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Dr Rachel Wright May 2013 How to win 75k!. UC Innovators Expert Advice Drop In Sessions 7 May - 1 to 3pm in NZi3 foyer The Hatchery – UCs Student Incubator.

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Presentation on theme: "Dr Rachel Wright May 2013 How to win 75k!. UC Innovators Expert Advice Drop In Sessions 7 May - 1 to 3pm in NZi3 foyer The Hatchery – UCs Student Incubator."— Presentation transcript:

1 Dr Rachel Wright May 2013 How to win 75k!

2 UC Innovators Expert Advice Drop In Sessions 7 May - 1 to 3pm in NZi3 foyer The Hatchery – UCs Student Incubator Way to fast-track your ideas into a new venture All ideas welcome - Social and for-profit Access to seed funding Access to experts in the community

3 UC Innovators – Job opening © Powerhouse Ventures Limited, 2012 We are looking for a student to join our small team to provide support for various activities related to UC Innovators such as: Help organise and run events Social marketing - Facebook Develop marketing material Network/talk to a variety of stakeholders eg members of business community, UC students and staff 4 to 5h per week during term time – flexible hours Pay to be negotiated Great opportunity for someone interested in entrepreneurship and innovation If you are interested please contact or call

4 Hear & Meet Katherine Corich 20 May at 5pm Undercroft 101 © Powerhouse Ventures Limited, 2012 UC Alumni - Master of Arts Finalist UK New Zealander of the Year 2013 Global CEO of Sysdoc – Global Service Provider 2010 Winner Ernst and Young Master Entrepreneur of the Year 2009 – UK National Business Awards Finalist – Entrepreneur of the Year Trained as Commercial Pilot and Flight Instructor Katherine is an entrepreneur, innovator and a visionary leader. Dont miss this great opportunity to meet and talk with Katherine!

5 Entre - 75k Challenge 2013 © Powerhouse Ventures Limited, 2012 Applications close 10 May 2013 To enter you need to submit: a 60 second elevator pitch a short written summary See for more

6 Elevator pitch © Powerhouse Ventures Limited, 2012 Keep it customer focused Compelling Value Proposition Keep it clear and simple – a non-technical person needs to be able to understand your idea and how compelling it is! Have a prototype if relevant– even if it is made out of cardboard DONT go into huge amounts of detail on the technical aspects of your invention/idea

7 Written Submission © Powerhouse Ventures Limited, 2012 Keep it clear, simple and concise Make it compelling Avoid jargon and technical language

8 Entre – Written Submission © Powerhouse Ventures Limited, 2012 Problem What problem does it solve or unmet need does it satisfy? Solution What is your idea/invention How does it solve the problem identified above? Customer This should NEVER be everyone Clear target customer Why will they buy your product/service over what already exists? Cheaper, faster, more economic? - What are your USPs?

9 Entre – Written Submission © Powerhouse Ventures Limited, 2012 Opportunities Companies should never be based around one product Where else can you see your idea/invention going? Competitors There are ALWAYS competitors Competition can simply be that the customers do nothing How do customers currently solve this problem?

10 © Powerhouse Ventures Limited, 2012

11 Identifying good ideas © Powerhouse Ventures Limited, 2012 Entrepreneurs create better products or services if it is for something they want to use or know something about i.e. they have domain knowledge Bill Bowerman – waffle sole for running shoes – Nike

12 Find a problem – the bigger the better! © Powerhouse Ventures Limited, 2012 Problem Need Pain But dont just choose any problem……ideal problems are big and critical How do you find out if there really is a problem? Find out if there are significant consequences because that thing is broken

13 Identifying problems through customer pains © Powerhouse Ventures Limited, 2012 What challenges or difficulties do your potential customers encounter? What does your potential customer find to costly? How are current solutions underperforming? What keeps your customers awake at night? What barriers exist from keeping your customers from adopting solutions?

14 Identifying problems through customer gains © Powerhouse Ventures Limited, 2012 What savings would make customers happy? Money, time, effort What current solutions make customers happy? What would make your customers life easier? How does your customer measure success and failure? What would increase the likelihood of them adopting a solution?

15 Now think about what products or services that you can offer that will help your customers get a job done, solve a problem or satisfy an unmet need

16 Key ingredients of a good opportunity © Powerhouse Ventures Limited, 2012 Clear customer benefit Product/Service solves a big problem Sufficiently big market Feasible and profitable Has some innovation

17 Product – Solution Fit © Powerhouse Ventures Limited, 2012 Understand Problem Define Solution Validate

18 You have a great idea – you have a potential product – Now what? © Powerhouse Ventures Limited, 2012 Make sure that the problem really exists! Biggest mistake most entrepreneurs make is to create the product BEFORE talking to customers Get out of the building – go and talk to potential customers

19 Problem - Solution Fit © Powerhouse Ventures Limited, 2012 The BIG question you need to ask is that problem actually worth solving? 1. Do customers want/need this problem solved? 2. Will they pay for a solution? Will they pay enough for a solution? 3. Can you solve this problem?

20 Make sure you know who your customers are………. © Powerhouse Ventures Limited, 2012 This is who pays for your product? Different to a user (eg Facebook) It is NOT everyone – you need to start with specific group of customers Go and talk to 10 target customers and determine if: 1. They really have a problem 2. Your potential solution is something that they are interested in 3. If they will pay money to buy your solution 4. What they currently do to solve this problem

21 Product – Solution Fit © Powerhouse Ventures Limited, 2012 Understand Problem Define Solution Validate

22 Lean Canvas – Ash Maurya © Powerhouse Ventures Limited, 2012

23 © Powerhouse Ventures Limited, 2012

24 Value Proposition © Powerhouse Ventures Limited, 2012 WHAT is being offered? WHO are the target customers? WHY will these customers buy your product or service? HOW is your product or service better or different from the competition?

