Ent3003 exam 2

6 basic steps to creating own customer journey map

1. Materials you need: whiteboard, stick notes, and markers. 2. Identify the segment of customers you would like to map. 3. Write down as many touchpoints you can think of for the entire journey (one each on sticky note, then post them on whiteboard). 4. Identify three or four aspects of the customer journey: That you would like to explore (such as emotional needs, pain points, or obstacles to satisfaction). 5. Think about how you can resolve these problems: And improve the customer experience, and post these ideas on the whiteboard. 6. Create a visual version of the journey: When you're finished, create a visual version of the journey for you and your team; literally draw the customer going through the process noting the pain points, emotions, and sources of convenience.

market sizing

A method of estimating the number of potential customers and possible revenue or profitability of a product or service. -done after identifying potential market segment and understanding of customer -important for investors to see that you have thought through the size of the market you intend to target; if you cannot prove that you have a good chance of penetrating the local market, then they will be unable to see the growth potential of your business.

innovation business model

Business models can create a whole new market where new customers are offered a new product or service; the advent of social media sites such as Facebook illustrates a type of business model known as Innovation.

The risk of not doing customer journey mapping:

Customer journey mapping may sound like a lot of work, but not doing it runs the risk of unsatisfied customers, and loss of opportunities to improve their experience/engage and connect w customers.

business model canvas can be tailored around the customers' needs in customer segmentation

Customers can be divided in separate segments if: a.Their needs validate an offering; b.They have different distribution channels; c.They call for different types of relationships; d.They have substantially different profitabilities; e.They are willing to pay for different aspects of the offer. -different customer segments have different needs à different approaches and more tailored solutions

Five key phases of customer interaction during customer journey

Discovery, research, purchase, delivery, and after the sale.

why experimenting quickly is good

Entrepreneurial experimentation is about acting to learn: Rather than getting bogged down in scientific rigor. Experimenting quickly: a better chance of refining ideas into viable opportunities: By taking action and experimenting quickly and cheaply, you will have a better chance of refining your ideas into feasible and viable opportunities. (continual iteration)

disruption business model

The emergence of MOOCs—Massive Open Online Courses—disrupted higher education when students opted for these free courses rather than paying tuition at colleges and universities; this emergence of MOOCs is the business model Disruption.

factors to keep in mind for customer journey mapping

a.Key Touchpoints: How does your user interact with your company? b.Tasks: What is your customer trying to achieve? c.Knowledge: What does your customer want to know? d.Pain Points: How does your company disappoint the customer? e. Happy Points: How does the company satisfy the customer? f. Emotions: What is your customer feeling at each stage of the process? g. Wish List: What would make the customer experience awesome? h. Influencers: Who or what are the key influencers on your customer's decision-making process? -cj map not static, so will change over time as you revisit

defining customer segments

a.Who are they? Find out their demographic (age, gender, education, income, and so on). b.Where are they? Note where your customers are located in geographical terms. c.How do they behave? List all behavioral or lifestyle habits demonstrated by your customers. d.What are their needs? It is essential that you record your customers' needs to clarify your offering. -after doing this, create end-user profile of person most likely to use your product or service

network building is a dynamic process

means continuously making purposeful and valuable connections is essential for business success.

markets

a place where people can sell goods and services: A market is a place where people can sell goods and services (the supply) to people who wish to buy those goods and services (the demand). -Supply refers to sellers; demand is the desire held by prospective customers for goods and services: Supply refers to the sellers that compete for customers in the marketplace, while demand implies the desire held by prospective customers for the goods and services available. -market can be physical or virtual location, or a grouping of customers Four main elements to define a market a.A set of actual or potential customers, b.for a given set of products or services, c.who have a common set of needs or wants, and d.who reference each other when making a buying decision.

types of experiments

-interviews (Fast and inexpensive way to get insights from target customers before the experiment) -paper testing: Simple way to outline vision and to spot any mistakes. Can be carried out using techniques like Wireframe (or blueprint). Storyboarding or drawing the product you envision. -advertising: •spreading the world about your business using brochures or social media. Directed toward target market and assessing the level of response. -button to nowhere: •Used to test if your customers will click on a new feature on your website before building it. Great way of measuring user interest. the more clicks, the higher the likelihood that your new feature will attract interest. Might get an "under construction" message -landing page: Include a particular call to action such as "click here for more information": Another useful way to gauge the level of customer response to your business' website is to include a particular call to action such as "click here for more information." Ex: Shyam Devnani, founder of online meal service India in a Box (featured in Supplement B: The Pitch Deck), created a landing page with three different meal options to see which options the customers clicked on most -task completion: involves watching someone using your product to understand what works: This involves watching someone using your product to understand what works and what doesn't. If you're creating a website to provide easier access to exam results for students, the user goal would be to look up grades, but the task would be to look up the results for a specific exam. -prototype: early and often crude version of a product but there are many different types of prototypes. The crudest version is called rapid prototyping: a model made out of out of foam, wood, boxes, plastic, or other scrap-like material: Where you might build a model of a product out of foam, wood, boxes, plastic, or other scrap-like material with a view to finding potential customer to interact with the physical product. a. Standly was a venture idea for a standing desk that Babson students could use with their laptops in class. b. Students were able to test the desks in class to see if they liked to stand while using their laptops during class. -presel

Characteristics of great founding team:

-most successful teams are composed of members who possess the experience, skills, and abilities to manage complex problems, cope with pressure, and overcome obstacles to achieve rapid growth -Positive social relations within the team are also key when it comes to providing social and emotional support 1. possess the right skills: identifying the top three to five business operations you need to carry out well over the next 3 years; then ask yourself who has the skills and expertise to accomplish these operations 2. Take a hands-on approach: make sure chosen cofounders are happy to do whatever it takes to achieve goals 3. Use positive problem solving: choose members who are curious and driven. Must have entrepreneurial mindset and see problems as challenges 4. Leave ego at door: Team success depends on collaboration and a collective willingness to work for the good of the enterprise. Cofounders with a big ego or a personal agenda are less likely to work well with others. One way to find out if potential cofounders have big egos is to ask them about a time when they achieved team success, and listen carefully to the number of times they say "I" or "we" in their response 5. Share similar attitudes toward values, goals, risk: cofounders need to be aligned with the goals to be achieved, the values they share, and the risks they may need to take to get there. The best relationships are based on trust, and your team should feel comfortable about discussing potential ethical dilemmas and how they will be resolved 6. Care deeply: passion + smarts can compensate for limitations in experience. Minimizes risk and increases odds of startup success -Many startups fail because the cofounders came together too quickly rather than spending time together first. Spending time with your potential cofounders on a startup weekend or working together in a previous job allows for more bonding and building a relationship of trust and respect

methods of calculating market size

1.Define the segment: Define your segment of the market. 2. Conduct top-down market sizing: A top-down analysis involves determining the total market, and then estimating your share of the market. typically uses demographic data like population, age, income, or location to calculate market share 3.Conduct a bottom-up analysis: A bottom-up analysis involves estimating potential sales using calculations in order to arrive at total sales figure. Requires more effort than top-down but is more accurate for results -Once you have a good idea of your potential buyers (TAM), price, and annual consumption, then you can use SAM and SOM to estimate your market potential. For instance, to get the most accurate representation, you could use SOM, and to look at the bigger market you may eventually target, you could use SAM 4. Don't forget to do sanity checks: You might have gathered all your data and research, but don't neglect to carry out sanity checks during the calculations process; if your calculation results in 350 million cyclists in the U.S., but the population of the U.S. is only 300 million, then you know you have gone wrong somewhere. 5. Check out the competition: Do some research on your competition; is your industry crowded; what companies are leading the way in selling products or services similar to yours? For example, an entirely new product or service that meets a specific need is likely to capture more market share than a product in a market that is already quite saturated.

questions to ask in the experimentation template

1.What is the hypothesis? 2.What is the pass/fail metric? 3.Who are the participants in the experiment? 4.How many participants are needed? 5.How are going to get participants? 6.How will the experiment be run? 7.How long is the experiment?

Innovation and advantage over the competition

All must coexist, and none can be ignored; however, each can be a source of innovation and advantage over the competition. Competitive advantage can come from other areas of the business: In other words, competitive advantage doesn't always come from the product or service you are offering, but can come from other areas of the business as well.

other versions of storyboarding

Back of a Napkin: The simplest of all entrepreneurial plans is sketching out the idea on the back of a napkin. Highly effective way to gain clarity into a business idea and how it will work a.There is something about sketching and pictures that makes an idea come alive. b.According to Dan Roam, author of The Back of the Napkin, we can visually solve problems with pictures. ● Sketches on a Page: Sketches on a page help you think about the idea today and also what it could become in the future. Informal but more focused approach based on how the product works or can work You can sketch your idea by hand on blank paper, or you can do this electronically using PowerPoint, Prezi, or other software of your choosing. a.A simple technique is to create a gallery sketch—with a large piece of white paper as your "canvas," use color, arrows, and labels to indicate all of the major components of the idea; add clarifying notes as needed. Avoid faint lines and small pictures. For services, sketch a map of events that take place when the service is provided Taking the gallery sketch one step further, draw a "before and after" scenario—the "before" scenario shows what the lives of your customers are like today and the "after" scenario represents what you dream the business could be and the impact it can have on customers in the near future

networking events

a.Before going to a networking event, do your research to see who might be there, who to meet, and what to say) b.Relationships can be forged on mutual personal interests: Relationships can be forged on mutual personal interests or hobbies, and not just business interests. c.The skill of networking can be learned: Walking in to a room full of strangers can be daunting, but the good news is that like any other skill, the skill of networking can be learned. d.Good networkers will listen and show interest: While influential people tend to lead conversations, good networkers will listen and show interest by nodding, leaning forward, raising their eyebrows, and mirroring the speaker's gestures; for example, tilting their heads in the same way.

experiments

a test designed to help you learn and answer questions related to the feasibility and viability of your venture. Help to validate needs (design thinking) but mostly designed to determine whether the solution is doable and potentially profitable Experiments need to do this: have a clear purpose, be achievable, and generate reliable results. Experiments guide us toward which customer opinions to listen to, what important product or service features should take priority, what might please or upset customers, and what should be worked on next. They are essential when it comes to trying out new ideas, finding solutions, and providing answers to those "What if?" questions. It is through experimentation that we start to address feasibility and viability. -starts with a hypothesis: an assumption tested through research and experimentation -Experiments guide us toward which customer opinions: To listen to, what important product or service features should take priority, what might please or upset customers, and what should be worked on next.

Organization for economic cooperation and development/oecd's 3 main varieties of social capital

a. Bonds: connections with people who are just like us, such as family, friends, and others, who have a similar cultural background or ethnicity. b.Bridges: Links that go further than simply sharing a sense of identity; for example, making connections with classmates or colleagues who may have different backgrounds, cultures, or other characteristics. c.Linkages: Connections to people or groups regardless of their position in an organization, society, or other community.

