Business 101.1A class in business. And entrepreneurship.

Fall 2016NYU ITP

October 17, 2016

Josh KnowlesJen van der Meer

Extra love from Tom IgoeAnd the Leslie E-Lab

Syllabus Map

START + Form

Teams

Business Models

Customer Development

How to Interview Value

+ The Purpose of Business

ValuesMotivation

TeamCustomer

Relationships+ Channels

AnalyticsKey Resources

Activities Partners Biggest Vision

Analyze Test

The Money

Plan MVP

Turning Insights Into

Features

More MVP

How small, How big?

Launch MVP

Lessons Learned

Go/No Go?

Sketch Paper Prototype

Oz Test

Smallest MVP

Tech Architecture

MOTIVATION: THE FOUNDER’S DILEMMA

TEAM LIGHTNING ROUNDS

VALUES WORKSHOP

VISION WORKSHOP

MVP SKETCH

Values Motivation

Team

Big Vision

TEAMS

?Yu Shi

Joy (Eun Jee Kim) Igor Carrasco

Fashion SocentSoy (Soyeon Chung)

Peter Winne Asad Lilani Lin Yang

Prisons Social Community for

DesignersDhruv

Daniel Silber Baker Molly O’Shea Isobel Donjon

Predictive Social Listening

Tattoo Artist MatchingFernanda

Eric Ramirez Javiera Valle Toro

Fashion 3 DAngie Aguilar

Olivia

Ergonomic Design Ashley Williams

Yan Max Theony

Malcolm Pittman

THE FOUNDER’S DILEMMA

WHY?

WHY WOULD YOU START A COMPANY?

▸ More time

▸ More money

▸ Can’t work for other people

▸ Social impact

▸ Huge financial returns

▸ Control over my own destiny

▸ I want to have CEO in my title

▸ Control over product, autonomy

▸ No one looking over my shoulder

▸ Freedom

▸ I see a huge opportunity

▸ Hungry to learn

▸ Uber feminism - defining my own rules

▸ I’m not employable

▸ It’s my family business, my legacy

▸ Environmental impact

▸ I want to be a founder

▸ No one would hire me

▸ I am creating art / culture / music

▸ What else?________________________

WHAT?

WHAT IS A STARTUP?

▸ A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.” – Eric Ries

▸ “A startup is a company designed to grow fast.” –Paul Graham. Y Combinator.

▸ “A startup is a temporary organization designed formed to search for a scalable repeatable business model.” – Steve Blank.

▸ “Most startups change their business model multiple times. A scalable startup is a special class of startup – world class team, large vision, large target market, passionate belief and a reality distortion field.”

Founders choices are straightforward: Do they want to be rich or king?

Few have been both.

Noam Wasserman, The Founder’s Dilemma

RICH VS. KING

The most important factor for business success was ambition with those firms starting out with high growth expectations performing most strongly. Indeed, motivations influence business success mainly by driving differences in growth expectations, which in turn drive success.

Entrepreneurship Understanding Motivations UK Survey 2015

MOTIVATIONS

RICH?

RICH VS. KING

Fail Rich

King Exception

Well below potential Close to potentialLi

ttle

Com

plet

e

Con

trol

ove

r com

panyFinancial gains

The Founder’s Dilemma at HBR.org.

WHICH IS MORE IMPORTANT?

“The world economy remains in a low-growth trap with persistent growth disappointments weighing on growth expectations and feeding back into weak trade, investment, productivity and wages”

OECD September 2016

GROWTH DILEMMA

We have set in place an economic system whose growth works against our own prosperity.

Douglas Rushkoff Throwing Rocks at the Google Bus:

How Growth Became the Enemy of Prosperity 2016

GROWTH DILEMMA

TEAM ROUNDS

PIVOT

IF YOU ARE DOING THIS RIGHT…

You have options that conflict with your world view, your values, or you disagree as a team about which path to pursue

WHAT IS A PIVOT?

WHAT IS A PIVOT

PIVOT

▸ A change to your a core business model assumption

▸ You are standing, one foot on the ground.

▸ A mindful pivot:

▸ The foot that serves as the pivot and rotates is your vision, your values - your reason for starting the company, your long view. But - your other foot is moving to the place that will best position you to launch - finding the business model that will fulfill your vision.

CLARIFYING VALUES

DECISIONS

VALUES ARE DECISION CRITERIA

▸ Values represent your guiding principles, your highest motivations, which influence how you make decisions.

▸ The priorities you have when you’re trying to decide between multiple paths.

▸ If you’ve been following this class- the real learning is not happening when you go talk to people - and learn. And when you have to make decisions.

▸ You’re testing your core criteria - how it is that YOU value what You are doing.

▸ Value priorities help us make decisions about these tradeoffs - how to literally value the importance of every action we take.

▸ And you want to be clear -it’s the priority that matters. The end game.

WHAT ARE VALUES, IN ORDER? WHAT ARE YOUR END GAME VALUES?

VALUES > ACTION

VALUES BECOME DECISIONS BECOME YOUR COMPANY

▸ Each time I’m making a decision - I’m trading off in the moment, in the context - do I go for my long end game, or my current reality. There are tradeoffs. There’s no perfect balance, perfect decisions.

▸ It’s worth getting clear on your values - the will help you figure out how to decide, who to hire, how to grow your team, and how to be.

WORK TOGETHER

VISION

ASSUME…

WE WILL GET THE MONEY AND CUSTOMERS AND RESOURCES AND PEOPLE WE NEED TO BUILD THIS BUSINESS

HOW DOES THE WORLD CHANGE?

WHAT DOES THE WORLD LOOK LIKE 5 YEARS FROM NOW BECAUSE OF YOUR COMPANY

WHAT DOES THE WORLD LOOK LIKE 10 YEARS FROM NOW?

10 YEARS FROM NOW

WHAT HAPPENED

▸ Did we get the world we wanted?

▸ How many people have you reached? How many cities or countries?

▸ What are your technical achievements?

▸ How did you impact culture?

NOW SKETCH:

What is the first step your customers take? How do they find out about you? what is the first thing they do?

IN SUM

FINAL Q TODAY

DOES THE CURRENT WAY WE MAKE NEW COMPANIES CHALLENGE THE SHAREHOLDER-ENTERIC VIEW OF THE PURPOSE OF A COMPANY?

FOR NEXT TIME

MVP SKETCH

What is the first step your customers take? How do they find out about you? What is the first thing they do?

CONTACT:

Jen or Josh for Office Hours