A P P L I C A T I O N I N S T R U C T I O N S
Thank you for your interest in applying for the 2016 Social Entrepreneurship Boot Camp at the Winthrop Rockefeller Institute. The goal of the Boot Camp is to help you and your team develop the tools you will need to be successful social entrepreneurs. Our partners for the Boot Camp are the Clinton School of Public Service, the University of Arkansas Office of Entrepreneurship and the Arkansas Regional Innovation Hub.
In this packet you will find instructions for completing two essential parts of the application for the 2016 Social Entrepreneurship Boot Camp: your lean canvas business model and business pitch. The lean canvas and the pitch will work together to help you define your social enterprise. They will also be refined and reshaped throughout the Boot Camp. Review the material about them carefully to give yourself the best foundation for the Boot Camp.
To start the process, complete your lean canvas. The lean canvas is designed to provide entrepreneurs with a quick way to define the core aspects of their businesses. The model used for the Boot Camp has been developed by Trish Flanagan. Flanagan is the cofounder of Noble Impact, an education initiative that provides students with entrepreneurial skills in and out of the classroom, and founder of the Future School of Fort Smith, a public, tuition-free charter school for 10th through 12th grades providing students with individualized, real-world training like concurrent college credit and tailored internships. The steps for completing the lean canvas are as follows:
1. Learn about the social lean canvas by watching this short video.
2. Review the enclosed “Building Blocks of Social Enterprise” presentation from Trish Flanagan. (attached)
3. Review the “Lean Canvas Workshop” handout. (attached)
4. Read the “How to Create Your Lean Canvas” handout, adapted from Ash Mauyra. (attached)
5. Print out copies of the blank lean canvas. Use this form to build your own lean canvas. (attached)
Once you have completed the lean canvas, you will be ready to develop a business pitch. The business pitch is a short description of your business. It is the tool you will use to explain your enterprise to other entrepreneurs, possible funders and the public. Use the attached “Elevator Pitch Video Guidelines” and work with your completed lean canvas to develop a polished pitch for your business concept. Your pitch video is a major component of your application. Come prepared to give your draft pitch on the opening night of the Boot Camp. You will receive guidance throughout the weekend to help you refine your pitch and will deliver your final pitch on the last day of the Boot Camp.
Lastly, you will need to complete the application form found here. The application will collect more information about you and your team and will be where you provide the links to your pitch video and upload your lean canvas. All three parts of the application are required, so be sure to complete your lean canvas, pitch and application form before the May 1, 2016, deadline.
Should you have any questions, please contact Payton Christenberry with the Winthrop Rockefeller Institute at 501.727.6255 or [email protected].
Building Blocks of a Social Enterprise Trish Flanagan 2013
What is Social Entrepreneurship?
[Entrepreneurship] is the pursuit of opportunity without regard to resources currently controlled. (H. Stevenson)
Trish Flanagan 2013
[Social Entrepreneurship] combines the passion of a social mission with business-like discipline, innovation and determination. (G. Dees)
[Entrepreneurs] shift resources from areas of low productivity to areas of higher productivity. (Baptiste-Say).
Creating common good by thinking & acting like an entrepreneur (visionary, takes risk, opportunistic).- (Yours Truly)
SE Insights
1. In social enterprise, the driving force is the power of the individual stakeholders. 2. Community ownership (buy-in) is essential to creating and managing a successful business. 3. We need to test our assumptions about our business ideas. 4. The entrepreneurial mindset: sees problems as opportunities, takes risks, welcomes
customers as partners. 5. Failure is the entrepreneur's greatest teacher! 6. An L3C is a legal, for profit business that prioritizes a social benefit. It can work together with
an NGO. 7. Social entrepreneurs must be disciplined, relentless, empathetic and determined. 8. Social entrepreneurship creates an opportunity for self-reliance rather than dependence in
communities. 9. Our culture embodies many of the elements required for an entrepreneurial mindset:
collaboration, interconnectedness, resourcefulness, resiliency and patience. 10. Certain community thought processes already align with the business development cycle. 11. To merge into social business, a focus and drive to create one successful pilot project is
necessary. All other projects can be created and refined from this successful model.
