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Business Model Competition

Workshop #2

November 5, 2013 Thomas L. Peterson Entrepreneurship Faculty

Academic Year 2013-‘14 Execution Model

SCALE

IDEA

LAUNCH

MODEL

Execute
T

Idea
Model

Plan

“EXECUTE” means LAUNCH
T

“IDEA” really means INNOVATE

“PLAN” means FORECAST

“MODEL” means VALIDATE

IDEA
Execute

•Principles of Innovation: - Innovators DNA - Idea Generation and Development •Initial Pain or Problem Statement •Initial Solution - Early Hypothesis - List of Early Assumptions •Differentiation
MVP

Plan

Model

MVP

MODEL
Execute Idea

MVP •Testing & Validation - Vetting hypothesis thru Interviewing customers, Partners, vendors, etc. •Multiple Iterations of Learning & Pivoting •Evidence of Validation •Work Papers •Initial IP

Plan

MVP

FORECAST for SCALE
FINAL DRAFT of Executive Summary 1. 2. 3. 4. 5. 6. 7. 8. 9. Execute Idea Finished Pain Finished Solution Business Model Progress/Results Underlying Technology (Secret Sauce, Blue Ocean, Disruption) Competitive Analysis Validated Revenue Streams Validated Marketing & Sales Plan Leadership Team (Qualifications) Financial Summary*
- Income projections w/ validated assumptions - Cash flow projection w/ validated assumptions - Projected cash requirements, timing

Model

*Projections and funding requirements
have been validated in MODEL and extrapolated accordingly.

**Milestones prove current
market traction, current state of the company, and next steps for scaling.

10. Milestones, Current Status, and Scaling 11. Draft Executive Summary

EXECUTE
1. Legal Work - Articles of Incorporation - Shareholder Agreement - CAP Table - Non Competes, Confidentiality, etc. 2. Team Building & Development

3. Scaling Plan Execution 4. Fund Raising
- F&F, Accelerator, Seed Funds, VC’s 5. Leadership & Culture Development

Idea

Plan

Model

________ ________ ________ ________ ________ ________ ________ ________

________ ________ ________ ________

Elevator Pitch Holes = Gaps in service, opportunities, differentiators

Hypotheses
________ ________ ________ ________ ________ ________ ________ ________ ________ ________

Sell G-T-M

Validate MODEL
Build MVP

Validate

Model
Test Learn Pivot Iterate

Pricing
Revenue streams Market channels Customer segments Go-To-Market strategies Collective Wisdom

0 No Money Until Here…

Business Model Canvas

The Business Model Canvas
• Includes elements to in-/validate an idea. • Mission is to leave the building, interview potential paying customers and LISTEN. • Invite a monologue and take notes. • What is The Business Model Canvas?
– Key Partners, Key Activities, Key Resources – Value Proposition, Cost Structure, Revenue Streams – Channels, Customer Relationships, Customer Segments

• A method for collecting/organizing insights
11/7/2013

What makes the difference?
• Innovation is creation using an existing foundation; it is building upon an earlier idea. • Use the tools of brainstorming, diversity and carefully listening to find the market ―pain‖ to nail before scaling. • Scaling means SALES, what you may think is a dirty little word; but it defines sustainable success. Value sales. • Ideas are nothing; execution is everything. Execution— not just brilliant ideas—is what brought us the great innovations in technology. • Permit yourself the freedom and flexibility to admit your weaknesses, play to your strengths, listen to everyone, adapt, pivot and start all over again. All this is where innovation originates.
11/7/2013

Validation is getting outside the building… It is talking with strangers.
   

It can’t be your Mom… It can’t be your roommate… It can’t be your best friends… It can’t be someone you work with… It has to be someone who does not love you

Five Magical Phrases Get a MONOLOGUE started:  Share with me…  Tell me about…  Help me understand…  Clarify for me…  What is your opinion…

Could you elaborate…

Validation is getting outside the building… It is taking NOTES  Notes are to remember what was said.  You can’t remember after 10 interviews.  You will gather positives/forget negatives.  You will find you were autobiographical.  Competitive advantage in invitational competitions is: VALIDATION of customer pain.

Business Model Competition
Workshop #2

November 5, 2013 Thomas L. Peterson Entrepreneurship Faculty