Thomas PLAYE

In creative entrepreneurship, I learned in this module that the “test and learn”
approach is the right approach. This method suggests that the contractor use many
iterations. Above all, we must not lock ourselves in for years to try to create the
perfect product and only submit it at the end to potential customers. Indeed, the
product must be compared as many times as possible to the market to perfectly meet
the demand. The gap can be large between the entrepreneur’s vision and my need
for the market. According to the test and learn method, the entrepreneur must rotate
regularly, adapt his business according to what he has found in the market. Thus, the
business model canvas evolves regularly according to the new information
discovered. In my group, to develop Fresher Bakery, we tried to test concepts to
learn and refine the offer. Since we could not actually build several bakeries
successively, we used interviews with different bakers and with potential customers
of the bakery. We conducted several test sessions to learn as much as possible on
the market and build the best possible offer. For example, we previously imagined a
high-end bakery or a bakery with exotic flavours. Their confrontation with the market
proved to be unconvincing. On the other hand, the valuable information gathered
allowed us to build the current offer. We also imagined a business model in B2B, but
the potential market shares were much less interesting than a B2C bakery offer. We
were able to test the effectiveness of the test and learn method in the field. This
method has already worked for famous startups. Indeed, the successful entrepreneur
Garrett Camp, co-founder of Uber, tested many versions of Uber to conclude that
there was a huge market for home food delivery. That’s how Uber Eats was born.
Through a series of iterations, Garrett Camp and his teams even discovered that
there was a market in the delivery of races, hence the possibility of getting their races
delivered via Uber Eats.

Through this ECI module, I learned that every entrepreneurial project must start with
a MVP (minimum viable product). This makes it possible, at a lower cost, to test an
idea on the market. An MVP is a product that can be launched quickly because it
does not have all the final features of the offer. Nevertheless, it conveys a faithful
image of the future product and makes it possible to take a go/no go decision. In
some cases, MVP may be far removed from the final product. For example, the
landing page is a good way to test the interest of the market and thus constitutes a
perfect MVP for many businesses. A landing page and a web page that briefly
presents a product and invites users to click on a button called “call to action”. It
allows to recover the email address in most cases for a reward (ebook, video, free
training, etc.) of the cases but can also be a button that allows to buy the product
directly. Regarding Fresher Bakery, since I have some cooking skills, I have
prepared some pastries that I have given to the other members of my group and to
some potential customers to make sure they like it. This has been a success, so we
have recipe ideas that will work for Fresher Bakery, and we also have a clear idea of
the cost (although we will eventually achieve economies of scale). A good MVP is an
extremely simplified version of the final product, and Garrett Camp understood that.
Indeed, at the very beginning of Uber, there was no mobile app. There was only one
operator who had a driver’s address book and a telephone. When people ordered a
race on the Uber website, the operator manually called drivers to ask them if they
could run the race. Contrary to what Uber claimed, nothing was automated at the
Thomas PLAYE

beginning because they had little means and they wanted to validate the business.
The use of an excel table with little macro has long been the norm at Uber. They
were perfectly following the famous phrase “Fake it until you make it”, a motto of
many entrepreneurs. It’s kind of this idea that we’ve been following and cooking and
interviewing potential Fresher Bakery customers. We have thus built an MVP. The
limit of this theory is to think that the MVP cannot act as a product. It is thus
necessary to rotate many times via the theory of «test and learn», as mentioned
above.

Another exciting entrepreneurial theory created by Eric Ries in 2008 is the «lean
startup». This theory consists, in an agile way, to validate an idea quickly by
confronting it to the market, while minimizing the investment at the start-up. It is about
demonstrating that your product or service, whether used, manipulated, or
downloaded, is of interest to the customer. According to the lean startup,
entrepreneurship involves a virtuous circle between idea, product and data.
Entrepreneurship requires having an idea and, from that idea, building a product.
From this product, it is necessary to recover data by confronting the market. Then
you must learn from that data to get new ideas, and so on. This includes the theory of
“test and learn” and the creation of MVP.

The Fresher Bakery solution I developed with my group through the ECI module
presents opportunities and threats. According to our interviews in the field, this
business is desirable because the design of the premises and products will be very
attractive to consumers. For shareholders, the product is also desirable because the
commercial margins practiced will be important. These margins make business
viable. The demand for pastries and bread cannot stop overnight. We are talking
about primary and historical needs. However, it is clear that the feasibility of the
project remains outstanding. The necessary contribution is indeed very important and
love money will not be enough. The support offered to foster entrepreneurship is also
insufficient to launch this business. It is therefore essential to borrow or raise funds,
which makes the feasibility of the project uncertain.

