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TiE Workshop
        Startup 101:
Finding your business model


         Pallav Barah
      Nagarjun Kandukuru
      Krish...
Objective


  A guidebook for startups


  Experiential, hands on learning


  Value derived is through your effort
Agenda
Friday Oct 5                                Oct 6 - 12                        Friday Oct 12
9:30 – 10:00           ...
Startup models
Story of the $23 million startup
Cautionary tale
1998         1998          1998        1999      1999        2000       2000
 Mar           Jun           Oct         Jan ...
2 focus
                                         group sessions



                                                       ...
Who was that entrepreneur?
Traditional start-up model


                         Build product                               Big-Bang
Develop concept...
“Big Up Front Design”


Develop concept     Build product
                  Build product      Alpha /test
               ...
Traditional start-up practices aren’t working



    90-95% of new ventures fail to meet projections
Story of the Rs. 500 start-up
Who is this legendary entrepreneur?




              Karsanbhai Patel
                   Nirma
How do you compete with a Rs. 200cr brand?




              Answer: Start on a bicycle!
Lessons from Karsanbhai and Nirma


  Start small, but with a strong vision

  Clear value-prop for untapped segment

  Co...
Finding your business model
2 stages of start-ups




          Search                                      Scale


Focus on                          ...
When to use this approach


Appropriate                   Limited value

  New markets / new product     Established categ...
Search Principle # 1: Business Model Canvas
           KEY                    KEY                   VALUE             CUST...
Search Principle #2: Minimum Viable Product

                          Minimum + Viable
                     Fertile area ...
Excel competitor: Minimum Viable ?
Minimum Viable ?
Minimum Viable Product for Google Docs


                                 Value
                                 prop
Search Principle #3: Focus on exploration

                           Ideas

           Learn                           Bu...
How it all fits together




Agile software development
Business Model Canvas
What are the children carrying?




           Godrej ChotuKool
Vision: “Refrigeration for rural India”
    KEY              KEY               VALUE                     CUSTOMER         ...
Competitive BMCs




     vs.
Flipkart
KEY              KEY              VALUE              CUSTOMER        CUSTOMER
PARTNERS         ACTIVITIES        ...
Flipkart: “Online shopping for all Indians”
      KEY                      KEY                     VALUE                  ...
Crossword
KEY              KEY             VALUE              CUSTOMER        CUSTOMER
PARTNERS         ACTIVITIES        ...
Crossword: “The best browsing experience”
     KEY                       KEY                    VALUE                     ...
Mid Day: “Evening gossip companion”
      KEY                    KEY                  VALUE                    CUSTOMER   ...
Summary: why BMCs are important

  Elevator pitch – quick summary

  Maximize time from your mentors/advisors

  Compare w...
Exercise:
Develop BMC / vision statement
Vision statement
   KEY               KEY             VALUE              CUSTOMER        CUSTOMER
   PARTNERS          ACT...
Minimum viable product
MVP example #1: Demo video
MVP example #2: Balsamiq mockup
MVP example #3: Mock brochure

            “A lot of technology entrepreneurs, confuse
            shipping and selling. T...
Definitions
• Version of a new product which allows a team to
  collect the maximum amount of validated
  learning about c...
Hard for customers to visualise                        Easy for customers to visualise


    Ask      Commission      Mock...
Making your own MVP



Market risk   Execution
                risk
MVP template


  Identify the #1 market-facing risk for your idea

  Design 1-week experiment that will help you validate ...
Steve Jobs v. Steve Blank




     Vision is important; so is validation
Exercise:
Develop MVP
MVP

 Differentiating features / capabilities:
 • 1
 • 2



 Features for viability:
 • 1
 • 2
Best practices:
                     customer investigation
                “There are no facts inside the building”




S...
Customer discovery
              Assignment
 ✔
 Docu            ✔
 Document        Test      Test       Proceed
 ment
 hyp...
Customer discovery objectives

  Talk to minimum 10 prospects


  Validate problem
Finding customers
  Target list of 30+ (to get 10) - Identify specific personas

  Sources:
  •   Email contacts / Friends...
Interview principles
  Customers are interested in their problem, not necessarily your
  solution

  Ask customers to desc...
Interview questions
  Poor questions:
  • “Do you think this is a good idea?”
  • “Do you like this (proposed) solution?”
...
Suggestions on how to probe
  Walk me through the last time you faced this problem.

