Be one of the 10%: How to have a successful startup - Part 2

Be one of the 10% How to have a successful startup

Part 2

Photo: Matt Biddulph

Alice Sowerby + Steve Clark@SowerbyAlice + @ResourceSteve

Session outcomes● Understand why the BMC is useful in (lean) startups● Understand importance of

1) Finding product-market fit2) Planning early for monetisation and value capture3) Understanding what to do yourself and when to buy or partner

● Knowing some key techniques to validate your BMC

The Business Model Canvas (BMC)

● One-page business model

● Created by Alexander Osterwalder in 2008

● Lean startup template AND strategic management template

● Widely adopted, extended and adapted

● Quick, lightweight, easily iterated

Techniques to use with the BMC

Product-market fit

Revenue model

Back end

Product-market fit Finding your customers’ unmet needs

● Real pains● Jobs to be done● Valued gains

Meeting these needs with a product or service that

● Relieves pain● Facilitates jobs to be done● Delivers valued gain over current solutions

Customer Development process

Product-market fit activities● You have some cards with the details of an activity you can do to help find

product-market fit. ● Take each card and place it somewhere along the spectrum between these

two stages:

Understanding likely customers and needs

Understanding likely problem-solution fit

Revenue model

Revenue model How will you build your product and business to:

● Reach the right customers● Achieve maximum lifetime value

Relationships - Get, Keep, Grow

Hot trigger in the path of a motivated person

Revenue model

Channel EconomicsSome channel types

● Direct● Indirect● Reseller● OEM

Costs to consider per channel

● Cost of goods● R&D● Selling costs + channel fees● General and admin● Discounts

Revenue StreamsYour model could include

● Asset sale● Licence sale● Subscription● Usage fee● Rental● Referral fee● Advertising

More ways to monetise

● B2B offering● Sell the sawdust (the byproduct

of your business e.g. data)● Wholesale● Franchise● Consulting● Marketplace

Back end

Making a viable business (back end)

Looking at your cost structure, where will you

● Produce goods and services directly● Buy goods and services in● Partner with other companies to provide goods and services

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Be one of the 10% How to have a successful startup

Part 2

Photo: Matt Biddulph

Alice Sowerby + Steve Clark@SowerbyAlice + @ResourceSteve