This presentation was held as part of the lecture and entrepreneurship workshop on "Mehrwertiges Unternehmertum" at Zeppelin University, Friedrichshafen. Subject of the presentation is the explanation of the business model canvas and the problem/solution validation with customer development interviews.

1. Sebastian Fittko on
Business Model and Idea Validation
at Workshop „Mehrwertiges Unternehmertum“, Zeppelin Universität
1

2. About Sebastian
Intro Business Idea
Intro Business Model Canvas
Q&A
How to validate a Business Idea
Q&A

3. About Sebastian
Intro Business Idea
Intro Business Model Canvas
Q&A
How to validate a Business Idea
Q&A

4. About Sebastian
Intro Business Idea
Intro Business Model Canvas
Q&A
How to validate a Business Idea
Q&A

5. NEW IDEA
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6. Without Execution & Insights
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7. Traction
Time
Problem/
Solution Fit
Product/Market
Fit
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Scale

8. GET OUT AND EXECUTE!!
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9. How to get
insights?

10. Insights
Where is the pain?
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11. Ask your potential customers!

12. Qualitative
Asking for customer‘s intent
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13. &

14. Quantitative
Measure customer behavior
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15. How to
execute?

16. Start here?
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17. Image curtsey: http://www.flickr.com/commons

18. „Everybody has a plan
until they get punched
in the mouth.“
– Mike Tyson

19. Image curtsey: http://www.flickr.com/commons

20. Day
Month
No.
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
For whom are we creating value?
Who are our most important customers?
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http:/
/creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
BIG thanks to Alex Osterwalder! You can download the here: http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf
Year

22. google business model canvas
or
http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf

23. Bla
Bla
Bla
Bla
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Bla

24. Image curtsey: http://www.flickr.com/commons

25. Day
Month
No.
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
For whom are we creating value?
Who are our most important customers?
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http:/
/creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
BIG thanks to Alex Osterwalder! You can download the here: http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf
Year

26. Day
Month
Year
No.
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
Hypothesis
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
Hypothesis
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
For whom are we creating value?
Who are our most important customers?
Hypothesis
Hypothesis
Hypothesis
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
Hypothesis
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
Hypothesis
Hypothesis
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http:/
/creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
BIG thanks to Alex Osterwalder! You can download the here: http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf

27. Go out an ask your customers

28. Get your numbers right!
Image curtsey: http://www.flickr.com/commons

29. About Sebastian
Intro Business Idea
Intro Business Model Canvas
Q&A
How to validate a Business Idea
Q&A

30. Key Partner
Key
Activities
Key
Resources
Cost Structure
Value
Proposition
Channels
Customer
Segment
Customer
Relationship
Revenue Streams

31. Key Partner
Key
Activities
Key
Resources
Cost Structure
Value
Proposition
Channels
Customer
Segment
Customer
Relationship
Revenue Streams

32. Newness: You solve a unsolved problem!
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33. Performance: Your product has a better
performance than the competition!
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34. Customization: You enable to
customize products by the user
http://media.cmgdigital.com/shared/img/photos/2013/02/10/58/41/MichaelDell1jpgCopy.jpg.JPG

35. Getting things done: You help your
customers to get things done.
http://capmembers.com/media/cms/working_together_in_space_hires_E77D1F50E1332.jpg

36. Design, UX, CX: You have just a
stunning design, UX and CX.
http://3.bp.blogspot.com/_wuUoxyO0BNI/TCsb1xIOeuI/AAAAAAAAIWw/k9ph1nqXj2w/s1600/P1040804.JPG

37. Price: You can offer you product
simply cheaper than the competion could.
http://www.gemeinde-asbach.de/img/ALDI.JPG

38. Cost reduction: You help your
cusomers to reduce cost.
http://cdn.physorg.com/newman/gfx/news/hires/2012/1-containershi.jpg

39. Risk reduction: Reducing risk for you customers
(more reliable product or service)
http://files.mercedes-fans.de/images/2010/09/mercedes-benz-hightech-airbag-gurtstraffer-w126-innovationtf012.jpg

40. Accessibility: Making things accessible to your
cusomers they could not afford or access before.
http://www.airlinereporter.com/wp-content/uploads/2010/10/airlines1.jpg

41. Wake the world a better place: Solving social or
environmental problems for the good of the society.
http://www.airlinereporter.com/wp-content/uploads/2010/10/airlines1.jpg

42. Key Partner
Key
Activities
Key
Resources
Cost Structure
Value
Proposition
Channels
Customer
Segment
Customer
Relationship
Revenue Streams

43. Image curtsey: http://www.flickr.com/commons

44. What are you aiming for?
„Being in a good market with a product
that can satisfy that market.“
– Marc Andreessen
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45. Go where the beef is and
people want your stuff!!
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46. Mass market
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47. Niche Market
Image curtsey: http://www.trashness.com/wp-content/uploads/2012/06/preppy-hipster.jpg

