Lean Startup, Customer Development, and the Business Model Canvas

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Lean Startup, Customer Development, and the Business Model Canvas Startup Dhaka

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Key Lean Startup Concepts Uncertainty and Scarce Resources

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Lean Startup Innovations Old School Business Plan First Startups = Small Companies Linear Process Product Development First Beta Test New School Business Model First Startups = Temporary Search Organizations Iterative Process Customer Development First Minimum Viable Product

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Customer Development

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What Needs to be True for Your Business Model to Work? Evidence from Interviews Hypotheses Cannot be Trite, Ridiculous, or Non-Confirmable Why, Why, Why, Why, Why? Hypothesis Development

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Build-Measure-Learn Cycle

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What Most Startups Want to Build

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What They Should Build First

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Eventually Build This

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Business Model Canvas

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Source: http://businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf PRODUCT-MARKET FIT

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Customer Archetype

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Value Propositions

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Pains and Gains – NOT Features Pain Killers Reduce Waste Kill Frustration Fix Underperforming solutions End Customer Challenges Wipe Out Negative Social Consequences Eliminate Risk Gain Creators Create Savings Better Outcomes Customer Delight Ease Work Flow or Life Create Positive Consquences

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Case Studies

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Technical Insight

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Market Insight

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Initial Value Proposition: Accuracy

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Tactics: VP Ranking

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Prototype v MVP

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Value Proposition

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Team Privacy Protect privacy for users of location-based services (LBS)

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The Business Model Canvas: ver 1.0 Creating awareness educational Technology Privacy advocacy groups Developing costs Marketing costs App revenue (or free?) trust Building trust Smart phone users uneasy about privacy Perception of enhanced privacy Own website

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The Business Model Canvas: ver 2.0 Creating awareness educational Technology Developing costs Marketing costs trust Building trust Social Network Providers Security of Company Geodata Companies uneasy about employees’ online activities Companies subscription charges Own website Avoid direct employer -> employee monitoring

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The Business Model Canvas: ver 3.0 ??? Consumers ??? Companies ??? Understanding Aggregate Info for Large Hidden Databases in Real-Time Without Crawling ??? Technology ??? ??? Government Agencies

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How to Get Interviews Friends and Families Introductions Affinity Networks Traditional Networking Cold Calls LinkedIn

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12 Interview Tips 1. One person at a time 2. Know your goals and questions ahead of time 3. Separate behavior and feedback in discussion 4. Get psyched to hear things you don’t want to hear 5. Disarm “politeness” training 6. Ask open ended questions 7. Focus on actual behavior, not speculative or abstract feelings 8. Listen, don’t talk 9. Follow your nose and drill down 10. Parrot back or misrepresent to confirm 11. Ask for introductions 12. Write up your notes as quickly as possible Source: http://giffconstable.com/2011/07/12-tips-for-customer-development-interviews-revised/

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