The power of networks

Entrepreneurship is about collaboration: It's about creating together, taking action with limited resources, and navigating uncertainty. Strong network helps w/ these things -Studies show that by making connections with people who share our values, we are able to achieve more than if we had acted alone. In general, we have two sources of personal differentiation. We have our human capital and our social capital. -Human capital is our talent, charisma, and intellect; social capital is our source for ideas, etc.: We have two sources of personal differentiation: our human capital is our talent, intellect, charisma (what we know and who we are) and social capital is our source for ideas, support, reputation, new knowledge, and resources. The best networks can provide entrepreneurs with access to external sources of information: The best networks can provide entrepreneurs with access to external sources of information, financing, emotional support, and expertise, and allow for mutual learning and information exchange.

why find a beachhead market

Finding your beachhead market is key to attacking other markets which will generate a larger following. Three factors define a beachhead market: a. The customers in that market buy similar products. b. Those customers have similar expectations of value. c. The customers use word of mouth to communicate to others in similar regions or professional organizations. -smart skincare example: their beachhead market: a segment of people in their 30s who engaged in extreme sports such as triathlons. Not only would the athletes benefit from slow-release sunscreen, but they also had the disposable income to spend on a more expensive version. Once Valencia conquered this segment of the market, it became much easier to launch the sunscreen product in other markets

differentiation business model

Fulfilling unmet needs of customers using an existing product or service is called Differentiation; Quip, an electric toothbrush, for example, founded by entrepreneur and inventor Simon Enever. use Differentiation to encourage existing customers to switch to their product or attract new customers to the product category.

targeting process in traditional marketing compared to ent

In traditional marketing, the most viable customer segment is identified and a new product developed for it, but in entrepreneurship many entrepreneurs start with the idea of the new product and then identifies the target customer segment. -testing products w/ customers is a good way to find target customer groups

customers (part of the business model)

Individuals or businesses willing to pay for what you are offering: These are the customers; entrepreneurs typically can't serve everyone in a market, so you have to choose whom best to target. Bryan Bitticks, franchise owner of Great Clips hair salons, created a virtual online experience: It enabled its customers to check in online and explore wait times. This approach attracted thousands of younger tech-savvy customers who are more accustomed to booking appointments online... Offers convenience and comfort à part of customer experience and tied to the offering

how to network: favors and more tips

Kare Anderson, author of Mutuality Matters, provides a list of favors that may only take as little as 5 minutes, and are a great way of quickly building trusting relationships: a.Use a product and offer concise, vivid, and helpful feedback. b.Introduce two people with a well-written email, citing a mutual interest. c.Read a summary and offer crisp and concrete feedback. d.Serve as a relevant reference for a person, product, or service. e.Share, comment, or retweet something on Facebook, Twitter, LinkedIn, Tumblr, Google+, or other social places. f.Write a short, specific, and laudatory note to recognize or recommend someone on LinkedIn, Yelp, or other social place. Approach people at events: Don't assume "anyone standing alone is a loser and should be avoided." At events—this person might end up being one of your most valuable contacts. Make an effort to remember names: Make a real effort to remember names and use names during conversation to fully assimilate them; write down information soon after you meet someone. Guy Kawasaki, author of The Art of the Start, provides some additional tips for networking: a.Discover what you can do for someone else. Great networkers want to know what they can do for you, not what you can do for them. b.Ask good questions: the mark of a good conversationalist is to get others to talk a lot and then listen. c.Unveil your passions. Don't just talk about business—let the conversation expand into your hobbies as well. d.Read voraciously so that you have an array of information to draw on during conversations. e.Follow up with a short but personal note within 24 hours. Something like, "Nice to meet you. Hope your blog is doing well," is fine—but be sure to mention at least one personal item to show that you're not just sending a canned email. f. Prepare a self-introduction of seven to nine seconds (not a 30-second elevator speech). Tie it to why you're attending the event. This will help people figure out what to say to you.

Importance of buyer insights and buyer profiles

Remember that a buyer profile alone will only tell you who your buyer is, but a buyer profile with buyer insights gives you a much clearer picture of the decisions you need to make to win their business.

founding team: what is it and goals

a group of people with complementary skills and a shared sense of commitment coming together in founding an enterprise to build and grow the company. The founding team consists of founders and cofounders: The founding team usually consists of the founder and a few other cofounders who possess complementary skills. No right size, but 2-4 = typical size of founding team -skills for maintaining relationships: curiosity, questioning, deep listening, self-mgmt., accountability, intuition The goal of the founding team is to build and grow the company and provide economic and social returns for themselves, employees, other owners, and potential investors. New fast-growth ventures have been founded by entrepreneurial teams: Research shows that more and more, new fast-growth ventures have been founded by entrepreneurial teams rather than sole entrepreneurs and . a.Studies have shown that ventures started by teams typically perform better than those started by solo founders. b.When researchers asked venture capitalists the most important factors to new venture success, their response was, "the lead entrepreneur and the quality of the team." -When considering potential founding team members, it is helpful to ask yourself two questions: "Can I build the company without them?" and "Can I find someone else just like them? -founding teams often from previous employment, similar orgs to founding firm, prior working relationships, family and friends, deliberate search, social networking sites Team members generally found in network of lead entrepreneur. Most founding teams have a lead entrepreneur: This means most founding teams have a lead entrepreneur (usually, but not always, the team CEO) who creates the vision; has full belief in the venture; and has the motivation and passion to persevere, inspire team members, and make judgements and decisions during difficult times. a.Google has done research on the importance of shared vision and good manager behaviors. b.To create a vision the team needs to answer three questions in the beginning, when the founding team is just forming: Core Values: what do we believe in? Purpose: Why do we exist? Mission: What do we want to achieve? -need to revisit these questions continuous

crossing the chasm

Transition between early adopters and the early majority: High-tech and marketing expert Geoffery Moore identified some cracks between each phase of the adoption life cycle; according to him, the biggest difficulty is making the transition between early adopters and the early majority—he calls this the "chasm." Crossing the chasm involves focusing your resources on the beachhead market: Crossing the chasm involves focusing your resources on a single, primary market first, known as a beachhead market before winning over that market, and then using that momentum to dominate larger markets. Focusing on one market that is the most straightforward to capture is a particularly useful way for entrepreneurs who are typically short of money, time, and human capital to establish an early following. At first, the beachhead market may be a small segment of customers, but still enough to generate the cash flow needed to strategically position the product to win over other markets

exclusionary personas

a model of who you don't want as a customer. In creating an exclusionary persona, the same guidelines to creating your buyer personas still apply; identifying who your customers are not can actually help your further refine who your customers are. -Building exclusionary personas saves you time and valuable resources by identifying the people who will never buy from you, regardless of how much effort you put into sales and marketing

the value of team diversity (homogenous and heterogenous teams)

also found in people's career paths and goals, viewpoints, educational backgrounds, and life experiences. -members are likely to feel included because of their shared backgrounds, cultures, languages which help the team to communicate more effectively and avoid misunderstandings as well as prejudices. Personality conflicts possible. studies have shown that lack of diversity in homogeneous teams can stifle creativity and information processing In a heterogeneous team, there is a greater mix of experiences and skills: In a heterogeneous team, there is a greater mix of experiences, skills, ethnicities, and backgrounds which can expand a "group's set of possible solutions and allows the group to conceptualize problems in new ways" -this type of team tends to have a higher degree of creativity and innovativeness. Personality conflicts possible. Groups that have a greater mix can find it more difficult to communicate and understand each other, especially if they have to navigate across different languages and cultural backgrounds. This may lead to some members feeling misunderstood or isolated, which may produce conflicts and negative emotions among members of the entrepreneurial team, resulting in poor performance

maintaining your network

involves staying in touch through occasional interaction; research shows we can really manage up to only 25 relationships, but we can maintain up to 150. This interaction can take the form of tweeting a useful piece of information, replying to a request for information, answering a question, or attending an event. provide value back to them by writing a blog; as an entrepreneur, you can use a blog as a way to showcase and share your thoughts and activities with your stakeholders. By participating in social networking sites, you build credibility, transparency, and trust.

4 interlocking parts of the business model

offering, customers, infrastructure, financial viability

team commitment and comprehensiveness matters more than demographic diversity bc

team commitment and cognitive comprehensiveness, a process in which team members examine critical issues with a wide lens and formulate strategies by considering diverse approaches, decision criteria, and courses of action. Team-level cognitive comprehensiveness is positively related to entrepreneurial team effectiveness. Effective teams also tend to have a high level of member commitment, encourage each other to use different approaches, offer different perspectives on problems, and use a range of potential solutions to solve problems

Types of roles ppl play in network

1.First, people in your network can help you to progress by offering information and instruction, especially when you are trying to learn complex tasks. They can also refer you to others who might be able to assist you in achieving difficult tasks. 2. people can help protect your venture by giving you advice when you are confronted with high-risk situations or are going through a rough patch. 3.people can provide personal and emotional support by listening to your concerns, empathizing, and offering advice when required. 4.people become your role models. You can be inspired by their achievements, and in many cases, they represent what you would like to be when you progress as an entrepreneur. 1.In sum, networks can provide three types of support: career support, psychosocial support, and role modeling

Mighty Morphin Power Rangers case

Haim Saban consistently moved up the ladder by identifying opportunities and pursuing them; starting from Egypt, to Israel, France, then the US.was running profitable operation in the US when he identified opportunity to produce Japanese Power Rangers series by using the musical scores that he had become a master of producing. •entrepreneurial maturity develop from the time he was a band member in Israel. The novelty of Lions of Judah helped it get off the ground, but Haim ran into problems with debt rather quickly ($600K to be exact!) •After moving to Paris in search of a new opportunity, Haim identified a young Noam Kaniel, who produced a platinum record. After paying off his debt and sitting on the success of his client, Haim looked for the next opportunity. •Much more intentional about doing research before making his next decision. He studied how royalties work in the US and effectively educated himself to properly gauge the potential for his product/service to generate cash flow (a sign of a maturing entrepreneur!). •Haim moved to the US and started Saban Entertainment with business model unique to the industry. This helped him leapfrog over the competition to gain relevance and some serious market traction, producing the scores for many of the country's popular cartoons. critical thinking questions: 1. The decision makers who influenced Haim's ventures included: -His band mates in Lions of Judah, who found a better position for him as band manager (rather than bassist) -Record distributors in Paris, for whom he had learned how to knock on the doors of -Executives at Fox like Margaret Loesch, who vouched for the idea and took the risk of giving it an opportunity to air, and Chase Carey, who proposed the joint venture -Ultimately, executives at Disney ($5 billion!) 2. innovative business model revenues: •By producing compositions for free, he only concerned himself with the royalties earned from the shows. •This was seen as low risk for the large production companies who would be more willing to pay additional royalties if a show's popularity exploded than pay fees even before it aired. •Grew saban entertainment rapidly to 12 studios! 3. customer of saban entertainment and joint venture of saban and fox

FB and Insta as virtual networking tools

There are also specific Facebook Groups for entrepreneurs that provide a forum for entrepreneurs to meet and exchange ideas and shared interests. Competitors are a valuable source of learning and inspiration: Don't be wary of connecting with your competitors—they are a valuable source of learning and inspiration. You can find out what conferences ppl in your network are attending YouTube can be used as a resource for identifying experts: And getting video tutorials on a specific topic; once you find the expert on YouTube, you can use Twitter and LinkedIn to establish first contact. Instagram is also a useful networking tool: People can send short videos and photos to connect with others and showcase where they have been and what business activities they have been involved with.

