Business Model Canvas Refinement ©2016 INCubatoredu, NFP

How you will critique... Have they clearly defined their customer segments? Does each customer segment have a problem? Do they provide value for each customer segment? Do you think their relationships can drive their customers to their channels? Are their revenue streams and cost structure clear? Have they identified the key components of their business to track? ©2016 INCubatoredu, NFP

Unique Value Proposition BMC Unique Value Proposition Solution Customer Problems Key Metrics Customer Segments Channels Customer Relationships Cost Structure Revenue Streams ©2016 INCubatoredu, NFP BMC - Adapted from Ash Mauyra Lean Canvas

Unique Value Proposition CUSTOMER RISK Unique Value Proposition Solution Customer Problems Key Metrics Customer Segments Channels Customer Relationships Cost Structure Revenue Streams Can I build a path to the consumers? Is the customer segment big enough to sustain a business? ©2016 INCubatoredu, NFP BMC - Adapted from Ash Mauyra Lean Canvas

Unique Value Proposition PRODUCT RISK Unique Value Proposition Solution Customer Problems Existing Alternatives Key Metrics Customer Segments Channels Customer Relationships Cost Structure Revenue Streams Getting the product right. Does it have the right features wanted by the customer? DO we have the skills and knowledge to build the solution. Can we reach our metrics that show our solution solves the problem. ©2016 INCubatoredu, NFP BMC - Adapted from Ash Mauyra Lean Canvas

Unique Value Proposition Existing Alternatives MARKET RISK Unique Value Proposition Solution Customer Problems Existing Alternatives Key Metrics Customer Segments Channels Customer Relationships Cost Structure Revenue Streams Can we build a viable business? What can we charge and what will it cost? BMC - Adapted from Ash Mauyra Lean Canvas ©2016 INCubatoredu, NFP

What to consider when deciding... Product Risk - Getting the product right. Does it have the right features wanted by the customer? Do we have the skills and knowledge to build the solution. Customer Risk - Can I build a path to the consumers? Is the customer segment big enough to sustain a business? Market Risk - Can we build a viable business? What can we charge and what will it cost? ©2016 INCubatoredu, NFP

For entrepreneurs…. what is the biggest risk For entrepreneurs….what is the biggest risk....where do they think the most change occurs? Class discuss….. Identifying risk should not deter them from following a business model. It should identify what assumptions they should start testing first. Build/Test/Learn Customer and Market Risk are usually the biggest issue and the reason whey investors may not think you have an investable idea. They are looking for PROOF that there are enough people who have the problem and that you can create a business model that makes money…...the product solution is the last to be solved!! ©2016 INCubatoredu, NFP

Review of Entrepreneur Top Pitfalls AVOID What you can do…. Marketing to everyone Problems are not specific A weak Value Proposition No monetizable pain Ash Mauyra Video on Pitfalls Focus on early adoptors Use 5 whys questioning to get at the real root problem Needs to be different and matter. Your model must tell the story who will pay you and why Pulled from Ash Maurya Video on top 10 pitfalls. Start and stop the video Option to play video and highlight the pitfalls and how to avoid 3.00min - 4.09 Start of why marketing to everyone is a risk 6.15min - 6.45 Problems not specific enough 7.42 min - 8.15 Have a unique value proposition that matters and stand out to customers. This should be something you test 10.10min - 10.50 What do customers pay today to solve this problem and what will you charge ©2016 INCubatoredu, NFP

#1 Pitfall Defer thinking about the product. AVOID What your can do….. Falling in Love with your solution! Defer thinking about the product. THINK MVP What is the fastest way to prove we have a problem to solve and people are will to pay for a solution Pulled from Ash Maurya Video on top 10 pitfalls. Start and stop the video Option to play video and highlight the pitfalls and how to avoid START at 10.54min - Play till ©2016 INCubatoredu, NFP