48. Segmented
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49. Diversifiziert
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50. Multi Sided
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51. Key Partner
Key
Activities
Key
Resources
Cost Structure
Value
Proposition
Channels
Customer
Segment
Customer
Relationshi
p
Revenue Streams

52. Key
Activities
Key
Ressources
How you serve the customer
Customer
Segment

53. Key Partner
Key
Activities
Key
Resources
Cost Structure
Value
Proposition
Channels
Customer
Segment
Customer
Relationship
Revenue Streams

54. Maintaining your customer relationship
http://www.bruchsal.org/sites/default/files/1_40_Jahre_Dinner_for_one.jpg

55. Key Partner
Key
Activities
Key
Resources
Cost Structure
Value
Proposition
Channels
Customer
Segment
Customer
Relationship
Revenue Streams

56. Service Sales

57. Recurring Revenue

58. Retail

59. Commision

60. Licensing

61. Advertising

62. Renting

63. Donation
http://www.sternsinger.org/fileadmin/upload/Presse/DKS/Sternsinger-Fotos/Inventar/Inventar04.jpg

64. Key Partner
Key
Activities
Key
Resources
Cost Structure
Value
Proposition
Channels
Customer
Segment
Customer
Relationship
Revenue Streams

65. Key Partner
Key Partner
Key
Activities
Activities
Key
Resources
Cost Structure
Value
Proposition
Channels
Customer
Segment
Customer
Relationship
Revenue Streams

66. Key Partner
Key
Activities
Key
Resources
Cost Structure
Value
Proposition
Channels
Customer
Segment
Customer
Relationship
Revenue Streams

67. Key Partner
Key
Activities
Key
Resources
Cost Structure
Value
Proposition
Channels
Customer
Segment
Customer
Relationship
Revenue Streams

68. Key Partner
Key
Activities
Value
Proposition
Key
Resources
Cost Structure
Channels
Customer
Segment
Customer
Relationshi
p
≤
Revenue Streams
Revenue Streams

69. About Sebastian
Intro Business Idea
How to Work with Business Model Canvas
Q&A
How to Validate
Q&A

70. Any Questions?
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71. About Sebastian
Intro Business Idea
Intro Business Model Canvas
Q&A
How to Validate
Q&A

72. How to gather customer insights
and validate decisions?
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73. Quantitative
Measure customer behavior
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74. vs.

75. Qualitative
Asking for customer intend
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76. We do this in two steps:
1st step
Validate Problem
2nd step
Validate Solution
Do they care?
Do they need it?
Do they have budget for it?
Who really is they?
Does our solution really
solve their Problem?
Do they understand the
solution?
Would they pay for it?

77. Numbers are a horrible way to
understand customer intend!
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78. So go and ask your customers!

79. “If I had asked people what they wanted, they
would have said faster horses.” – Henry Ford
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80. The hard things in customer interviews
Knowing who your customer is.
Define narrow segmentation!
5-10 customers per segment.

81. The hard things in customer interviews
Ask the right way.
Did or do, NEVER would.
Don‘t ask for opinions.
Don‘t assume problems.

82. The hard things in customer interviews
Use their feedback.
Know what you want to learn.
Test your riskiest assumptions.
Learn or pivot.

83. The hard things in customer interviews
Be prepared to
kill your idea!

84. The interview
Design a questionnaire based
on your assumptions.
Testrun the interview.
Let them speak.
Ask open questions.
Let them be the expert.
In person, no Skype, no
online survey, no phone,
no email!
Don‘t do more interviews
if feedback repeats!

85. The interview – protocol
No laptop.
Use Post-its.
Write down exact
customer phrase.

86. NEVER delegate interviews!
Interviews should be done by
the product deciders.
Lern to talk and listen to your
customers!
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87. Review with your team!
Use exact wording by the customer.
Understand their answers in their context.
Reflect and rethink your assumptions.
Which assuptions turned out wrong?
See what you‘ve learned.
Adapt your solution.

88. Validate Solution.
Come back to interviewees.
Focus first on current solution.
Discuss flaws of current solutions.
Show mockups and interactive demos.
Get improvement feedback.
Get them to commit. Pay a price?
Build a MVP.
or iterate.

89. If you were wrong – be HAPPY!
You don‘t wasted your money,
time and money
Iterate or pivot
Usually a successful startup didn‘t
start with the final solution
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90. About Sebastian
Intro Business Idea
How to Work with Business Model Canvas
Q&A
How to Validate
Q&A

91. Any Questions?
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92. THX!
contact:
sebastian.fittko@gmail.com
twitter: @forstartups
XING – Linkedin

93. Must-reads!