Advanced business models i catapult

Business
Models
Wednesday, 7 August 13

“I wish I knew that sooner.”

You’ve got a ton of options

Early stage strategy is
ﬁnding the few that matter.

4% conversion rate = win!

4% conversion rate = win?

We obsess over
the details.

And miss the big picture.

Marketing Success!

Business fail.

We had a
big picture
problem!

Alex Osterwalder’s
Business Model Canvas
is the big picture.

What happened? Let’s look at the business model...

Your business model has holes

We wanted more users, so
we marketed...

...which was rendered
worthless by our retention.

Stuff’s going wrong...
Let’s embrace it!

Test the
scary bits ﬁrst.
(not the fun bits)

Navigating through options, hypotheses
& environmental changes.
Understanding dynamics between
parts & articulating a clear story.
Parts
Whole
Progress
Checklists & dashboards1
2
3

Changing something
changes everything.

A “simple”
change.

You can’t think
about any one part
without thinking
about the rest.

Faster production
Production

Clothing
labels &
distributors
Faster production
Production

Clothing
labels &
distributors
Faster tomarket
Faster production
Production

Clothing
labels &
distributors
Faster tomarket
Faster production
Production
Production fees

Designers
Consumers
Fan Base
Faster production
Production

Designers
Consumers
Fan Base
You design -
we do the rest.
Faster production
Production
Pool of talent

Designers
Consumers
Fan Base
You design -
we do the rest.
Faster production
Production
Online
tools
Pool of talent

Designers
Consumers
Fan Base
You design -
we do the rest.
Faster production
Production
Personal
support
Online
tools
Pool of talent

Designers
Consumers
Fan BaseFacebookFacebook
You design -
we do the rest.
Faster production
Production
Personal
support
Online
tools
Pool of talent

Designers
Consumers
Fan Base
Selling Clothes
FacebookFacebook
You design -
we do the rest.
Faster production
Production
Personal
support
Online
tools
Pool of talent

Use the Canvas as
X-Ray goggles.

What on earth are
you on about?

Pick my brain.
PAIRS

Present
their model
ON
STAGE

How did you do?
Explains the business?
Focused on the main bits?
Used fewest post-its?
Good, engaging story?

Good for vision,
inventing and improving.
Bad for getting stuck on
speciﬁcs that don’t work.
Tenacity

Platform Platform

Platform Platform
Mass customisation
Value-based
pricing
App sale +
in-app purchase
Subscription
Transactional
Multi-sided
market
Licensing
Crowdsource
Ad-supported
Event-supported
SaaS
Bundling
Viral
Direct-over-viral
Purchase-timing

Know your options.

What’s the
big opportunity?
W
RITE
IT
DOW
N

Business model prototyping
No writing on the canvas - use post-its
Use the post-its as you discuss. Move them around.
3 minutes max per model - quantity over quality

Business model prototyping
No writing on the canvas - use post-its
Use the post-its as you discuss. Move them around.
3 minutes max per model - quantity over quality
Tip - aim for around 4-7 post-its per model
IN
TEAM
S

Nail down your business model,
one bit at a time.
Option cards

One dynamic per card.
2 -3 dots per card.
How do
authors
prebuild
customer lists?
CLINIC

2 -3 dots per card.
How do
authors
prebuild
customer lists?
Will ppl buy pet
food on
Facebook?
CLINIC

2 -3 dots per card.
How do
authors
prebuild
customer lists?
Evan can intro
me to Joe at
Initrode.Will ppl buy pet
food on
Facebook?
CLINIC

2 -3 dots per card.
How do
authors
prebuild
customer lists? Sell to y2k
software houses
through Initrode
Evan can intro
me to Joe at
Initrode.Will ppl buy pet
food on
Facebook?
CLINIC

You’ve built a great app.
Users use the free trial.
They love it. They use it
every day. When the free
trial expires, they don’t buy.
Why?
DISCUSSION

Scaffolding

Understanding our options.
IN
TEAM
S

Who will our next 10 customers be?
Where are they looking? And for what?

What needs do your customers have?
How do they solve them now?

To multiply my customer base by 10, I can attract
them through _____________ .

What are the different ways we can make money?

How would our business change if we could only
charge 5% of we’re planning to?

How would our business change if we didn’t have
a web site or app?

When customers have this problem, or are
tackling this task, where do they seek help and
advice?

Which customers have different expectations
about service levels or relationship?

What are our possible revenue streams? What
customers pay for that, in that way, and why?

Are there customers at the low-end who would
pay less for lower performance? What if they
were our ONLY customer?

How could we increase switching costs?

Who are the people in our network that can fast-
track our business? How?

Balancing focus &
opportunity

What I
can do
What I’ve
got
Small partnerships.
Affordable Loss.
IN
TEAM
S

Pick a
learning goal
What big make-or-break risks
or idea is the one you want to
nail down this week?
(Hint: use the Canvas or
metrics to make sure it’s
relevant.)

Your
Validation
heartbeat.

Build
Learn
Measure
Your
Validation
heartbeat.

Build
Learn
Measure
1) Start with your
learning goal.

Build
Learn
Measure
1) Start with your
learning goal.
Learn Conﬁrm

Build
Learn
Measure
1) Start with your
learning goal.
2) Then decide what you need to
measure or observe.
Learn Conﬁrm

Build
Learn
Measure
1) Start with your
learning goal.
2) Then decide what you need to
measure or observe.
3) Then only build what it takes.
Learn Conﬁrm

Minimum Viable
What is the minimum thing I need to build
to prove or disprove this?

Limit your
work in progress.

Salim Virani
@SaintSal
salim@saintsal.com
www.foundercentric.com
Thanks!

Meeting every week with fellow founders to share our
weekly progress, and get advice to stay on track.
Braintrust

Braintrust
3 minutes each to present
your learning & goals. 5
minutes each for feedback.
Feedback is focused on risks,
learning methods &
environment - not your ideas!

Take 3 minutes to prepare at:
foundercentric.com/
learningprogress

What you learned.
Progress
Obstacles in reaching your learning goal.
Problems
What will you learn by next week?
Learning Goal

Investor relations
Transparency & clarity on
where they can help.

Make the accelerator accelerate you!
Lead time

Advanced business models i catapult

Recommended

Recommended

More Related Content

Similar to Advanced business models i catapult

Similar to Advanced business models i catapult (20)

More from Founder-Centric

More from Founder-Centric (20)

Recently uploaded

Recently uploaded (20)

Advanced business models i catapult