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Slides for the Allan Gray Orbis pre-startership event.
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ALLAN GRAY ORBIS ndash STARTERSHIP PREPARATION
INTRODUCTION1000 TO 1010
WHO IS STARTUPCHERRY
WHAT IS LAUNCHWEEKEND
A workshop to help you start a successful company
Very Unlikely
VeryLikely
Even chance
Inside the minds of great company
builders
EVENTS
PRE-EVENT STARTERSHIP
1 PITCH
AT STARTERSHIP
2 VOTE 3 TEAM
FAQ
WHAT IF THEY STEAL MY IDEA
1 A NEW SEARCH ENGINE
2 REPLACE EMAIL
3 REPLACE UNIVERSITIES
4 HOLLYWOOD ON THE INTERNET
5 BE THE NEXT STEVE JOBS
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
INTRODUCTION1000 TO 1010
WHO IS STARTUPCHERRY
WHAT IS LAUNCHWEEKEND
A workshop to help you start a successful company
Very Unlikely
VeryLikely
Even chance
Inside the minds of great company
builders
EVENTS
PRE-EVENT STARTERSHIP
1 PITCH
AT STARTERSHIP
2 VOTE 3 TEAM
FAQ
WHAT IF THEY STEAL MY IDEA
1 A NEW SEARCH ENGINE
2 REPLACE EMAIL
3 REPLACE UNIVERSITIES
4 HOLLYWOOD ON THE INTERNET
5 BE THE NEXT STEVE JOBS
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHO IS STARTUPCHERRY
WHAT IS LAUNCHWEEKEND
A workshop to help you start a successful company
Very Unlikely
VeryLikely
Even chance
Inside the minds of great company
builders
EVENTS
PRE-EVENT STARTERSHIP
1 PITCH
AT STARTERSHIP
2 VOTE 3 TEAM
FAQ
WHAT IF THEY STEAL MY IDEA
1 A NEW SEARCH ENGINE
2 REPLACE EMAIL
3 REPLACE UNIVERSITIES
4 HOLLYWOOD ON THE INTERNET
5 BE THE NEXT STEVE JOBS
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHAT IS LAUNCHWEEKEND
A workshop to help you start a successful company
Very Unlikely
VeryLikely
Even chance
Inside the minds of great company
builders
EVENTS
PRE-EVENT STARTERSHIP
1 PITCH
AT STARTERSHIP
2 VOTE 3 TEAM
FAQ
WHAT IF THEY STEAL MY IDEA
1 A NEW SEARCH ENGINE
2 REPLACE EMAIL
3 REPLACE UNIVERSITIES
4 HOLLYWOOD ON THE INTERNET
5 BE THE NEXT STEVE JOBS
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Inside the minds of great company
builders
EVENTS
PRE-EVENT STARTERSHIP
1 PITCH
AT STARTERSHIP
2 VOTE 3 TEAM
FAQ
WHAT IF THEY STEAL MY IDEA
1 A NEW SEARCH ENGINE
2 REPLACE EMAIL
3 REPLACE UNIVERSITIES
4 HOLLYWOOD ON THE INTERNET
5 BE THE NEXT STEVE JOBS
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
EVENTS
PRE-EVENT STARTERSHIP
1 PITCH
AT STARTERSHIP
2 VOTE 3 TEAM
FAQ
WHAT IF THEY STEAL MY IDEA
1 A NEW SEARCH ENGINE
2 REPLACE EMAIL
3 REPLACE UNIVERSITIES
4 HOLLYWOOD ON THE INTERNET
5 BE THE NEXT STEVE JOBS
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
1 PITCH
AT STARTERSHIP
2 VOTE 3 TEAM
FAQ
WHAT IF THEY STEAL MY IDEA
1 A NEW SEARCH ENGINE
2 REPLACE EMAIL
3 REPLACE UNIVERSITIES
4 HOLLYWOOD ON THE INTERNET
5 BE THE NEXT STEVE JOBS
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
FAQ
WHAT IF THEY STEAL MY IDEA
1 A NEW SEARCH ENGINE
2 REPLACE EMAIL
3 REPLACE UNIVERSITIES
4 HOLLYWOOD ON THE INTERNET
5 BE THE NEXT STEVE JOBS
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHAT IF THEY STEAL MY IDEA
1 A NEW SEARCH ENGINE
2 REPLACE EMAIL
3 REPLACE UNIVERSITIES
4 HOLLYWOOD ON THE INTERNET
5 BE THE NEXT STEVE JOBS
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
1 A NEW SEARCH ENGINE
2 REPLACE EMAIL
3 REPLACE UNIVERSITIES
4 HOLLYWOOD ON THE INTERNET
5 BE THE NEXT STEVE JOBS
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHO DOES THE IP amp PRODUCT BELONG
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
IDEATION SESSION 1010 TO 1110
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
THE STORY OF TOPSY TAIL
Tomima Edmark
bull Tospy Tail $100 million sales in 1991
bull Bowrette turns ribbons into hair ornaments Failure
bull Halo Hat collapsible rain and sun hat Failure
bull Kiss enhancing machine Failure
bull 12 books Moderately profitable
bull Womenrsquos and menrsquos undergarments Moderately profitable
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
OPPORTUNITY MATTERS
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
THE STORY OF TOPSY TAIL
Source Shane (2009)
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
INDUSTRY INC 500
1 succeeds
582 succeed
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
NUMBER OF IDEAS EVALUATED BY ENTREPRENEURS
Source Gruber MacMillan and Thompson (2008)
5 or more opportunities
44
opportunities
73 opportuniti
es8
2 Opportunities6
1 opportunity 72
5 opportunities 2
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
MORE IDEAS = BETTER IDEAS
Source Terwiesck amp Ulrich (2009)
25
3
35
4
45
5
55
6
65
7
75
Terrible
Qu
ali
ty r
ati
ng
234 opportunities Generated identified
by 47 individuals
Revenge social network
Brokering ldquoMedical Tourismrdquo for semi-elective surgery
Amazing
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
TOP ACCELERATORS amp INVESTORS
100 business1 major success
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Se-ries1
IMPACT ON NEW PRODUCT SALES
79Idea management
Technology amp resource management
Strategic planning
Product developmentprocess
Market intelligence
67
55
48
24
Source Arthur D Little Innovation excellence study (2005)
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOW MANY IDEAS HAVE YOU CONSIDERED
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
IDEA GENERATION TECHNIQUES
