TEDSTART | Startup Oasis
- 1. Stupreneurs Oct. 4 , 2017 | Startup Oasis
- 2. START UP SEARCH A START UP IS A TEMPORARY ORGANIZATION DESIGNED FOR SEARCHING A REPEATABLE AND SCALABLE BUSINESS MODEL What is a Startup? A Startup is not the smaller version of a Large Company
- 3. Build - Measure - Learn LEAN MODEL KEY HYPOTHESIS MINIMUM VIABLE PRODUCT VALIDATE / INVALIDATE The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or persevere. All successful startup processes should be geared to accelerate that feedback loop.
- 4. How to Build an MVP – The Lean Startup Way
- 5. Key Features of a Startup? • Built around major customer pain points • Deep understanding of customer behaviour and problems • Keen understanding of new / emerging technologies • Prototyping and business model validation • Unit economics validation • External funding and rapid growth 5
- 6. What is a Fundable Startup Business Model? 1. Startup is Solving a Real Problem 2. Has Customer Validation and Traction 3. A Scalable and Profitable Business Model, and… 4. …a Team with Complementary Skills that can Deliver Investors Fund Business Plans and Not Business Ideas
- 8. Business Model Components • Product Market Fit • Operating Model • Unit Economics • Defensibility 8
- 9. Product Market Fit 9 Business Modeling Parameter Details Definition of the Problem / Pain Point Addressed Is the Problem / Pain Point severe and big enough to be solved realistically by a startup? The Target Customer Segment Is the target segment very clearly defined? Is the target segment very focussed? Is the target segment measurable? The Proposed Solution (Value Proposition) Is the proposed solution relevant to the target segment and likely to lead to a realistic solution to the problem? Main Features of the Proposed Solution Are the main features likely to lead to the delivery of the proposed solution? These should be features that are of high relevance to the target segment How are these features better that the features offered by direct and indirectly competing products in the market? Is there a clear advantage vis a vis competitive products?
- 10. Operating Model 10 How would the product / service with the above features be developed? Is this is the most efficient and optimal method of developing the product / service? How would the target customer get to know about the product Is this is the most efficient and optimal method of communicating the product / service? How would the target customer order the product Is this is the most efficient and optimal method of ordering the product / service? How would the product be delivered to the target customer? Is this is the most efficient and optimal method of delivering the product / service? How would the payment be collected? Is this is the most efficient and optimal method of collecting payments for the product / service? How would the target customer be provided post sales service? Is this is the most efficient and optimal method of providing after sales service ?
- 11. Unit Economics 11 What would be the approximate cost of the items 5 to 10 Is this realistic and feasible? Unit Costs What would be the willingness of the target customer to pay for the above product Is this realistic and feasible? What would be the Contribution to cover the Overheads Is there enough contribution to cover the overheads? How would be the Customer / Stakeholder Pay for the Product (Revenue Model) Is the revenue model realistic and relevant for the customer?
- 12. Defensibility 12 What is the Sustainable Competitive Advantage in the Business? Is the Competitive Advantage defensible?
- 13. The Product Market Fit MINI EXERCISE I SELL _____________A______________ (my core product) to _________________B________________ (my core customer) B has a problem, and it is _______________C__________________ (customer’s pain point) My product / service solves C by _______________D__________________ (how do you solve the problem)
- 14. Pitch Presentation • Idea(Try to explain in one line) • Pain Point/Problem Solved • Value Proposition • Product/Service Features( Problem Solution Fit) • Target Customer (Market Opportunity) • Competitive Analysis (Direct/Indirect) • Customer Acquisition Strategy(How to get 5 first early adopter) • Business Model(How you would generate revenue) • Social Impact(Added values to society, Productivity, Empowerment) • Team