LaunchWeekend - Friday Night Slides

LAUNCH YOUR BUSINESS IN A WEEKEND SUPPORTED BY DESIGNERS, DEVELOPERS AND BUSINESS EXPERTS

WHY LAUNCHWEEKEND?

South Africa needs entrepreneurs

We are being whipped by China, India, Brazil, USA, Kenya, etc. Many entrepreneurs fail from avoidable mistakes

WHAT IS LAUNCHWEEKEND?

Learning experience: Lean Startup, Startup Science and Effectuation

Competition: Get more done, Bring out your best

Mentors and advice: Designers, Accountants, Startup Experts, Cofounders, Marketers

Build your business: Business Model, Customer Validation, Logo, Website, Financial Plan, Go-to-market, Test Critical Assumptions, Validate Business Model

FoundersCircle: Smart entrepreneurs sharing great ideas. Invite only club for up and coming entrepreneurs.

ADMIN?

Twitter Hashtag: LaunchWeekend

Facebook:

Blog:

Wi-Fi Code:

Restrooms:

Fri

18:00 Idea pitches 18:30 Team formation 19:00 Lesson: Introduction and Lean Startup20:00 Day 1 finishes / starts

WEEKEND SCHEDULE

Sat

09:00 Lesson: Experiments 10:00 Test key assumptions 13:00 Lesson: MVP 14:00 Test key assumptions / Build MVP 19:00 Day 2 finishes / starts

Sun

09:00 Lesson: Effectuation 10:00 Test key assumptions / Build MVP13:00 Lesson: Startup Science 14:00 Prepare pitch 16:00 Pitches 19:00 Day 2 finishes / starts

OBJECTIVE 1

Radically improve your startups chance of success

Very Unlikely

VeryLikely

Even chance

1

2

3

4

5

6

7

8

9

10

Financial Management

Industry Knowledge

Quality of Advice Sort

Team Quality

Opportunity

Traction

Business as a priority

Business Community

Pre-mature scaling

Vision

A large body of research shown that these 10 variables predict startup success

STARTUP SCIENCE

EFFECTUAL THINKING

Inside the minds of great company

builders

OBJECTIVE 2

Help you find a plan that will work

Average plan Awesome plan

15 secs

Who you are?

PITCHES (60 SECONDS)

What is your idea / business?15

secs

15 secs

15 secs

How much progress have you made?

What help do you want?

1 Balanced team are better

TEAM FORMATION SUGGESTIONS

Ideally 2 to 4 members

EXPERTS

2

ENTREPRENEURS

It okay to move3

Work in parallel 4

1 Take advice

Be open to new ideas2

Delegate3

Healthy debate is good4

WHO WANTS TO PITCH FIRST?

WHAT’S WRONG WITH MY PLAN?

WHAT’S WRONG WITH MY PLAN?

WHAT’S WRONG WITH MY PLAN?

Source: Bhide (2000)

33% 66%

No!Yes!

WHAT’S WRONG WITH MY PLAN?

WHAT’S WRONG WITH MY PLAN?

WHAT’S WRONG WITH MY PLAN?

entrepreneurs that attend our training significantly changed their business model, for the better.

97%

HOW DO YOU KNOW IF YOUR PLAN IS GREAT?

The only thing that matters is product/market fit- Marc Andreessen

PRODUCT/MARKET FIT?

Interest!

Satisfaction!

vs.

HOW DO YOU ENSURE YOUR PLAN WILL WORK?

HOW TO CREATE PLAN THAT WORKS?

1. Sketch your business model (Plan) 10 minutes 2. Identify critical assumptions 5 minutes 3. Test critical assumptions 4. Keep changing until you find one that works

ALEX OSTERWALDER

CUSTOMER SEGMENTS

VALUE PROPOSITION

DISTRIBUTION CHANNELS

MARKETING, SALES AND SERVICE

REVENUE STREAMS

KEY RESOURCES

KEY ACTIVITIES

KEY PARTNERS

COST STRUCTURE

How much did the price of coffee consumption change in Swiss households over the last

couple of years?

800%

What was Nesspro’s business model?

businesses

Households(espresso fans)

Nespressomachines

businesses

Households(espresso fans)

Nespressomachines

businesses

Households(espresso fans)