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
1 COMBINING IDEAS
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
1 COMBING IDEAS
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
ldquoCreativity is connecting thingsrdquo
- Steve Jobs
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Platform for social
initiatives
Online site for gourmet foods
Social network for designers
Food sources for runners
African sauce company
African skin care range
Truly green car company
Search engine for banks
Pick up and drive at
sporting events
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
2 QUESTIONS
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Source Dyer Gregersen amp Christensen (2011)
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Source Dyer Gregersen amp Christensen (2011)
What is(Who Where
When Why)
What caused it(Why)
What if (What if we added
removed constraints)
Why Why not
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Source Dyer Gregersen amp Christensen (2011)
What makes space travel so expensive
- Elon Musk
Fuel is only 2 of the cost
What if we make a rocket that was
reusable like a car
Build a fully reusable rocket
Questions to understand the world as it is now
Questions to reinventthe future
PRESENT FUTURE
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
3 INDUSTRY KNOWLEDGE
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Previous work experience
20 Discovered serendipitously
4 Systematic search5 Other
71
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
GENERATING IDEAS FROM INDUSTRY
What fields do I have expertise deep knowledge in
bull What industries have you worked in
bull What industries do you know a lot about
bull What fields do you have deep expertise in
bull Where are your areas of expertise
bull What sportshobbies do you have deep knowledge of
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
4 COPY
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
OF CHINESE VC BACKED COPY CATS
Source Economist (2012)
50
Copy CatsOther
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
OF BRAZILIAN VC BACKED COPY CATS
Source Economist (2012)
Copy Cats
Other
70
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOW TO FIND THE BEST EMERGING BUSINESS IDEAS
1 VENTURE CAPITAL
2 ACCELERATORS
3 FAST GROW LISTS
4 CROWDFUNDING
5 INNOVATION COMPETITIONS
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
5 LEAD USERS
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHAT IS A LEAD USER
1
2
User of a productservice
Develops prototypes to solve problems
before the rest of the market
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
OF INNOVATIONS COMING FROM USERS
Series1
25Computer innovations
Chemical process innovations
Scientific instrument innovations
Semiconductorinnovations
Wire stripping innovations
70
63
11
82
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
LEAD USER INNOVATIONS
Centre Pivot Irrigation
Kite surfing
Mountain Bike
The Internet
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
IDEA GENERATION SESSION ndash TO DO LIST
1 Pick 3 techniques you will use (2 minutes)
bull Combing
bull Questioning
bull Industry knowledge
bull Copy
bull Lead users
2 Try each technique to generate at least 5 ideas (20 minutes)
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
BUSINESS MODEL CANVAS1110 TO 1210
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
OBJECTIVE
Help you find a plan that will work
Average plan Awesome plan
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHATrsquoS WRONG WITH MY PLAN
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHATrsquoS WRONG WITH MY PLAN
Source Bhide (2000)
33 66
NoYes
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
entrepreneurs that attend our training significantly changed their business model for the better
97
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHAT IS A GREAT PLAN
The only thing that matters is productmarket fit- Marc Andreessen
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
You can always feel product-market fit when itrsquos happening
- Marc Andreessen
bull The customers are buying the product just as fast as you can make it bull Usage is growing just as fast as you can add more serversbull Money from customers is piling up in your company checking account
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
You can always feel when product-market isnrsquot happening
- Marc Andreessen
bull The customers arent quite getting value out of the product bull Word of mouth isnt spreading bull Usage isnt growing that fast bull Press reviews are kind of blah bull The sales cycle takes too long bull And lots of deals never close
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
vs
HOW DO YOU ENSURE YOUR PLAN WILL WORK
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOW TO CREATE PLAN THAT WORKS
1 Sketch your business model (Plan)2 Identify key assumptions 3 Run experiments to test if it will work4 Keep changing your plan until it is almost
guaranteed to work
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
THE PLAN
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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 Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