25 Anchor - Light Proof Bottle What do you think their Value Proposition is? © Powerhouse Ventures Limited, 2012

26 © Powerhouse Ventures Limited, 2012

27 Useful Free Online Courses © Powerhouse Ventures Limited, 2012 Ash Mauryas Lean Canvas Course: fail?w =%7B %7D fail?w =%7B %7D Steve Blanks Course – How to Build A Start-Up:

28 Natural Fluoride Toothpaste © Powerhouse Ventures Limited, 2012

29 Market Validation – Why bother? © Powerhouse Ventures Limited, 2012 Across the OECD 80% of all new products fail – this is across all sectors 35% of all products fail at launch 15% products actually become profitable More than 50% of resources for new product development are on failed projects It is estimated approx. 3% of all new products are commercially successful

30 Market Validation © Powerhouse Ventures Limited, 2012 If you cant find 10 people who say theyll buy it, your company is bullshit -Jason Cohen (A Smart Bear blog) Customers dont care about your solution. They care about their problems. - Dave McClure 500 Startups

31 Market Validation is VERY important © Powerhouse Ventures Limited, 2012 Most companies fail not because they fail to build what they set out to build but because they built the wrong product. How do you know that what you are building is actually the right product or service?

32 Market Validation finds out if: © Powerhouse Ventures Limited, There really is a problem worth solving 2. The solution is something of interest to your potential customers 3. Customers are willing to pay for your solution DO NOT use surveys to validate your idea!

33 Product:Solution – Market Fit © Powerhouse Ventures Limited, 2012 PIVOT Steve Blank Market Validation

34 Gain insights into your target customers Behaviours What influences them when making purchases How they buy products/services Identify barriers they have to switching to your product Will also help you identify First customers Distribution strategies Sales and promotion strategies Pricing © Powerhouse Ventures Limited, 2012

35 Market Validation Is boring, difficult and hard….. When talking to potential customers or competitors they may mention something in passing that result in new lucrative possibilities that you had not thought of © Powerhouse Ventures Limited, 2012

36 Market Validation Stage 1 - Test your assumptions What problems customers trying to solve or unmet are they trying to satisfy? How big is this problem/need for these customers? Stage 2 - Test your solution Does it match the customer problem or unmet need? © Powerhouse Ventures Limited, 2012

37 Customer interviews © Powerhouse Ventures Limited, 2012 Face to Face is best Phone interview is ok Start with people you know, then expand out If possible choose a neutral location – eg café Interviews typically take about 30 min Dont pay your interviewer Avoid recording the interview Immediately after your interview capture your first thoughts Dont forget to notice body language – that can say more than what they say! Record your first thoughts immediately after the interview Make sure you capture who you spoke to, where they work and what role they have at the company Dont forget to and thank the interviewee soon after the interview You should aim to talk to at least 10 customers ideally you would talk to 30 to 60 customers – the more the better

38 Customer interviews © Powerhouse Ventures Limited, 2012 This is not a pitch to them you want your potential customer to do most of the talking Dont ask customers what they want – find out what they do People tend to tell you things that they think you want to hear They lie If a customer tells you that x is a big problem find out how they currently solve it If they just put up with it – you need to question yourself if it really is a problem worth solving

39 Interview questions are important Remember you are wanting to understand your customers and their behaviours Ask open-ended questions Use a scale to find out how important something is to your customers – 0 to 10 or 1 to 5 Avoid using jargon Keep questions simple Dont ask leading questions Dont get to personal Make sure you are clear that you are NOT trying to sell them something © Powerhouse Ventures Limited, 2012

40 Customer Observation Follow a potential target customer around for the day Observe people shopping purchasing similar products to what you intend to sell Pretend to be a customer and visit a competitor Attend related trade shows – who is there? © Powerhouse Ventures Limited, 2012

41 Interview questions How do they currently solve this problem or need How satisfied are they with this solution How long have you been using this solution What do you like about this solution What dont you like about this solution – what would you like changed Tell customers your positioning statement and then find out whether they see any value in it for them or company © Powerhouse Ventures Limited, 2012

42 Cindy Alvarezs blog: Target Customers – B2C © Powerhouse Ventures Limited, How do they define themselves? (teenager, mom, frequent business traveler, retiree, athlete…) 2. Whats their greatest source of stress? (not enough $, not enough time, dont know how to do something, health, safety…) 3. What are they trying to do? (save $, save time, make more $, be safer/healthier, fix something thats broken, be happier) 4. How much decision making power do they have? (need permission, can use own judgment but need to keep others happy, can issue mandates) 5. How eager are they to solve this problem? (#1 priority, bothered by it daily, worried about it but direct no consequences of ignoring it, nice-to-have

43 Product:Solution – Market Fit © Powerhouse Ventures Limited, 2012 PIVOT Steve Blank Market Validation

44 Intellectual Property (IP) © Powerhouse Ventures Limited, 2012 Do a quick patent search to see if you idea has already been patented. Google patents (USA patents only) Espacenet – Make sure you own your IP and the inventors of the IP are clear

45 Dr Rachel Wright Any Questions?

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