Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Neuro engr 245 lean launchpad stanford 2019
1. 107 total interviews
Tyler Maloney Maxine Lim Adeesh Goel Tyler Ernst
Picker
MBA, BS Materials Science
Designer
MBA/MS Computer Science
Hacker
MS MS&E, BS Economics
Hustler
MBA, BS Economics
DAY 1 : A secular meditation studio
for professionals
NOW: A gym with integrated
exercise + meditation classes for body hackers
4. Team
Tyler Maloney Maxine Lim Adeesh Goel Tyler Ernst
Vipassana Attendee
+
Daily Meditator
Vipassana Attendee
+
Daily Meditator
Meditation Classes
+
Daily Meditator
Headspace User
+
Sanity Check
5. Original Value Proposition
For busy professionals who want to improve mental performance,
Neuro is a cognitive gym
that offers meditation classes.
Unlike our competitors, we are secular and scientifically-based.
BeyondWeek 9Week 8Week 7Week 6Week 5Week 4Week 3Week 2Week 1Pre-LLP
6. We Visited Our Competitors
Los Angeles Phoenix
New YorkToronto
BeyondWeek 9Week 8Week 7Week 6Week 5Week 4Week 3Week 2Week 1Pre-LLP
7. 1) We must provide an experience apps can’t offer.1) We must provide an experience apps can’t offer.
1) We needed to focus on a specific customer segment.
What We Learned:
BeyondWeek 9Week 8Week 7Week 6Week 5Week 4Week 3Week 2Week 1Pre-LLP
8. First Pivot
For body hackers who want to strengthen their minds,
Neuro is a cognitive gym that offers Endurance Sits.
Unlike our competitors, we challenge our customers to sit still for an
entire hour through physical and mental pain.
BeyondWeek 9Week 8Week 7Week 6Week 5Week 4Week 3Week 2Week 1Pre-LLP
9. “I want this. Headspace is too soft for
me to get anything out of it.”
- Ian McMilan, MSX Student at Stanford
“Crossfit for your mind? I’ll be there.”
- Jeremy Zhang, PM at SmartCar
BeyondWeek 9Week 8Week 7Week 6Week 5Week 4Week 3Week 2Week 1Pre-LLP
15. “This was my first meditation and
I loved it. When’s the next one? You can
count us in - we will totally be there!”
- Princi and her husband
BeyondWeek 9Week 8Week 7Week 6Week 5Week 4Week 3Week 2Week 1Pre-LLP
16. Market Opportunity
TAM = $30B
SAM = $4.2B
SOM = $1.0B
Gyms & Fitness are a $30B industry
14% of the US now meditates
25% SAM market penetration
BeyondWeek 9Week 8Week 7Week 6Week 5Week 4Week 3Week 2Week 1Pre-LLP
17. Market Opportunity
Meditation in US has grown 6x as fast as yoga
● 2012: 4.1% of Americans meditated
● 2017: 14.2% of Americans meditated
Growing Market, Growing Leaders
● Calm: $1B valuation, making it the first mental health unicorn
● Headspace: $250M valuation
BeyondWeek 9Week 8Week 7Week 6Week 5Week 4Week 3Week 2Week 1Pre-LLP
19. Major BMC Changes
BEFORE
Customer Segment
Successful and unsatisfied
professionals
Value Proposition
An edge at work
Key Activities
Secular meditation classes
NOW
Customer Segment
Body hackers
Value Proposition
A superior workout routine that benefits
body and brain
Key Activities
Mind Day classes | Body + Brain classes
24. Influencers
Neuroscientists, Military
Leaders, Athletes,
Technology Executives
Technology Providers Muse
- eeG | Halo - tDCS
Swag Suppliers
Lululemon or other fitting
partner for swag
Get an edge at work.
Improve your cognitive
function in work and life.
Supercharge your
development.
Enhance your practice with
technology.
Meditation without the
baggage.
Scientifically-based, dogma-
free education.
A high performing
community.
Meet successful, like-minded
people.
Leases, Physical Equipment and Technology
Instructor Training and Salaries
IT Development and Maintenance
Cleaning and Maintenance
Influencer Recruitment and Fees
Targeted Advertising
Monthly Membership Dues: Tiered structure
Upselling for use of technologies: Muse - eeG | Halo - tDCS
Non-recurring revenue: Swag, special events, drop-in classes
Meditation Classes
Segmented by length and
difficulty with opt-in for
technology (eeG, tDCS).
Includes education on
scientific basis for practice.
Influencer Speaker Series
Teacher - Student
Trustworthy guidance and
education from teachers.
Student - Student
Strong relationships with
other like-minded students.
Curriculum
Instructor Training
Real Estate/Leases
Physical Equipment
Technology (eeG, tDCS)
Web/Mobile App
IT
Physical Gyms
A network of country-wide
physical gyms with
consistent product quality.
Companion Application
For goal tracking and
accountability.
Neuro Pre-Week 1
Successful and Unsatisfied
High status, high-earners in
demanding careers (bankers,
tech employees, consultants,
etc.) looking for a way to
reduce stress and improve
cognitive performance.
