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LEAN LAUNCHPAD COLUMBIA BLOCK WEEK JANUARY 12-16, 2015 Turning Hackers, Hustlers and Designers into Entrepreneurs.

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Presentation on theme: "LEAN LAUNCHPAD COLUMBIA BLOCK WEEK JANUARY 12-16, 2015 Turning Hackers, Hustlers and Designers into Entrepreneurs."— Presentation transcript:

1 LEAN LAUNCHPAD COLUMBIA BLOCK WEEK JANUARY 12-16, 2015 Turning Hackers, Hustlers and Designers into Entrepreneurs

2 TURNING GREAT IDEAS INTO GREAT BUSINESSES A brief HISTORY lesson

3 YOU’RE IN GOOD COMPANY US National Science Foundation National Institute of Health(last week) Stanford, Berkeley, UCSF, Princeton 350 Universities we’re aware of Incubators, Accelerators Worldwide Columbia Block Week and Full Term Hundreds more educators per year

4 Steve Blank More than a decade developing Customer Development 8 startups in Silicon Valley Semiconductors Supercomputers Consumer electronics Video games Enterprise software Military intelligence Teach: Stanford, Berkeley, Columbia, UCSF

5 TEACHING TEAM FACULTY: Bob Dorf, seven startups, CBS Adjunct, co-author Startup Owner’s Manual Asha Saxena, Founder/CEO Future Tech, plus multiple other ventures Alicia Syrett, Founder and CEO of Pantegrion Capital Adam Royalty, Designer in Residence, CU Entrepreneurship TBD, Seasoned entrepreneur TA/COACH TEAM: Nathaniel Kelner, Columbia University Entrepreneurship Team Meghan Cross, 2 nd year MBA, Co-President of CEO Club

6 COURSE INFO Team:Application is by teams of 3-5 (ideally include 1 ENGR or technical); avoid “all MBA” teams where you can Workload:half-day in classroom, half “out of the building don’t plan much of a social agenda for the week Credit: 3 credits based on team improvement Mon-Fri, plus your contribution and student evaluation of startup Format: Flipped Classroom; watch lectures nightly with team Every team presents progress, gets feedback every day Teams split into cohorts Tues-Wed-Thurs

7 THE BASICS 1.Join a team! 2.Business Model Canvas 3.Is it scalable…? 4.Who else is doing it?

8 The Entrepreneurial Venture FOUR PERIODS of DEVELOPMENT Time Cash Flow IIIIIIVI

9 Customer Development is how you search for the model

10 The Entrepreneurial Venture FOUR PERIODS of DEVELOPMENT Time Cash Flow IIIIIIVI

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12 Business Models

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16 9 Guesses Guess

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18 Implications of Search and Execution The Customer Discovery Approach Lower Initial Investment Minimum Viable Product [MVP] tests only crucial features Earlier testing and validation. Room to recover AND REVISE. More capital preserved and higher valuation achieved before scaling Scaling financing more available Clarify the role of the entrepreneur Able to retain entrepreneurs engaged in business senior leadership Higher rate of return for all Entrepreneurs Investors Employees

19 Example of a Team’s Final Presentation

20 As of: 8/31/12 JerseySquare “The Netflix of Licensed Sports Jerseys” Bryan GitlerElmer MooreJay Naik Michael Melmed JerseySquare is a rental service for professional sports jerseys Total Interviews: 169 Total Website Visits: 190 TOTAL SUBSCRIPTIONS SOLD: 2

21 Customer Discovery Over the course of the week, we spoke with 169 contacts during the customer discovery process Yankee Stadium Nike, NBA, NHL Stores Cleaners, Shipping, Sports Bars Cleaners, Shipping, Sports Bars Social Media, StarStreet, Sports Bars Social Media, StarStreet, Sports Bars 1 1 Customer Sales 1 1