customers and markets: focusing on the markets

We're entering an age where the focus on the customer is bigger than ever before. -Even entrepreneurs with limited resources can use methods to identify and target their customers, estimate the potential of their market size, and create ways to gain a deeper understanding of who is buying their products and why. Nobody will buy your product unless you understand what your customers want and need and you are providing more value than your competition Customer identification essential to business success: Businesses don't exist without customers so gaining a deep understanding of your customers is absolutely essential to early business success. Difference between customer and consumer: While we tend to use the terms "customer" and "consumer" interchangeably, they do not mean the same thing. A customer is someone who pays for a product or service; they become consumers when they actually use the product or service.

networking tips

a.Read the room: How crowded or empty is it? Is there a focal point or an activity taking place that could be a conversation starter? b.Look for potential groups to join: look at nonverbal cues such as body language and eye contact to identify whom to approach as a likely conversant, and whom to avoid. c.Commit fully to the discussion: avoid looking over the shoulder of the person you're talking to in case someone more interesting shows up. d.Be careful not to dominate the conversation: make sure you give some time and attention to letting the other person speak and offer thoughts and opinions. e.Keep questions brief: when approaching a desired contact with a question, briefly introduce yourself, keep your question short, and explain why you are asking. f.Disengage gracefully: look them in the eye, shake hands and say their name followed by "it's been good talking with you" or words to that effect. g.Thank people for advice: follow up with a short note or email within 24 hours and consider connecting on LinkedIn or other professional networking sites. -People who are open to making new connections generally "adopt an open stance, shoulders apart and hands at their sides, turning slightly toward newcomers to welcome them," While influential people tend to lead conversations, good networkers will listen and show interest by nodding, leaning forward, raising their eyebrows, and mirroring the speaker's gestures—for example, tilting their heads in the same way

prototypes

can come in the form of basic models, or sketches that communicate what our ideas look, behave and work like: This is before the real thing is launched. a.The prototype as depicted in Constable's truth curve is a minimum viable product or MVP. b.It is "that version of a new product which allows a team to collect the maximum amount of validated learning about customer with the least effort." (important features and benefits w/out overbuilding: avoid wasting precious resources during the startup phase) c.The MVP comes before preselling in truth curve bc requires you to actually build the product that adds value and is meeting the needs of customers. Might even make $ during the MVP stage

implementation phase

early, fast, low-cost testing and experimentation: To strengthen ideas and ensure that entrepreneurs are on the right path toward meeting the needs of their potential customers. Involves trying something new, and building that learning into the next iteration: It involves asking questions, validating assumptions, and taking nothing for granted.

the offering (part of the business model)

identifies what you are offering to a particular customer segment, the value generated for those customers, and how you will reach and communicate with them. Customer value proposition describes what products your business offers: The offering includes the customer value proposition (CVP), which describes exactly why customers should buy the products or services your business offers/ sells to customers. The "value" part of the CVP: how much your product or service is worth to customers: a.For instance, it might only cost a plumber $40 to fix a burst pipe at a customer's house ($5 for travel, $5 for materials, and $30 for an hour's labor) but the value to the customer for having the problem fixed is far greater, which is why the plumber can afford to charge more. -CVP explains how you can help customers do something more inexpensively, easily, effectively, or quickly than before

Giff Constable's Truth Curve

level of effort in experiment correlates with higher believability of information (from interview to live product and business)

testing hypotheses

matching the results of our tests to the original hypothesis: Testing a hypothesis is not just about gathering data—it also involves matching the results of our tests to the original hypothesis and potentially adapting our original assumptions to better understand our customer target base. -Experiments can involve observations of students studying in a library, or employees working on a group project, constructing or formulating products and testing how they perform, consumers visiting a store. -continuous testing = ongoing req for entrepreneurs

imitation business model

model should really be avoided; imitation without differentiation is not the greatest form of flattery.

incubators

one of best places to network and find mentors. an organization that helps early-stage entrepreneurs to refine an idea, while also providing access to a whole network of other startups, mentors, and other valuable resources. a.Leading incubator 500 Startups based in Mountain View, California, offers entrepreneurs seed funds, expert guidance, and access to investors.

product application

refers to the goods or services created to meet this demand, thereby providing a solution to a customer problem.

how to prevent groupthink and promote healthy conflict

the use of a devil's advocate: To challenge assumptions and encourage different perspectives. a.Author and hospitality expert, Paul Rutter believes that all teams should have a devil's advocate. Studies have shown this helps teams to perform much better at quality solutions b.He said, "Having an effective devil's advocate can be a guardian angel in disguise, helping your company avoid mistakes that cost time and money. This can ultimately improve employee engagement, customer loyalty and create business." Healthy and constructive conflict is good, provided team members are clear on the organization's goals: As well as free of hidden agendas.

5 types of value in ent

value in use: customers enjoy using the product value in exchange: service offered at competitive price value in distribution: focuses on availability and accessibility of product value in finance: assess financial health of org and ability to provide high value while maintaining healthy margins value in fitness: monitors continuous process of gathering resources and innovating

5 characteristics of good experiments

•1. They are structured and follow a particular template. •2. They are focused and don't try to test too many things at the same time. Focus on a core hypothesis. •3. They are believable so you can trust what you learn. •4. They are flexible so you can make changes while in the experiment if necessary. •5. They are compact so you can learn quickly.

AmeriCAN Packaging case study

•Jeff's network played a key role in each phase of the business' life, illustrating how one's network is the most valuable resource one has at his/her disposal. -used means at hand: inventory of skills and knowledge. also used network -failed wood recycling business -After reaching out to a close friend's father (investment banker), who was looking to do the same, he identified the metal packaging opportunity in the Dominican Republic. Together, they made up the founding team -gap in the market for metal packaging manufacturers in the DR (heart of cigar industry) -•To learn more about the cigar manufacturing and packaging industry, Jeff reaches out to his network in his hometown of Miami. •Learns the entire supply chain for the production of cigars exists in Latin America EXCEPT for the metal packaging components (which are sourced from China and Switzerland). Thus, decides he can compete on price and lead-time (solution). •Begins to look for suitable warehouse in the DR to set up metal packaging plant near tobacco manufacturers. •Takes on a risk and signs a 5-year lease on a manufacturing facility in the Dominican Republic without consulting his co-founder and investor! (does not really have affordable loss) •While this isn't something that is recommended, it worked out for Jeff...he quickly wrote a makeshift business plan for his investment partner and he went on to raise $2 million in funding to set up AmeriCan. -•Local suppliers were reluctant to work with smaller quantities of products. •Needed to run a test batch of printed metal cans but couldn't find a local partner. Leverages network to find a printer in Costa Rica...BUT, couldn't get samples so had to order 20,000 printed tins. Then gets rejected, so stuck with the tins and no customers! •Attends trade shows, hires a Spanish consultant, establishes university internship program and taps into LinkedIn. Also reaches out to friends, family, professors and others. -Manufacturing emergency! -•sold a large stake in AmeriCan to an established cigar manufacturer with a good reputation (vertical integration). This propelled AmeriCan to the forefront of the industry. •This injection of credibility and trust helped expand AmeriCan's book of business in all of Lati

stitch fix case

•Katrina Lake (Stanford, HBS, consulting, and VC), saw firsthand how large retail companies were actively avoiding addressing many of fashion customer's pain points Started Stitch Fix as a means to bring cost-conscious personalization back to fashion (trend = $$$ to ecommerce) -business model: Shopping efficiency and style suggestions from value proposition -starts w/ email to reach customers à onlineà word of mouth •Katrina identified a problem very early on in her career (lack of customization for clothes for budget ppl), but did not drop everything to begin to address it. •Katrina spent a lot of time conducting thoughtful research and intentional experimentation (keys to Stitch Fix's success). As she progressed, her research and experimentation became much more methodical and specific, as good research and experimentation should be (and gained more comparative confidence in her ability). •Her move to San Francisco showed how Katrina was very confident in the identity of the business. New York is the fashion capital of the world, but while Stitch Fix deals directly with fashion, it is a tech company that needed exposure in the tech capital of the world. use of the scientific method: began to understand the true scope of the problem during her time working in consulting. She absorbed the testimonies of industry leaders and saw their attitudes on the subject. This gave her a wide array of qualitative material to use when formulating her thoughts early on, and it ultimately led to her constructing a hypothesis. critical thinking questions: 1. Katrina hypothesized that as e-commerce continued to grow, customer dissatisfaction and depersonalization would also grow. This would create an opportunity for her to differentiate her offering as something leading to the exact opposite results. 2. used interviews and concierge testing: While working in venture capital and then attending Harvard Business School, she confirmed suspicions that depersonalization was a real trend, and also a real problem. concierge rack habit: Created surveys and had people try out clothes she purchased -$6,000 in credit card/ clothes from Boston boutiques -No website...Google Sheets/Survey Monkey for data -results: •Targeted friends/family...

customer value proposition definition and 3 qualities

--MOST IMPORTANT PART OF BUSINESS MODEL-- It is the value generated for the customer: The key word in CVP is "customer,"—the focus should always be on the value generated for the customer and how this value is then captured by the business in the form of profit. The three qualities of an effective CVP: For your CVP to be truly effective, it needs three qualities. 1.Better value than the competition: It must offer better value than the competition. 2. Measurable in monetary terms: It must be measurable in monetary terms (i.e., you must be able to prove that your CVP is better value than other offerings on the market). 3. It must be sustainable: It must be sustainable (i.e., you must have the ability to execute it for a considerable length of time). Design thinking is a collaborative effort: As we have learned, design thinking is ultimately an iterative and collaborative process that combines the skills of observation, synthesis, searching and generating alternatives, critical thinking, feedback, visual representation, creativity, problem solving, and need finding. HELPS YOU TO CREATE A CVP THAT IS UNIQUE AND DIFFERENTIATING It is business from the customer's viewpoint: As with design thinking, the CVP means thinking about your business from the customer's viewpoint rather than from an organizational perspective; it must demonstrate that you are meeting the needs of various customer segments.

why market sizing is important

-determining market size is essential for any startup or else could find self operating in too small of a market to make any money and helps to differentiate btwn tam and sam (clarifies potential customer demand for product/service offering) Why market sizing is important: a.Calculates sales and profits: It calculates the number of sales and resulting profits of new products or customer segments. b.Identifies growth opportunities: It identifies growth opportunities in different product lines and customer segments. c.Pinpoints competitive threats: It helps to pinpoint competitive threats and how to develop strategies for those threats. d.Thinking of exit strategies: It forces you think about exit strategies or pivot points in the future. e.A sense of market trends: It gives you a sense of market trends and their potential to impact your business in the future. f.As proof for investors: It is important for investors who want to see evidence of a large enough market to justify their investment.

the lean canvas

-ignores some of the boxes in the BMC. Key activities and resources, customer relationships, and key partners are eliminated. Key activities in the Lean Canvas are covered in the Solutions box. Customer relationships are covered in the Channels box. Key partners in the Lean Canvas were eliminated because it may be too early for the entrepreneurs to think about strategic partners when the business is not truly functioning yet Problem: Startups too often build something that doesn't solve a problem, so problem understanding and validation is essential. If you already have a product or service in mind, then what is the problem you are solving for your customers? Is it a big enough problem? Conversely, start with the problem first, validate it's an actual problem, and then create a solution. Solution: The Solution box is where you note potential solutions to the problems identified. The Lean Canvas purposely keeps this box small so you don't fall in love too quickly with an idea and you test the solution sooner rather than later. Key Metrics: It's easy to get dizzy from information overload and drown in the numbers. The Lean Canvas encourages identifying what is most important for your stage of business and keeping track of that. Key metrics may be the cost of acquiring a new customer, revenue, activating new users, or retention rate. Unfair Advantage: Unfair advantage is the same thing as competitive advantage; it just sounds a bit more hip for entrepreneurs! This box is important because as you test solutions, your advantage over the competition is likely to emerge. If there is no unfair advantage, long-term success is unlikely. Sources of unfair advantage may take the form of user friendliness, product design, service experience, influence on social media, and price. ---In general, the Lean Canvas works better for those at the very early stages of a startup when a solution to a particular problem has not been chosen, or a product has not yet been developed, or few actions have been taken. If the BMC is too complex for where you are in your startup, then the Lean Canvas may be a great alternative. Just as with the BMC, however, every box is a hypothesis that needs to be tested, validated, or changed.