Secular Meditators
People who do not identify
with an organized religion
and want to explore
meditation from an
evidence-based, scientific
perspective.
25. Instructors - Dynamic, fun
instructors with a passion for
exercise and meditation. A big
plus if the have a SM following.
Gyms - To partner with and
offer classes until demand
justifies opening retail
locations.
Influencers - Writers, Bloggers,
SM Influencers, Military
Leaders, Athletes, Technology
Execs.
Swag Suppliers - Lululemon or
other fitting partner for swag.
Look, Think and Feel Great
Our Body + Brain classes are
more than just a workout.
Designed to help you have it all.
Become Mentally Strong
Mind Day will challenge your
willpower. Develop emotional
resilience and grit.
Achieve Peak Mental and
Physical Performance
Success and happiness are a
product of both mental and
physical performance. Achieve
both - with us.
Leases
Instructor + Staff Labor
Subscription to Online Marketing Tools
Cleaning and Maintenance
Body + Brain Classes - One
hour instructor-led exercise +
meditation classes. 30 minutes
of each.
Mind Day - Challenging one-
hour meditations to improve
cognitive control, emotional
resilience and grit.
Drop-In Classes: Purchase individual classes or blocks of class.
Monthly Subscriptions: Buy unlimited access to our gyms.
Non-Recurring Revenue: Swag and special events.
Teacher - Student
Trustworthy guidance and
education from teachers.
Student - Student
Strong relationships with other
like-minded students..
Workouts/Meditation Scripts
Gym Partnerships/Leases
Online Marketing Tools
Instructor Training
Physical Equipment
Physical Gyms
A network of country-wide
physical gyms with consistent
product quality.
Companion Application
For goal tracking and
accountability.
Neuro Week 10
Body Hackers - People
focused on optimizing physical
and mental wellness through
diet, exercise, and habit.
Tech Addicts - We struggle to
put down our phones and never
turn off. This addiction destroys
quality of life and sleep. Get
control over your technology
habits.
Workout Equipment
Instructor Training
Notes de l'éditeur
Hook:
10 hours/day. That’s how long I sat in silent meditation, for 10 straight days in a tiny corner of Nepal. My bones ached and I often felt as if I were losing my mind. But by the end of my vipassana, a radical 10 day silent meditation retreat, I noticed an enormous change in my quality of life. I became happier, less quick to anger, and more in control of my own thoughts and emotions.
Three months later, I arrived at Stanford for business school, determined to continue advancing my daily meditation practice. But, to my surprise, I could find nowhere nearby that fit my needs. There weren’t many meditation studios, and the ones that did exist were kind of hokey. For me, meditation wasn’t some pseudo-spiritual practice that consisted of aligning chakras and wearing healing crystals. It was the deliberate and willful rewiring of my brain through hard work and effort.
As an entrepreneur, I immediately started to think about building what I called a “cognitive gym” for people like me to come together and meditate. So I decided to apply to the Lean Launchpad program and began talking to classmates to assemble a team.
[Click for Maxine] First, I met Maxine, who had actually attended multiple 10-day retreats. Maxine went to the local buddhist center once a week, but what she really wanted was a secular community to advance her practice.
[Click for Adeesh] Then I met Adeesh, who has taken pretty much every meditation class offered at Stanford - and there are a lot.
[Click for Tyler] Lastly, I wanted to bring on someone who hadn’t drank the cool-aid to make sure we stayed on track. So I recruited Tyler, who dabbled in at home meditation apps like Headspace. He was to be our sanity check, an outside perspective to make sure we didn’t go too far off track.
When we applied to the Lean Launchpad, we thought we would offer secular meditation classes to busy professionals to help improve their mental performance at work. And we got in!
So in week 1, we hopped on a plane, to visit competing meditation studios in Toronto, New York, LA and Phoenix. [click for 1 at a time] where we attended classes, spoke with more than 30 customers and employees, and even sat outside their doors counting attendance.
To our surprise and disappointment, it turned out that none of these businesses were doing all that well. By our estimates, only a few were close to breaking even, and none were growing. This was incredibly disheartening. The businesses we saw weren’t all that different from what we had envisioned - and they weren’t working.
We stumbled through our first three weeks of the class, and even flirted with pivoting away from meditation entirely. But, thanks to the teaching team, we decided to stick with it.
Now looking back, I realize we learned two very important things from these visits:
[CLICK] The first was that our product needed to be meaningfully different from at home apps like headspace. Our competitors offered 30 minute meditations that just weren’t worth leaving the convenience of your own home.
[CLICK] Second, the places we visited really struggled to build a brand. They tried to serve both spiritual and scientific meditators, and as a result their experience came off as bland. In contrast, we needed to focus on a specific customer segment.
So we took this knowledge and ran facebook tests to find the right segment. And the segment that had the best response rate to our ads were what we call “body hackers” - scientifically minded fitness oriented individuals.
So we pivoted and decided to take a stand: we were going to serve body hackers with a mental strength training product. In short, we would become the CrossFit for your mind.
