4. WEEKEN D ROAD MAP
§ map MVP
§ identify customer
§ W/E deliverables
§ customer validation
§ keep building
§ start building
§ market research
§ refine MVP
§ validate
§ Got fans/customers?
§ Rollout strategy? PITCH!
NOW SATURDAY
LUNCH
CRUNCH
TIME
SUNDAY
BREAKFAST
FRIDAY
NIGHT
SATURDAY
DINNER
SUNDAY
LUNCH
§ begin pitch prep
§ biz model?
§ Practice your pitch
§ finish building
5. JUDGI N G
CRITERIA?
B US IN E S S
MODE L
• How will you make
money?
• How will you sell to
customers?
• Differentiation?
Competition?
CUS TOME R VALIDATION
• Did you talk to real
customers?
• Did you
Incorporate their
feedback?
E XE CUTION
• Did you build
something?
• Was it well
designed?
9. STARTUPS are NOT
just smaller versions
of larger companies!!
What about
TOOLS for
STARTING a
business?
§ New Roadmaps
§ New Tools
§ New Skill Sets
?
MI D-20th
CENTURY
“I have a STACK
of TOOLS for
administering
BIG BUSINESS”
12. THE KEY ELEMENTS
BEHI N D THE
BUSI N ESS MOD EL
Cost to Acquire (CAC)
Profit from that Customer (LTV)
There is a commonproblem = Start-Up Killer
13. AN OUT OF BALAN CE
BUSI N ESS MOD EL
ENTREPRENEURSARE OVER OPTIMISTIC
Cost to Acquire
(CAC)
Monetization
(LTV)
14. A WELL BALAN CEED
BUSI N ESS MOD EL
Cost to Acquire
(CAC)
Monetization
(LTV)
WHAT WE ARE LOOKINGFOR…
15. D ESCRI BI N G A
COMPANY’S OFFER
VALUE
PROPOSITION
value proposition 1
value proposition 2
…
OFFER
16. D ESCRI BI N G WHO A COMPANY
OFFERS VALUE TO
VALUE
PROPOSITION
value proposition 1
value proposition 2
…
OFFER
TARGET
CUSTOMER
target customer1
target customer2
…
CUSTOMER
17. VALUE
PROPOSITION
value proposition 1
value proposition 2
…
TARGET
CUSTOMER
target customer 1
target customer 2
…
DISTRIBUTION
CHANNEL
distribution channel 1
distribution channel 1
…
OFFER CUSTOMER
D ESCRI BI N G HOW A COMPANY
REACHES ITS CUSTOMERS
18. D ESCRI BI N G THE RELATI ONSHI PS
A COMPANY BUI LDS
VALUE
PROPOSITION
value proposition 1
value proposition 2
…
TARGET
CUSTOMER
target customer 1
target customer 2
…
CUSTOMER
RELATIONSHIP
relationship type 1
relationship type 2
…
OFFER CUSTOMER
19. D ESCRI BI N G HOW A COMPANY
MAKES MON EY
VALUE
PROPOSITION
value proposition 1
value proposition 2
…
OFFER
REVENUE
STREAM
revenue stream 1
revenue stream 2
…
FINANCE
TARGET
CUSTOMER
target customer1
target customer2
…
CUSTOMER
20. D ESCRI BI N G WHAT CAPABI LITI ES
ARE REQUI RED
VALUE
PROPOSITION
value proposition 1
value proposition 2
…
OFFER
CORE
CAPABILITIES
core capability 1
core capability 2
…
INFRASTRUCTURE
21. VALUE
PROPOSITION
value proposition 1
value proposition 2
…
OFFER
CORE
CAPABILITIES
core capability 1
core capability 2
…
INFRASTRUCTURE
D ESCRI BI N G WHAT ACTIVITI ES
ARE REQUI RED
VALUE
CONFIGURATION
activity 1
activity 2
…
22. VALUE
PROPOSITION
value proposition 1
value proposition 2
…
OFFER
CORE
CAPABILITIES
core capability 1
core capability 2
…
INFRASTRUCTURE
D ESCRI BI N G THE PARTN ERS THAT
LEVERAGE THE BUSI N ESS MOD EL
PARTNER
NETWORK
partner 1
partner 2
…
23. D ESCRI BI N G THE COSTS
OF A BUSI N ESS MOD EL
VALUE
PROPOSITION
value proposition 1
value proposition 2
…
OFFER
COST
STRUCTURE
cost account 1
cost account 2
…
FINANCE
CORE
CAPABILITIES
core capability 1
core capability 2
…
INFRASTRUCTURE
24. INFRASTRUCTURE OFFERFINANCE
THE CORE BUSI N ESS MOD EL
VALUE
PROPOSITION
COST
STRUCTURE
CUSTOMER
RELATIONSHIP
TARGET
CUSTOMER
DISTRIBUTION
CHANNEL
VALUE
CONFIGURATION
CORE
CAPABILITIES
PARTNER
NETWORK
REVENUE
STREAMS
INFRASTRUCTURE CUSTOMEROFFER
FINANCE
A business model describes the value an organization offers to various customers and portrays the capabilities
and partners required for creating, marketing, and delivering this value and relationship capital with the goal of
generating profitable and sustainable revenue streams.