22 Key Partners (7) Who are our key partners/ suppliers Key Activities (5) Which key activities does the biz model require Value Proposition (1) What value do we deliver to the customer Customer Relationships (4) What type of relationship does each segment require of us Customer Segments (2) For whom are we creating value Channels (3) Through which channel does each segment want to be reached Cost Structure (9) What are our cost drivers Key Resources (6) Which key resources does the biz model require Professional Sports Game Attendees -Male -Adult -<$100k income -Attend 10+ games per yr A cheaper way to wear Officially Licensed sports jerseys to a game Eliminate risk of owning a player jersey who is traded Provide alternative to purchasing counterfeit jerseys Website Stadium Shops/Vendors Ticket Websites Direct Mail Annual Subscription Model Search ads Social Media At Stadium Promotions Revenue Streams (8) How much is each segment willing to pay and how would they like to pay us this amount Warehouse, shipping, cleaning, logistics tracking, website development/maintenance Jersey Inventory Warehouse Logistics system - Rental Tracking - Shipping - Dry cleaning - Marketing - Customer Service Professional Sports Leagues Jersey Suppliers Dry Cleaners Stadium Shop/Vendors Pre-paid Envelope Suppliers USPS/Fedex/UPS Day 1 Canvas As of: 8/27/12

23 Day 1 - Yankee Stadium Customer Discovery

24 Current Canvas Key Partners (7) Who are our key partners/ suppliers Key Activities (5) Which key activities does the biz model require Value Proposition (1) What value do we deliver to the customer Customer Relationships (4) What type of relationship does each segment require of us Customer Segments (2) For whom are we creating value Channels (3) Through which channel does each segment want to be reached Cost Structure (9) What are our cost drivers Key Resources (6) Which key resources does the biz model require Professional Sports Game Attendees -Male and Female -Young Adult <$100k income -Attend >10% of home games per yr -Casual sports fans A cheaper way to wear Officially Licensed sports jerseys to a game Eliminate risk of owning a player jersey who is traded Provide alternative to purchasing counterfeit jerseys Website Stadium Shops/Vendors Ticket Websites Direct Mail Annual Subscription Model Pay per Rental GET - Search Ads, Partnerships, At stadium promotion KEEP - Customer Service GROW - Referral Program Revenue Streams (8) How much is each segment willing to pay and how would they like to pay us this amount Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees Jersey Inventory Warehouse Logistics system - Rental Tracking - Shipping - Dry cleaning - Marketing - Customer Service Professional Sports Leagues Jersey Suppliers Dry Cleaners Stadium Shop/Vendors Pre-paid Envelope Suppliers USPS/Fedex/UPS Day 2 Canvas As of: 8/28/12