Trish Flanagan 2013
Social Enterprise V Non-Profit Trish Flanagan 2013
Social Enterprise NGO/Government
Funds Investment & Customers Grants Secure Funding
Business plan, presentations
Write grants
Orientation Market Driven Need Driven Stakeholders Community, investors,
customers Community
Big Difference: Customers, Not Grants
• For-profit businesses rely on revenues and must be able to articulate an ROI (return on investment).
• Revenues come from customers purchasing a product or service.
• It is critical that a social enterprise (L3C) knows what their customer wants and is able to deliver.
• No one is going to buy an ice cream cone in a blizzard or a sweater at the beach!
Trish Flanagan 2013
Social Entrepreneurship
Non-Profit Organization Non-Profit Organization with a For-Profit Entity Hybrid For Profit Organization that creates social value
Trish Flanagan 2013
Social Impact via Entrepreneurship
Case Study: Trade High School for Young Women
Trish Flanagan 2013
The Noble Canvas Trish Flanagan 2013
Problem((D3) Solution((D3) Unfair(Advantage Customer(Segments((D3)
Key(Metrics((D4) Exit(Strategy((D4)
Channels((D5)
What(resources(will(you(need?(Staff(salaries?(Rent?(Promotional(materials?(Bills?(
How(will(you(pay(your(staff?(How(will(pay(for(the(project?(How(will(you(buy(materials?(How(is(your(project(viable?(Sustainable?
How(will(you(reach(your(customer/users?Who(will(help(you(to(do(this?(
What(are(the(top(3(viable(solutions?(
(Unique(Impact(Value(Proposition)(Is(this(being(done(already?(How(is(your(solution(different?(Better?(Worth(paying(for?
What(makes(your(solution(hard(to(copy(or(imitate?(
Who(are(you(serving?(Feasibility(Study1)(Analysis(of(financial(feasibility2)(What(does(the(industry/market(say?3)(Who(are(the(people(you(need(to(involve(in(your(social(enterprise?(For(example,(whoare(your(consumers(and(who(are(your(partners((see(channels)?
How(will(you(know(you(are(successful?(How(do(you(measure(the(ROI((return(on(investment)((time,(energy,(passion,(resources)?(How(do(you(measure(impact/success?(
What(are(the(top(3(problems?
Noble(Canvas
Budget/Expenses((D8) Funding($$$((D8)
How(does(your(project(eliminate(the(problem/challenge((in(part(or(whole)?
UIVP((D4)
Tag(Line((D5)Describe(your(project(in(one(sentence!
9 Elements of the Process
1. Problem 2. Customer Segments 3. Solution 4. UVP 5. Unfair Advantage 6. Channels 7. High level concept 8. Revenues 9. Expenses
Trish Flanagan 2013
Identify a problem
1. In the problem box of your canvas, write down 3 of the top problems (what they want) you think your customer has.
2. In the margin, write down existing alternatives.
Trish Flanagan 2013
Brainstorm Customers Trish Flanagan 2013
1. Yellow: Target customers- They will be the first to buy your product/service. They will be the easiest to sell to.
2. Red, blue, black: Potential customers- They will eventually purchase from you, but it might be harder. They might not feel as much “pain” or demand for your product.
3. Write down your list of potential customers in the “customer” box.
Unique Value Proposition
1. “Unique Value Proposition: A single, clear compelling message that states why you are different and worth buying.”- Steve Blank
2. UVP- This is one of the most important boxes on the canvas and also the hardest to get right.
3. Write down your UVP for your company/product. Think about what you’re offering. How is it different or better than the competition?
4. Example: Eco-hotel on the Reservation versus the Holiday Inn in Flagstaff. What is the UVP of the eco-hotel?
Trish Flanagan 2013
Solution
1. Building a business is an iterative process. 2. Entrepreneurs start with an initial solution and if they
actively pay attention to the COMPETITION, MARKET AND CUSTOMER DEMAND, they will adjust their solution accordingly.
