How To Win the StartUp Cup Business Model Competition!

How To Win the StartUp CupBusiness Model Competition!

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Starting A Company Is A Lot Like Making Sausage

NotPretty!

Not For Faint of Heart

Never, Ever Give Up!

Business Plans = StaticThe Business Plan is Dead

A well written plan that projects an unknown future with detailed graphs and pretty pictures, generally, focused on raising money

Typically not connected to reality of current market conditions

Business Model = DynamicLong Live the Business Model

Supports going to market quickly and testing assumptions

Securing customers and generating revenue as fast as possible

The goal for an entrepreneur with a new business concept is to

identify a business model, test assumptions, secure customers, and evolve their model as they

grow revenue and market share.

What used to take years now takes months

Ask, “How can I get my product or service to market faster?”

What took lots of money now takes less

Ask “How little money do I need to get my company off the ground?What is the quickest path to generating repeatable revenue?”

“Entrepreneurship is the process of creating or seizing an

opportunity and pursuing it regardless of the resources

currently controlled.”Andy Timmons, Harvard University

Def_Business Model

A business model describes the rationale of how an organization creates, delivers, and captures value.

Utilize the Business Model Scorecard. Self-Guided Visual Thinking Tool Specifically Designed to Accelerate StartUp

Business Model Design

Step I: What is the Value Proposition?

How Are You Different?What Need Are You Filling?

Step II: Customer Development

Customer• Who is your target customer?• Everyone is NOT your customer• Why will they buy your offering?

Product/Service• What are you selling?• Be specific

Market• How big is your market?• What is the growth potential?

Vehicle/Channel• How are you going to get your product or service to your customer?

Step III: Revenue Development

Revenue• How will you generate revenue?• How many revenue streams are there?

Expenses• What will you spend money on?• Phone, travel, legal, tech, design, etc.

Resources• What connections can you leverage?• What resources do you need?

Step IV: Team Development

Team• What talents and skills do you require?• Legal, designer, developer, marketing?

Promotion• Getting your message and story out• Internet, events, direct marketing?

Sales • How are you going to close the deal?• How will you turn potential into sales?

Funding• How are you funding your startup?• Friends, family, fools, credit cards?

Step V: Action and Testing

Your Job• Remain open to different thinking

• Look for solutions that increase value

• Search for ways to accelerate to market

• Experiment on different ways to create revenue

• Celebrate successes

Engage Business Model Thought Partners

Grow A Team & Collect People