In this talk, we introduce the Disciplined Entrepreneurship framework as well as the DE canvas. We end with a challenge to the founding team: "Why are you in business?"
11. Timeline
11
• 2009 – Google X founded, Google Glass started in stealth
• 2011 – Time runs an article on Google X
• 2012 – Google Glass Explorer Edition announced - $1,500
per device. 2,000 pre-orders. Wildly hyped.
• 2013 – Starting to get complaints about bugs, poor battery
life, and above all, lack of a “killer app”
• 2014 – Available to the public at £1,000
• 2015 – Google ended the Beta period of Glass. Product is
back in house under new leadership.
=> Be careful with a tech-led approach
13. Timeline
13
• Early 1990’s – DEKA starts working on self-balancing technology
– first appearing in a self-balancing wheelchair
• 2001 – Segway unveiled. Wildly hyped. “Cities will be built
around it”. Backed by $90M from investors. DEKA expected to
sell 10,000 / week by end of 2002. That’s 70,000+/year.
• 2002 – Available at $4,950
• 2003 – Sold 6,000 to date
• 2008 – Sold 30,000 to date
• 2009 - 2016 – Segway sold several times – now owned by
Chinese company Ninebot
=> After $100m+ R&D – not a great biz
15. Example 3
15
• 2012 – Husband and wife team began investigating a startup to
design, manufacture and sell luxury bed linens. Primary market
research with 500 people shopping at big box stores.
• 2014 – Raised $236,888 on Kickstarter (Goal: $50,000). Started
shipping products by end of year.
• 2015 – $750,000 revenue, hires first employee
• 2016 – $6M revenue to date, tracking to close the year at $10M
• VC Money Raised: $0
=> This is what you can do if you focus on
the market and the customer
16. Knowing your market and customer is a pre-
requisite to building a good business
16
17. But… just that is not enough
• You need to know how to solve customer problems with a
great product
17
Problem Solution
Problem-solution fit
18. But… even that is not enough
18
• You have to get
customers to pay
• You have to make
more money than
you spend
• You have to build a
company that lasts
19. Benefits of DE Approach
• Comprehensive yet Practical
• Integrated
• Proven & Tested – To Stand the Test of Time
• Sequential/Prescriptive
• Creates Common Language for Knowledge Transfer and
Accumulation
19
20. ① ④ ⑨⑤ ⑧
Raison d’Être
Why are you in business?
Competitive Advantage
Why you?
Customer Acquisition
How does your customer
acquire your product?
Overall Economics
Does your product make
money at a company level?
Design & Build
How do you produce the
product?
③ ⑩⑦⑥②Initial Market
Who is your customer?
Value Creation
What can you do for you
customer?
Product Unit Economics
Can you make money at the
product level?
Sales
How do you sell your product?
Scaling
How do you scale your
business?
21. ① ④ ⑨⑤ ⑧
Raison d’Être
Why are you in business?
Competitive Advantage
Why you?
Customer Acquisition
How does your customer
acquire your product?
Overall Economics
Does your product make
money at a company level?
Design & Build
How do you produce the
product?
③ ⑩⑦⑥②Initial Market
Who is your customer?
Value Creation
What can you do for you
customer?
Product Unit Economics
Can you make money at the
product level?
Sales
How do you sell your product?
Scaling
How do you scale your
business?
Theme 1
22. ① ④ ⑨⑤ ⑧
Raison d’Être
Why are you in business?
Competitive Advantage
Why you?
Customer Acquisition
How does your customer
acquire your product?
Overall Economics
Does your product make
money at a company level?
Design & Build
How do you produce the
product?
③ ⑩⑦⑥②Initial Market
Who is your customer?
Value Creation
What can you do for you
customer?
Product Unit Economics
Can you make money at the
product level?
Sales
How do you sell your product?
Scaling
How do you scale your
business?
Theme 2
Theme 2
23. ① ④ ⑨⑤ ⑧
Raison d’Être
Why are you in business?
Competitive Advantage
Why you?
Customer Acquisition
How does your customer
acquire your product?
Overall Economics
Does your product make
money at a company level?
Design & Build
How do you produce the
product?