3. Brainstorm possible solutions and write down your top 3 in the “solutions” box.
Trish Flanagan 2013
Customer Channels
1. A customer channel is the method your business will use to reach their customers. A channel allows you to communicate your offering to your customers and invite them to purchase your product/service.
2. List the channels you expect to develop to reach your customers.
Trish Flanagan 2013
Revenues
1. Brainstorm all the possible ways your business can make money. List these in your canvas.
2. If you have time, create a 5-year revenue forecast. How much will you earn in year 1, year 2, ….? Think about how many sites/stores you might have each year and the volume of goods you will sell.
Trish Flanagan 2013
Expenses
1. Brainstorm all the possible expenses your business will have. List these in your canvas.
2. If you have time, create a 5-year expense forecast. How much will you spend in year 1, year 2, ….? Think about how many sites/stores you might have each year and the expenses associated with each.
Trish Flanagan 2013
If you build it, will they come? Test your assumptions
1. On a sheet of paper, write down 2-3 falsifiable hypotheses ( more explanation in the readings) you would like to ask potential customers to find out if they would purchase your solution.
2. If you can, interview potential customers/users. This will help you test your assumptions of your solution.
Trish Flanagan 2013
Time for Action
1. Now that you have an introduction to the building blocks of a for-profit enterprise, get out of the “building” and test your plans.
2. It is essential to identify the management team that will move the initiative forward.
3. What to look for in a management team: hard-working, relentless, creative, good communicator, ambitious, strong.
4. Once you have built your management team, they need support. Surround them with mentors, resources, love and coffee! Encourage them when failure comes and help them move forward. Failure is the entrepreneur's greatest teacher!
Trish Flanagan 2013
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Lean Canvas Workshop Change Makers Creating Common Good as Entrepreneurs
Through this workshop, participants from diverse backgrounds will have an opportunity to expand their social impact toolboxes. Working with the lean canvas, we will experiment with thinking like an entrepreneur. In the business world, entrepreneurship offers strategies to create products and services for customers such as testing assumptions of customer demand. This strategy is also useful for those seeking to create innovative and sustainable solutions to societal challenges. As social change makers, an entrepreneurial mindset allows us to appreciate opportunities where others see problems, identify a unique value proposition, articulate a return on investment in time, money and resources and develop an exit strategy prioritizing the intended impact of a service project and ultimately consider a plan to “put ourselves out of business”.
The Noble Canvas (adapted from Ash Maurya’s Lean Canvas)
Here is our version of the lean canvas that we have used with various groups to design sustainable solutions to create social impact.
Problem((D3) Solution((D3) Unfair(Advantage Customer(Segments((D3)
Key(Metrics((D4) Exit(Strategy((D4)
Channels((D5)
Noble(Canvas
Budget/Expenses((D8) Funding($$$((D8)
How(does(your(project(eliminate(the(problem/challenge((in(part(or(whole)?
UIVP((D4)
Tag(Line((D5)Describe(your(project(in(one(sentence!
What(resources(will(you(need?(Staff(salaries?(Rent?(Promotional(materials?(Bills?(
How(will(you(pay(your(staff?(How(will(pay(for(the(project?(How(will(you(buy(materials?(How(is(your(project(viable?(Sustainable?
How(will(you(reach(your(customer/users?Who(will(help(you(to(do(this?(
What(are(the(top(3(viable(solutions?(
(Unique(Impact(Value(Proposition)(Is(this(being(done(already?(How(is(your(solution(different?(Better?(Worth(paying(for?
What(makes(your(solution(hard(to(copy(or(imitate?(
Who(are(you(serving?(Feasibility(Study1)(Analysis(of(financial(feasibility2)(What(does(the(industry/market(say?3)(Who(are(the(people(you(need(to(involve(in(your(social(enterprise?(For(example,(whoare(your(consumers(and(who(are(your(partners((see(channels)?
How(will(you(know(you(are(successful?(How(do(you(measure(the(ROI((return(on(investment)((time,(energy,(passion,(resources)?(How(do(you(measure(impact/success?(
What(are(the(top(3(problems?
