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Business Planning Dr. Tim Meldrum. Section 1 - Title. Student Start-Up Event Wednesday 28 th March 2012. ‘Ideas are ten-a-penny. Execution is everything’. Felix Dennis. The causal route to execution …. £. £. £. Product. Analysis. Plan. Investor Cash. T eam. . 3.1 minutes. - PowerPoint PPT Presentation
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Research and Enterprise Linking Minds and Markets
Section 1 - Title
Student Start-Up EventWednesday 28th March 2012
Business PlanningDr. Tim Meldrum
Research and Enterprise Linking Minds and Markets
‘Ideas are ten-a-penny. Execution is everything’
Felix Dennis
Research and Enterprise Linking Minds and Markets
The causal route to execution …
£££Product Team Analysis Plan Investor
Cash
Research and Enterprise Linking Minds and Markets
…can be a very rocky road
250 hours….3.1 minutes
2.0%
Research and Enterprise Linking Minds and Markets
Why do we need an alternative?
‘Most start-ups fail because they
didn’t develop their market, not because
they didn’t develop their product.’
Steve Blank (2005)
Research and Enterprise Linking Minds and Markets
The effectual route to execution
1. The market
2. The product
3. The venture
4. The future
Pivot …
Research and Enterprise Linking Minds and Markets
Four steps to validation
1. Market – customer discovery: what do they need?
2. Product – customer validation: meet that need
3. Venture – company creation: make & sell
4. Future – company sustainability: it lives & grows
The DOT Principle: Do, Observe, Think
Research and Enterprise Linking Minds and Markets
Steps One & Two
CustomerDiscovery
Customer Validation
Problem-Solution fit
ProposedMVP
ProposedChannel
Product-Market fit
BusinessModel
MarketingRoadmap
Pivot
Research and Enterprise Linking Minds and Markets
What is ‘MVP’?
CustomerDiscovery
Customer Validation
Problem-Solution fit
ProposedMVP
ProposedChannel
‘The product version that allows you to get
maximum proven learning about
customers with the minimum effort’
Research and Enterprise Linking Minds and Markets
What is ‘Product-Market Fit’?
Customer Validation
Product-Market fit
BusinessModel
MarketingRoadmap
‘a big-enough setof passionate customers who are positive enough
to pay’
Research and Enterprise Linking Minds and Markets
What is ‘Pivot’?
CustomerDiscovery
Customer Validation
Problem-Solution fit
ProposedMVP
ProposedChannel
Pivot
‘you change a bit of your solutionbased on iterative
learning’
Research and Enterprise Linking Minds and Markets
The CitySpark plan
1. The Problem: market opportunity2. Whose Problem? customers or clients3. The Solution: product or service4. The Team: who and why5. The Business Model: delivering the solution6. Irresistible: different from your competitors7. The Future: growth plans
Research and Enterprise Linking Minds and Markets
Effective business planning
1. Accept this is the first, not the last, plan
2. Be ready to iterate and change
3. First discover customers then validate demand
4. And Do, Observe, Think
5. Avoid being wedded to your 1st idea!
6. Write that plan for the right audience: who are
your partners & investors?
Research and Enterprise Linking Minds and Markets
CitySpark Summer School
11th to 13th June 2012
Northampton Square
www.city.ac.uk/cityspark
