Lesson on how to create a Business with just one euro i.e. no money for International students of Telecom Management School. From finding and assessing an idea to check its viability through customer development: 1. What kind of businesses require few money? 2. How to select the most suitable idea with few criteria? 3. How to define your Business Model with the Business Model Canvas (Alexander Osterwalder) 4. How to test your idea with the Customer Development framework (Eric Ries)? The next presentation will deal with tools to launch your startup with 1 euro or no money. Présentation en anglais pour les étudiants internationaux de Telecom Ecole de Management dont les Masters dans le cadre du cours sur la création d'une entreprise avec un euro ou très peu d'argent. De comment trouver une idée au test de l'idée avec le Customer Development: 1. Quelles idées nécessitent le moins d'argent ? 2. Comment sélectionner l'idée la plus pertinente avec quelques critères ? 3. Comment créer votre Business Model avec le Business Model Canvas (Alexander Osterwalder) 4. Comment tester son idée avec le Customer Development (Eric Ries)? La prochaine présentation abordera les outils pour lancer votre startup avec 1 euro ou peu d'argent.

6. http://www.flickr.com/photos/remiforall/4863239481/sizes/l/in/photostream/

16. Criteria
(from 1 to 5)
Low capital + low
fixed costs
Scalable
Easy to spread
Easy to sell + short
sale cycle
Automated
Focus on customer
value
TOTAL
Idea 1
Idea 2
Idea 3

23. “A business model describes
the rationale of how an
organization creates,
delivers, and captures
value”

25. Type
Detail
Example
Consumer electronics sector
Mass market
Don’t distinguish between different
Customer Segments. All blocks focus on one
large group of customers
Car part manufacturer
Niche market
Specific and specialized Customer
Segments
Slightly different needs and problems
Credit Suisse with customers
of 100K€ and other of 500K€
Two unrelated Customer Segments
Amazon book store vs AWS
Two or more interdependent Customer
Segments
A credit card company =>
card holders and merchants
Segmented
Diversified
Multi-sided
markets

27. Type
Newness
Performance
Customization
Detail
Example
An entirely new set of needs that customers
previously didn’t perceive
because there was no similar offering
Internet
To improve product or service performance
Internet access (4G)
To tailor products and services to the specific Renault Captur
needs of individual customers or Customer
Segments
To help a customer get certain jobs done
The airlines pay Rolls-Royce a
fee for every hour an engine
runs
Strong focus currently
Fashion and consumer
electronics industries
Brand/status
To use and display a specific brand
Rolex, Quicksilver
Price
For price-sensitive Customer
Segments
Nano car by Tata, Easyjet, Free
mobile
“Getting the job
done”
Design

31. Type
Detail
Example
Based on human interactions
Point of sale, email, phone…
To dedicate a customer representative
Bank account manager
No direct relationship with customers
FAQ
Portal to customize services
Flight booking
A community manager and a community
provide assistance
Open source software
To design new product or service
Powtoons solicits customers to
create content
Personal assistance
Dedicated personal
assistance
Self-service
Automated services
Communities
Co-creation

33. Type
Detail
Example
To sale ownership rights to a physical
product
Renault with car, Amazon with
books
The use of a particular service. The more a
service is used, the more the customer pays
Cloud infrastructure services,
phone service per minute…
To sale continuous access to a service
Fitness club
Autolib in Paris to rent a car
Renting/leasing
Temporarily grants someone the exclusive
right to use a particular asset for a fixed
period in return for a fee
Multitouch screen patent
Licensing
To give customers permission to use
protected intellectual property in exchange
for licensing fees
Brokerage fees
Intermediation services performed on behalf Real estate agents
of two or more parties
Advertising
Fees for advertising a particular product,
service, or brand
Asset sale
Usage fee
Subscription fees
Mobile app ads

35. Type
Detail
Example
Ikea
Physical
Ex. manufacturing facilities, buildings,
vehicles, machines, systems, point-of-sales
systems, and distribution networks
Intellectual
Brands, proprietary knowledge, patents and
copyrights, partnerships,
and customer databases
Patented microchip of
Qualcomm, Microsoft
intellectual property, Nike brand
In particular in knowledge-intensive and
creative industries
Experienced scientists and sales
force in Novartis
Financial resources and/or financial
guarantees, such as cash, lines of
credit, or a stock option to hire key people
and get key customers
Ericsson borrows funds and uses
a part of them to provide
vendor financing to equipment
customers
Human
Financial

37. Type
Detail
Example
Mercedes, Apple
Production
To design, make, and deliver a product in
substantial quantities and/or of superior
quality
Problem solving
To come up with new solutions to individual
customer problems
Consultancy, hospital
eBay
Platform/network
Networks, matchmaking platforms,
software, and even brands can function as a
platform

39. Type
Detail
Example
To optimize the allocation of resources and
activities to reduce costs
Equipment car manufacturer
such as Valeo
Reduction of risk and
uncertainty
Partnerships can help reduce risk in a
competitive environment characterized by
uncertainty
A strategic alliance in a market
while competing in another one
i.e Blu-ray
Acquisition of
particular resources
and activities
To extend its own capabilities by relying
on other firms to furnish particular
resources or perform certain activities
A mobile phone manufacturer
may license an operating system
Optimization and
economy of scale

41. Type
Detail
Example
To minimize costs wherever possible
Rayanair
Premium Value Propositions and a high
degree of personalized service
usually characterize value-driven business
models
Luxurious hotels
Physical manufacturing facilities
Fixed costs
Costs that remain the same despite the
volume of goods or services produced
Music festival
Variable costs
Costs that vary proportionally with the
volume of goods or services produced
Average cost per unit falls as output rises
Bulk purchase rates
Costs advantages from a larger scope of
operations
Marketing activities in large
companies
Cost-driven
Value-driven
Economies of scale
Economies of scope

43. ’

58. ’