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YOUR QUEST FOR A SCALABLE AND REPEATABLE BUSINESSMODEL The Workbook for Startups

BERRIE COELMAN


Version: 0.12 Edition - December 2014 ISBN: 978-90-823-201-1-4 NUR: 800

www.startupwerkboek.nl twitter.com/startupwerkboek

Contributions | Elke Bies | Ben Hattink | Marion Hemsing | Kevin Ilardi | Ernst Jacobs | Ninon Kersbergen | Viktor Krabbenborg | Wiro Kuipers | Marc Leeuw | Gilles Meijer | Thomas Mensink | Marjo Nieuwenhuijse | Inge Sanders | Hanneke Spoler | Amber vd Stelt | Teus Vanwalderveen |


YOUR QUEST FOR A SCALABLE AND REPEATABLE BUSINESSMODEL The workbook voor startups Berrie Coelman


PREFACE

This second edition is still primarily an eBook, which is

This is the second edition of the Startup Workbook. This

odologies for startups go so fast), and direct links to other

workbook is different from the first version. The first ver-

website can be used easier when presented in an elec-

sion, which was made with a so-called touch-grant from

tronic way.

free to download. The advantage of the eBook is that adjustments can be made quickly (the knowledge and meth-

Saxion, was primarily a digital version. In addition, the book was printed as a deluxe edition in a limited number

Have fun with this workbook and I hope you really find

of copies. The eBook has quickly been downloaded thou-

your optimal business model.

sands of times through the website (www.startupwerkboek.nl). By using the Startup Workbook by Startups in the Startup Center Saxion (part of the Center for Entrepreneurship) it was revealed that one has a need to really use it as a workbook. That is, the questions that are in the book, must be filled in. Some Startups printed out the downloaded version, to be able to use it for writing answers. The printed version has therefore become a real book. That means that the questions can be answered directly in the book. It is in a writable form. If you have access to the Toolbox, you can also fill in the online questionnaire after each step, which you then will get mailed back. If required we can then remotely assist you with your customer development based on your reply. Another change in this version is that the business development trajectory isn’t spread over 12 weeks, but spread over 12 steps. A startup probably needs a week for a certain step, whereas another startup may sometimes need more time.

Berrie Coelman, December 2014


CONTENTS STEP 1 | The first step - 15 STEP 2 | Find your identity - 27 STEP 3 | What is your Business Model Canvas? - 40 STEP 4 | Which canvases are best? - 51 STEP 5 | Who are your competitors? - 57 STEP 6 | Where is my customer? - 63 STEP 7 | Preparing for interviews and MVP - 74 STEP 8 | Problem interviews - 92 STEP 9 | Solution interviews - 101 STEP 10 | Your first MVP - 107 STEP 11 | MVP 2.0 - 115 STEP 12 | Last MVP and pivot - 119


About Golden Circle, Business Model Generation Canvas, Blue Ocean, Pivots, Lean Startup, MVP, Customer Development and more‌


Foreword

services, money and goods will be flowing through. With a healthy dose of distrust you develop, and main-

Theodor van der Velde

tain that complex pattern. Making use of wisdom of others is really helpful; lesson five.

Your business model. Unique in its kind, not competi-

This (e)Book is about how to become a promising

tive. You as an entrepreneur give color to terms such

startup. An incredible amount of wisdom of many ex-

as giving, sharing, exchange, and creation. In this way,

perts has been brought together in this (digital) work-

new business models are created. Models in which the

book.

4 (new) P’s recognizably are found: Passion, People, Planet, Profit. You learn lessons in your search for the scalable and repeatable business model.

You will be challenged in this book in various ways: with exercises to fill in the blanks, by reading and evaluating, by writing assignments, and by testing your

As a startup you want to bring your own idea further,

improved idea with the help of friends, coaches and

make it promising - or - start your own business. What

clients. Slowly but surely the business model that suits

a kick! Fortunately, you do this never, ever alone;

you best, will appear. It’s all about one goal: a promis-

that's lesson one. Of course, you look for partners that

ing, scalable and repeatable business model. We chal-

you can trust, it's your idea after all; lesson two. Make

lenge you!

sure to be well prepared when you look for consultants and rely with confidence on your learning ability and intuition; that’s lesson three. You become an en-

Drs. Theodor van der Velde Saxion Director Center for Entrepreneurship

trepreneur by trial and error, and by acquiring experiences during your process of making choices; for sure lesson four. Business also means providing 'work'. Others will be employed by you. Suppliers, customers and employees. Entering and maintaining all of these relationships is a core activity of an entrepreneur. Your idea is transformed into a complex pattern of relationships, where

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Startup

promising business. By the end you will know which problem you can solve for your customers, where you can find your customers, and discover that they are willing to pay for your solution. Then, the next step is to maintain the focus and eventually grow into a sus-

Do you want to develop your idea into a promising business? Do you really like to start your own business? Then you're a 'Startup'. This workbook will be very useful.

tainable, successful business.

This workbook will help you: 

Determining why you want to be an entrepreneur, and what kind of trader you are;

Determining different business models from your basic idea;

Determining your optimal business model;

Defining your problem before you work out a solution;

Why?

Finding your first customers;

You learn to clarify problems of your (future) clients

Discover the needs of your customers through

before you work out a solution. First learn and then act. Make mistakes, you will learn from it. You learn

effective measurements; 

who your customers are and what they really want.

Learn how to optimize the process (speed, learning and focus);

Because, let's be honest: as entrepreneurs we often

think to know how things fit together. We think we

For whom?

know what other people need, and that we have de-

This workbook is for anyone who wants to set up their

veloped the best product or service. And that out po-

own business. In addition, this book is also useful for

tential customers are willing to pay. But is this really

entrepreneurs who are already working for some

the case?

years with their own business. Also, this book is a tool

With this book you put on a quest that leads to a

for (commercial) business-coaches and business-

Discover your optimal product-market-fit.

developers (starting) to support entrepreneurs.

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With this book you put on a quest that leads to a promising business.

In step 6, you'll see who your potential customers are and where they are they located. Step 7 is an important step. You're going to make choices! Based on the knowledge and information from the previous steps you design a temporary business model. You discover that you have made a lot of assumptions during all previous steps. But where lies the truth?

What this book is about?