③ ⑩⑦⑥②Initial Market
Who is your customer?
Value Creation
What can you do for you
customer?
Product Unit Economics
Can you make money at the
product level?
Sales
How do you sell your product?
Scaling
How do you scale your
business?
Theme 3
24. ① ④ ⑨⑤ ⑧
Raison d’Être
Why are you in business?
Competitive Advantage
Why you?
Customer Acquisition
How does your customer
acquire your product?
Overall Economics
Does your product make
money at a company level?
Design & Build
How do you produce the
product?
③ ⑩⑦⑥②Initial Market
Who is your customer?
Value Creation
What can you do for you
customer?
Product Unit Economics
Can you make money at the
product level?
Sales
How do you sell your product?
Scaling
How do you scale your
business?
Theme 4
Theme 4
Theme 4
25. ① ④ ⑨⑤ ⑧
Raison d’Être
Why are you in business?
Competitive Advantage
Why you?
Customer Acquisition
How does your customer
acquire your product?
Overall Economics
Does your product make
money at a company level?
Design & Build
How do you produce the
product?
③ ⑩⑦⑥②Initial Market
Who is your customer?
Value Creation
What can you do for you
customer?
Product Unit Economics
Can you make money at the
product level?
Sales
How do you sell your product?
Scaling
How do you scale your
business?
Theme 5
26. ① ④ ⑨⑤ ⑧
Raison d’Être
Why are you in business?
Competitive Advantage
Why you?
Customer Acquisition
How does your customer
acquire your product?
Overall Economics
Does your product make
money at a company level?
Design & Build
How do you produce the
product?
③ ⑩⑦⑥②Initial Market
Who is your customer?
Value Creation
What can you do for you
customer?
Product Unit Economics
Can you make money at the
product level?
Sales
How do you sell your product?
Scaling
How do you scale your
business?
Theme 6
27. ① ④ ⑨⑤ ⑧
Raison d’Être
Why are you in business?
Competitive Advantage
Why you?
Customer Acquisition
How does your customer
acquire your product?
Overall Economics
Does your product make
money at a company level?
Design & Build
How do you produce the
product?
③ ⑩⑦⑥②Initial Market
Who is your customer?
Value Creation
What can you do for you
customer?
Product Unit Economics
Can you make money at the
product level?
Sales
How do you sell your product?
Scaling
How do you scale your
business?
Theme 1 Theme 2
Theme 2
Theme 4
Theme 3 Theme 4
Theme 4
Theme 5
Theme 6
33. ① ④ ⑨⑤ ⑧
Raison d’Être
Why are you in business?
Competitive Advantage
Why you?
Customer Acquisition
How does your customer
acquire your product?
Overall Economics
Does your product make
money at a company level?
Design & Build
How do you produce the
product?
③ ⑩⑦⑥②Initial Market
Who is your customer?
Value Creation
What can you do for you
customer?
Product Unit Economics
Can you make money at the
product level?
Sales
How do you sell your product?
Scaling
How do you scale your
business?
Don’t skip ahead to
have fun with
spreadsheets
34. ① ④ ⑨⑤ ⑧
Raison d’Être
Why are you in business?
Competitive Advantage
Why you?
Customer Acquisition
How does your customer
acquire your product?
Overall Economics
Does your product make
money at a company level?
Design & Build
How do you produce the
product?
③ ⑩⑦⑥②Initial Market
Who is your customer?
Value Creation
What can you do for you
customer?
Product Unit Economics
Can you make money at the
product level?
Sales
How do you sell your product?
Scaling
How do you scale your
business?
Theme 1 Theme 2
Theme 2
Theme 4
Theme 3 Theme 4
Theme 4 Theme 5
Theme 6
?
35. ”Raison d’etre” – aka Why are you in business?
• Mission?
• Passions?
• Values?
• Initial Assets?
• Initial Idea?
35
36. ”Raison d’etre” – aka Why are you in business?
• Mission?
• Passions?
• Values?
• Initial Assets?
• Initial Idea?
36
You will be AMAZED to learn
how many cofounding teams
are not aligned on these
existential questions
37. This is why our next segment is all about the team
37