4 problems experienced by customers

1. Lack of time: The example waiting time in hospitals a.In the U.S., people waste $1.5 billion annually waiting to be seen during patient visits in hospital. b.Hanging around for results and waiting to be discharged often takes up hours of valuable time. c.The ThedaCare hospital system in Wisconsin has found a solution to this time-wasting problem by ensuring that patients are seen more quickly and that results are dispatched before they leave, rather than days later. 2. Lack of money: delivering previously unaffordable products or services for less money a.This can help beat the competition and open up a whole new market. b.Getting a taxi used to be a luxury until Uber came along; dining out was viewed as an unnecessary expense before Groupon started to offer restaurant deals and discounts; and staying in decent accommodation seemed like an impossibility for many until Airbnb launched its hospitality service. c.Uber, Groupon, and Airbnb are among thousands of startups that have succeeded in democratizing services previously reserved by a small portion of the population. 3. Lack of skills: people might like to accomplish a task but lack the specialized skills to get the job done a.A recent example of how ease of use transformed customers' lives is the shift from computers with arcane command-line interfaces to computers with graphical user interfaces like Apple's Macintosh or Microsoft Windows. b.These computers meant that you no longer had to have expertise in computer programming to use a computer. c.To solve another common problem, lack of writing skills, online grammar checking platform Grammarly enabled users to help people communicate better. 4. Lack of access: this prevents them from getting a job done a.Most of us think nothing of travelling on public transport to get to our chosen destinations, but for millions of visually impaired people, it can be one of the most difficult journeys to achieve. b.UK-based non-profit organization Wayfindr aims to solve this problem by providing an open standard (software that can be used by anyone) that gives audio instructions to help vision-impaired people to navigate their journey without a human guide.

types of CVPs

1. The all-benefits approach to CVP: The all-benefits approach to CVP involves identifying and promoting all the benefits of your product or service to target customers, with little regard to the competition or any real insight into what the customer really wants or needs; being overly product-focused, you are promoting features and benefits that customers may not even need. 2. The points-of-difference approach: The points-of-difference approach produces a stronger CVP than all benefits because it focuses on your product or service relative to the competition and recognizes that your offering is unique and different from others on the market; but assuming that customers will find these points of difference favorable is not evidence enough to prove they will buy from you. 3.A CVP that stems from the resonating-focus approach: A CVP that stems from the resonating-focus approach (also called "just what the customer wants" or product-market fit) is the "gold standard"; all-benefits and points-of-difference CVPs each provide a laundry list of the presumed benefits to the customers, and the differences between your products or services in comparison with the competition, but a resonating-focus CVP drills down to what is most important to the customer. describes why people will buy your product and focuses on the customers and what they really need and value. Your offering shows an understanding of your customers' problems and needs and describes how you intend to meet their demands major part of your business proposition is to figure out which customers to focus on and which ones to ignore... Do not try to aim CVP at all ppl

types of customer segments

1. mass market comprises a large group of customers with very similar needs; "it's gone mass market," means a product or service is being purchased by an enormous proportion of customers all looking for the same thing. Ex: computers, soap, cars, insurance, healthcare, coke, pepsi *target wide range of customer groups) 2. Niche market: customers with specific needs: A niche market is a small market segment comprising customers with specific needs and requirements; entrepreneurs Carlton and Hazel Solle created the Bioscarf as a fashionable and sustainable alternative to the common filtration masks used in China to protect local citizens from breathing in the polluted air. 3.Segmented market: breaking customer segments into groups: A segmented market involves breaking customer segments into groups according to their different needs and problems; a bank might provide different services to its wealthier clients than they would to people with an average income, or offer different products for small versus large businesses. Good way of generating more business 4. Diversified market: variety of services: A diversified market offers a variety of services to serve two or more customer segments with different needs and problems, which bear no relationship to each other; Amazon is a good example that diversified from its retail business—selling books and other tangible products—to sell cloud computing services, online storage space, and on-demand server usage. 5.Multisided markets: two or more customer segments: Multisided markets describe two or more customer segments that are linked but are independent of each other; a free newspaper caters to its readership customer base by providing commuters with newsworthy content while the newspaper also needs to prove to advertisers that it has a large readership in order to get the funding to produce and distribute the free publication. Dependent on 2 distinct customer segments to be successful **Matching the right CVP to targeted customer segments is essential to the development of a scalable business model***

groupthink and healthy conflict

A healthy team could be considered as one whose members are from diverse backgrounds. complementary skills and experiences, and commitment to venture. a.Testing and challenging assumptions is a state that gets the team out of groupthink—a phenomenon where people share too similar a mindset, which inhibits their ability to spot gaps or errors. b.Healthy conflict builds clarity; for example, if team members point out flaws in an idea, then they can work together to build it into a more robust idea. Need to argue w/out taking personally or impairing ability to work together -Kathleen Eisenhardt found teams that engaged in healthy conflict shared six traits: developed multiple alternatives to enrich the level of debate shared commonly agreed-upon goals worked with more information rather than less injected humor into the decision process maintained a balanced power structure resolved issues without forcing consensus. -Overall, the teams worked with more, rather than less, information and debated on the basis of facts, not emotions. When teams stay with the topic of the debate and argue their points productively, there is less chance of personal attack

the value of networks

An entrepreneur is required to interact with investors, mentors, advisors, professors, potential employees, resource providers, and other stakeholders. In a networking group of about 40 people, the leads you could obtain are almost incalculable: In a networking group of 20 to 40 people, the amount of possible referrals and leads that you could obtain from this group are almost incalculable. a.Benefits of informal networks: New research released by the Economist Intelligence Unit on the benefits of informal professional networks and communities, including online (Facebook, LinkedIn) and physical (parties, entrepreneurial events) networking, showed that informal networking (unstructured, free-flowing communication) was far more important to entrepreneurial success than formal networking (meeting in a formal setting). b. 78 percent of startups benefited from informal networking: Out of the 1,000 entrepreneurs surveyed across ten cities—six cities in Asia, two in Europe, and two in the U.S., the study found that 78 percent of startups benefited from active informal networking... the greater the number of networking activities, the higher the chance of greater profitability, revenue growth, and innovation

the 6 steps of scientific experiments in action

Ask lots of questions: It is important to ask lots of questions: To define the most specific one. For instance, when developing SpaceX, Elon Musk started out by asking, "What would most affect the future of humanity?" ● Carrying out background research: Most successful entrepreneurs become experts in their industry. How? By talking with other experts and industry pros and in social networks. Developing Hypotheses: Without a clear hypothesis, it is almost impossible to abandon popular assumptions in favor of new solutions. The Sybo team came up with the following hypothesis, "By automating the light adjustment process, surgeons and staff would achieve greater efficiency and enhanced focus on the patient during procedures." Testing the hypotheses by running experiments: King and his team's first experiment to test the hypothesis was in the form of a simple surgeon survey composed of only 12 questions; the response showed that 87.5 percent of surgeons would benefit from an automated light and results proved to the Sybo team that they had a viable product. Analyzing the data: Analyzing data and recording results is an essential part of the experimentation process. 6. Assess the results: Once the accuracy of the data has been determined, it is time to draw conclusions. Important to publish results as well to get valuable feedback

checklist for experimentation

Bring people through an experience and watch their behaviors and decisions. Test your product and the value you create for customers before you've finished the product itself. Consider what aspect of the product or service you want to test before testing the whole thing. Prioritize what you want to learn. You don't have time to run experiments on everything. Quick testing helps you prioritize and test the most important risks and assumptions. Create a structured plan for your experiment before you start. A chaotic experiment leads to chaotic results. Set up success metrics before you begin so you don't rationalize your results after the fact. Weave customer interviews into experiments, when appropriate, to maximize learning and insights. Keep an open mind about your results, good or bad, and use good judgment when interpreting what you learn.

how to stay curious

Connect with other curious people: a.Naturally curious people are keen to trade questions, explore, and collaborate. b.Having these people in your life will encourage you to uncover new ideas and see things from a different perspective. Be a curiosity ambassador: a.By asking questions and listening carefully to responses, you will encourage the people around you to do the same. b.Similarly, staying curious, rather than judgmental, when approaching the unknown is a more productive way to tackle tough challenges. c.Try not to play the expert in any room you enter; It will hinder your ambassadorship here. Focus on learning a.You can only stay curious when you make the commitment to continuous learning. b.Only through learning will you be able to ask the right questions, find the right answers, and recognize new opportunities. c.Entrepreneurs are notorious for being insatiable learners. Broaden your networks a.Curious people tend to be comfortable asking questions which can lead to all sorts of productive relationships with diverse groups. b.Entrepreneurs understand that they may not be the smartest person in the room but they need to surround themselves by the smartest people they know. Ask "Why?" "What if...?" and "How might we...?" a.Being naturally curious doesn't just mean asking questions, but learning to frame them in the right way. b.When we were kids, asking questions was second nature, but as we grow older and more self-conscious, we tend to stop questioning in the same way. c.Yet by asking "Why?" "What if...?" and "How might we...?" we have an opportunity to challenge existing mindsets, and create new ideas. Without risk there is no rewards; entrepreneurs need to foster curiosity: To reap the benefits of confronting new challenges and leaping into the unknown. Leap to be curious: So, leap to learn; to experiment; to test assumptions; leap to be curious!

successful CVPs understand what the customer wants

Creating your CVP does not begin with trying to persuade customers to buy your product or service. Rather, it's about finding a goal—a job that the customer needs done—and then proposing a way to achieve that goal.12 It's about uncovering what your customer needs and providing solutions to meet those needs. It's about relieving pain points... It's a promise of value to the customer Businesses survive because they successfully answer three questions: Businesses start and survive because they successfully answer three questions for customers: What's in it for me? Why should I believe you? Why should I care? It is about one big benefit: The overt benefit is the one big benefit for the customer, not the list of benefits—just the one big one. If not clearly articulated, the benefit is really invisible, so then CVP is invisible