Step 8 to 12, in the so called Customer Development

This book consists of 12 steps.

methodology, you convert your hypotheses into meas-

In step 1, you explore why you want to become an

urable facts. With a lot of interviews and with different

entrepreneur, what kind of entrepreneur are you? In

simple designs of your product / service you’ll find out

this step you'll find out why you actually want to start

how your customers assess your solutions.

your own business. In step 2, we zoom in on your future business. What

What this book is not about

kind of problem do you solve with your product / ser-

This book is not about the phase after the startup-

vice? What is your identity? What's your business?

phase, the phase that you're not a startup anymore,

What does your business? Why does your business

but a real entrepeneur. In the last step, of course, you

exists?

get tips and tricks for this future stage.

In step 3, with the help of the Business Generation Canvas, you determine different business models, in a

In this

kind of brainstorming session.

Links to ebooks, movies, and presentations;

In step 4, you analyse the different models and you

Deepening documents;

look at the possibilities. Several promising models are

Checklists;

Large versions of visual aids such as Canvas

the result: you discover with which model you want to go on. In step 5 you look outside: Who are your competitors? Do you see a Blue Ocean: a product / service with little to no competition?

you will find:

Model, Blue Ocean Canvas etc.; 

Tools such as various spreadsheets, etc.;

Presentations for use in workshops.

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Step-by-step online questions The step-by-step questionnaires can be found in the toolbox. These questions are also in the StartupWorkbook. The answers you've entered can be looked by coaches and fellow starters. This has the advantage

More information? Read the user rights at the end of

that they can give feedback.

this book.

Portfolio In addition to the answers in the questionnaires, also set up your own portfolio with your results. In the coming steps you make a lot of physical products (Business Model Canvases, analysis of business models, mood board, so called MVP, etc.). All of these products can also be placed in your portfolio for your own statement or for coaches again. Make a picture of those results and put it in a tool like Evernote or Dropbox.

Creative Commons-license This workbook was created under the auspices of Saxion and falls under the Creative Commons license. This means that the user can copy, distribute and transfer, remix, create derivative works and make use for commercial purposes.

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A startup is a temporary organization designed to search for a scalable and repeatable businessmodel Steve Blank


Purpose, Passion, People and Profit


STEP 1 The first step | STARTUP | ENTREPENEUR TESTS | CUSTOMER DEVELOPMENT |


Startup

Business Model: A business model answers the basic questions: Who are your customers? Which problems do your customers want to be solved

A Startup is a temporary organization, which searches for an optimal, repeatable and scalable business model.

(product market-fit)? How do you get customers? How do you keep customers? And how do you grow? What is your income strategy and your pricing concept? Who are your partners? What are the resources and activities that you need to operate a business? And how high are your costs? Many questions, summed up in one neat model.

This means: A temporary organization: The purpose of a startup is not to remain a startup. The ultimate aim is to get customers and earn money, and grow. Search: Although you might think of your idea as the most brilliant innovation that has ever been devised, it is likely that this is not true. You make assumptions that you should further investigate. And this research can save you a lot of money and time. Repeatable: Startups can think of something, with which they to earn some money, but finally not succeed in making money. And then what? You should not be seeking for one-off revenues, but a repeatable pattern that lasts. And loyal customers. Scalable: The goal is not to have one client, but lots of customers to generate more sales and more profits with any new customers.

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People don’t buy what you do, they buy why you do it.’ Simon Sinek

Pivot A sudden change in the development of your company takes place if an element of your company does not work. A pivoting company will keep its core insight but

9 Terms to know Golden Circle The basics of your future company. What are your values? The purpose, cause, or belief that inspires you to do what you do. It’s the very reason your organization exists. This concept is introduced by Simon Sinek.

Lean Startup

use it in a different way.

Canvas An easy way to develop your business model (this is not a business plan!). On one A4 sheet you describe all elements of your company. (What problem will be solved for which client or customer? How do you reach your customer?). This concept is introduced by Alex Osterwalder.

The essential concept in this book. How to develop a business company with minimal cost in the least amount of time. This concept is introduced by Eric Ries.

Validated Learning This is what you learn in de the startup phase of your company. What do your customers need or wish and how can you deliver just that? During this process mistakes and changes will occur. That is part of the (learning)process. (At the end 66% of the startup companies have little to do with the original startup idea).

MVP: (Minimum Viable Product) A strategy and process directed toward a minimal version of your product or service, that can be offered to customers. It may have only one feature, it can be a landing page or a paper based prototype.

UVP: (Unique Value Proposition) The value an entrepreneur offers to clients or customers through the company. The value proposition should be unique.

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AARRR (Acquisition, Activation, Retention, Revenue, Referral) These are the steps a customer should follow. All these steps are essential in ‘Customer Development’ and none of them can be skipped. It will be very difficult to start up a successful company if you should skip one of these steps.

Customer Development A process of searching for your customers, determining whether they want to buy your products/services and whether they would recommend your products/ services after buying. This concept is introduced by Steve Blank.

Customer Development The most important part of the following twelve steps is Customer Development. The majority of startup companies don’t follow a structured process in testing their business model-hypotheses, their markets, their value propositions, clients and customers, channels and pricing. There are four phases which detail the approach to the Customer Development process. In this book

By doing Customer Development there will be a 50-80% chance, that your company still exists after two years. If you don’t invest in customer development, there will be a 50-80% chance that your company don’t exist anymore.

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we will focus on the first two phases.


Customer Discovery Based on your idea, actions and research you can identify your hypotheses. Do you have a promising value proposition? Do you know where your customers are? Are they willing to pay? After defining these hypotheses you can develop a plan to verify the responses of your (potential) customers, so you can validate your hypotheses. Are your hypotheses correct (and can these hypotheses be turned into facts)?

Customer Validation Are your results repeatable and scalable? If this is not the case please go back to step 1, the Customer Discovery

Customer Creation Now you are starting to operate your company. You will focus on the (sales)channels of

Cooperate

your company and create and drive end user demand

You can identify the way you are cooperating with

to scale sales

others and in what role by using the Belbin test

Company building In this stage the startup moves

(online version can be found in the

from one designed for learning and discovery to a well-

Cooperation is a fundament of your business success.

oiled ‘machine’ engineered for execution

What are you good at and what are you not that good at? How do you compensate the aspect you are not

The Four Steps of Customer Development are designed

good at? E.g. what if your role is the shaper and your

to help entrepreneurs leverage the chaos and turn

are always ahead of the events?

it into actionable data. Continuous change and adjustments (validated learning) are part of the process. This process assumes that you repeat your research and activities several times to find an optimal and successful business model in the end.

