Business 101.1A class in business. And entrepreneurship.

Fall 2016NYU ITP

September 12, 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

Last WEEK:

COURSE MAP

TEAM FORMATION

3 Round ROBINS

5 TEAMS

No CHANGES :)

START + Form

Teams

Last WEEK:

COURSE MAP

TEAM FORMATION

3 Round ROBINS

5 TEAMS

No CHANGES :)

START + Form

Teams

TEAMS

FragrancesYu 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

Predictive Social Listening

Tattoo Artist MatchingFernanda

Eric Ramirez Javiera Valle Toro

Assistive Tech Colostomy or Mental

Health Provider Match for LGBTQ

Angie Aguilar Olivia

Isobel Donjon

Ergonomic Design Ashley Williams

Yan Max Theony

Malcolm Pittman

Teams x2

Business Model Canvas Intro

Persona

First Sketch - What Could This Be?

SAM TAM TM

Business Models

Customer Development

Sketch

BMC 1.0

NO BUSINESS PLANS

WHY?

LEAN WHAT IS OLD IS NEW AGAIN

CLASS BOUNDARIES

STARTING A BUSINESS BY SEARCHING FOR A BUSINESS MODEL

YES:

FOR PROFIT

NOT FOR PROFIT WITH SUSTAINABLE CUSTOMER-

DERIVED REVENUE SOURCE

CLEAR TARGET MARKET AND SIZABLE ADDRESSABLE MARKET

PATH TO VALIDATE REVENUE STREAMS

IDENTIFIABLE REVENUE STREAMS

NO:

NO MOVEMENTS

NO “CHANGE THE REGULATION” CONCEPTS

NO CAMPAIGNS / PUBLIC SERVICE / RAISE AWARENESS / CHANGE

BEHAVIOR CONCEPTS

(USE THE ABOVE WITHIN YOUR BUSINESS MODEL, NOT OUTSIDE

OF HAVING ONE)

NO MINUSCULE IDEAS (< $1 MM TOTAL ADDRESSABLE MARKET)

DESIGN THINKING > BUSINESS MODEL CANVAS > LEAN STARTUP

LET’S BEGIN

HOW TO DRAW ON A BLANK SHEET

H H

H HHOW TO DRAW ON A BLANK SHEETLET’S BEGIN

LET’S BEGIN

Customer Segments

Customer Relationships

Value PropositionKey ActivitiesPartners

Key Resources

Customer Channels

RevenuesCosts

Source: Strategyzer Osterwalder, Pigneur

THE BUSINESS MODEL CANVAS:

CREATED BY: CREATED FOR: VERSION:

Customer Segments

Customer Relationships

Value PropositionKey ActivitiesPartners

Key Resources

Customer Channels

RevenuesCosts

Source: Strategyzer Osterwalder, Pigneur

HOW WILL YOUR BUSINESS WORK?

Whom do you help?

What pains do you solve?

What do you

uniquely offer?

Distinct segmentsWhere do

we reach them?

How do we get keep

and grow?

How will you

charge?

What will it cost?

What do you need to have?

How do you do it?

Who will help you?

WHOM DO YOU

SERVE?

ALWAYS START WITH THE CUSTOMER:

Customer Segments

Customer Relationships

Value PropositionKey ActivitiesPartners

Key Resources Customer Channels

RevenuesCosts

Source: Strategyzer Osterwalder, Pigneur

WHOM ARE YOU HERE TO SERVE?

ALWAYS START WITH THE CUSTOMER:

Customer Segments

Customer Relationships

Value PropositionKey ActivitiesPartners

Key Resources Customer Channels

RevenuesCosts

Source: Strategyzer Osterwalder, Pigneur

WHOM ARE YOU HERE TO SERVE?

WHO PAYS?

WHO INFLUENCES?

WHO DOESN’T PAY?

IN PRIORITY ORDER, WHO ARE THE MOST IMPORTANT CUSTOMER TYPES?

PERSONA TIME

Source: van der Meer, Reason Street

Context:

InstagramSnapchat

#stillathome#notanadultyet

Name: Peyton

Age:24

Living with Mom at home

Goals:IndependenceFreedomApartment Bike to workPay off college loan

Interests:Roller derbyRaising money for breast cancerJewelry making

Pains:Can’t seem to saveAt breakeven/losseach monthBad credit rating

Fears + Secrets: Afraid of getting rejected for an apartment Really likes mom’s support

CUSTOMER SEGMENT: 21-30 WITH > $50K STUDENT LOANS

Networks + Memes

PERSONAS ARE FOR CONTINUOUS IMPROVEMENT?

ASK ALWAYS: IS THIS FOR REAL? WHAT ARE YOU LEARNING? WHAT’S CHANGING IN THEIR LIVES?

For real?

No? Revise!

Tech Changing?

Yes? Revise!

PERSONA TIME

YOUR TURN

Context:

Name:

Age:

Family:

Goals: (in order)

Interests:

Pains (in order):

Fears + Secrets: Networks + Memes

Source: van der Meer, Reason Street

FIRST ASSIGNMENT FOR NEXT WEEK

FIND 3 CUSTOMERS THAT FIT YOUR PERSONA (TALK TO 6)

LEARNING OUTCOMES

NOTE: AS YOU VALIDATE YOUR BUSINESS MODEL, YOU WILL CHANGE THE TYPE OF CUSTOMER SEGMENT OR RANK PRIORITIES DIFFERENTLY

MEET TAM, SAM,

AND TM

MARKET SIZING

TOTAL AVAILABLE MARKET

MARKET SIZING

SERVED AVAILABLE MARKET

MARKET SIZING

TARGET MARKET

MARKET SIZING

TOTAL AVAILABLE MARKET

Order of magnitude assessment -

What is the total REVENUE potential of

your market opportunity?

MARKET SIZING

SERVED AVAILABLE MARKET

The % of the market that is realistically in your reach (geography, technology)

MARKET SIZING

TARGET MARKET

Your target -the easiest place to start (big pain point, identifiable)

ITERATE UNTIL YOUR SIZE OF PRIZE IS BIG ENOUGH FOR YOUR VISION

NOTE: AS YOU VALIDATE YOUR BUSINESS MODEL and YOUR CUSTOMER TARGET, MAKE SURE YOU STILL HAVE A BIG ENOUGH MARKET

SOURCING

HOW TO FIND AND VERIFY YOUR NUMBERS IN A GOOGLE AGE

▸ Top down: industry estimates

▸ Bottoms up: NAICS #s, Census data, raw customer data, government open data

▸ Time stamp your data

▸ Be wary of source. Which do you trust most?

▸ Academic

▸ Think Tank

▸ Government

▸ Market Research Firm

▸ Industry Association

▸ Company

SOURCING

QUICK TEST

▸ What % of Americans live paycheck to paycheck?

TAM SAM TM

NOW YOU

▸ How many people are in your total market?

▸ Are you limited by geography? technology? something else?

▸ Where will you start?

SKETCHING

BLANK SLATE SKETCHING

TAKE 5 MINUTES

▸ What is the first interaction / first moment of awareness for the service/product/experience/business you are creating?

FOR NEXT WEEK

Outwork. Get out (of the building)Find 3 customers fit your persona (talk to 6, because not all will fit)

Ask:

“What is a typical day like for you?”

“What keeps you up at night”

“What makes you angry about the world right now?”

Then: Refine Persona and Business Model v 2.0

Present next week 5 minutes tops, 5 slides

# of interviews. key insights. revisions.

CONTACT:

Jen or Josh for Office Hours