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4 Key Elements of the Noble Canvas
Test Assumptions
Testing assumptions is a critical process entrepreneurs must engage in to ensure their product or service will meet customer needs. From the standpoint of developing an entrepreneurial mindset in solving social challenges, we need to test our assumptions about the problem at hand. As traditional entrepreneurs must understand their customer’s “pain” to create a solution in order to start a business, so must social entrepreneurs ascertain the root cause of the problem and the marketability of the solution. The concept of testing assumptions by interviewing customers is fundamental to the lean canvas approach and allows us to look beyond the outward symptoms of the problem to gain a deeper understanding of what can be improved. For example, to increase sales Circle K spent $11mm in one year on a “smiles” campaign. Company leadership assumed that if store attendants smiled at customers and were friendlier, sales would increase. This was not the case and the company lost money.
Identify a Unique Value Proposition
Entrepreneurs must identify a unique value proposition for their product or service, which will ensure it beats the competition. This proposition is often in the price or other physical quality of the product or service. In solving a social challenge, there is a parallel for identifying what qualities of a social solution make it necessary and effective. If the solution designed has already been created, we can consider either joining forces with that solution or improve on the model already in existence. In this way, scarce resources available to solve social issues could best be utilized rather than depleted in supporting multiple, similar remedies to the same challenge.
Articulate a Return on Investment
Similar to the unique value proposition, considering a return on investment (ROI) in time, money and resources, helps us to create not only a viable plan but also to secure support for our idea. In designing our solutions, we consider the inputs as well as the outputs. For example, we can consider our social return of inputs such as a $1000 donation or 10 hours of volunteer work.
Create an Exit Strategy
“I should not like any poverty relieving institution started which did not contain in itself the causes which would make it shrivel up,”(Marshall, 1893). In the context of the seminar, this “shriveling up” refers to an exit strategy, which is a new, yet potentially effective concept for designing solutions to social challenges. This type of strategy promises that there will be an ultimate benefit from the investment of time, money and resources of all stakeholders including clients, volunteers, staff, investors and funders. Simply put, an exit strategy outlines how and when the solution becomes either internalized and owned by the community or eradicates the challenge. From an economic standpoint, “The greatest success for a social entrepreneur would be to tackle the problem with positive externalities in such a way that the externality is internalized for the benefit of society and the work of the social entrepreneur is no longer necessary,”(Santos, 2012).
In the traditional sense, an exit strategy is the plan formulated by the original founders of a start up in order to sell the company or get acquired. In order to get financial investment, an exit strategy is essential to attract investors who would invest in companies that have a quick ramp up and high growth potential, ultimately providing a substantial return on the original investment. While our priority is not profits, we consider the concept of an exit strategy in order to engage, stakeholders to invest time, money, resources into an initiative (ngo, program, project, community, etc.).
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Additional Resources Allison-‐Jacobs, R. Measuring the Impact of Academic Social Entrepreneurship Programs. Queens University of
Charlotte. Austin, J., Stevenson, H. and Wei-‐Skillern, J. (2006). Social and Commercial Entrepreneurship: Same, different or both?.
Baylor University. Binkley, C. (2009). Charity Gives Shoe Brand Extra Shine. The Wall Street Journal. Dow Jones & Company. Dees, G. (1998). The meaning of social entrepreneurship. Center for the Advancement of Social Entrepreneurship. Denhardt, J., and Denhardt, R. (2003). The New Public Service: Serving rather than steering. Arizona State University:
549-‐559. Illich, I. (1968). To hell with good intentions. University of Chicago Press. Mair, J. and Marti, I. (2004). Measuring the Impact of Academic Social Entrepreneurship Programs. University of
Navarra. Maurya, A. (2012). Running Lean: Iterate from Plan A to a Plan that Works, O’Reilly Publishing. McLean, M. and A. Peredo. (2006). Social entrepreneurship: A critical review of the concept. Journal of World
Business: 56-‐65. Net Impact. (2012) Talent Report: What workers want. www.netimpact.org/whatworkerswant. Last retrieved
11/26/13. Santos, F. (2006). A Positive Theory of Social Entrepreneurship. Springer Science and Business Media. Skoll Foundation. (2009) Skoll World Forum-‐Investing for Impact: Catalyzing an Emerging Industry.
https://itunes.apple.com/us/podcast/skoll-‐world-‐forum-‐investing/id348258086?i=79774456&mt=2. Last retrieved on 11/3/13.