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Entrepreneurs-tests

Some examples of tests are:

There are several entrepreneur-tests available

Bizmove: (www.bizmove.com/other/quiz.htm )

Mentality-test: (www.motivaction.nl/en/

(toolbox). A comprehensive one is the so called E-scan, not for free, but it gives you a lot of information about

mentality)

the development of your entrepreneurial skills. As stated before: please think about how to handle with the skills you are not that good at. 

E-Scan (www.entrepreneurscan.com/what-is-escan)

Self assess-skills (/www.mvp.cfee.org/en/ selfassessskills.html)

If your own profile does not fit with that of your (future) customers, please be aware that you have to

Belbin-test (/www.123test.com/team-roles-

think about how to communicate. Because it is differ-

test )

ent from your way of thinking!

If you don’t have people around you who help you, your business remains a dream.

Scrum Scrum is an agile framework for completing complex projects. Scrum originally was formalized for software development projects, but it works well for any complex, innovative scope of work. All well known companies use it. It does fit with the Lean-Startup and Customer Development methods. It provides a foundation and path to delivering business goals in a collaborative

Target groups

and enjoyable manner. You can plan your activities for

Before anticipating the customer segmentation in step

the coming period very easily. For more information

6, it is good to know where you stand and to know

please go to the

what customers think is important. This information is essential for starting up a company and to know what your core values are to identify what kind of target group/audience you belong to yourself. There are several tests available (in the toolbox) on the Internet.

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.


In addition, a PowerPoint presentation about Scrum is

have determined. After each session, the scrum master

in the

deducts the points/hours of each participant that is

. It is preferable to have sever-

al scrum sessions with a group of people. A scrum ses-

used to complete a task, on the chart.

sion is held on a daily basis during approx. 15 minutes, at the start of the day. One of the participants is called

TIP

‘scrum master’, the leader of the session and asks eve-

Do you want to scrum online? Visit

ry participant three questions:

www.kerika.com or www.scrumwise.com

What he or she has accomplished since the last daily Scrum (what did you do?)

Sometimes we focus too much on one part of life and What he or she plans to accomplish between

neglect other parts of our lives. As a starting point for

now and the next daily Scrum (what are you

creating balance, happiness and success in your life,

going to do?) 

Wheel of Life

the Wheel of Life (see

) is a simple

What is impeding progress (what kind of prob-

and powerful tool to begin your journey. Using this

lems do you encounter?)

tool, you will be able to reflect and gain some insight into the balance of your life and how satisfied you are

In the

is a scums canvas available.

in life's different areas. Following on from this self-

You can print or draw it on a flipchart. Preferable to use

reflection, you can utilize this exercise to further delve

it in groups of four startups. The

into why your Wheel of Life looks the way it does,

also

contains a list of tasks (it also provides an overview of

what you would like your Wheel of Life to look like, and

tasks you have to accomplish the coming period. (You

further into how to make this happen.

can estimate the amount of scrum points or working hours dedicated to each task.) It is recommended to put each task on a Post-it, and complete the Post-its with your own task for the coming period. The scrum board also provides a ‘Burndownchart’. On the left axis you indicate the total of points/hours you

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Startups are not just smaller versions of large companies Steve Blank Social media Create a Facebook company account. Try to collect as many ‘Likes’ as possible. You need over 100 ‘likes’ to get access to certain (promotional) activities. In step 6 you will start with customer segmentation, in which you can use Facebook very well. So start as soon as possible in building up a Facebook community. The use of Facebook is also recommended in the Customer Development activities. Another advice: start a company-Twitter account and create followers. You can also think about Instagram, Pinterest and LinkedIn.

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Critical friends Create a Whatsapp group with some ‘critical friends’. This could be potential customers, colleagues or friends. During the startup process you can use this group as helpdesk or ask them about their opinion, ideas, solutions, etc.

TIPS Do not stick to your original idea too much. Do not fall in love with your own solution. The startup process should be undertaken by you, not by others! Do not write a Businessplan. Figures are not important, yet.


Questions step 1 Basic data Name

Name of your company

Basic idea for your business

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Entrepreneurs Profile

What is the importance of the above mentioned weaknesses for you as an entrepreneur and your company?

(Please fill out the test: www. entrepreneurscan.com )

Entrepreneurs Profile

Score

Performance orientation Autonomy Power Social orientation Effectivity Endurance Risk taking Market awareness

Thinking style

Thinking style

%

Pioneer Sales person Manager Specialist

Creativity

What is the importance of the above mentioned

Flexibility

strengths for you as an entrepreneur and your company?

What is the importance of the above mentioned strengths for you as an entrepreneur and your company? What is the importance of the above mentioned weaknesses for you as an entrepreneur and your company?

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The big five inventory (This test is in the

TIPS or

make the test on: www.outofservice.com/bigfive/)

Great five

Score

In the ses:

are different canvas-

 Scrum canvas  Entrepeneur canvas

Headstrong Conscientiousness

How are we doing?

Enterprising

(Every step we will ask some questions about things you have done or have found out)

Explorative Neuroticism

What about your company Facebook and Twitter ac-

Cooperation

count? (How many likes? How many followers? What are you going to do with it?).

(Make the test on www.123test.com/team-roles-test )

Belbinroles

Score

Plant Shaper

Do you have customers/revenues/profit ?

Specialist Coordinator Resource investigator Implementer Finisher Teamworker Monitor

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What lessons have you learned in this step?

Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in your mailbox.