Sales of Machines

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Sales of Machines

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Sales of Machines

NespressoPods

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

NespressoPods

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

NespressoPods

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

CallCentres

NespressoPods

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

CallCentres

NespressoPods

Nespresso.com

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

Nespresso

StoresCall

Centres

NespressoPods

Nespresso.com

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

Nespresso

StoresCall

Centres

NespressoPods

Nespresso.com

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

Nespresso

StoresCall

Centres

Distributionchannels

NespressoPods

Nespresso.com

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

Nespresso

StoresCall

Centrespatents

Distributionchannels

NespressoPods

Nespresso.com

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

Nespresso

StoresCall

CentresProduction

facilitiespatents

Distributionchannels

NespressoPods

Nespresso.com

b2c

distribution

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

Nespresso

StoresCall

CentresProduction

facilitiespatents

Distributionchannels

NespressoPods

Nespresso.com

b2c

distribution

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

Nespresso

StoresCall

Centres

Marketing &Sales

Production

facilitiespatents

Distributionchannels

NespressoPods

Nespresso.com

b2c

distribution

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

Nespresso

StoresCall

Centres

Marketing &Sales

Production

Production

facilitiespatents

Distributionchannels

NespressoPods

Nespresso.com

Coffee

machine

manufactures

b2c

distribution

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

Nespresso

StoresCall

Centres

Marketing &Sales

Production

Production

facilitiespatents

Distributionchannels

NespressoPods

Nespresso.com

Coffee

machine

manufactures

b2c

distribution

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod Sales

Sales of Machines

Mail Order

Nespresso

StoresCall

Centres

Marketing &Sales

Production

Coffeegrowers

Production

facilitiespatents

Distributionchannels

NespressoPods

Nespresso.com

Coffee

machine

manufactures

b2c

distribution

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod SalesProduction

Sales of Machines

Mail Order

Nespresso

StoresCall

Centres

Marketing &Sales

Production

Coffeegrowers

Production

facilitiespatents

Distributionchannels

NespressoPods

Nespresso.com

Coffee

machine

manufactures

b2c

distribution

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod SalesProduction

Sales of Machines

Mail Order

Nespresso

StoresCall

Centres

Marketing &Sales

Production

Coffeegrowers

B2cdistribution

Production

facilitiespatents

Distributionchannels

NespressoPods

Nespresso.com

Coffee

machine

manufactures

b2c

distribution

coffee

Nespressomachines

businesses

Households(espresso fans)

Retail outlets

Pod SalesProduction

Sales of Machines

Mail Order

Nespresso

StoresCall

Centres

Marketing &Sales

Production

Coffeegrowers

marketing

B2cdistribution

Production

facilitiespatents

Distributionchannels

NespressoPods

Nespresso.com

KAUFMANN PROVE IT VIDEO

1. INSERT VIDEO

THE LAUNCH CANVAS

BUSINESS MODEL

PROCESS

EXPERIMENTS

COULD SEGWAY HAVE SAVED MILLIONS?

Assumption Learning Task Expected Result Actual Result Decision

Experi

ment 1

Experi

ment 2

Customer will purchase

Sell to 100 customers

30 / 100

will purchase

the product

0 / 100

purchased the

product

Pivot:

New idea

Mass MarketSegway

personal

transporter

COULD MOTOROLA HAVE SAVED BILLIONS?

Assumption Learning Task Expected Result Actual Result Decision

Experi

ment 1

Experi

ment 2

Customer will purchase

Sell to 100 customers

5 / 10

will purchase

the product

0 / 10

purchased the

product

Pivot:

New idea

Mass MarketIrrium

Phone

IT SAVED US A YEAR?

1. INSERT VIDEO

THE LAUNCH CANVAS

1 SKETCH BUSINESS MODEL

2 IDENTIFY ASSUMPTIONS & UNKNOWNS

Customer

Distribution

RevenueCosts

Partners

Activities

Resources

Value Proposition

Marketing

Unknown 1

Unknown2

Unknown3

Unknown4

Unknown5

3 ORDER ASSUMPTIONS

5 VALIDATE QUALITATIVELY

4 RUN EXPERIMENTS

6 VALIDATE QUANTITATIVELY

THE LAUNCH CANVAS

Customer

Distribution

RevenueCosts

Partners

Activities

Resources

Value Proposition

Marketing

Unknown 1

Unknown2

Unknown3

Unknown4

Unknown5

1 SKETCH BUSINESS MODEL

2 IDENTIFY ASSUMPTIONS & UNKNOWNS

3 ORDER ASSUMPTIONS

HOW TO IDENTIFY ASSUMPTIONS?

Question 1:How much proof do we

have this is true?

Question 2:How much will the

business model need to change if this

assumption is wrong?

Unknown 1

Unknown2

Unknown3

Unknown4

Unknown5

THE LAUNCH CANVAS

1 SKETCH BUSINESS MODEL

2 IDENTIFY ASSUMPTIONS & UNKNOWNS

Customer

Distribution

RevenueCosts

Partners

Activities

Resources

Value Proposition

Marketing

Unknown 1

Unknown2

Unknown3

Unknown4

Unknown5

3 ORDER ASSUMPTIONS

5 PROVE THE MODEL QUALITATIVELY

4 PROVE THE MODEL WITH RESEARCH / INTERVIEWS

6 PROVE THE MODEL QUANTITATIVELY

Learningtask Expected

ResultActual

ResultActual

Result

Partners

Resources

Customers

Learningtask Expected

ResultActual

ResultActual

Result

Learningtask Expected

ResultActual

ResultActual

Result

Learningtask Expected

ResultActual

ResultActual

Result

Value

Proposition

Activities Marketing

Distribution

RevenueCosts

Learningtask Expected

ResultActual

ResultActual

Result

Expected

ResultActual

ResultActual

ResultUnknown Learningtask

Expected

ResultActual

ResultActual

ResultUnknown Learningtask

Expected

ResultActual

ResultActual

ResultUnknown Learningtask

Expected

ResultActual

ResultActual

ResultUnknown Learningtask

Expected

ResultActual

ResultActual

ResultUnknown Learningtask

Customers

Distribution

RevenueCosts

Resources

Value

Proposition

Activities

Partners

Marketing

READY FOR

INVESTMENT AND

RAPID GROWTH

TONIGHT

1 SKETCH BUSINESS MODEL

2 IDENTIFY ASSUMPTIONS & UNKNOWNS

3 ORDER ASSUMPTIONS

5 PROVE THE MODEL QUALITATIVELY

4 PROVE THE MODEL WITH RESEARCH / INTERVIEWS

6 PROVE THE MODEL QUANTITATIVELY

READY FOR

INVESTMENT AND

RAPID GROWTH