Real reason to believe

Credibility in the eyes of the customer: Real reason to believe provides evidence to the customer that you will do as you promise; you have to have credibility in the eyes of the customer and this is more important than ever with the proliferation of online reviews.

financial viability (part of the business model)

Defines the revenue and cost structures a business needs to meet its operating expenses and financial obligations. more than a financial model How much will it cost to deliver the offering to our customers? How much revenue can we generate from customers? And, of course, the difference between revenue and cost is profit. more than just revenue and costs: It has to describe more than how you intend to make money; it needs to explain why a customer would give you money in the first place + what's in it for the customer: this is where the CVP comes in. a.For example, when Brandon Steiner, founder of Steiner Sports, featured in Entrepreneurship in Action, realized the business wasn't managing its margins or meeting its financial obligations, he took out another mortgage on his house and made some changes to his business model to meet the needs of his customers.

the power of storyboarding

Generate ideas and questions and communicate: gets the main message across very quickly. It is also more likely than a lengthy, detailed, written document or speech to provoke reactions, discussion, and feedback from the people who are viewing it. As long as your storyboard flows well and is interesting and interactive, you can expect it to generate ideas and further questions. Your goal is not to create a work of art but to communicate: to use visual imagery to make your entrepreneurial idea more understandable. -For an entrepreneur, it is helpful to draw a storyboard before interacting with customers or other stakeholders because it can bring clarity to the idea, better tell the story of the idea, and highlight the potential value it brings to customers. -requires the customer be at the center of the story and is a way for you to draw idea in action, generating further questions for additional experimentation -simple and inexpensive to create... Can be rough/hand-drawn, ppt slides, etc.

Different CVPs for different customer segments

How can a "gold standard" CVP be developed if the focus is supposed to center on the customer—the answer is that businesses often have different CVPs for each customer segment to ensure you meet needs of customers w/in each segment. Creating a product or service that the customer would be willing to buy: By understanding the motivations, desires, and unmet needs of your customers, you are better able to create a product or service that they will be willing to buy. a.Market research indicated that young men shied away from Diet Coke because they associated it with women who were trying to lose weight, and in response, a new CVP was created, resulting in Coca-Cola Zero, which many people believe is clearly aimed at men.

infrastructure (part of the business model)

Inclusive of all the resources an entrepreneur must have to deliver the CVP: The infrastructure generally includes all the resources (people, technology, products, suppliers, partners, facilities) that an entrepreneur must have in order to deliver the CVP. Justin Gold of the nut butters brand created a competitive advantage using infrastructure: a.Justin Gold, founder of the nut butters brand, Justin's, started off using his own food processor to make his nut butter from his own kitchen but found he couldn't upscale the business as he could not afford the types of peanut butter mills used by manufacturers. b.Gold went out and bought the oldest food processors he could and started to produce perfect peanut butter that was impossible for the traditional manufacturers to mimic. c.By being resourceful, Gold was able build competitive advantage and uniqueness into his infrastructure to create a successful business.

chain of customers

Instead of looking for a single customer, companies should identify the "chain of customers," composed of users, purchasers (buyers) and influencers. The customer may play all three roles: a.A toy company producing toy cars may presume that its customers will be boys between the ages of 3 and 12, but the "purchasers" might actually be the parents. b.Similarly, the boy's "influencers" need to be taken into account, who could be close friends or family members. -The saboteurs should not be ignored: In addition, entrepreneur and educator Steve Blank suggests that we do not ignore the saboteurs—these are anyone that can veto or slow down a purchasing decision—from top managers to friends, to spouses, to even children. Identify your saboteur customers and find out what's putting them off. You might learn a lot from their feedback

low-cost customer engagement

Involving customers in your experiment is a great way to test hypotheses: it provides you with immediate feedback on how your product or service is received. It is also an excellent way of making connections with people: Who may buy your product or service when it is fully launched. An excellent way of making connections. Major benefits of testing hypotheses: Real-time data. Entrepreneurs can gather evidence and data from conducting simple, low-cost experiments. a.Joel Gascoigne, founder of social media management platform, Buffer, decided to test customer demand for his product before it was even built by creating a simple landing page and sharing it with his Twitter followers. b.Positive response from his potential customers have Gascoigne the encouragement he needed to build the product. c.Thanks to his quick, cheap experiment, Gascoigne was able to build a relationship with his customer base before even launching Buffer online. d.As of 2018, over three million people use the Buffer platform to schedule posts to Facebook, Twitter, LinkedIn, Instagram, and more.

the case for curiosity

It's an important strength for entrepreneurs: including experimenting, prototyping, hypothesizing, and interviewing: All these would never come to fruition without a keen sense of curiosity. Curiosity increases perseverance and boosts performance: A growing body of research shows that curiosity increases perseverance, and boosts performance. 5-d model of curiosity (each dimensional essential to ent): Deprivation Sensitivity: Recognizing a gap in knowledge, the frustration this brings, and the determination to fill it Joyous Exploration: Delighting in the wonder of the world and the fascination it holds Social Curiosity: Enjoying the process of learning about others by talking, listening, and observing Stress Tolerance: Being able to handle the anxiety that comes with new experiences or uncertain situations Thrill Seeking: Being open to taking certain social, financial, and physical risks to experience new adventures

business model canvas

Knowing how a business intends to create, capture and deliver value for customers. introduced in 2008 by Swiss business theorist Alexander Osterwalder, divides the business model's four parts into nine components in order to provide a more thorough overview of the logic of the business model. The four parts of the BMC What the offering constitutes: The offering constitutes the (1) value proposition. What customers relate to: Customers relate to (2) customer segments, (3) channels, and (4) customer relationships. What the infrastructure includes: Infrastructure includes (5) key activities, (6) key resources, and (7) key partners. What financial viability means: Financial viability includes (8) cost structure and (9) revenue streams. right side of the BMC is about creating value and the left side is about delivering that value as efficiently as possible. Additionally, the BMC encourages you to find answers to the most important questions and think about them in a structured way, using the canvas to unlock your creativity. The process is iterative—you'll probably be moving back and forth between the boxes as you test ideas in relation to each other. Not only that, some of your ideas will need to be tested through experimentation before you have a solid answer. To stay competitive, it is important to keep refining and revisiting your business model -Thinking through all nine components of your business model helps you understand how the various parts work together: the value you'll create for customers, the processes you must implement to deliver value, the resources you need, and the way you'll make money. Overall, the goal is to lay out your assumptions so that you can test them. Be ready to change because your ideas will likely evolve before you get the formula right.

different types of prototypes

MVP: As described, an MVP as prototype is the first functional and working version of your product ready for release to actual customers. Ex: Instagram mvp only focused on photo filters at first, then expanded for videos, social network interaction, etc. Rapid Prototypes: Rapid prototypes are quickly created models used to visualize a product or service; they could be made out of crude paper models or storyboards. Mock-up Prototype: A mock-up prototype is usually presented as a 2D or 3D model that looks like the finished product but lacks the right functionality and may be used as a replica of the real product during experimentation. High fidelity prototype: It is a more sophisticated version of a mock up that has enough functionality to allow users to really interact with the product or service. An app that includes customer functions and some animation is a good example of a high fidelity prototype. Lego Prototype: It is particularly useful for creating rough, simple prototypes of your ideas. Tim Brown, CEO of IDEO, used LEGO to build a prototype of a complex insulin injection device. Role-playing (experiential prototyping): It is a method that helps you to step into the shoes of your user by capturing their emotional experience of testing a product or service. Wizard of Oz prototypes: It can also be considered as prototypes with faked functions. A common example of this type of prototype is a virtual assistant in which someone behind the scenes types out the responses to the user. User-Driven Prototypes: This method focuses on the user creating the prototype which in turn enables you to better understand their thinking. a.For example, if you have an idea about how to improve the waiting experience at airports, you might ask them to draw their own version of what this might look like, or build a Lego prototype. Pilots and Prototypes: Although commonly used interchangeably, pilots and prototypes are not the same thing—in fact, a prototype, at least in its crude version, is often created before the pilot testing. a.A pilot experiment is a small-scale study conducted to assess the feasibility of a product or service. Storyboards: Storyboards are an easy form of prototyping that provide a high-level vi

networking to find mentors

Mentors can be an invaluable resource for entrepreneurs as they help you progress with your venture, and warn you of known pitfalls and can also provide valuable connections and industry contacts. a.Most well-known entrepreneurs credit their mentors for their success. b.Steve Jobs taught Mark Zuckerberg how to build a team; Bill Gates credits Warren Buffett for his ability to deal with complex problems; and Richard Branson references British airline entrepreneur Sir Freddie Laker for his advice and guidance when trying to get Virgin Atlantic off the ground. Entrepreneurs may build up a network of mentors over time to gain multiple perspectives: Entrepreneurs typically don't just have one mentor; they may build up a network of mentors over time, which can be useful when you are seeking different perspectives or guidance during particular stages of your venture. To find a mentor, look in your personal network and college connections a.A mentor himself, Richard Branson, is a champion of young entrepreneurial talent; he has said he gets "a real sense of pleasure from seeing talented people realize their ambitions and grow professionally and personally." It is also possible to network from a remote location: While face-to-face networking is essential for building valuable relationships, it is also possible to network from a remote location.

virtual networking (twitter and linkedin)

One of the speediest ways to connect with others is through social media: It is the simplest too. Twitter, LinkedIn, Facebook, Instagram, and YouTube all provide ways to connect with people who are experts in the field: Along with potential stakeholders—or fellow entrepreneurs—anyone who can potentially help you develop, build, and grow your entrepreneurial venture. Some of these people may become self-selected stakeholders and eventually become part of your founding team. Let's explore how you can use these social media sites to build your network. -Twitter is one of the easiest ways to find potential stakeholders: Twitter is one of the easiest ways to find people whom you don't know but who might become potential stakeholders. a.To find others on Twitter who share your interests, you can do a search on Twitter (www.search.Twitter.com) by keyword and see everyone who is using that keyword at that very instant. You can interact through LinkedIn by asking questions or posting comments: In addition to Twitter, you can interact with individuals or with the group as a whole through LinkedIn by asking questions or posting comments. LinkedIn also provides you with a view into the real-life challenges that business people face and solutions: LinkedIn also has a section devoted specifically to Questions & Answers, which provides you with a view into the real-life challenges that business people face and the solutions that others offer. Posting answers is a good way to show your own expertise and to demonstrate your willingness to be of help to others. When you share information with others, they will feel more inclined to reciprocate a.Neena Dasgupta, CEO and director of Zirca Digital Solutions, based in India offers the following advice to entrepreneurs: b."Always remember to spend time making a list of people you would want to do business with in the future; these could be clients, investors, and potential partners. c.Next, create a highly-personalized note for each person and send them requests. d.When you're opening up this dialogue, don't forget to avoid hard-selling, and instead focus on how you can build a relationship."