Do something you love and you’ll never have to work a day in your life John Lasseter, Pixar

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STEP 2 Find your identity | Golden Sentence | Moodboard | Company name |Corporate image | Corporate identity |


Values

If you choose a company name and use it as an indication of your business, then it is officially called a "trade." There are some rules that you need to meet. In

Examples of values of your own business could be

the

is a document for more infor-

mation on the first steps to set up your company, such as choosing a company name, registering at the Chamber of Commerce. Is your business name maybe a

Put people at place one

brand name? Your company name should not cause

Give all of us

confusion with the same or similar brand names in the

Take pride in your work

register of the Benelux Office for Intellectual ownership

Have fun

Keep it simple

Never stop learning

Talk like you talk with friends

Be honest

Be good, not stressed

Do everything with a little modesty

(BOIP). Should you call your snack bar McRonald's for example, then you can expect problems with the owner of the brand McDonald's. So find out if your business name as a brand name occurs in the BOIP. In Holland: If you want to use your company name as a domain name, your name should first be checked with the Foundation for Internet Domain Name Registration (SIDN.nl) whether it is still available.

Persona This type of values that you determine for your own

Personas are called archetypes, which help you to get

business, is the DNA of your business. Other values,

an impression of your future customers. Thus the im-

create a different kind of company.

plementation of your company gets simpler and easier

Choose company name

to follow. This customer is given a name, a face, person-

You want a suitable name for your business. Because a good company can contribute to the success of your company. That makes choosing your business name one of the most important decisions you make.

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al characteristics, social environment, hobbies. Additionally you can define a daily schedule of the persona (goal is that you estimate what times you might approach your prospective client). A persona will be the basis for customer segmentation later (step 6).


long to the story (pitch) they heard.

Example: Steve Jones Steve has its own web marketing agency. Steve is 38 years and knows everything in the field of the Internet. Steve has studied Computer Science at the university.

After the three minutes, each participant will demonstrate to the respective startup and explain what he/ she has torn out and why. This will be repeated for every startup in the same manner.

He lives in a new neighborhood, in a detached house. Steve is interested in art, culture and politics. He reads the NYT and drives an Audi A6. His girlfriend is called Kate and works in fashion. She reads the Vogue and

Then each participant glues his/her torn images, he/ she got on the A3 sheet. Take a picture of your own collective mood board and place it in your portfolio.

she drives a VW Beetle. Every now and then he visits

The idea is that you discover that even if you tell your

the theater with Kate. Steve loves gadgets. He obvious-

story about your company/product, direct to your fel-

ly own the latest smartphone. Both privately and professionally, he is daily seen on the internet. He orders articles and online travel whenever possible.

low-startups, you will receive four different signals; in other words, how will (potential) customers, who have no connection with you, see your business?

Domain-name registration Collective moodboard This is an exercise with several people (your fellow Startups, preferably 4-5 people), to examine how your message gets across. Needed: A large stack of magazines, a timer (app) and for each Startup an A3 sheet, scissors and glue. Session: Every Startup tells all about his/hers startup

Always register your domain name first in the SIDN and only after that at the Chamber of Commerce. By registering at the Chamber of Commerce your name will be public. Another person is able to register this domain 'fast'. Unfortunately, this happens quite often.

TIP

idea/product/service, and which problem he/she

Use an online tool for creating a Persona in the App store, or use:

thinks to solve for his/her future customers.

www.personapp.spookstudio.com

Then within three minutes everyone needs to tear out as many images (and text), which they consider to be-

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Corporate image and corporate identity Every company has an image. This is the actual way

In the

you will find a document that

you can print. It allows you to create cards for : 

Core competencies (choose from 3)

(impressions, expectations, emotions, experiences).

Business goals (choose from 5)

The success of a company depends on the image

Operating characteristics (choose from 5)

among its target groups, corporate image.

Colors at your corporate identity

how the company is being perceived by others

The corporate identity is how you want to be perceived by your target groups as a company. The actual - and desired image ideally match to high extent, so that the

Golden Sentence

audience can identify with you.

Simon Sinek is the creator of the Golden Circle ('It starts with the why). Sinek discovered that behind all

To work on your corporate image, you first must be

successful brands in the same way of thinking, lies ac-

certain about your identity. These are your core com-

tions and communication, who are totally different

petencies (where we are as a company good at?), Busi-

from how most companies think, act and communi-

ness goals (what do we want to achieve?) And - charac-

cate.

teristics (how we want to achieve our goals?) Very important.

The Golden Circle consists of three circles.

The better you design the corporate identity, the sim-

The core is the Why, then follows the How and the out-

pler your (future) target audience can identify with it,

er circle is the What. Most companies start with the

and the better you can position (distinguishing in a

outer ring (What) and then work inward. Most influen-

positive way from your competitors) your business.

tial companies start with the core: Why

The visualization of your identity (house style) should correspond with your corporate identity (how you as a company are perceived by the outside world), but also for example by color - and shape used in the design of your workplace or (later) office and posting photos on your web site.

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De Golden Circle exists out of three circles:

Example of a Golden Sentence: "We believe in maximum development of talent and entrepreneurial behavior of students, (student) entrepreneurs and trainees by stimulating and activating them in an innovative, passionate way, to gain maximum potential to develop, and grow both their company as well as their entrepreneurial behavior. "

What:: these are the products or services you’re selling; How: explanation of your business what you (will) do.

Assignment Create in a session with multiple startups (4), a choice of the above variables and explain your choices to the

For example, how is your unique selling method or

group. Now take a picture of your identity-moodboard

a distinctive value. How is often used to explain

and put it in your portfolio.

why something is better or different; Why: is not about making a profit, but what you believe, what drives you. Inspired businesses, regardless of size, think, act and communicate from the inside out (‘inside out’)

TIP In the is a presentation, documents associated with the Workshop Golden Circle and links to videos of Simon Sinek.

Create one sentence with your Why, How and What: The Golden Sentence. The Golden Sentence is the foundation of your business. In next steps you can change your golden sentence by changing insights or changes in your business model!

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Steve Blank TIP Follow from now on at every step the onlinelectures of Steve Blank at: www.udacity.com/course/ep245 .

People don't buy what you do; people buy why you do it Simon Sinek

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Questions

What do you solve for your prospective clients (Pain and Gain)?

STEP 2 What is your Golden Sentence?

What do you want to change in the world?

To what extent does your What support your Why?

Why do you want this?

What is your value proposition (not your product or

Who are your role models?

service, but what do you solve for your prospective client)? use no more than 10 words.

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What is success for you? Tell in a tweet (140 characters) to your mother what your company will do.

What can you do best? How do you want people looking at your business? Which four or five values of your business are important?