25. OVERALL BUSI N ESS MOD EL
VALUE
PROPOSITION
COST
STRUCTURE
CUSTOMER
RELATIONSHIP
TARGET
CUSTOMER
DISTRIBUTION
CHANNEL
VALUE
CONFIGURATION
CORE
CAPABILITIES
PARTNER
NETWORK
REVENUE
STREAMS
Gives an overall view of a
company's bundle of
products and services.
Portrays the networkof
cooperative agreements
with other companies.
Describes the channels
to communicate andget
in touch with customers.
Describes the
arrangement of activities
and resources.
Explains the relationships
a company establishes
with its customers.
Sums up the monetary
consequences torun a
business model.
Describes the revenue
streams through which
money is earned.
Describes the customers
a company wants tooffer
value to.
Outlines the capabilities
required to run a
company's business
model.
INFRASTRUCTURE CUSTOMER
OFFER
FINANCE
26. ACTIVITY: CREATI N G YOUR OWN
BUSI N ESS MOD EL
KEY PARTNERS KEY ACTIVITIES VALUE
PROPOSITIONS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
KEY RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS
<< insert your value
proposition here>>
<< Describe your cost structure here>>
<< list your partners
here>>
<< describe your revenue streams here>>
<< list the key resources
available to you here>>
<< describe your key
activities here>>
<<describe how you plan to
establish and manage the
relationship between the
customer and your brand
here>>
<< describe 1) how you plan
to acquire customers, 2) how
you plan to deliver your
value proposition to them
and 3) how you plan to
communicate with your
customers >>
<< describe your
target customer
segment here>>
27. TYPES OF BUSI N ESS MOD ELS
§ Auction
§ Bricks & Clicks
§ Collective
§ Cutting out the middleman
§ Direct Sales
§ Franchise
§ Freemium
§ Low Cost Carrier
§ Loyalty Business
§ Monopolistic
§ Online Auction
§ Pyramid Scheme
§ Bait and Hook
§ Subscription
§ Value Added Reseller
§ Government Support
§ Open Source
§ Network Business
§ Advertising Supported
28. Write a brief response to the following questions:
§ How do you acquire customers?
§ After you have landed a new customer, how do you plan to relate to that customer and manage
the relationship (if at all)?
§ How do you charge your customers? What is your revenue model?
§ How much do you charge your customers? Can you calculate your revenues for the next month,
quarter and year?
ACTIVITY: KEY BUSI N ESS
MOD EL QUESTI ONS
29. § Who are your key partners?
§ What key activities do you need to engage in to deliver your value proposition?
§ What are your fixed costs?
§ What are your variable costs? Can you calculate your total cost for the next month, quarter and
year?
§ Does your revenue forecast demonstrate increased profitability towards the end of the forecast
period?
ACTIVITY: KEY BUSI N ESS
MOD EL QUESTI ONS (cont’d)
31. FACEBOOK: WORLD’S LEAD I N G SOCIAL
N ETWORKI N G SITE (SNS)
KEY PARTNERS KEY ACTIVITIES VALUE
PROPOSITIONS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
KEY RESOURCES CHANNELS
REVENUE STREAMS
§ Content
Partners (TV
Shows, Movies,
Music, News
Articles
§ Platform
Development
§ Data Center
Operations
Management
§ Data center costs
§ Marketing and sales
§ Research and Development
§ General and Administrative
§ Connect with your
friends, Discover &
Learn, Express
Yourself
§ Reach, Relevance,
Social Context,
Engagement
§ Personalized and
Social Experiences,
Social Distribution,
Payments
§ Same-side
Network Effects
§ Cross-side
Network Effects
§ Website, Mobile
Apps
§ FB Ads, FB Pages
§ Developer Tools
and APIs
§ Internet Users
§ Advertisers and
Marketers
§ Developers
§ Free
§ Ad revenues
§ Payment revenues
COST STRUCTURE