Sommerrock, K. (2010). Social entrepreneurship business models: Incentive strategies to catalyze public goods
provision. New York: Palgrave Macmillan Limited. US News & World Report (2013) Business School Overview, University of Arkansas, Fayetteville. http://grad-‐
schools.usnews.rankingsandreviews.com/best-‐graduate-‐schools/top-‐business-‐schools/university-‐of-‐arkansas-‐fayetteville-‐walton-‐01011/ Last retrieved on 10/31/13.
Walton College (2013). The Walton MBA Curriculum. http://gsb.uark.edu/mba-‐masters-‐degree-‐
program/curriculum/. Last retrieved on 10/31/13. Walton MBA (2013). Percentage of MBA students employed at graduation. http://gsb.uark.edu/mba-‐masters-‐degree-‐
program/. Last retrieved on 10/31/13.
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HOW TO CREATE YOUR LEAN CANVAS-adapted from Ash Mauyra
Capture your business model in a portable 1-page diagram. The Lean Canvas is the perfect format for brainstorming possible business models, prioritizing where to start, and tracking ongoing learning.
Tips to Get Started 1. Sketch a canvas in one sitting
While a business plan can take weeks or months to write, your initial canvas should be sketched quickly. You will sketch multiple canvases in the process.
2. It’s okay to leave sections blank
Rather than trying to research or debate the “right” answers, put something down quickly or leave it blank and come back to it later. The canvas is meant to evolve over time. Also- you can tackle each box in any order that makes sense to you.
3. Think in the present
Business plans try too hard to predict the future, which is impossible. Instead, write your canvas with a “getting things done” attitude. Based on your current stage and what you know right now, what are the next set of hypotheses you need to test to move your product forward?
4. Use a customer-centric approach- Who is your audience, what do they need?
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Step 1: Create First Draft
Problem and Customer Segments I find that the “Problem-Customer” pair usually drives
the rest of the canvas which is why I tackle them together: List top 3 problems Describe the top 1-3 problems your customers/clients need solved.
List existing alternatives Then document how you think your early adopters address these problems today. Unless you are solving a brand new problem (unlikely), most problems have existing solutions. Many times these may not be a readily obvious competitor.
Identify other user roles Next identify any other user roles that will interact with this customer.
Hone in on possible early adopters With these problems in mind, get more specific on the customer segment. Narrow down the distinguishing characteristics of your prototypical customer.
Brainstorm Possible Customers You most likely already have an inkling of the problem, solution, and customer in mind. Start by brainstorming the list of possible customers you envision using your product/service.
Distinguish between customers and users How can a social enterprise distinguish who benefits (user/client) and who pays for this (customer)? Can there be overlap?
Split broad customer segments into smaller ones Initially, you can’t effectively build, design, and position a product for everyone. While you might be aiming to build a mainstream product, you need to start with a specific customer in mind. Even Facebook, with it’s now 500 million+ users started with a specific user in mind - Harvard college students.
3-STEP PROCESS 1. CREATE FIRST DRAFT 2. TEST ASSUMPTIONS 3. ITERATE YOUR CANVAS
HMMM…
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Unique Value Proposition Dead-center in the Lean Canvas is a box for your Unique Value Proposition (UVP). This is one of the most important boxes on the canvas and also the hardest to get right. “Unique Value Proposition: A single, clear compelling message that states why you are different and worth buying.”- Steve Blank
The UVP is hard to get right because you have to distill the essence of your product in a few words that can fit in the headline of your landing page. Additionally, your UVP also needs to be different and that difference needs to matter.
The good news is you don’t have to get this perfect right away. Like everything on the canvas, you start with a best guess and then iterate from there.