What is your BSR-color? (go to www.smartagent.nl for the test) If your company didn’t exists, what should we miss? What BSR-color is your business (what color customers are you going to serve)? Tell in a tweet (140 characters) something about yourself. To what target group do you belong - within the Mentality model? (Make the test at www.motivaction.nl/)

□ New conservatives □ Modern society □ Convenience oriented 34


□ Social climbers □ Cosmopolitans □ Post-materialists □ Post-modern hedonists □ Traditionals What are the core competencies of your company? (choose 3 max)

□ Making □ Inventing □ Moving/ distributing □ Attend □ Fill needs □ Organize □ Otherwise…

TIP In the board.

is a canvas for a mood

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What are the business goals of your company (choose from up to 5): What purpose or what state do you want to achieve ?

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□ Crafts

□ Cooperation

□ Stylish

□ Explanation

□ Enterprising

□ Optimistic

□ Helpfulness

□ Involvement

□ Accessibility

□ Reliability

□ Creativity

□ Traditional

□ Energetic

□ Efficiency

□ Distinctive

□ Be capable

□ Defend own opinion

□ Obedience

□ Honesty

□ Independency

□ Integrity

□ Exclusivity

□ Be friendly

□ Quality

□ Innovative

□ Be rational

□ Female

□ Customer friendly

□ Flexibility

□ Male

□ Loving behavior

□ Adventurous

□ Other:


What are the business goals of your company (choose from up to 5): What purpose or what state you want to achieve?

□ Relaxation

□ Harmony

□ Excitement

□ Carelessness

□ Pleasure

□ Self deploying

□ Organizing

□ Entertainment

□ Comfort

□ Health

□ Attractiveness

□ Safety

□ Better environment

□ Better quality life

□ Satisfaction

□ Atmosphere

□ Happiness

□ Ease

□ Freedom

□ Personality

□ Competence

□ Love/romance

□ Security

□ youthfulness

□ Respect

□ Respect

□ Sociability

□ General development

□ Recognition

□ Other:

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What is the color of your business identity? (Check the

for documents on the

meaning of colors)

□ Red (vigor, active, speed, passionate, bold) □ Pink (cheerful, lively, positive, female) □ Orange (collaborative, positive, social) □ Warm yellow (innovative, progressive, innovative) □ Light yellow (warm, sunny ) □ Lime (optimistic, stimulating, young, fresh) □ Green (harmony, trust, tolerant, growth, rest) □ Blue (space, communications, thinking, listening) □ Purple (spirituality, floor) What colors are in your (future) logo?

□ Red □ Pink □ Orange □ Warm yellow □ Light yellow □ Lime 38

□ Green □ Blue □ Black/white Why?

What are you learning moments of the collective mood board session?

How are we doing? (Every step we will ask some questions about things you have done or have found out) What about your company Facebook and Twitter account? (How many likes? How many followers? What are you going to do with it?)


Do you have customers/revenues/profit?

What are the lessons learned in this step?

Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in your mailbox.

GOLDEN SENTENCE I want to contribute to a world where <WHY> by <HOW> through <WHAT>.

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STEP 3 What is your Business Model Canvas? | Business Modells | Canvas session | Scamper |


Business Canvas Generation In the you will find a presentation that explains different business models. Alexander Osterwalderâ&#x20AC;&#x2122;s book forms the basis for this step.

Draw all nine areas of the canvas on a flip chart::

Part 1 of the session The startup explains to the group what different parts of the canvas are his own idea, product or service. Start with the value proposition or the customer segment. The moderator asks questions and writes everything on post-its and fixes those on the canvas.

Part 2 of the session Diversify the range of all nine areas to generate new variants of your business model. "Yes, but ..." is not appreciated and all contributions can lead to new insights, so do not reject all ideas spontaneously. It does

Canvas-session Most ideas business startups are often not the best ideas for setting up a promising business. 66% of all entrepreneurs, who have worked with this trajectory of 12 weeks have a totally different business case in the end. In order to determine all possible variants, a Canvas Session is the optimal basis. A Canvas Session takes about 2-3 hours and is kind of brainstorm session for evaluating different variants. It is advisable to work through those sessions with a group of people (4-5 max) under the supervision of a facilitator who understands the model and is capable of 'Inthe-box' thinking. That is, that he can brainstorm (diverging) within the original idea or product.

not necessarily need to lead to promising business ideas. Analyzing your concepts and calculating your options will happen in the next step. Determining your variation range will be done with the tool of SCAMPER. You develop new ideas in the section Customers, invented as the original customer segment that will be removed or changed. Colors: Use different colors of Post-Its. That gives overview and insight. For example, use for any new customer segment a different color. Visual: Using images and words. That increases overview, as the canvas is filled. Your brains usually understand images faster than words. Level of detail: Try to limit the use of Post-It notes. By using too many Post-Itâ&#x20AC;&#x2122;s the overall picture disappears. Add details later (with respect to customer development).

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SCAMPER Scamper gives a foothold to make up different variants during a Canvas Session. Use this during the session on

Common mistakes

each of the 9 blocks of the Canvas:

Orphan-Post-Its

These are solitary post-its in a colour that is not being

     

Substitute: Replace components, materials, people. Combine: What can be combined with other products or services? Where to find? Synergy Adapt: Add features of other products or services is increasing. Modify: Is increasing, decreasing, or change? Put to another purpose: In which market is more use? Eliminate: Remove parts, back to the basic function. Reverse: Is it to turn around, turn inside out or put in a different order.

used in the other areas. Make sure that in the Canvas Model no 'orphan' PostIt notes can be found. If, for example, you name a new customer segment (with a different colour!), all other eight blocks should also have the same colour Post-its. Mixing present and future models can be disturbing or limit the insight. Always distinguish between current and future Canvas models. Mixing them can have a disturbing effect. Too many models: Also describe too many different models in a Canvas can be confusing or limit your un-

TIP In the you will find a document with so-called trigger questions, that you might want to use for all areas of the Canvas model.

derstanding. Always try to separate them. You always have the chance to merge them later in the process.

Merging or splitting of Business Models In a Canvas Session you have, based on your own business idea, product or service, determined different business models.