generating data and the rules of experimentation

Organizations traditionally relied on historical data to gauge customer tastes: Organizations have traditionally relied on large amounts of historical data to gauge customer tastes and preferences like direct mail, surveys, advertising, etc. not all are reliable though. Can be costly or depend on feedback from existing customers startups do not have With insufficient data, people tend to use intuition or experience: When there is insufficient data, people tend to use intuition or experience to make decisions which is often unreliable and does not provide the knowledge or evidence to support feasibility of idea. a.When entrepreneur David Boehl founded his online advertising company, GraphicBomb, he defied all conventional wisdom by hiring two of his siblings to work for him full-time. b. Boehl credited his sisters with being trustworthy and forthcoming with valuable feedback. Fear of failure tends to discourage entrepreneurs from experimenting at all: They can be perceived as risky and sometimes even scary, and nobody likes the idea of failing. Experiments are the only way to prove a concept though Today's entrepreneurs are required to experiment to prove a concept. a.Paul Lemley, founder of live broadcasting app Hivecast, discovered a powerful way of gathering his own data by asking at least one random person one question every day about existing or future products. -Small-scale experiments do not need to be risky or expensive. Entrepreneurs have more freedom to experiment, as they have a lot less to lose in the beginning than larger organizations do All results must be taken into account. Ignoring data is detrimental to the success of any venture: Ignoring data just because they tell us what we don't want to hear is detrimental to the success of any venture. Experimentation is an opportunity for learning and better decision making: The goal of experimentation is not to conduct the "perfect" experiment but to see it as an opportunity for further learning and better decision making; failure is also important, for if you cannot fail, you cannot learn.

advantages of networks

Private information: Private information is not available to the general public; gathering unique information from network contacts, such as the release date of a new product, or what investors look for during a pitch, can give entrepreneurs the edge over the competition. Value of private info increases when trust is high in the network Access to diverse skillsets: Networks provide access to diverse skillsets; a diverse network of contacts allows you to trade information and skills with people who have different experiences and backgrounds from your own. Will be able to find ppl w/ complementary skills and experience to help you grow your venture Access to power: Finally, networks can give you access to power—people in senior or executive positions who can provide expert advice and introduce you to other powerful people in their network. You may have power yourself.

benefits and drawbacks of social capital

Social capital creates a sense of shared value to the people who are connected in the network: Especially when cooperation, trust, and mutual exchange are high. a.Famously, the most powerful contact in Bill Gates's network before Microsoft took off was his mother, Mary Gates. b.Mary Gates sat on the board of United Way with John Akers, a senior IBM executive. c.The relationship led to her son, Bill, pitching the Microsoft operating system to Akers, who awarded the contract to Gates. - Forming connections with people who are too similar to ourselves can prevent us from seeing the bigger picture, as they are less likely to challenge our ideas, which may deprive us of valuable feedback and information -When bonds are too strong, social capital can have a negative impact on society a.As an extreme example, members of drug cartels are often bound together by personal loyalties, and their actions go against the interests of society and inhibit social and economic progress. -It is important to expand and capitalize on the external relationships: Or "weak ties" in our network, such as people we meet at trade shows and exhibitions, as well as potential investors and banks to capture a wider range of information. -combo of social bonds, bridges, and linkages = best way to get diverse and productive network

guest speaker son vo of swamp boil

Son vo always saw himself as an entrepreneur bc grew up in ent family (knew bc high school he wanted to do that) Started in bio/pharmacy, then realized not right, joined ent club and "start gnv" to pitch after 52 hrs (bal-lay) mentors/networking = crucial. "Figure out how many ppl you can help, rather than how you can gain." do not review as a transaction Hit up local gnv restaurant community like dragonfly, leaning pig, hero to get mentorship On europe trip after grad, did startups that did not work. Oct 12, 2020 launched swamp boil. Had started in 2018 but encountered barriers/obstacles w/ contractors, etc. Started w/ facility and delivery. Tested recipes on friends and family Swamp boil: originated in west coast, inspired by beloved orlando restaurant. Intersection of vietnamese food and cajun food intersect in texture and freshness → light, flavorful meal Friend Les markets, son vo runs the social media (posted food), leverage network. Partnering w/ UF sports, using organic social media posts, paid advertising, etc. Son vo makes graphics for company. Does not have trademark or IP yet Tested out name on FB (picked out one w/ most likes) Cyclicality in cash flow at UF (seasonal college town). One of biggest challenges. Another one of biggest challenges was adapting to culture of restaurant Watch labor cost budgets, understanding order differences and operations (projections of budget, keep tabs on weather, events, etc) Hard to find labor for the kitchen at swamp boil, but not hard for the rest. Seeing impact of inflation -> had to raise price of everything by at least 1 dollar. Don't do own delivery service. Suggests calling restaurant directly to place takeout order bc otherwise 3rd party takes a large percentage of money from local business to do that. Pricing: uses multiplication by 3x (food costs, alcohol costs, labor costs, operation/utility costs) Some things high margin Using excel and toast, and extrachef ( invoice-scanning app) for bookkeeping and inventory (managers). Have a cpa but no separate bookkeeper Usually 40 deliveries a week (usually 1 per day), different vendors Employees used to be salaried (now just main mgmt) but mostly hourly for kitchen and skill-based pay Other big challenges: cons

guest speaker karl la plan (uf innovation)

Uf innovation: umbrella for commercial organization of technologies for key components to UF innovate offices that do tech licensing (biotech, it, etc. not a sector-specific hub) for researchers and corporations to access intellectual property of UF, venture group that makes selective investments in technologies, pathways group (education tools for researchers to grow idea), and acceleration group (incubation support for both UF and non-UF tech startups) Commercialization: the activation of tech and getting it to the market for commercial use of tech. Bob dole act tries to accelerate movement of offering to the market by giving part ownership of tech to the university and part to the lab, part to the inventor Licensing: university generally retains ownership, and company pays royalties to use the tech. Avg royalty on revenue is about 5%, but varies on size of market, attractiveness of markets, etc. Incubator: program and facility designed to accelerate growth and development of companies and increase likelihood of success, structured support and expertise Uf innovate program focuses on job creation, equipment of technology. Segment into AI, software services, tech, etc. but wide variety Due to exclusivity of biotech, has a global reach, but typically more local, fl-based companies. Fewer than 30% of firms in program licensing UF tech, 70% developing and commercializing IP they developed or licensed elsewhere. Selection of companies = best indication of effectiveness of incubator. Process = initial inquiry, needs assessment, interview, data collection (fluency score, which is like a FICO score of risk of failure/prior success of company), selection criteria: ability to generate higher-quality jobs, how many jobs and what category, capital formation/sustainability, domain expertise/access to it of the mgmt (another indicator of success), emotional intelligence and coachability, degree to which need services and ability to fulfill At low end, paying $350+/month for program (good value for services and networking). Do not kick ppl out, look at how companies are growing or sustaining efforts. Avg time = 50 months graduation. 85% companies stay in FL (biotech less likely to stay) Difficult to attract large venture

subgroups of the market

When it comes to creating market opportunity, investors will want to see that you have thought through three important acronyms that represent different subgroups of the market: TAM, SAM, and SOM. a.TAM, or Total Available Market: refers to the total market demand for a product or service. b.SAM, or Serviceable Available Market: is the section of the TAM that your product or service intends to target (the demand for your products). c.SOM, or Share of Market: is the portion of SAM that your company is realistically likely to reach. Could be a particular geographic radius -need to know where this niche market is going in the future and how their business fits into it. This involves understanding the deeper market dynamics at play, such as the competition and how it may evolve, any regulatory changes that might affect the product, and anything else that may impact future demand. -Entrepreneurs need to establish a launch market: To really give investors what they need, entrepreneurs need to go beyond TAM, SAM, and SOM, to establish a launch market.

3 steps to successfully crossing the chasm after identifying beachhead market

a.Create the entire product first: While your early adopters may be forgiving of a few glitches, your early majority won't; this is why it is so important to make sure your product is whole before you launch it. b.Position the product: As the early majority tend to be pragmatists, it is important to position your product to this audience by emphasizing its value; this might involve showcasing the market share captured to date, sharing details of third-party support, providing professional endorsements, and mentioning any press coverage. c.Distribute the product through the right channels: Penetrating the initial target segment requires direct sales and support to explain the benefits of the product; direct sales is the least expensive and best way to create demand. Moore has refined three steps, by using the analogy of a bowling alley: If you hit the first pin hard enough, the others will fall. So it's important to first identify your specific market segment (the first pin), or beachhead market, and then create a plan to expand from that segment to other segments before finally reaching the broader market (knocking down all the available pins). Facebook is a good example of a company that brilliantly executed the bowling pin strategy. It first started out at Harvard before spreading to other universities and eventually across the entire world. Yelp is another good example; it began by focusing on a niche market (San Francisco) before expanding into the mass market -The Tornado: Moore suggests that if the bowling strategy is executed successfully, then your product and your business may enter a tornado which means your product is in high demand and your business is experiencing rapid growth and during this period, it is essential to meet customer demand and ship the product efficiently. -Main Street: Following the tornado, your business is likely to enter a period of calm; your product has proven to be a success in the market, and now is the time to leverage your market position by further enhancing your offering to ensure that your customers do not switch to a competitor.

business model canvas components

a.Customer Value Proposition: What value do we deliver? What bundle of products and services are we offering? What are we helping customers achieve by providing a new range of T-shirts? b.Customer Segments: Who are your most important customers? What segment of the market would be most likely to buy your T-shirts? c. Channels: value proposition is delivered through communication, distribution, and sales channels. What are all the ways in which you can reach your customer—online, through a brick-and-mortar store, and/or through word of mouth d.Customer Relationships: Relationships can be developed on a one-to-one basis in a brick-and-mortar T-shirt store and/or through a purely automated process of selling the T-shirts online. Customer relationships go beyond just buying and selling; they depend on engendering positive feelings about your business, building a sense of customer identity ("I am a so-and-so T-shirt customer"), and motivating customers to want to bring their friends into the relationship: How do you establish and maintain relationships with your customers? Ex: social media and personal in-store advice a.Key Activities: What are the most important activities that the company participates in to get the job done? ● b.Key Resources: what you need to develop the business, create products and services, and deliver on your CVP. Resources take many forms and include people, technology, information, equipment, and finances How much and which resources will you need if your company has 1,000 customers or 1,000,000? What resources do you need to accomplish the key activities? You will also need to calculate how much money you will need to set up, as well as accumulate the skills, knowledge, and information you need to start your own business. c.Key Partners: Could some activities be outsourced? Do you have a network of suppliers/buyers you could tap into or negotiate with? d.Revenue Streams: generated if successful cvp delivered. How much are my customers willing to pay? How many customers do I need? How much cash can be generated through T-shirt sales in the store or T-shirt sales online? How much does each stream contribute to the total? e. Cost structure: represents all expenses required to execute and r

creating an end-user profile (6 main items)

a.Demographics: While demographics are useful data in identifying your target end user, they may not be entirely accurate when it comes to understanding your end user. b.Psychographics: Psychographics is a method used to describe the psychological attributes (attitudes, values, or fears) of your target end users. Unlike demographics which provide basic information about your users, psychographics presents a more detailed overview, such as their aspirations, who they admire, what they believe, and so on. Difficult to get this info and hard to analyze for accuracy c.Proxy Product: These products give you an idea of what else the user is likely to buy; people who already buy from high-end fashions brands are more likely to buy an expensive piece of clothing. Can also display some demographic and psychographic characteristics d.Watering Holes: Watering holes are the places where users meet and swap information; they are also the best spots for word-of-mouth recommendations; there are many different types of watering holes, both formal and informal. Ex: fitness classes, social media, business meetings, etc. e.Day in the Life: One of the most useful ways entrepreneurs can create a profile of their end users is to walk in their shoes for a day; this method is particularly effective after you have spent some time observing and talking to a group of end users. Puts all data into perspective and provides deeper insight of potential customers. f.Biggest Fears and Motivators: Finding out what keeps your end users awake at night and obtaining their top priorities is a valuable way of understanding their biggest fears and motivators. Sit w/ group of end users, making a comprehensive list of all their concerns, and asking them to score their priorities from highest to lowest. By the end of the exercise, you will have a list of their top five priorities