  What was the impact on you?

  How ...
What to observe
  Time spent talking about a particular issue

  Observe their body language and expressions

  “Yes” mean...
Concluding Thoughts
  Take notes (as quickly as possible)

  Be prepared to find new problem(s)

  Thank them

  Ask for i...
Wrap up
Acknowledgements




http://theleanstartup.com/   www.businessmodelgeneration.com   www.steveblank.com
Thank you!

knataraj@thoughtworks.com

  nag@thoughtworks.com

pallavb@thoughtworks.com

mpillew@thoughtworks.com
TiE Workshop:
Best practices and practical principles for
             startups (Day 2)

              Pallav Barah
      ...
Agenda
Friday Oct 5                                Oct 6 - 12                        Friday Oct 12
9:30 – 10:00           ...
Retrospective

  How were you able to find customers?

  How many assumptions on the BMC were validated?

  How many BMC a...
Thank you!


knataraj@thoughtworks.com

pallavb@thoughtworks.com

mpillew@thoughtworks.com
Startup 101: Finding your business model: TIE Bangalore
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Startup 101: Finding your business model: TIE Bangalore

TiE Bangalore workshop for Start Ups presentation.

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Startup 101: Finding your business model: TIE Bangalore

  1. 1. TiE Workshop Startup 101: Finding your business model Pallav Barah Nagarjun Kandukuru Krishnan Natarajan Manish Govind Pillewar
  2. 2. Objective A guidebook for startups Experiential, hands on learning Value derived is through your effort
  3. 3. Agenda Friday Oct 5 Oct 6 - 12 Friday Oct 12 9:30 – 10:00 Customer investigation – in the 9:30 – 10:30 Welcome / agenda / introductions field Retrospective 10:00 – 10:30 10:30 – 1:00 Startup models Team presentations 10:30 – 11:00 1:00 – 2:00 Business Model Canvas (BMC) & Lunch examples 11:00 – 1:00 2:00 – 3:00 Exercise: BMC Guest speaker: VC 1:00 – 1:30 3:00 – 3:30 MVP & examples Summary / wrapup 1:30 – 2:30 Lunch 2:30 – 4:00 Exercise: MVP 4:00 – 5:00 Best practices for customer investigation 5:00 – 5:30 Networking
  4. 4. Startup models
  5. 5. Story of the $23 million startup
  6. 6. Cautionary tale
  7. 7. 1998 1998 1998 1999 1999 2000 2000 Mar Jun Oct Jan Sep March Jun Analytics No investor Shift to Start Launch Shut down Liquid- platform traction E-commerce company web site ation for Telecom
  8. 8. 2 focus group sessions Telecom carrier No customer contact negotiations 1998 1998 1998 1999 1999 2000 2000 Mar Jun Oct Jan Sep March Jun Analytics No investor Shift to Start Launch Shut down Liquid- platform traction E-commerce company web site ation for Telecom
  9. 9. Who was that entrepreneur?
  10. 10. Traditional start-up model Build product Big-Bang Develop concept Build product Alpha /test Alpha beta Customer test Launch after Shipment Get funding and offering Market test 3 years Write business plan Build the product Test / fix Ship / fix Planning / collateral PR / plan launch Launch / Demand gen. Initial sales rep Build sales team / selling
  11. 11. “Big Up Front Design” Develop concept Build product Build product Alpha /test Alpha beta Customer Big-Bang Get funding and offering test Market test Shipment Launch Unbridled False sense of Rude Resetting Predictable enthusiasm security awakening expectations disaster
  12. 12. Traditional start-up practices aren’t working 90-95% of new ventures fail to meet projections
  13. 13. Story of the Rs. 500 start-up
  14. 14. Who is this legendary entrepreneur? Karsanbhai Patel Nirma
  15. 15. How do you compete with a Rs. 200cr brand? Answer: Start on a bicycle!
  16. 16. Lessons from Karsanbhai and Nirma Start small, but with a strong vision Clear value-prop for untapped segment Constantly validate all assumptions in the market Iterate and learn
  17. 17. Finding your business model
  18. 18. 2 stages of start-ups Search Scale Focus on Focus on Experimentation Execution Source: “Startup Owner’s Manual”, Blank & Dorf
  19. 19. When to use this approach Appropriate Limited value New markets / new product Established categories Bootstrap businesses Capital intensive industries Disruptive businesses Established businesses Examples: web, mobile Examples: retail store, car company
  20. 20. Search Principle # 1: Business Model Canvas KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS PROPOSITION KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS Source: “Business Model Generation”, Osterwalder & Pigneur