COST STRUCTURE
How much did the price of coffee consumption change in Swiss households over the last
couple of years
800
What was Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
How much did the price of coffee consumption change in Swiss households over the last
couple of years
800
What was Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
800
What was Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
What was Nessprorsquos 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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
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
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
CallCentres
NespressoPods
Nespressocom
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centrespatents
Distributionchannels
NespressoPods
Nespressocom
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
CentresProduction
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod Sales
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Coffee
machine
manufactures
b2c
distribution
coffee
Nespressomachines
businesses
Households(espresso fans)
Retail outlets
Pod SalesProduction
Sales of Machines
Mail Order
Nespresso
StoresCall
Centres
Marketing ampSales
Production
Coffeegrowers
marketing
B2cdistribution
Production
facilitiespatents
Distributionchannels
NespressoPods
Nespressocom
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
BUSINESS MODEL CANVAS ndash TO DO LIST
1 Sketch out your business model canvas (20 minutes)
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOW TO PITCH YOUR IDEA IN 30 SECONDS1210 TO 1240
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOW TO PITCH
Hi my name is helliphelliphelliphelliphelliphelliphelliphelliphelliphellip (Your name)
I am starting a company (Company Name)
That (describe solution in simple language)
hellip (customer segment)
will buy from us becausehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip (describe value proposition)
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Hi my name is helliphellipCarlo Gonzaga(Your name)
I am starting a companyScooters Pizza(Company Name)
We plan on sellingpizza via delivery and retail locations(describe solution in simple language)
The mass market (customer segment)
Will buy from us becausehelliphelliphellipwe deliver in 39 minutes or it is free (describe value proposition)
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Hi my name is helliphellipTravis Kalanick(Your name)
I am starting a companyUber(Company Name)
Thatwill create a mobile app that letrsquos you order a taxi with your phone (describe solution in simple language)
The high end mass market (customer segment)
Will buy from us becausehellipyou can order a ride at the tap of a button and it is cheaper than a traditional taxi (describe value proposition)
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Hi my name is helliphellipSteve Jobs(Your name)
I am starting a companyApple(Company Name)
We plan on sellingportable media players(describe solution in simple language)
The high end mass market(customer segment)
Will buy from us becausehellipyou will be able to carry 1000 songs in your pocket (describe value proposition)
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Hi my name is helliphellipNick Woodman(Your name)
I am starting a companyGo Pro(Company Name)
We plan on sellingmounted video cameras (describe solution in simple language)
Surfers(customer segment)
will buy from us becausehelliphellipit is waterproof almost unbreakable and takes HD videos and photographs (describe value proposition)
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOW TO PITCH ndash TO DO LIST
1 Create your business pitch using the template (5 minutes)
2 Pitch your business idea to a fellow (10 minutes)
bull Ask them to describe what you do and how you can
improve your pitch
bull Have them pitch their business idea to you
bull Improve your pitch
bull Repeat x 2 (ie Pitch your idea to 3 people)
3 If you would like to pitch your idea to the room add your name
the list
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
LUNCH1250 TO 1330
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
CUSTOMER-PROBLEM FIT1250 TO 1330
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOW TO GET A PRODUCT-MARKET FIT (AKA THE WEEKEND PLAN)
1 A customer with problem
2 A solution customers will buy
3 Customers love using it
4 Cost effective marketing
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
CUSTOMER-PROBLEM FITYou have found a customer segment that
has a problem they will pay to have solved
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CD PLAYER JUMPS amp IT IS A
MISSION TO CARRY CDS
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
OVERSEAS CALLS ARE EXPENSIVE
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
IT IS A HEADACHE GETTING A
TAXI
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
PIZZA TOOK FOREVER TO
ARRIVE
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WARNING EXAMPLE PUMODO HOW NOT FIND A BIG PROBLEM
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOW DO YOU FIND CUSTOMERS PROBLEMS
BIG PROBLEM PROBLEM INTERVIEWS
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
CUSTOMER HYPOTHESIS