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Then you can use this step to do two things Which ideas do not belong to you (be careful in determining, it may be that you just throw away a promising business model. You can always saying later on, after the analysis, that these models do not fit in your plans). You can merge some models or even disassemble them. Determine the overlapping of the models or if they have many identical sides and decide whether they should be integrated or even handled separately. For further explanation, see the book by Osterwalder (pp. 232 ff.). Start by viewing the presentation (do a group exercise at the end of the presentation about the case "Bob").

DONâ&#x20AC;&#x2122;T FALL IN LOVE WITH YOUR OWN SOLUTION

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Questions

STEP 3 Value Proposition (Enter the answers below which belong to your original business idea)

What value do you deliver to the customer?

What problems do you solve for the customer?

Customers Channels How do you reach them?

â&#x2013;Ą Physical â&#x2013;Ą Digital Product/channel?

How do you reach them? What are the customers needs?

Which channels are integrated?

Which will work best?

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Relationship What relationship does your customer expect and how do you maintain it?

Unpaid?

□ Publications in newspapers / magazines □ Conferences / speeches □ Blogs / guest writers □ Social Media □ Other:

Which Relationships are possible? How are they integrated into the whole of your business model? ?

Paid?

□ Direct relationship □ Ads □ Exhibitions etc. □ Webinars □ Email/direct mail □ Search Engine Marketing □ Other: How much do they cost?

How do you maintain customer relationships?

□ Product-updates □ Management & Maintenance □ Loyalty program □ Newsletter/Blogs □ Events □ Social Media □ Other 45


Income Type of income?

□ Recurring revenues □ Single purchase

What are they paying for?

□ Product / service fee □ Hourly rate What do customers pay for your product now/service to the competition?

Type of Sales?

□ Sales □ User fee □ Subscription □ Rent, lease, license Intermediate income (consulting, coaching, consulting)

□ Advertising □ Other: When does the customer REALLY pay for it?

46

How do they currently pay your competitor?

Key Resources What are your physical resources?

What are your intellectual resources?

□ Contracts □ Copyrights □ Secret business knowledge □ Patents


What are your human resources?

Key Activities What do you produce?

What are your financial resources? What problems do you have to solve?

What key resources does your Value Proposition need? Platform/Netwerk?

What key resources does your channels need? What key activities does your value proposition need?

What key resources does your customer relationship need? What key activities do you need in distribution?

What key resources does your income need? What key activities does your customer relationship need?

47


What key activities does your income need?

Key Partners

Who are your KEY-partners?

Who were / are your suppliers?

Strategic alliances? Did / do you have preferred suppliers? Cooperative: competition as partners?

□ Outsourcing activities □ Delivery components / raw materials What resources come from your partners?

Why do you want partners?

□ Economic reasons (faster access to the market) □ Scale of the business □ Reducing risks □ Acquisition of knowledge □ Resources or activities □ Joint ventures Why do partners want to work with you?

48

What resources come from your partners?

What are your risks with your partners?

□ Not clear who owns the customer □ Different vision of product / service □ Partner (decision maker) may disappear □ IP-issues


□ Agreements / contracts □ Otherwise

Which parts of your business models are the most distinctive?

Costs Driven?

□ Cost Driven (minimizing costs) □ Value Driven

Describe the variations from the Canvas session (Use the version numbers for further analysis!)

What is the main cost associated with your business model?

Please describe below all variations: which do you want to continue?

Which key resources are the most expensive?

Which key activities are the most expensive?

□ Variant-1 (your original idea) □ Variant-2 □ Variant-3 □ Variant-4 □ Variant-5

Calculate below the Customer Acquisition Cost (Customer Acquisition Costs: CAC)? See Lesson 5 Steve Blank lectures at www.udacity.com).

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How are we doing? (Every step we will ask some questions about things you have done or have found out) What about your company Facebook and Twitter account? (How many likes? How many followers? What are you going to do with it?)

Do you have customers/revenues/profit?

What are the lessons learned in this step?

Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in your mailbox.

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STEP 4 Which canvases are best? | Analysis | SWOT | Gurley |


Analysing Business models In the is a presentation about the analysis and computation of your models. This phase is important to get an overall understanding of the opportunities of these models and you can skip or merge models. It is also about learning to estimate. In the presentation there are also exercises about estimating.

Canvas of costs and revenues In the previous step you have defined a number of models in the Canvas session and thereafter merged, split or even discarded (because it does not fits you). The

has a spreadsheet, in which you

can capture each model. Each model next to each fixed Canvas has a second tab spreadsheet for further elaboration of the Cost and Revenue. The explanation of this tool is on the first tab.

Spreadsheet for the SWOTâ&#x20AC;&#x201C; analysis The spreadsheet for the SWOT analysis in the provides the ability to perform a SWOT analysis of each model that you have defined. The explanation of the tool is on the first tab of the

To analyze the different models we have three tools in

spreadsheet. When you have filled out the first two

the

tabs, you can view the total score and your score per

1.

:

Spreadsheet for each model to determine (Canvas Cost-income) the (estimated) costs and revenues

2.

Spreadsheet to execute (Canvas SWOT) a Swot Analysis

3.

Gurley's test

Canvas topic. If there are values that are negative (red), those are your focal points. Look at them and analyze separately.

Gurleyâ&#x20AC;&#x2122;s test The Gurley test is a test that allows you to look at your Canvas model through the eyes of a potential investor. Would an investor invest in a company with this business model? The Gurley's test is a business model that describes a number of distinguishing traits that warrant high price/revenue and higher values.

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By using this test you actually look through the eyes of

insignificant.

an investor. The maximum score for this test is 50 points. Please note that every investor has its own criteria and can add its own criteria to the list.

Choices If you have analyzed all of your Canvases with these three tools, you can make choices: which models are you going to continue working with? (or what parts of the canvas need further analysis?) Remember that you can discuss these issues of attention in your model in the latter part of this route. This happens in the interviews with your potential customers or partners. This way you can try to figure out if an investor would invest in a company with this business model. Before you can answer the question written above, you first need to know what's important for an investor. When will one say; yes! this is a company worth investing in? To answer this question we use 10 distinguishing traits of a company. In this test we explain these traits. A score has to be given per trait according to your personal opinion in order to get an overall view of the company.