25 Day 2- Customer Discovery Nike TownNBA Store NHL Store

26 Current Canvas Key Partners (7) Who are our key partners/ suppliers Key Activities (5) Which key activities does the biz model require Value Proposition (1) What value do we deliver to the customer Customer Relationships (4) What type of relationship does each segment require of us Customer Segments (2) For whom are we creating value Channels (3) Through which channel does each segment want to be reached Cost Structure (9) What are our cost drivers Key Resources (6) Which key resources does the biz model require Professional Sports Fans Website Stadium Shops/Vendors Ticket Websites Direct Mail GET - Search Ads, Partnerships, At stadium promotion KEEP - Customer Service GROW - Referral Program Revenue Streams (8) How much is each segment willing to pay and how would they like to pay us this amount Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees Jersey Inventory Warehouse Logistics system - Rental Tracking - Shipping - Dry cleaning - Marketing - Customer Service Jersey Suppliers Dry Cleaners Pre-paid Envelope Suppliers USPS/Fedex/UPS Day 3 Canvas As of: 8/29/12 SPORTS JERSEY OWNERS - Male - Kid to Young Adult SPORTS JERSEY OWNERS - Male - Kid to Young Adult SINGLE GAME ATTENDEES - Male and Female - Young Adult Casual fan SINGLE GAME ATTENDEES - Male and Female - Young Adult Casual fan SPORTS JERSEY OWNERS - Flexibility to change jersey - Eliminate risk of owning jersey who is traded SPORTS JERSEY OWNERS - Flexibility to change jersey - Eliminate risk of owning jersey who is traded SINGLE GAME ATTENDEES - Cheaper way to wear jersey to a game SINGLE GAME ATTENDEES - Cheaper way to wear jersey to a game SPORTS JERSEY OWNERS - Annual Subscription SPORTS JERSEY OWNERS - Annual Subscription SINGLE GAME ATTENDEES - Pay per Rental SINGLE GAME ATTENDEES - Pay per Rental Jersey Suppliers Dry Cleaners Pre-paid Envelope Suppliers USPS/Fedex/UPS Jersey Suppliers Dry Cleaners Pre-paid Envelope Suppliers USPS/Fedex/UPS Jersey Inventory Warehouse Logistics system Jersey Inventory Warehouse Logistics system Rental Tracking Shipping Dry cleaning Marketing Customer Service Rental Tracking Shipping Dry cleaning Marketing Customer Service Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees Website Stadium Shops/Vendors Ticket Websites Direct Mail Website Stadium Shops/Vendors Ticket Websites Direct Mail GET - Search Ads, Partnerships, At stadium promotion KEEP - Customer Service GROW – Referral/ Reward Program GET - Search Ads, Partnerships, At stadium promotion KEEP - Customer Service GROW – Referral/ Reward Program

27 Day 3 - Customer Discovery Commercial Dry Cleaners USPS & FedEx Sports Bars Jersey Suppliers Left Side of Canvas Right Side of Canvas Social Media

28 Current Canvas Key Partners (7) Who are our key partners/ suppliers Key Activities (5) Which key activities does the biz model require Value Proposition (1) What value do we deliver to the customer Customer Relationships (4) What type of relationship does each segment require of us Customer Segments (2) For whom are we creating value Channels (3) Through which channel does each segment want to be reached Cost Structure (9) What are our cost drivers Key Resources (6) Which key resources does the biz model require Professional Sports Fans Website Stadium Shops/Vendors Ticket Websites GET - Search Ads, Partnerships, At stadium promotion KEEP - Customer Service GROW - Referral Program Revenue Streams (8) How much is each segment willing to pay and how would they like to pay us this amount Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees Jersey Inventory Warehouse Logistics system - Rental Tracking - Shipping - Dry cleaning - Marketing - Customer Service Jersey Suppliers Dry Cleaners Pre-paid Envelope Suppliers USPS/Fedex/UPS Day 4 Canvas As of: 8/30/12 SPORTS JERSEY OWNERS - Male - Kids to Young Adult SPORTS JERSEY OWNERS - Male - Kids to Young Adult SINGLE GAME ATTENDEES - Male and Female - Young Adult Casual fan SINGLE GAME ATTENDEES - Male and Female - Young Adult Casual fan SPORTS JERSEY OWNERS - Flexibility to change jersey - Eliminate risk of owning jersey who is traded SPORTS JERSEY OWNERS - Flexibility to change jersey - Eliminate risk of owning jersey who is traded SINGLE GAME ATTENDEES - Cheaper way to wear jersey to a game SINGLE GAME ATTENDEES - Cheaper way to wear jersey to a game SPORTS JERSEY OWNERS - Annual Subscription $200 SPORTS JERSEY OWNERS - Annual Subscription $200 SINGLE GAME ATTENDEES - Pay per Rental SINGLE GAME ATTENDEES - Pay per Rental Jersey Suppliers Dry Cleaners Pre-paid Envelope Suppliers USPS/Fedex/UPS Jersey Suppliers Dry Cleaners Pre-paid Envelope Suppliers USPS/Fedex/UPS Jersey Inventory Warehouse Logistics system Jersey Inventory Warehouse Logistics system Rental Tracking Shipping Dry cleaning Marketing Customer Service Rental Tracking Shipping Dry cleaning Marketing Customer Service Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees Website Ticket Websites Website Ticket Websites GET - Search Ads, Partnerships, Social Media, At stadium promotion KEEP - Customer Service GROW – Referral/ Reward Program GET - Search Ads, Partnerships, Social Media, At stadium promotion KEEP - Customer Service GROW – Referral/ Reward Program