How to Craft a Unique Value Proposition Be different, but make sure your difference matters
The key to unlocking what’s different about your product/service is deriving your UVP directly from the #1 problem you are solving. If that problem is indeed worth solving, you’re more than halfway there already.
Target early adopters
Too many marketers try to target the “middle” in the hopes of reaching mainstream customers and in the process water down their message. Your product is not ready for mainstream customers yet. Your sole job should be finding and targeting early adopters which requires bold, clear, and specific messaging. Focus on finished story benefits
You’ve probably heard about the importance of highlighting benefits over features. But benefits still require your customers to translate them to their worldview. A good UVP gets inside the head of your customers and focuses on the benefits your customers derive after using your product.
So for instance if you are building a résumé-building service:
- a feature might be “professionally designed templates”
- the benefit would be an “eye-catching résumé that stands out”
- but the finished story benefit would be “landing your dream job”.
HMMM…
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Pick your words carefully and own them Words are key to any great marketing and branding campaign. Look at how the top luxury car brands have used a single word to define themselves:
Performance: BMW Design: Audi Prestige: Mercedes
Answer: What, Who, and Why
A good UVP needs to clearly answer the first 2 questions - what is your product and who is the customer. The “Why” is sometimes hard to fit in the same statement and I’ll frequently use a sub-heading for that.
Study other good UVPs
The best way to craft a good UVP is to study the UVPs of the brands you admire. Visit their landing pages and deconstruct how and why their messaging works.
Create a high-concept pitch
A high-concept pitch usually builds on other familiar concepts to quickly get an idea across and make it easily spreadable. Unlike a UVP, a high-concept pitch is best used in conjunction with something else that sets the right context such as an elevator pitch.
Examples:
1. YouTube: “Flickr for video”
2. Aliens (movie): “Jaws in space” 3. Dogster: “Friendster for dogs”
Solution You are now ready to tackle solution possibilities.
As all you have are untested hypotheses, I don’t recommend getting carried away with fully defining a solution just yet. Rather simply sketch out the top features or capabilities next to each problem.
Bind a solution to your problem as late as possible.
HMMM…
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Channels The good news is that following a “Customer Discovery/Interview” process forces you to build a path to customers early. Unfortunately, unless you are in a direct sales business, that path may not scale beyond Problem/Solution Fit.
In addition to defining the right product to build, it’s just as critical to start finding, building and testing a significant path to your customers from day one.
Revenue Streams and Cost Structure A lot of startups choose to defer the “pricing question” because they don’t think their product is ready. Something I hear a lot is that a minimum viable product is by definition embarrassingly minimal. How can you possibly charge for it?
I believe that if you intend to charge for your product, it’s better to be upfront about it. It sets the right expectations, raises customer commitment, starts generating cash flow,
What you charge for your product is simultaneously one of the most complicated and most important things to get right. Not only does your pricing model keep you in business, it also signals your branding and positioning. It determines your customers.
Your price is part of your product.
Pricing is not unlike any other business model hypothesis and should be tested using the same criteria we covered earlier when building validated learning loops - create a testable hypothesis, time-box the experiment, and validate qualitatively, then verify quantitatively.
Take your costs into account
The ultimate goal is finding a scalable business model so it should go without saying that you also need to keep an eye on what it would cost you to deliver your solution and ensure you have a healthy margin built in.
One rule of thumb for building a successful business is ensuring the lifetime value of your customers exceeds the cost of customer acquisition by at least a factor of three.
HMMM…
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Key Metrics “Find the key number that tells you how your business is doing in real time, before you get the sales report.” - Norm Brodsky and Bo Burlingham
Startups are inherently chaotic, but fortunately, there are only a handful of key metrics that drive a web startup. We’ll cover five key startup metrics (Dave McClure’s Pirate Metrics) a little later but for right now document the one or two key activities you think will drive usage of your product.
Unfair Advantage This is usually the hardest section to fill which is why I leave it for last. Most founders list things as competitive advantages that really aren’t. An interesting perspective, via Jason Cohen, to keep in mind is that anything worth copying will be copied. So imagine your co-founder steals your source code, sets up shop in Costa Rica, and slashes prices. Do you still have a business?
