Overview of the Business Model Canvas, Value Proposition Canvas, customer empathy map, and additional business model design tools and ideas for lean startup practitioners. REFERENCES & RESOURCES 2. http://blogs.hbr.org/2010/01/is-entrepreneurship-a-manageme/ http://www.amazon.com/Lean-Startup-Innovation-Successful-Businesses-ebook/dp/B004J4XGN6/ 3. http://www.forbes.com/sites/kevinready/2012/08/28/a-startup-conversation-with-steve-blank/ 4. http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/how-write-business-plan 5. http://steveblank.com/2010/01/14/a-startup-is-not-a-smaller-version-of-a-large-company/ 6. http://www.businessmodelalchemist.com/ 7. http://www.youtube.com/watch?v=QoAOzMTLP5s 8. http://designthinking.ideo.com/?p=51 9. http://www.blueoceanstrategy.com/concepts/bos-tools/4-actions-framework/ 10. http://www.amazon.com/The-Entrepreneurs-Guide-Customer-Development/dp/0982743602 11. http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf http://www.amazon.com/Business-Model-Generation-Visionaries-Challengers-ebook/dp/B00BD6RFFS/ 14. This is not a customer segment. 26. http://www.stanford.edu/class/ee204/ProductMarketFit.html 28. http://www.cooper.com/journal/2008/05/the_origin_of_personas 30. http://sloanreview.mit.edu/article/finding-the-right-job-for-your-product/ http://www.sce.carleton.ca/faculty/tanev/TTMG_5103/Articles/Christensen_Finding_the_right_job_for_your_product_MIT_Sloan_2007. df http://www.youtube.com/watch?v=R2xqG1ArMW0 31. https://www.youtube.com/watch?v=wbWs5mRSe_Y 34. http://www.businessmodelgeneration.com/downloads/value_proposition_canvas.pdf 41. http://steveblank.com/2011/09/01/why-governments-don%E2%80%99t-get-startups/ 42. http://steveblank.com/category/customer-development-manifesto/ 43. http://steveblank.com/2011/03/31/entrepreneurship-is-an-art-not-a-job/

1. David Sturtz @sturtz
Geonetric / @BlazeContent
Introduction to the Business Model Canvas
This is a
big idea.

2. According to Eric Ries
What is a startup?
“A startup is a human institution
designed to create a new product or
service under conditions of extreme
uncertainty.”

3. According to Steve Blank
What is a startup?
“A startup is a temporary
organization designed to search for
a repeatable and scalable business
model.”

4. According to SBA.gov
What is a business plan?
“A business plan is an essential roadmap
for business success. This living document
generally projects 3-5 years ahead and
outlines the route a company intends to
take to grow revenues.”

5. “A business plan…
projects 3-5 years
ahead and outlines
the route a
company intends to
take to grow
revenues.”
“A startup is a
temporary organization
designed to search
for a repeatable and
scalable business
model.”
“under conditions of
extreme uncertainty”
“A startup is not a
smaller version of a
large company.”

6. Alexander Osterwalder and Yves Pigneur
What is a business model?
“A business model describes the
rationale of how an organization
creates, delivers, and captures
value.”
“it’s all about the
business model”

7. Business Model Canvas

10. According to Brant Cooper & Patrick Vlaskovits
Your startup ecosystem

11. The Business Model Canvas

13. An organization serves one or several
Customer Segments
1. Customer Segments
Mass market
Niche market
Segmented
Diversified
Multi-sided market “many items
that
eventually go
in other
boxes begin
in customer
segment”

15. It seeks to solve customer problems and satisfy customer
needs with value propositions.
2. Value Proposition
Newness
Performance
Customization
“Getting the job done”
Design
Brand/Status
Price
Cost reduction
Risk reduction
Accessibility
Convenience/Usability

16. Value propositions are delivered to customers through
communication, distribution, and sales Channels
3. Channels
DIRECT
Own Sales force
Own Web sales
INDIRECT
Own stores
Partner stores
Wholesaler
“A channel
is simply a
shelf”

17. Customer relationships are established and maintained with
each Customer Segment.
4. Customer Relationships
Personal assistance
Dedicated personal
assistance
Self-service
Automated services
Communities
Co-creation

19. Revenue streams result from value propositions
successfully offered to customers.
5. Revenue Streams
Asset sale
Usage fee
Subscription fee
Lending/Renting/Leasing
Licensing
Brokerage fee
Advertising

26. According to Mark Andreesen
“Rachleff’s Corollary of Startup Success”
“The only thing that matters is
getting to product/market fit.”

27. Empathy Map

30. Clayton M. Christensen, et al.
What are ‘jobs to be done’?
“[The consumer] simply has a
job to be done and is seeking to
‘hire’ the best product or service
to do it.”

31. Christensen on Jobs to be done

34. The Value Proposition Canvas

35. Key resources are the assets required to offer and deliver
the previously described elements…
6. Key Resources
Physical
Intellectual
Human
Financial

36. … by performing a number of Key Activities.
7. Key Activities
Production
Problem solving
Platform/Network

37. Some activities are outsourced and some resources
are acquired outside the enterprise.
8. Key Partnerships
MOTIVATIONS
Optimization & economy of scale
Reduction of risk & uncertainty
Acquisition of particular resources & activities
“think
through why
and when you
need
partners”

38. The business model elements result in the cost structure.
9. Cost Structure
BROAD CATEGORIES
Cost-driven
Value-driven
CHARACTERISTICS
Fixed costs
Variable costs
Economies of scale
Economies of scope

41. According to Steve Blank
What is not on the canvas?
Market type
Market size
Competition
Industry dynamics

42. What’s next?
“[the] business model
canvas is the starting
point for Customer
Development, and the
“scorecard” that monitors
startups’ progress as they
turn their hypotheses
about what customers
want into actionable
facts.”

43. On Art & Entrepreneurship
“[Founders and
entrepreneurial employees]
are rare, unique and crazy.
They’re artists.”

44. Questions?

45. Take your blank framework and write one of your ‘crazy
ideas’ at the top of it.
Before you go

46. THANK YOU.
@sturtz