I learned in this ECI module that the work of marketing is very important. We have
therefore thought about different marketing concepts to make Fresher Bakery as
attractive as possible for our future customers. Garrett Camp understood this
because if Uber remains number one in ATV racing in the world (ahead of Bolt, Grab,
Freenow, Marcel…) and if it is so much ahead of taxis, it is because the marketing
strategy is very precise. The quality of the user experience is essential to dominate a
market. In the case of Uber, the front end of the mobile app (that is, the design of the
mobile app, the ergonomics and layout of the different screens) is flawless. The user
course has been worked on so that there are as few brakes as possible in the
booking of a race. The process is extremely fast. In addition, the pricing and offer
panel have been developed so that the customer is recognized in the company. The
communication strategy is also formidable. The brand has become «top of mind», it
is directly mentioned when you ask for the name of a brand of VTC.
Thomas PLAYE

The quote about entrepreneurship that struck me the most in the ECI module was
from Professor John Mullins (Associate Professor of Management Practice in
Marketing and Entrepreneurship in London Business School). He wrote, “Most
business plans fail to raise any money for the venture. Why? They are written for
business opportunities that are fundamentally flawed [...] Writing business plans gets
the writer into an, everything about me is wonderful’ mode. Most business plans are
idea and entrepreneur-focused, not customer focused. We therefore need to analyze
the opportunity before we even put pen to paper on a business plan.” He explains
through this quote that entrepreneurs often see everything in pink and do not pay
attention to negative points, too convinced by their brilliant idea. Investors see the
inconsistencies and threats in the markets. When they read a bad business plan,
they logically don’t invest. That’s why many entrepreneurs struggle to raise funds. In
addition, entrepreneurs value their idea and their profile as a founder far too much
rather than the appeal of potential clients. However, an idea is worthless, only the
execution of the idea counts. This recurring error reveals the lack of consideration of
the market and the theory of «lean startup». By testing their product more often on
the market, entrepreneurs could write more concrete and convincing business plans
for investors. That’s why, in developing Fresher Bakery, we constantly surveyed
potential customers. We focused our approach on clients and not on our ideas or
profiles of entrepreneurs.

Alexander Osterwalder, creator of the business model canvas, wrote, “The same
products, services or technologies can fail or succeed depending on the business
model you choose. Exploring the possibilities is critical to finding a successful
business model. Settling on first ideas risks the possibility of missing potential that
can only be discovered by prototyping and testing different alternatives”. Thus, we
understand that the idea alone is worthless, and that execution is crucial. It’s how we
turn the idea into a business that’s important. For Uber, Garrett Camp thought of the
optimal business model. Uber collects all the money and then pays the drivers at the
end of the month. This way, he has a comfortable working capital. In addition, the
rate of pay was determined by “test and learn” and benchmarking with the
competition. The subscription model on Uber Eats to benefit from the shipping and
service fees offered has also been studied closely. Thus, for Fresher Bakery, we
have carefully analyzed the different business models available. However, no original
business model seemed more relevant to us than that of a classic bakery. Indeed,
our market is historic, and the subscription was not well received by the potential
customers surveyed. Similarly, there is no possibility of offering a freemium business
model in a bakery.
I understood through this course that having a competitive advantage was
paramount. To develop the right competitive advantage, you need to interview
potential customers. Thus, we asked Jordanians general questions such as:
- What do you like about a bakery?
- What don’t you like about a bakery?
Thomas PLAYE

- What would you suggest improving in Jordanian bakeries?

These fundamental questions made us realize the specificity of the Jordanian market
and made us realize that our target was smaller than we thought. Indeed, our bakery
is not suitable for allergy to gluten or young people who go less and less in bakeries.
The wealthiest are less interested in our bakery concept, which surprised us. The
investigative process with the Jordanians was therefore useful. Similarly, Garrett
Camp is close to its clientele to identify the best competitive advantage to develop.
Feedback on AppStore and Playstore, as well as emails sent to Uber’s Customer
Service, can be used to continuously improve the product and be sure of the target.

Words : 1834

Sources :
Ries, E., (2008). The Lean Startup: How Today's Entrepreneurs Use Continuous
Innovation to Create Radically Successful Businesses. Crown Business.
Mullins, J., (2004). The New Business Road Test: What entrepreneurs and
executives should do before writing a business plan (Financial Times Series). FT
Press.
Osterwalder, A., (2010). Business model generation: A handbook for visionaries,
game changers, and challengers. Hoboken, NJ: Wiley.