29 Launched JerseySquare.com 81 Visitors In 1 st 9 hours 81 Visitors In 1 st 9 hours

30 With 30-Second Demo Video

31 Our First Customer

32 Our Blasts

33 Current Canvas Key Partners (7) Who are our key partners/ suppliers Key Activities (5) Which key activities does the biz model require Value Proposition (1) What value do we deliver to the customer Customer Relationships (4) What type of relationship does each segment require of us Customer Segments (2) For whom are we creating value Channels (3) Through which channel does each segment want to be reached Cost Structure (9) What are our cost drivers Key Resources (6) Which key resources does the biz model require Professional Sports Fans Website Stadium Shops/Vendors Ticket Websites Direct Mail GET - Search Ads, Partnerships, At stadium promotion KEEP - Customer Service GROW - Referral Program Revenue Streams (8) How much is each segment willing to pay and how would they like to pay us this amount Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees Jersey Inventory Warehouse Logistics system - Rental Tracking - Shipping - Dry cleaning - Marketing - Customer Service Jersey Suppliers Dry Cleaners Pre-paid Envelope Suppliers USPS/Fedex/UPS Day 5 Canvas As of: 8/31/12 SPORTS JERSEY OWNERS - Male - Kids to Young Adult SPORTS JERSEY OWNERS - Male - Kids to Young Adult SINGLE GAME ATTENDEES - Male and Female - Young Adult Casual fan SINGLE GAME ATTENDEES - Male and Female - Young Adult Casual fan SPORTS JERSEY OWNERS - Flexibility to change jersey - Eliminate risk of owning jersey who is traded SPORTS JERSEY OWNERS - Flexibility to change jersey - Eliminate risk of owning jersey who is traded SINGLE GAME ATTENDEES - Cheaper way to wear jersey to a game SINGLE GAME ATTENDEES - Cheaper way to wear jersey to a game SPORTS JERSEY OWNERS - Annual Subscription, Monthly Subscription, One-Time SPORTS JERSEY OWNERS - Annual Subscription, Monthly Subscription, One-Time SINGLE GAME ATTENDEES - Pay per Rental SINGLE GAME ATTENDEES - Pay per Rental Jersey Suppliers Dry Cleaners Pre-paid Envelope Suppliers USPS Jersey Suppliers Dry Cleaners Pre-paid Envelope Suppliers USPS Jersey Inventory Warehouse Logistics system Jersey Inventory Warehouse Logistics system Rental Tracking Shipping Dry cleaning Marketing Customer Service Rental Tracking Shipping Dry cleaning Marketing Customer Service Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees Website GET - Search Ads, Partnerships, Social Media, At stadium promotion KEEP – Seniority, loyalty program GROW – Premium subs, Family plan GET - Search Ads, Partnerships, Social Media, At stadium promotion KEEP – Seniority, loyalty program GROW – Premium subs, Family plan

34 What We ThoughtResultsWhat We Found Customer segment is adult males who attend lots of games each year X There are two customer segments: SPORTS JERSEY OWNERS o Male, Kids to Young Adult SINGLE GAME ATTENDEES o Male and Female, Young Adult 18-30, Casual fan Customers will use JerseySquare because we are cheaper X Customers like our company because we provide both: the ability to wear different jerseys throughout the season a hedge against players being traded, getting hurt, retiring, etc. Customers will not be willing to spend as much on rental jerseys X Customers are actually willing to spend as much (if not more) on a subscription for jersey rentals as they do on buying a jersey! There is a market for renting professional jerseys!  We received payment from our first customer on Thursday, 8/30/2012 Biggest Learning Moments