Example: Company X is not pleased with its profitability. The goals are not yet reached and the company expects a low profit. In this case the score for the mar-

The aim of this whole process is that you eventually have one optimal, repeatable and scalable business model.

ginal profitability calculation will be placed under; very

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Questions

STEP 4 Variation -analysis (Use the SWOT analysis-tool from the StartupWorkbook

)

Swot-score Variation 4

Swot-score Variation 5

Which variations did you drop and why?

What problems did you encounter when analyzing the variations?

Swot-score Variation 1 (own business idea)

Swot-score Variation 2

Are there scores in the 9 Canvas subjects that need attention and why?

Swot-score Variation 3 Also indicate in which variations this occurs?

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Costs and revenues Enter below for each variation: costs and income (bottom two boxes Canvas Model). Use the tool to calculate your options, see the StartupWorkbook. Are there things you want to adjust through your analCosts and revenues variation 1 (your original idea)

ysis of this step? (Think about your Golden Sentence)

Costs and revenues variation 2

Gurleyâ&#x20AC;&#x2122;s Test Costs and revenues variation 3

Costs and revenues variation 4

Costs and revenues variation 5

Test-score Variation 1 (your original idea)

Test-score Variation 2

Test-score Variation 3

Which variations do you show and why? With which variation(s) can you can go from here, based on the analysis above and why?

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Test-score Variation 4

What are the lessons learned in this step?

Test-score Variation 5

How are we doing? (Every step we will ask some questions about things you have done or have found out) What about your company Facebook and Twitter account? (How many likes? How many followers? What are you going to do with it?

Do you have customers/revenues/profit?

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Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in your mailbox.


STEP 5 Who are your competitors? | Blue ocean | Positioning matrix |


Blue Ocean Blue Ocean Strategy is a metaphor for the exploration of untapped markets where no competition occurs. Do not fight with competitors to make a few percentage points in the (blood) red oceans (where the sharks swim and eat each other) of existing markets.

Example AH to Go-shops, small â&#x20AC;&#x2DC;one-stop-shopping's' in stations are an example of a Blue Ocean. Unlike the large Albert Heijn 'AH to GO' stores are many times smaller and the range includes less than 10% of what the big Albert Heijn offers. But these 'convenience stores' supply indeed added value to what the consumer 'on the move' may need. It's created a new market, that is between hospitality and existing supermarkets. Many non-AH customers buy it at AH to Go, and the new stores have a very high turnover per square meter.

In previous steps in the Canvas-session we have been looking for 'niche'-markets: the Blue Ocean.

Blue Ocean-Canvas Decide for yourself, what are the key customer values for your business. These are values that are important to you towards your client, such as "Quality, Fast delivery, Cheap." Put those values on an x-axis (template is in the

) of a Blue Ocean-Canvas.

Put the most important value at the beginning, to the left. On the y-axis are scores of 1-10. Now go look for competitors (look further, this step on Google Code). Try to understand how your competitors are performing on your customer values. Put all scores in the graph.

58


Since your most important customer values are left,

The

you want to score better than your competitors. If that

Ocean Canvas online. Important: because you may

is not the case, then you should start thinking about

adjust your client's values, it may be that you have to

how you can do better. In many cases it means that

adjust your specific (step 2) core competencies as well

you are going to compromise on other customer val-

as your business objectives and characteristics and

ues (in the above example: will you compromise on

identity. It may even be that you have to go all the way

your fast delivery, to deliver better quality than your

back to the beginning and you have to adjust your

competitor?).

Golden Sentence!

Positioning matrix To investigate whether you are a Blue Ocean, you've really found yourself the Positioning Matrix is a useful tool (see the

, for a template). Put in

contains links to fill in the Blue

TIP In the value-canvas.

is a customer-

a matrix (you could make different matrices), your most important customer values are put in two extremes. (Eg active-passive or cheap-expensive). Put your competitors in the matrix and find out if one of the quadrants are not competitors, so a Blue Ocean.

Google Code To find your research to your optimal business model, you should aim to look at your competitors, customer segments, financial figures. To do this, Google is a good entry. Using the methods described in the book 'Google Code' by Henk van Ess (for information on the book see:

).It also includes a presen-

tation of examples of search methods and databases, which you can use on your quest.

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Customer Value Chart With a customer value-diagram, a diagram of two main dimensions: customer values versus customer experience. This allows you to assess what stages form the biggest obstacles and where best opportunities are to be found. The obstacles must be solved with existing customers, but also with potential customers.

Purchase Availability Simplicity Ease Fun & image Environmentally friendly Health

Customer value graph

Risk

60

Delivery

Use

Extraâ&#x20AC;&#x2122;s

Maintenance

Removal


Questions

What are your key customer values? Place the most important values at the top and least important values at the bottom.

STEP 5 Blue Ocean

Customer values Who are your competitors?

What are your customer values?

□ Quality □ Low-priced □ Fast (in stock) □ Personal attention □ Authentic □ Sustainable / Corporate Social Responsibility □ Flexible □ Clear / transparent □ Otherwise:

Is there a Blue Ocean? You can display with a Positioning Matrix (see the

).

Are there competitors, which you will find important, who score better in your Strategy-Canvas graphics?

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Indicate your competitors and your customer values (In the

is a Canvas for the Blue

Ocean- graphs or make these online at strategycanvas.org/) What does it mean, if you want to score better on your customer value than your competitors? What are

How are we doing? (Every step we will ask some questions about things you have done or have found out) What about your company Facebook and Twitter ac-

the consequences for your other customer values?

count? (How many likes? How many followers? What

What are the changes?

are you going to do with it?)

Do you have customers/revenues/profit?

What are the lessons learned in this step?

Are there issues that you want to adjust after this step after your analysis? (for example, the Golden Sentence or your Canvas variants?)

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Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in your mailbox.


STEP 6 Where is my customer? | Customer Segmentation | Jobs-to-be-done | Value proposition Canvas | Storytelling |


Customer

There are several possible ways of segmentation:

Segmentation

Demographic: These characteristics are tied to a person or household. For example: age, sex, marital status, religion, family size, living environment .