  21. 21. Search Principle #2: Minimum Viable Product Minimum + Viable Fertile area for new products Minimum Viable Too-basic products Incumbent no one wants products
  22. 22. Excel competitor: Minimum Viable ?
  23. 23. Minimum Viable ?
  24. 24. Minimum Viable Product for Google Docs Value prop
  25. 25. Search Principle #3: Focus on exploration Ideas Learn Build Minimize the total time through the loop Data Offering Measure
  26. 26. How it all fits together Agile software development
  27. 27. Business Model Canvas
  28. 28. What are the children carrying? Godrej ChotuKool
  29. 29. Vision: “Refrigeration for rural India” KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS R&D Through Microfinance PR retailers Indian institutions Advertising Economical, households effective, with income Sarpanchs portable KEY of RESOURCES cooling CHANNELS Rs.10,000/m solution o whom Frugal Rural retailers Village traditional engineering (constraints of electricity, ambassadors refrigerators experts space, cost don’t serve solved) COST STRUCTURE REVENUE STREAMS Factory, raw material, SG&A Unit sales
  30. 30. Competitive BMCs vs.
  31. 31. Flipkart KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS PROPOSITION KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
  32. 32. Flipkart: “Online shopping for all Indians” KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS • Supply chain optimisation PROPOSITION Through email, online Publishers • Delivery optimisation chat and database • Urban Indian • SEO marketing • Convenience book lovers • Auto recommendations • Wide selection • Cheaper • Internet- • Trust (CoD) connected KEY people with no RESOURCES CHANNELS credit cards • Delivery staff Web • Technology • First-time capability online shoppers COST STRUCTURE REVENUE STREAMS Book sales Technology, warehouses, deep discounts
  33. 33. Crossword KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS PROPOSITION KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
  34. 34. Crossword: “The best browsing experience” KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS • Sourcing PROPOSITION In store, Crossword • Publishers • Visual merchandising club • Franchisees • Urban Indian • Book reading sessions • Shopper’s Stop • Browsing book lovers • Crossword Literary (parent co) Award experience • Instant gratification • Companies KEY • Stationery RESOURCES CHANNELS buyers • Real estate • Store • Phone • Casual mall • Web visitors • Institutional COST STRUCTURE REVENUE STREAMS • Book sales • Coffee Real estate, cost of inventory • Advertising • Trinkets
  35. 35. Mid Day: “Evening gossip companion” KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS • Brand building PROPOSITION • Distribution • Transactional • Mumbai • PTI, AP etc. • Deep multi-year • Newsgathering English- high-touch • Light speaking mass • Improving ABC numbers relationships market entertainment in key demographics after/during a busy • Office-goers day • Commuters KEY • “2nd newspaper” CHANNELS RESOURCES Advertisers + • Journalists • Mumbai-wide • Railway platforms Agencies: reach of readers in • Kirana shops • Mass market • Salespeople with a relaxed context • Mumbai media-planning in a unique time • Direct • Classified knowhow window • Discount COST STRUCTURE REVENUE STREAMS • Retail offtake (5%) Newsroom, newsprint • Advertising (95%)
  36. 36. Summary: why BMCs are important Elevator pitch – quick summary Maximize time from your mentors/advisors Compare with your competitors The foundation for your business plans / planning
  37. 37. Exercise: Develop BMC / vision statement
  38. 38. Vision statement KEY KEY VALUE CUSTOMER CUSTOMER PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS PROPOSITION KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS
  39. 39. Minimum viable product
  40. 40. MVP example #1: Demo video
  41. 41. MVP example #2: Balsamiq mockup
  42. 42. MVP example #3: Mock brochure “A lot of technology entrepreneurs, confuse shipping and selling. They are two distinct and separate activities. You don’t need a product to try to sell something. Immerse yourself with prospective clients; understand where their pain points are.” - Greg Gianforte, serial enterpreneur
