrics Toolset Hire data analytics chief Formalize advisory board Prepare Optimization Plans Out of the building Activation Test Measure and Optimize Results Test Sell Traffic Partners Company Positioning Product Positioning Validate Positioning

64. Customer Validation Get Ready to Sell Sell, Sell, Sell Positioning Pivot or Proceed Craft Positioning Acquire/Activate Plans Build High Fidelity MVP Build Metrics Toolset Hire data analytics chief Formalize advisory board Prepare Optimization Plans Out of the building Activation Test Measure and Optimize Results Test Sell Traffic Partners Assemble Data Validate Business Model Validate Financial Model Pivot or Proceed

65. Team Deliverable by Next Session ( MAR 10 th @ 4) 1. Hypotheses for each part of business model 2. Test for each of the hypotheses What constitutes a pass/fail signal for the test (e.g. at what point would you say your hypotheses wasn ’ t even close to correct? 3. Plan to get out of the building to test the hypotheses Summarized in a 10 Minute PowerPoint Presentation – Business Model Canvas – Getting out of the building plan Don’t Over Think Your Hypotheses

66. Out of the building ! YALLA

67. VENTURE LAB Session 1