35 Archetypes AttributeGasolJuniorBecky Age Income$65KN/A$40K DemographicsWhite TypeJersey BuyerSocial StatementSocial Sports Viewer Fan TypeAvidIn-SeasonCasual ClassMiddle Facebook StatusSingle/It’s ComplicatedSingleIn Relationship SUBSCRIPTION PAY PER RENTAL RENTAL TYPE

36 Unit Economics Jersey Cost (w/ 25% off) $ 150 Shipping $ 9 Cleaning $ 1 Customer Acquisition $ 25 Processing $ 1 X 5 Unit Costs - $ 230 Revenue $ 199 Net - $ 31 Shipping $ 9 Cleaning $ 1 Processing $ 1 X 5 Unit Costs - $ 55 Revenue $ 199 Net $ 86 Year 1Year 2 Retention 60 % x Turns (For One Person)

37 Current Pricing Plans Annual Subscription $199 /year Authentic Top of Line Jerseys Free Shipping Send back a jersey in exchange for another Monthly Subscription $29.99 /month Authentic Top of Line Jerseys Free Shipping Send back a jersey in exchange for another 1 Time, 1 Week Rental $24.99 Authentic Top of Line Jerseys Free Shipping Send back jersey within 1 week (But A/B Testing for Price Elasticity)

38 Customer Relationships GET KEEP GROW Results Pending… Google AdWords Guerilla style marketing on FB, YouTube, and Twitter Customer referral bonuses Targeted promotions Customer Loyalty program with bonus rentals and discount purchases Seniority credits Partnership rewards and discounts Free jersey giveaways Sale of customer data Family plan Premium subscriptions Additional products

39 Market Size Total Addressable Market (how big is universe) 150 Million Americans watch the 5 major team sports (in some capacity) Served Available Market (how many can I reach with my sales channel) 11 Million NY Metro Area watch the 5 major team sports (in some capacity) Target Market (who will be most likely buyers) Based only Yankee Stadium Research: 11.7% of SAM showed strong interest 1.3 Million People - Half subscription / Half Pay Per Rental

40 Teenager Customer Discovery Customer Acquisition o More Google Adwords Testing o More Website Conversion Testing LISTEN TO/OBSERVE OUR CUSTOMERS Next Steps

41 Who Is the Team? 500 CUSTOMERS TEAM MEMBERS Degree program and Department/Major Provide your LinkedIn public profile URL Are you the subject matter expert (SME) for this team? Pick a role you think you most likely will play on this team (Hustler, Hacker, Designer or Product Picker) Anything interesting we should know about you (be brief)

42 Startup Ecosystem Corporate Higher Education Adult Learning/S kills Institutions What’s the Competitive Landscape?

43 What’s Your Business Model?

44 What happens next? Applications will be reviewed and accepted on a rolling basis - first come-first served. Finalists will be notified by . Step 1: Review Course Website Step 2: Form a Team (Use above website to form or join a team) Step 3: Submit Application (Team submission, not Individual) Step 4: Each Team Member must Acknowledge and Accept Class Requirements by (Sent by Jay Mehta) Step 5: Application is Reviewed for completeness and Individual Eligibility is Verified Step 6: Notification of Acceptance, Registration and Bid Point Reduction (MBA/EMBA only) January 12 INITIAL CANVAS DUE by 6pm ET January 13 Class starts 8:30am ET

45 Turning great ideas into great businesses Syllabus and more course info: /leanlaunchpad/ General Lean LaunchPad background: Startup Tools: entrepreneurs/

46 In Conclusion… Questions about the course or process? Looking for Team Members? Looking for a Team to Join? First look here: launchpad/ launchpad/ Still need help? Also: Ashley Zwick… OR if needed…


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