5 different types of influencers

a.End Users: These are customers who will actually use your product. Essential in the experimentation period bc their feedback will help you to refine or tweak the product b.Influencers (or opinion leaders): customers with a large following who have the power to influence our purchase decisions. Sometimes the biggest influence on the success of a service or product comes from "customers" with no involvement. Celebrities, journalists, industry analysts, and bloggers have the power to influence our decisions and increasingly, social media influencers—who have managed to establish credibility through online platforms—that are becoming the new face of marketing. c.Recommenders: Popular bloggers, experts in an industry, or CEOs of major corporations carry a lot of weight when they evaluate your product and tell the public about it. d.Economic buyers: These are the customers who have the ability to approve large-scale purchases, such as buyers for retail chains, corporate office managers, and corporate VPs. Have the power to put your product on physical or virtual shelves. Connecting w/ these buyers brings you closer to end-user customers e.Decision makers: These are similar to economic buyers, but they might have even authority to make purchasing decisions as they are positioned higher up in the hierarchy. Ex: CEOs, mom, dad buying things for fam

Key Questions Relating to Customer Segments (to assess viability and attractiveness of chosen segments)

a.What size is your customer segment? a.Size of segment not just # customers but also potential to contribute to growth of company b.How much buying power do your customers have? a.Customers must be able to afford product- regardless of enthusiasm, customers not of use to company if lack resources to buy c.Can your customers be identified in the segment? a.Need to be able to pinpoint and profile ppl/businesses most likely to buy from you d.How accessible are the customers in your segment? a.A key part of maintaining customer loyalty is being able to reach your customer base; only then will you know the most suitable marketing strategy to implement. This involves an insight to your customers' buying behavior and the types of media they might use. A key part of maintaining customer loyalty is being able to reach your customer base; only then will you know the most suitable marketing strategy to implement. This involves an insight to your customers' buying behavior and the types of media they might use. e.How stable is your customer segment? a.A stable customer segment is one that can be marketed to over a long period of time. Assessing the degree of stability of your customer segment is essential for the longevity of your product and your business.

business model

describes how a new venture creates, delivers, and captures value: The business model is a journey to gather evidence and prove that the startup can be a sustainable business. includes a network of activities and resources that interact to deliver value to customers. Working through the components of a business model helps entrepreneurs better understand what they are doing, how they are doing it, for whom, and why. Value is better understood and generated in several ways: by fulfilling unmet needs in an existing market, by delivering existing products and services to existing customers but with unique differentiation, or by serving customers in new markets. helps entrepreneurs better understand what they are doing: Working through the components of a business model help entrepreneurs better understand what they are doing, how they are doing it, for whom, and why. Evidence is gathered from talking to people, investigating and asking questions: As well as questioning and testing assumptions, and learning continuously. It's built over time by collecting evidence that what you are creating works: A business model is not created in a vacuum and has value for customers, is profitable, and is sustainable over the long term.

should you change a business model during or after the startup stage?

during. Because new businesses tend to be small in the beginning, it is much easier to be agile and make quick, efficient changes to the business model during the startup stage itself. Then, if successful, the business can scale as the young business model is tested and validated through early action. Equally, if the changes don't seem to work, then it is easy to spot the flaws and adjust them accordingly before large-scale investments are made. The most important thing before actually starting a business is to think through the business model, iterate, and gather evidence. The ability to change business models is not as quick for larger or more established organizations: However, the ability to tweak and change business models is not as quick or as efficient for some larger or more established organizations, and some of them have ultimately failed because of their inability to change their business models, like BlackBerry and Kodak. the business model in any company (big, small, new, old) must always be poised for adjustment and changes as new information is received and markets change. a.U.S.-based food company, General Mills, stays true to its business model by manufacturing food that meets the needs of its customers; for instance, in response to the demand for less sugar and simpler ingredients, the company has introduced a new yogurt brand call YQ, which is targeted at key health influencers. Key to successful business model is focusing on what consumers want and where they are going.

technology adoption life cycle

introduced by communications professor, Everett Rogers, is a model that describes the process of acceptance of a new innovation over time, according to defined adopter groups. Five market categories of potential customers: The model divides the market into five categories of potential customers: innovators, early adopters, early majority, late majority, and laggards. a.Innovators (2.5 percent of customers): These are the first customers to try a new product; people who are enthusiastic about new technology and are willing to take the risk of product flaws, or other uncertainties that may apply to early versions. Wealthier than other adopters and can afford to take more risk on new innovation b.Early adopters (next 13.5 percent of customers): This is the second fastest group to adopt a product; early adopters are usually influential people from business or government who make reasoned decisions as to whether are not to exploit the innovation for competitive advantage. c. Early majority (next 34 percent of customers): People in this category tend to take interest in a new product as it begins to have mass market appeal; they are both practical and extremely risk-averse, preferring to wait and see how others view the technology before they buy it themselves. look for opinions from their peers or professional contacts to support them in their decision to invest. It is essential for entrepreneurs to appeal to this group, given that it makes up more than one-third of the life cycle d. Late majority (next 34 percent of customers): These customers are typically skeptical, pessimistic, risk-averse, and less affluent than the previous groups. Cannot be ignored. Can win over through simpler products at affordable cost e. Laggards (final 16 percent of customers): People in this final category are the last to adopt a new innovation. They tend to have a negative attitude toward technology in general and have a strong aversion to change. --The ideal case scenario would be all five categories in the adoption life cycle: In an ideal world, all five categories of customers in the adoption life cycle would adopt the new innovation, but of course, this is not the case. Products tend to go through 3 different stages after time.

Cocreation

is a strategy that focuses on bringing people together: To initiate a constant flow of new ideas that help to create ventures and transform businesses for the better in an uncertain and unpredictable world. Online startup support networks are becoming more popular for funding early-stage ventures across the world: a.VC4Africa is Africa's largest online entrepreneurship network, which brings together venture capitalists, angels, and entrepreneurs to support Africa's rapidly growing startup scene. b.To date, entrepreneurs have raised over $27 million in funding through VC4Africa.

impression management

is paying conscious attention to the way people perceive you and taking steps to be perceived in the way you want others to see you. Managing impressions others form of you: You can manage the impressions others form of you by the way you dress, being aware of your body language, being polite and courteous, and being confident and open. -research shows that first impressions are formed in a tenth of a second, so it pays to be mindful of how you might be perceived by others. For example, the social cues that venture capitalists notice are things like the following: How much does this person believe in this idea? How confident are they when speaking? How determined are they to make this work? Research shows that entrepreneurs who display strong social competence are more likely to receive outside funding Implicit bias when forming impressions: there can be implicit bias present when forming impressions—both when we form impressions of others and when others form impressions of us. a. Implicit bias =attitudes or stereotypes that affect our understanding, actions, and decisions in an unconscious way. has been referred to as stereotype-confirming (usually abt race or gender) b. Researchers in this area claim that everyone possesses implicit bias, even when they think they don't exist. a.For example, a man may believe he and his female cofounder are equal, but he may still open the door for her when they walk into buildings. b.Though his intentions are good, his implicit bias is that "she needs help because I'm a man." c.The implicit bias is that men are more often successful high-growth entrepreneurs. d.The good news is that researchers have suggested that implicit biases may not align w/ our declared beliefs, are malleable, and we can unlearn and de-bias ourselves. First step = recognize the implicit biases we have Lack of confidence results in reluctance to make connections with others: Lack of confidence also plays a part in students' reluctance to make connections with others—fear of failure, of not asking the "right" questions, and insecurity about themselves and what they want to achieve are factors that may prevent students from approaching guest speakers and asking questions. Some may think of it as a

what networking is about

it is a two-way game; it's a targeted search, with a philosophy of contributing, giving value, sharing and exchanging information, and interacting with people. A business card isn't enough for someone to remember you by—you need to have meaningful conversations to maintain a relationship and provide value in a way that makes you memorable

confirming findings of customer journey mapping: sources of data

many sources for data about your customers, including website analytics, social media tools, and direct customer contact. Website Analytics a.Website analytics will provide you with lots of information, including your customers' location, the amount of traffic to your site, and the number of clicks on each page. b.Analytics also expose weaknesses in your site by showing you points in the process where your customer may have become frustrated and abandoned the site. Social media tools a.Social media tools are also a useful source of data; for instance, SocialMention is a tool that provides information from blogs, comments, and videos about what people are saying about your brand, and advises you whether those mentions are positive or negative. b.This type of customer feedback is extremely useful when it comes to gaining insights into your customer's journey. c.You could also consider running a survey to find out your customers questions, feelings, and thoughts. Direct Customer Contact Feedback about customer experience: Sitting down and talking with your customers is one of the most valuable ways you can get feedback about their customer experience. a.Sitting down and talking with your customers is one of the most valuable ways you can get feedback about their customer experience. b.It can be difficult to organize but very worthwhile if you can manage it. -cj map ranges from simple to extremely complex

using social networks and peer reviews are more/less common today

more -Today's customers make buying decisions without the input of the actual seller; using social networks and peer reviews is more commonplace which is why it's more important than ever to understand your customer before you try to sell to that customer.

