The document summarizes key topics from a presentation at SXSW on the Business Model Canvas (BMC) tool for startups. It discusses modifying the BMC based on learnings and insights. It provides examples of filling out customer relationships, channels, and revenue models sections of the BMC. It emphasizes that the BMC contains hypotheses that need to be tested through customer experiments following the H-E-R-I process of hypothesizing, experimenting, getting results, and iterating. The recommendation is to create H-E-R-I processes for elements of the BMC and test them.

1. Learnings from SXSW
Steve Blank, Bob Dorf & Startup Weekend
March 8th-11th, 2013
Austin Texas

2. Presentation Topics
Section 1 Section 2 Section 3
Business Model Canvas Business Model Canvas Business Model Canvas
(creation and modification)
(modification) (modification)
Customer Segments Customer Relationships, Diagram
Get, Keep, Grow
Value Proposition Here's What We
Channels Thought
H-E-R-I
Revenue Model Here's What We
Learnings and Insights Learned
H-E-R-I
Change BMC Here's What We Are
Going To Do Next
Learnings and Insights
Highlight Most
Important Learnings

3. Presentation Topics
Section 2
Business Model Canvas
(modification)
Customer
Relationships,
Get, Keep, Grow
Channels
Revenue Model
H-E-R-I
Learnings and Insights

4. Example
Section 2
3/9/13
Now that we have learnings from Section 1. Place those changes in the BMC and make sure the changes
are made in red. The next step will be to validate our Customer Relationships, Channels & revenue Models

5. Customer Relationships
GET - In person sales, Adwords GET - Convenience and gifts
KEEP - System Usage KEEP - Receive and give gifts
GROW - Campaigns GROW - Loyalty Programs
Customer Relationships are broken down into three sections.
1. Get - How are you going to get them as your customer?
2. Keep - How are you going to keep them as your customer
3. Grow - How are you going to grow your relationship?

6. Channels
Section 2
In bar promotion materials, customer
Internet, sales, customer support,
support, internet
account management
Bars, goer to goer, App store, paid
Bar Goers suggesting app
marketing
Channels are ways that you deliver value propositions to your customer segments.
Some examples include promotional material, customer service (to grow after
contact has been made), and in person sales.

7. Revenue Streams
These are ways that you plan to monetize your business.
$99/month Subscription
Percentage of Transactions (3-6%)
GIft Promotion Packages ($0.50 per gift)
Some important notes:
Marketing data and advertising is not a reliable form of revenue. Why? Sometimes
it takes a very long time to make money from marketing and advertising and you'll
never know if it's a 100% thing until you have a contract in hand.
Confused on which revenue model to pick?
If you have too many revenue models, try focusing on the important ones that will
get you to profitability the fastest.
WILL THEY OPEN THEIR WALLET?
A lot of people "say" they will buy your product. So, put it to the test and ask them
to pay on the spot (not applicable in all situations)

8. These are all GUESSES
Section 2
Back to H-E-R-I
An important thing to remember is that everything in your business model canvas
is one big guess. The only way you will KNOW if they are correct is by getting out
of the building and talking to customers face to face.
The Process:
Hypotheses - Here's what we thought
Experiment - Here's what we did
Results - Here's what we found
Iterate - Here's what we're going to do next
Write down some hypotheses, create the experiments, find the results and iterate.
Figure out what will work best and bring it back to the BMC

9. Recommendations
Section 2
Create H-E-R-I's for channels, revenue models and relationships
Test your H-E-R-I's
Come back together as a team and discuss results and insights discovered
Iterate