To do this, our meditations would be no sleepy snooze. We were going to challenge our customers with something we called an “endurance sit” - a one hour meditation in which we pushed our customers to sit still without a single movement and control their mind and body for an entire hour. It would be tough, it would be mentally frustrating and physically painful, but our customers would see the results translate to day to day life, just like after my vipassana retreat.
When we started talking about this idea, people thought we were going crazy. In fact, no one else in the Lean Launchpad class thought we’d get customers to show up. But we didn’t doubt ourselves, because we were starting to have interviews where we heard:
“I want this” and “I’ll be there.”
Before this week, many people had told us “yeah this seems cool, someone probably would want this”, but now we were finding actual, real customers like “ Ian, Jeremy and Gabe.”
So, in week 4, we ran our first MVP - a one hour endurance sit.
We went to local gyms to hand out flyers, and we advertised on Facebook and Instagram.
And we rented out a small gym space at the University Club. A total of 14 people showed up for our first class, paying $20/seat. We made our first $280 of revenue - and we were in business!
Over the next 3 weeks, we grew our attendance to almost double, but we started to notice we were competing for people’s “me time” with exercise, so we decided to pivot once again and pilot a new class.
Our Body + Brain Class would incorporate physical and mental exercise into an integrated one hour workout. During this hour, we’d push our customers to crush an intense CrossFit-like workout in 30 minutes, then sit in meditation for 30 minutes. In the time that it takes to complete a Barry’s or SoulCycle, our customers could get their bodies AND minds right.
In Week 9, we ran our 4th MVP - our first Body + Brain class. The exercise portion included a circuit with [click each] battle ropes, punching bags, and sprinter slides.
And the meditation occured right there in the gym. This is an image I just love because I think it captures so much of what we’re doing. It’s a bunch of badass, sweaty people, working hard to sharpen their minds and improve their lives.
The verdict? Our customers loved it. We received our highest NPS ever (+50) and had multiple new customers off Facebook asking when our next class would be.
[PAUSE]
So what’s next? Well, we believe this a huge market.
The US Fitness Industry is more than 30B market and it is growing rapidly.
14% of the US now meditates, making our Serviceable Available Market $4.2B.
And given that we are the only provider of exercise+meditation, if we could capture 25% of that market we would be a billion dollar revenue business.
But that’s just today.
Meditation is also the fastest growing wellness trend, growing 6x as fast as yoga. Based on growth rates of the past 5 years, we believe the market will double in size within the next 5 years. This has led to big winners in the app space, with Calm now valued at over $1B. And we believe it will lead to big winners in the retail space as well.
To get there, we plan to open our first location this year and achieve $500k/year in revenues in year 1. To do this, we need to charge $35/class (like SoulCycle), offer 3 classes a day, and have an average attendance of 13 people/class. These metrics are reasonable for Year 1.
Over the next 5 years, we believe we can grow the business to 100 locations with a average revenues of $2M/gym, slightly better than Planet Fitness and just half of what Soul Cycle achieves. And, because we require very little capital equipment compared to other gyms, we don’t require much up front investment. So we plan to own and operate our own gyms. By our projections, we can get to $200M in revenue with as little as $30M in of funding.
We started to pitch to seed investors and are now having discussions about how we can best use our spring and summer to take this forward.”
$500k/location:
$35/class
3 classes/day
13 attendees/class
$1M/location:
$35/class
3 classes/day
26 attendees/class
$2M/location:
$35/class
6 classes/day
26 attendees/class
Average revenues:
Crossfit: 220k
PF: $1.7M
SC: $4M
Opening a CorePower Yoga: $214,700 to $427,000 initial investment
Hockey Stick Graph
Open first retail location in 2019 - owner operated
Scale to Bay Area in 2020 - 2021 (3, then 8 stores) - franchise
Scale to US in 2022 - 2030 (exponential growth) - affiliate model
When we started the class, we THOUGHT we would be serving unhappy employees with a tool to get ahead at work. We now KNOW that we’re providing body hackers with a superior workout routine that combines exercise + meditation to help you LOOK, THINK, AND FEEL GREAT.
Since we focused most of the class on finding product market fit, our next steps will be to start exploring the left side of the business model canvas, including cost structure, key partners and key resources.
We hope to help you strengthen body and mind to achieve peak physical and mental performance. We are Neuro: The Cognitive Gym.
Now we’re going to show you a quick video explaining our concept, but first we want to give a few shoutouts. 1) To our mentor, Michael Heinrich, who has provided both business and personal guidance throughout this challenging 10 week process to keep us on track. 2) Second, to the teaching team for dedicating your valuable time to be here and help all of us explore our passions. And lastly, to the other members of the class for always providing such thoughtful and helpful feedback each week.
We wouldn’t have made it this far in such a short period of time if it weren’t for all of you. Thank you!
Looking back at our original Business Model Canvas, you can see just how much we’ve learned over the past 10 weeks. Our business model canvas has gone from this -
To this. To highlight the most significant changes