Business planning Quiz 1
9 components of Business Model Canvas, and the meaning of each component (e.g., what's the difference between channels and customer relationship?)
1. Value Proposition 2. Customer Segments 3. Channels 4. Customer Relationships 5. Revenue Streams 6. Resources 7. Partners 8. Activities 9. Costs
Definition of customer archetype
A fictional character who represents the essential traits of your customers.
The meaning of agile development, and why agile development is important in a lean startup.
Agile development eliminates wasted time and resources by developing the product iteratively and incrementally. It's the process by which start-ups create the minimum viable products they test.
What is an entrepreneurial team?
An entrepreneurial team consists of two or more persons who have an interest, both financial and otherwise, in and commitment to a venture's future and success; whose work is interdependent in the pursuit of common goals and venture success; who are accountable to.
Understanding differences of B2B
B2B- Business to Business: use or buy inside a company
Understanding differences of B2C,
B2C- Business to Consumer: use or buy for themselves
The relationship between Business Model Canvas and Value Proposition Canvas
BMC- describes how you create value for your business VPC- describes how you create value for your customer
Meaning of product-market fit
Being in a good market with a product that can satisfy that market
Difference between a business model and a business plan, and when do we use them?
Business Model- how a company creates value for its self while delivering products or services for customers. We use it Business Plan- a document setting out a business's future objectives and strategies for achieving them.
Difference between a company and a startup (focusing on their definitions)
Company- a business organization which sells a product or service in exchange for revenue and profit. Start-Up- a temporary organization designed to search for a repeatable and scalable business model; searching for a business model.
Difference between customer vs product development (refer to the videos of lecture 1: what we now know)
Customer development has two pieces, the search and its execution.
Definitions and examples of Market Type (existing, re-segmented, new, and clone market)
Existing- Customers already spend money buying more or less of the same product or service that a given company is selling. The users, market and competitors are known. Re-segmented- marketing/branding driven, Cheaper=low end New- it's an entry strategy to deliver goods/services to a new target market and disturbing them. Clone Market- They are simple, they copy a known startup idea into another large market containing language/cultural barriers
Difference between idea and opportunity
Idea- a notion, impression or thought Opportunity- a favorable set of circumstances that create a need for a new product, service or business.
Explain waterfall development in creating a new business/product (refer to the videos of lecture 1: what we now know)
It's a step by step process that says marketing rights are requirements of what the product should do. Requirements -> Design -> Implement -> Verify -> Maintain. Waterfall development assumes you understand the customer problem and need on day one. Makes sense for a large company and not a start-up.
How lean startups create a business differently from traditional companies? (refer to the article of HBR Steve Blank 2013)
Lean startups create business by first summarizing hypothesis in a BMC (Business Model Canvas). Second they use customer development to test out their hypotheses, for example the interview potential users, purchasers and partners for feedback. Third they practice agile development which is when start-ups work lean on their product/service repeatedly and additionally to make sure that it is perfect and ready to be used.
Key takeaways from Marshmallow Challenge activity
Let everyone explain their ideas because the will all have different perspectives and they might even be the same as others. Everyone had to work together to get the job done. I think the most important part was to listen to others ideas.
Meaning & purpose of an MVP (Minimum Viable Product)
MVP is a development technique in which a new product or website is developed with sufficient features to satisfy early adopters. The final, complete set of features is only designed and developed after considering feedback from the product's initial users
Understanding differences of multiple customers (e.g., 2-sided market)
Multiple Customer Segment: consumer end users, corporate customers pay; multi-sided markets with multiple customers
How to use Launchpad
Open google chrome Type launch pad Register class and account if a team is chosen already Then open a new canvas And type in all the data for the canvas if have any info Click on add new to add customer interview hypothesis mentor and customer engagement To watch course video, click on the cubes and look for course video under my cohort
Meanings of TAM (Total Addressable Market), SAM (Served Available Market), and Target Market
TAM- how many people would want/ need the product. How large is the market if they all bought? SAM- how many people need/ can use the product. How many have the money to buy. Understand for dollars/units. Target market- a particular group of consumers at which a product or service is aimed.
Cognitive Conflicts and Affective Conflicts
Team members may not get along If two or more people start a firm as "equals", conflicts can arise when the firm needs to establish a formal structure and designate one person as the CEO If the founders have similar areas of expertise, they may duplicate rather than complement one another Team members can easily disagree in terms of work habits, tolerances for risk, levels of passion for the business, ideas on how the business should be run, and similar key issues Who to work with?
Customer creation
The start of execution. It builds end-use demand and drives it into the sales channels to scale the business
customer validation
This phase is important because you find out whether your assumptions regarding customers are true or false.
Company building
Transitions the organization from startup to a company focused on executing a validated model
Components of Value Proposition Canvas
Value Map: products & services, gain creators, pain relievers. Customer Profile: gain, pain, customer jobs.
Difference between values and features (definitions and examples
Values- what something does? Ex: IPod 1000 songs in your pockets Features- what something is? Ex: storage for 1GB of MP3S Focus on values not features?
Costs
What are the cost to operate the BM? Most important? Expensive? Fixed costs? Variable costs? Economics of scale?
Do strategies still matter in a lean startup? (refer to the article of HBR Collis, 2016)
Yes it matters because strategies provide overall direction and alignment. They also allows companies to be creative while everyone being on the same page.
Customer Relationships
how does the company get, keep and grow customers?
Revenue Streams
how does the company make money from each customer segment? What value is the customer paying for?
Channels
how does the product get from our company to the customer? Physical, web/mobile channels?
Value Proposition
it's about solving a need or problem for a customer. Satisfying a customer.
customer discovery
primary objective is to identify your first customers This is done by taking your main assumptions about who your customer is, the exact problem you are solving for the customer, and how the customer will buy from you—and turning those assumptions into hypotheses which you will then test (mainly through interviews with potential customers).
Resources
what are the most important assets required to make the BM work?
Activities
what are the most important things a company must DO to make the BM work? Production? Problem Solving? Supply change mgmt.?
Customer Segments
who are my customers and why would they buy. Geographic, demographic, social, etc.
Partners
who are the key partners and suppliers needed to make the business model work?