bull Who is your customer bull Be as specific as possible bull Target customers that are easy to reach
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
PROBLEM HYPOTHESIS
bull It is the customers problem (not your problem)bull I believe the customer has a (insert problem) achieving
(insert task or goal)
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
LOCATION HYPOTHESIS HOW TO FIND CUSTOMERS 1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOW TO CONDUCT A PROBLEM INTERVIEW
INTRODUCE
INDICATORS
INTERVIEW
INTRODUCTIONS
Reminder 4Is
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOW TO CONDUCT A PROBLEM INTERVIEW (4I TECHNIQUE)
INTRODUCE yourselfie Hi my name is [name] I am doing market research for a startup and
want to help you solve your problems and make your life better
Check customer INDICATORS ie Ask questions to test if they are in your target market
Conduct INTERVIEWie Ask Problem Competition and Switch questions
Ask for INTRODUCTIONS ie Ask for introductions to friends and colleagues
Reminder 4Is
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHAT QUESTIONS TO ASK
PROBLEM
COMPETITION
SWITCHSPEND
Reminder PCS
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
WHAT QUESTIONS TO ASK
PROBLEM What problems did you encounter when (describe problem context)
COMPETITION How do you currently solve the problem Likes Dislikes
SWITCHSPEND Would you switchspend money if there was a product that solved this
problem
Reminder PCS
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
PROBLEM INTERVIEW PRACTICE (3 INTERVIEWS)(40 MINS)PROBLEM What problems did you encounter when (describe problem context) COMPETITION How do you currently solve the problem Likes Dislikes SWITCHSPEND Would you switchspend money if there was a product that solved [repeat back the problem discovered with the first question]
INTRODUCE ie My name is [name] I am doing market research for a startup would it be okay if I asked you a few questions INDICATORS ie Ask questions to test if they are in your target market INTERVIEW ie Ask Problem Competition and Switch questionsINTRODUCTIONS ie Do you have any other friends or colleagues that I could interview
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOMEWORK HOW TO PREPARE FOR STARTERSHIP1500 TO 1600
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
KAUFMANN PROVE IT VIDEO
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Will the business work 2 stages of learning
1Discovery
2Validation
BuildSearch
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Will the business work 2 stages of learning
1Research
2Test
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Will the business work 2 stages of learning
1Ask
2Sell
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Will the business work 2 stages of learning
1Learn
2Confirm
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
What question are we trying to answer
Do they want what
we are making
Will they pay for it
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
We canrsquot
predict our own
behaviour
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Will the business work 2 stages of learning
1Interviews
2MVP
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Minimum variable product
A strategy used for fast and quantitative market
testing - Wikipedia
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Minimum variable product
A version of a new product which allows a team to
collect the maximum amount of validated learning
about customers with the least effort
- Eric Ries
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
Minimum variable product
The smallest solution you can build that captures
customer value [gets customers to pay]
- Ash Maurya
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
MVP 1 Sales presentations
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
BizLeague
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
MVP 2 Landing pageFacebook
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
MVP 3 Explainer Video
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
DropBox MVP Landing Page
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
DollarShaveClubcom
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
MVP 4 Startup Concierge
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
HOMEWORK BEFORE STARTERSHIP
1 CONDUCT AT LEAST 20 PROBLEM INTERVIEWSbull Keep interviewing until you can predict their answersbull Collect email and cell number bull Get permission to phone them on Startership weekend
2 PLAN YOUR MVP bull Sketch a 1-page plan on how you will quickly test customer interest
using an MVP
3 EXTRA HOMEWORK (OVERACHIEVERS) bull Read Lean Startup amp Running lean bull Do Udacity Startup 101 (Steve Blankrsquos course)bull Build and sell your MVP
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers
EXERCISE FINDING CUSTOMERS (30 MINS)
1 Friends and family (Facebook Linkedin Email Cell phone) 2 Shopping malls 3 Bored people (Waiting in lines Gautrain Bus stops Taxi ranks) 4 Cold calling (LinkedIn Facebook Google)5 Lead Generation (Landing Page OLX GumTree Google Ads
Facebook Ads) 6 Public spaces (Events Parks conferences)
Put together a plan (Location and time) on how you will meet with customers