Benefits of customer journey mapping

necessary process in the early stages of your startup so you can develop empathy for your customers as well as learn how to make their experience with your company or product a great one. a.Clear picture of customer interaction: Presents a clear picture of how your customers interact with your business, including their goals, needs, and expectations. b.Clarifies what customers think: Clarifies what your customers think and how they feel about their experiences by identifying positive and negative emotions. c. Confirms the journey of the customer: Confirms whether the customer journey is in a logical order. d. Highlights the gaps between desired customer experience and actual experience: Highlights the gaps between desired customer experience and the one actually experienced by your customers. e. Connects with customers on an emotional level: Allows you to connect to customers on an emotional level and provide the optimal customer experience by addressing and resolving key pain points. -good way to shift your perspective to your customers, to put yourself in their shoes, and think about how they can achieve their goals along their customer journey. Each touchpoint along the customer journey must be from their point of view and in the context of the goals they are trying to achieve. Then you layer on how they might be feeling when they encounter a problem -starts when first aware of product to moment they stop being customers altogether

market opportunity

often identifiable by the degree of customer or market demand for a specific product application. -identifying market opportunities: experienced entrepreneurs focus on degree to which their idea will solve a customer problem, amt of risk involved, ppl in their network who will support them in developing the venture, the speed at which revenue can be generated, potential for product or service to generate cash flow, degree to which their idea will solve a customer problem -how entrepreneurs identify market opportunities depends on their experience Importance of market research: Before you jump into a new venture, you need to do some market research to figure out if your idea will translate into a successful business. identifying a market opportunity or new venture idea is the easy part. What's most challenging is demonstrating that there is a large enough market (group of customers) willing to pay for your products and services. A logical starting point is understanding the different types of customers for your product

accelerators

one of best places to network and find mentors. provides tailored support for existing startups that have already built a successful product or service (usually through an incubator) by helping to develop, scale and grow their business. a.Typically, accelerators offer startups free office space, feedback, and access to investors. b.Y Combinator also based in Mountain View, California, is considered to be the most successful accelerator for startups having facilitated the growth of such companies as Airbnb, Dropbox, Stripe, Reddit, Twitch, Coinbase, and Weebly.

customer segmentation

one of the most important building blocks in the business model canvas (BMC): Identifying the right customer segments for business is key to early business success. -Companies often group these types of customers into specific groups: Based on their common needs, common behaviors or other attributes

customer journey mapping: what it is and how it is different from buyer personas

personas focus on the buyer, while the customer journey map focuses on the buyer's experience. -definition: a visual representation that captures customer experience across multiple touchpoints of your business. Allows for the identification of pain points: It is designed to provide a holistic view of your customers' experience with your product or service while also allowing you to identify pain points.

ENT students do not take advantage of networking bc ____ and _____

poor impression mgmt and lack of confidence

Evidence-based entrepreneurship

practice of hypothesizing, testing, and validating a business model

buyer personas

profiles or representations of your ideal customers based on information and market research. Help you to create strats to connect w/ target audience and promote stuff to ppl who will potentially buy them. Building personas is a powerful way to predict your buyers' behavior: Based on interviews and real data collected, building personas is a powerful way to predict your buyers' behavior (tells more than demos and psyc traits).

the give and take of networking

quid pro quo strategy is often used by networkers: The quid pro quo (meaning something that is given or done in return for something) strategy is often used by networkers to initiate a business relationship. irst identify something your contact needs and then offer something of value. This could involve sharing some information, sending a link to an article about the subject in question, or offering your contact an introduction to someone who knows more about the subject Doing favors helps to find ways to capitalize on opportunities: Doing favors for others helps people with good ideas to find ways to capitalize on their opportunities

Dramatic difference

relates to uniqueness: And how your product or service is different from the many other options that are likely available. a.By providing do-it-yourself furniture kits at a lower cost than ready-made furniture sold in major furniture stores, IKEA solved the problem of obtaining good quality new, stylish furniture for a low price. b.Similarly, FedEx made the job of transporting a letter or package overnight from point A to point B effortless in comparison with the regular mailing and parcel delivery services that existed in the 1970s. --In creating their CVPs, both IKEA and FedEx first focused on the jobs that the customer needed to get done before coming up with a solution to meet this need. The CVP also involves identifying ways in which your company best fits into customers' lifestyles; it means analyzing the relationships you need to establish with customers versus the relationships your customers expect to establish with you; finally, it emphasizes how much customers are willing to pay for value c. One very successful venture was when Tata Motors in India created a CVP focused on providing an affordable, safer, more comfortable mode of transport for the low price of $2,500—this price was intended to make the car price—competitive with scooters, which its target customers were currently buying due to affordability. Used product design process that removed as much cost as possible from the car and reduce # of parts in the car, using fewer suppliers, outsourced most components, sending car assembly kit instead of building it, and also glued instead of welded by local entrepreneurs bc cheaper If product/service has high overt benefit: probability of success = 38%; if high reason to believe is 42%; high dramatic difference = 53%

launch or niche market

similar to beachhead and bowling pin strats. Proving you have a group of launch customers: It involves proving that you already have a group of launch customers that really want to buy your product. A niche customer base: This is an essential way to convince investors that you already have a real niche customer base that are ready and willing to buy your product as soon as it launches

networking builds ____

social capital: our personal social networks populated with people who willingly cooperate, exchange information, and build trusting relationships with each other. Is a productive (aka valuable) asset, but less tangible than physical or human capital bc exists in relationships among ppl. (hard to assess or measure). Interacting socially will help you build social capital: Anywhere that provides the opportunity to interact socially will help you build social capital if you recognize the value in purposeful relationships. There are three dimensions of social capital. -structural dimension (components of your network, such as type of social ties you do/do not have and degree to which these ties are formal or informal); relational dimension (what your contacts represent, such as a trusting relationship); cognitive dimension (norms, visions, values, interpretations, and beliefs you may share with others, which provide a good foundation for working well together toward a common goal) -spending time participating in online social networks is not as "real" as the face-to-face social interaction of the past. The decline of community networks that used to be so prevalent in the past has led to a loss of social capital.11 However, the good news is that anyone can build social capital if they make an effort to actively and purposefully form connections with others.

startup

temporary organization in search of a scalable business model. Steve Blank, Silicon Valley entrepreneur, defines a startup as a temporary organization in search of a scalable business model.

self-selected stakeholders

the people who "self-select" into an entrepreneur's network in order to connect them with resources such as subject-matter expertise, funding, advice, introductions to others, etc. short- or long-term commitment to steer the venture in the right direction. Self-selected stakeholders do not need to be pitched to or sold to: Unlike venture capitalists and other investors, your self-selected stakeholders do not need to be pitched to or sold to; they are helping you because they feel motivated to give you access to information and resources that you didn't otherwise have. -Stakeholders can provide valuable resources to entrepreneurs, helping cocreate and bring the venture to life. Cocreation is a strategy that focuses on bringing people together to initiate a constant flow of new ideas that help to create ventures and transform businesses for the better in an uncertain and unpredictable world. -Key to building the network is the idea of enrolling people in your idea rather than selling them. You aren't asking for favors. You are sharing in hopes they want to be a part of your network. They have something to offer, and you have something of value to provide. Building your network is not a sales job. It's not about trying to convince someone to do something that he or she may not ordinarily do. Rather, people join your network because they want to. People enroll in your vision because they're moved by your enthusiasm or idea. They see something that they want to become part of. Three guidelines for enrollment: Peter Senge, founding chairperson of the Society for Organizational Learning, offers the following three guidelines for enrollment. a.Be enrolled yourself: If you're not buying the future vision, opportunity, or team, others won't, either. b.Be truthful: Don't inflate the benefits beyond what they really are. c.Let the other person choose: Don't try hard to "convince" them—that comes across as manipulative and ultimately hurts enrollment. -The first step to finding self-selected stakeholders is to think about the people you already know: your family and friends, people you have met at work, and people you encounter in school and social activities. These stakeholders may not even be part of the eventual f

problem-solution-benefit framework of storyboarding

three main questions to keep in mind: 1.What is the problem?: What is the problem your customer is experiencing? 2.What is the solution?: What are you offering as a solution to the problem? 3.How will your customer benefit?: How will your customer benefit from your product/service offering? It worked well for Rent the Runway, an online subscription business founded by Jennifer Fleiss and Jennifer Hyman that rents designer dresses online—women can wear these by hiring them for one night for special occasions at one-tenth the price it would cost to buy one.

how to build the best buyer personas

through real interviews w/ prospective customers Interviews and data generate key buying insights: The information mined from interviews, together with the data derived from your buyer profiles, will generate some key buying insights, such as a.Interested and non-interested buyers: Those buyers who are interested in your product/service, as well as those that will never be interested, despite your best efforts. b.Relevant and irrelevant features of your solution: The features of your solution that are relevant to them, and those that are irrelevant. c.Buyers who have had a negative experience: The types of attitudes that put off your buyers from considering your offering; for example, perhaps they have had a negative experience with a similar product to yours, which prevents them from trying your offering. d.Resources that your buyers trust: The kinds of resources your buyers trust when it comes to evaluating their options. e.Buyers involved in decisions and influence: The types of buyers that are involved in the decision and the amount of influence they employ.

Feedback Interview

used to get feedback on prototypes and are useful when used in conjunction with experimentation because you get more information on "why" people are interacting with your product or service in different ways. A feedback interview involves: a. The use of some type of prototype. b. Asking them their opinion of the product or service. c. Understanding if there is value for the user for the product or service. d. Identifying ways to make the product better. e. Determining if you are targeting the correct customers. To build a business: To build a business, research the companies and experts who might be able to offer you guidance, and try to establish contacts: Second, draft an introduction to the interview; third, prepare your interview questions especially open-ended questions like to get a wide range of responses. Think about what you want the end result of the interview to be. What is the aim of the interview? Do you need to test assumptions or learn about preferences and attitudes? What is it you want to gain from the interview? Second, draft an introduction to the interview (four or five sentences) that lays out your intentions and the purpose of the interview. Third, prepare your interview questions. In order to get the most information from the person you are interviewing, you need to minimize yes/no questions, such as, "Do you like food trucks?" Instead, ask open-ended questions -use peel the onion method as well. Start w/ challenges and then dig deeper to root of problem

entrepreneurs get support and networking opps from

§Civic organizations. §Seminars. §Incubators. §Accelerators. §Many other organizations dedicated to supporting entrepreneurs. -local meetup groups (with many focused on tech. helpful also for recruiting new talent, building trust to share ideas, learning, meeting investors)

nature box case study

•Case follows Gautam Gupta (and co-founder Ken Chen) who met in school (Babson) •Both have a passion for entrepreneurship ...and food! IMPACT STATEMENT! •Continue to work on ideas together post-graduation and launch the business while still holding their day jobs •Essentially they "act" over one weekend and end up with 100 customers...and validation! (•Shipped 100 boxes--> When customers subscribed for more than a month, they knew they had validation) market gap: Problem: Snacks that were deemed healthy didn't taste very good! created NatureBox, a company that aims to create healthy snacks that taste fantastic. Since its inception, it has grown to a large operation with wide reaching influence on social media. -could be considered either an imitation or disruption: up for debate -cvp: lack of access. Customers looking to lose weight and adopt a healthy lifestyle are no different. As Gautam learned himself, while eating healthy food leads to results, the food itself often simply doesn't taste good. This is a barrier for many people looking to adopt healthy lifestyles-- completely customizable healthy snack experience. considered a dramatic difference value proposition critical thinking questions 1. -use Business model canvas. •NatureBox is a subscription model snack food business. Customers pay a monthly fee to customize healthy (and tasty) snack foods that are delivered to their doorstep. •The customer value proposition was clear at the beginning. Many other components of the business model matured over the life of the business: §New customer segments emerged (millennial women) §Sales channels become more defined in the first couple of years of operation (NatureBox made debuts at food conventions) §As the operation grew, the key activities related to running the business expanded and the need for additional key resources became clear. NatureBox went on to receive more than $50 million dollars in funding from outside investors. differentiation business model: •Adaptation to market conditions and customer needs, customer reviews and online ratings, and relentless customer focus •Snacks are proprietary and developed in house (not this way in the beginning ...sourced elsewhere) ...integrated real-time feedback into the