You have to be able to build a successful business in spite of that which leads to the following definition:
“A real unfair advantage is something that cannot be easily copied or bought.”
- Jason Cohen
You may initially have to leave this box blank but it’s here to have you really think about how you can make yourself different and make your difference matter. Some examples of unfair advantages - insider information, the right “expert” endorsements, personal authority.
Exit Strategy Is it possible to eradicate this social issue? Can this be a goal of your enterprise?
Prioritize Where to Start Once you have your Lean Canvases sketched for each customer segment, lay them side by side and select the best business model to start with.
Your objective is to find a big enough market you can reach with customers who need your product that will pay a price you can build a business around.
HMMM…
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Here is the weighting order I use (ranked from highest to lowest): 1. Customer pain level
Pick customer segments that need your product the most. The goal is to have one or more of your top three problems as must-haves for them.
2. Ease of reach
Building a path to customers is one of the harder aspects of building a successful product. If you have an easier path to one segment of customers over others, take that into consideration. It doesn’t guarantee you’ll find a problem worth solving or a viable business model, but it will get you out of building faster and speed up your learning.
3. Price What price are people willing to pay that will allow you to cover your costs and reinvest profits?
4. Market Size
Lastly, you need to pick customers that represent a big enough market, or are a stepping stone to a big enough market, that you can build a business around.
Now it’s Your Turn Documenting your Plan A is a prerequisite for moving on. Too many founders carry their hypotheses in their heads alone which makes it hard to systematically build and test a business. You have to draw a line in the sand. The important thing is sharing it with at least one other person when you are done.
2. Test Your Assumptions & Interview In order reduce the risk of your enterprise, you must ‘get outside of the building’ and test your assumptions. Start-ups fail for many reasons; one of the most common is that people simply won’t value and pay for what you have created. You need to try to prove your assumptions wrong to ensure your solution will be accepted and desired by your market. So create a few falsifiable hypotheses from your assumptions. Then interview customers, stakeholders to gather more facts about your ideas. Sample falsifiable hypotheses for a new bakery:
1. There will be sufficient foot traffic on the corner where the bakery is located. 2. My grandmother’s secret chocolate chip cookie recipe will be in demand (maybe a taste test
here!) 3. By being open late night rather than early morning, we will attract more customers.
Then…
3. ITERATE! – Keep revisiting your canvas and interviewing customers until you begin to get the same information and your plan becomes feasible- investable!
E L E V A T O R P I T C H V I D E O G U I D E L I N E S
Your elevator pitch gives a concise description of your business by explaining a product, service or value proposition in a short amount of time, as well as your needs. It is a tool that you can use to make a great first impression on a potential investor or new customer. It should provide a clear picture of your company and its solution to a social problem as well as how you would put any investment to good use. It should be delivered effectively and succinctly.
You will design your pitch from your lean canvas, so complete your lean canvas first. You will have 90 seconds to make your pitch, so be sure to practice in order to perfect the timing. Some things to keep in mind from your lean canvas that could help inform your pitch:
• Problem – What is the number one problem you identified through your lean canvas?
• Customer Segment – Who are you serving and what is their need?
• Unique Impact Value Proposition – What is meaningfully different about your business and the way it addresses a social challenge?
• Product or Service – Briefly describe the product or service and the problem it solves.
• Management – What about you or your team makes you well-suited to help your business succeed and make change?
Additionally, successful pitches will answer the following questions:
• What support do you need from an investor and how will you put that investment to work?
• What is your unfair advantage?
• What does success look like for you?
E L E V A T O R P I T C H S U B M I S S I O N
You pitch video should be a maximum of 90 seconds. The focus is on your content, not video production quality, so please use any recording device readily available to you (cellphone, computer, camcorder, etc.) with clear audio that you can then upload. You should upload your video to YouTube and include the link with your application materials. You may set the privacy settings to “Unlisted” (but not “Private”) if you wish to restrict viewing to the Boot Camp judges.
Your pitch video will be reviewed alongside your lean canvas and application form when considering you and/or your team for admission to the 2016 Social Entrepreneurship Boot Camp.