  43. 43. Definitions • Version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort • Anything that helps validate a market for your product
  44. 44. Hard for customers to visualise Easy for customers to visualise Ask Commission Mock Balsamiq Demo Real friends/ex market brochure mock-up video product perts research Easy to implement, early Hard to do, late learning learning
  45. 45. Making your own MVP Market risk Execution risk
  46. 46. MVP template Identify the #1 market-facing risk for your idea Design 1-week experiment that will help you validate the idea, keeping in mind the risk Define success criteria for the experiment
  47. 47. Steve Jobs v. Steve Blank Vision is important; so is validation
  48. 48. Exercise: Develop MVP
  49. 49. MVP Differentiating features / capabilities: • 1 • 2 Features for viability: • 1 • 2
  50. 50. Best practices: customer investigation “There are no facts inside the building” Source: “Startup Owner’s Manual”, Blank & Dorf
  51. 51. Customer discovery Assignment ✔ Docu ✔ Document Test Test Proceed ment hypothesis problem solution (or pivot)
  52. 52. Customer discovery objectives Talk to minimum 10 prospects Validate problem
  53. 53. Finding customers Target list of 30+ (to get 10) - Identify specific personas Sources: • Email contacts / Friends and family / Social media: Linkedin, Facebook/Quora / Warm Introductions Pitch: • Communicate your idea in 10 seconds or less • “Want to ask for you advice – this is not a sales pitch” • “Have been asked to talked to you by TiE” Should be able to get useful input in 15 min.
  54. 54. Interview principles Customers are interested in their problem, not necessarily your solution Ask customers to describe problem(s) in their own words Focus on behavior, not preconceived ideas / statements Be inquisitive, don’t challenge Ask open-ended questions Observe the environment of the customer
  55. 55. Interview questions Poor questions: • “Do you think this is a good idea?” • “Do you like this (proposed) solution?” • “Would you buy this product?” • “How much would you pay for this?” Good questions: • “How do you currently deal with this problem?” • “What alternatives have you considered?” • “How much does this problem cost you today?” • “Would you pay Rs. 1 crore to solve the problem?”
  56. 56. Suggestions on how to probe Walk me through the last time you faced this problem. What was the impact on you? How did you feel about the situation? How frequently do you encounter this problem? When the problem occurs, how critical / urgent is it? How are you currently solving the problem? What do you like / dislike the current solution? Ask the “Why” behind the “what”.
  57. 57. What to observe Time spent talking about a particular issue Observe their body language and expressions “Yes” means no; “Where can I buy it?” means maybe; “Here’s $20 dollars” means yes.
  58. 58. Concluding Thoughts Take notes (as quickly as possible) Be prepared to find new problem(s) Thank them Ask for introductions
  59. 59. Wrap up
  60. 60. Acknowledgements http://theleanstartup.com/ www.businessmodelgeneration.com www.steveblank.com
  61. 61. Thank you! knataraj@thoughtworks.com nag@thoughtworks.com pallavb@thoughtworks.com mpillew@thoughtworks.com
  62. 62. TiE Workshop: Best practices and practical principles for startups (Day 2) Pallav Barah Krishnan Natarajan Manish Govind Pillewar
  63. 63. Agenda Friday Oct 5 Oct 6 - 12 Friday Oct 12 9:30 – 10:00 Customer investigation – in the 9:30 – 10:30 Welcome / agenda / introductions field Retrospective 10:00 – 10:30 10:30 – 1:00 Startup models Team presentations 10:30 – 11:00 1:00 – 2:00 Business Model Canvas (BMC) & Lunch examples 11:00 – 1:00 2:00 – 3:00 Exercise: BMC Guest speaker: VC 1:00 – 1:30 3:00 – 3:30 MVP & examples Summary / wrapup 1:30 – 2:30 Lunch 2:30 – 4:00 Exercise: MVP 4:00 – 5:00 Best practices for customer investigation 5:00 – 5:30 Networking
  64. 64. Retrospective How were you able to find customers? How many assumptions on the BMC were validated? How many BMC assumptions were invalidated? What were your biggest surprises? Was this approach useful?
  65. 65. Thank you! knataraj@thoughtworks.com pallavb@thoughtworks.com mpillew@thoughtworks.com
  • ReneeGonzales3

    Nov. 29, 2021
  • gbaskarindia

    Sep. 11, 2014
  • kjsiva

    May. 15, 2013

TiE Bangalore workshop for Start Ups presentation.

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