Customer Segmentation is dividing your audience into specific segments. Segmentation is applied when a particular group is too large and different or heterogeneous. A market can be segmented in different ways. Not every form of segmentation is meaningful and effective. The seg-

Geographically : segmentation based on region, for example: country, region, town or postal area. Socio-economic: characteristics of an individual or household such as income, occupation, education and social class. Psychological: segmentation based on behavior, interests and opinion of a person. For example: lifestyle, political beliefs, environment, faith (three activities, interests, opinions). Use / consumption: difference between regular customers and initial customer (buying and usage behavior). Lifecycle: segmentation based on life cycle, ie single

ments need to be of a certain size

households, married or cohabiting couples with-

before they are interesting as a

married couples with older children, married cou-

target group.

out children, married couples with young children, ples, children out of the house, male / female retired, widow / widower.

Examples There are different segmentation models. All models quoted are based on a particular lifestyle rather than socio-demographic characteristics (age, gender, education). A lifestyle consists of personal values and often

64


gives a better explanation of consumer behavior. In the

you can find (links to) various

online tests. Do one or more on your (potential) customers. In the

you can also find a

The functional 'Job' (task) describes how the consumer looks at your product / service on functional grounds The emotional 'Job' (task) describes how the customer

presentation on Customer Segmentation, with exam-

feels or wants to feel when buying and using your

ples:

product

The BSR model from Smart Agent: (www.hoedenktu.nl/ennis/surveys/BSREngels/)

The social 'Job' (task) describes how the customer wants to be perceived by others. Example: A couple that wants to buy a car baby seat:

Mentality-model: (www.motivaction.nl/en/mentality)

Jobs-to-be-done ‘Jobs-to-be-done’ examines the needs that a customer has, instead of looking only at what people buy. What tasks (jobs-to-be-done) can we do for the

Their functional 'Job' (task): "Help us that our baby is safe when we drive." Their emotional 'Job' (task): "We want to know if our baby is safe. We want to feel that we are good, protective parents. " Their social 'Job' (task): "We want to show to other

audience? The customer has a need (or task) that

couples that we have the best and safest baby

must be fulfilled: a 'job-to-be-done'. For each com-

gear."

pany the same question applied is: why are you

Customer Journey

really existing for your customers and in what

A technique that helps to review your client, user ex-

need do you provide? And will this be the same

perience and satisfaction for your product or ser-

within one or two years, or even tomorrow? And

vice. A Customer Journey can also be called a User

what does that mean for the ‘Jobs-to-be-done’

Journey.

that you carry out? What have you done for your customer? Because: There is no value creation without a need to fulfill. People are not onedimensional in their purchasing decisions. These decisions often go beyond the functional criteria of a product or service. There are also emotional and social components:

Customer touch-points are an important element of a Customer Journey; A touch-point is a place where the consumer comes into contact with the product / service, the people, processes and physical evidence; This can be a good, neutral or poor experience;

65


The goal is to create the touch-points as a good experience.

Gains

In the

you can find a template for the

Customer Journey.

What savings will make your customers happy? (eg in terms of time, money and effort ...) What expectations does your client have? (such as

Value Proposition Canvas The

provides a template and an ex-

planatory document for your Value Proposition Canvas to fill in. The VPC is a tool that zooms in on two sub-

quality, more of something, less of something ...) How can your solutions make your customers happy? (eg specific features, performance, quality. ...) How can life / work be made easier for your client? (for

jects of the Business Model Canvas: Value Proposition

example a smoother learning curve, more ser-

and Customers.

vices, lower costs ...) What positive social impact does your solution have on

In the new book of Alexander Osterwalder - Value Proposition Design (2104) you can find a lot of information about the VPC.

your customer? (for example, they look good, more power, status, ...) To what are your customers looking for? (eg, a good design, guarantees, specific -, more functions ...) What does your client dream of? (eg better performance, great reliefs ...) How does your client define whether something is good or not? (eg cost ...) When would your client accept your solution faster? (eg, lower cost, less investment, less risk, better quality, performance, better design ...)

Value Proposition Canvas

66


Pains What do your customers think of the current solutions? (for example, it takes a lot of time, money, requires great efforts ...) What makes your client feel bad? (eg, frustration, annoyance, headaches ...) What do your customers think of the current solutions of current products and services? (eg, lack of features, performance, many failures, poor service ...) What are the main problems and challenges that your customer runs into? (for example, to understand how things work, difficulties getting things done, resistance ...) What negative social impact does your customer have, what is he afraid of? (eg loss of sight, power, trust, or status ...) What risks is your client scared of? (eg financial, social, technical risks or that something can go terribly wrong ...)

Storytelling More than ever, the public wants to see the authenticity of the brand. And more than ever brands want to anticipate in their customerâ&#x20AC;&#x2122;s experience. More than ever, a company must be an organization that wants to move something. That is where the difference is and that is where the good or beautiful stories come from.

What keeps your client awake at night? (eg, major issues, concerns ...) With what common mistakes is your customer confronted with? (eg use, errors ...) What barriers does your customer see when it comes to existing solutions? (eg investment costs, learn-

TIPS In the are different canvases for this step: ď&#x201A;¨ Empathy canvas ď&#x201A;¨ Persona canvas

ing curve, resistance to change ...)

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In the

is a spreadsheet, which you

can use to capture the different customer segments and which is at the same time a suitable tool in the problem interviews later on.

TIP If you have more than 100 Likes on your Facebook business page, promotional activities can be done. By (if needed fictional) promoting a message you can type all sorts of keywords and locations. This shows you how big your target group is. Look for more information and films in the .

TIP Go and collect names and data (addresses, phone numbers, websites, Facebook Likes) from this moment on. Varying from channel partners, key partners, customers, influencers and competitors. You'll need them in the upcoming weeks.

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Questions

Demographic segmentation (description + estimated size) (dividing a market by age, life, sex, religion, etc. Example: Male / Female or starter / 65 + older)

step 6 Customer Segmentation Persona (use www.personapp.spookstudio.com)

Why would customers from this segment want to buy your product / service?

Geographic segmentation (description + estimated size) (Splitting a market to country, region, city or district, etc. for example: United Stated, California and San Francisco) Socio-economic segmentation (description + estimated size) (Dividing a market by income, occupation or education etc. Example: (High school, college).

Why would customers from this segment want to buy your product / service?

Why would customers from this segment want to buy your product / service?

69


Psychographic segmentation (description + estimated

Provide a list of Jobs-to-be-done. Order by importance

size) (Behavior that can not be predicted on the basis

(trivial or important) or frequency.

of the previous segmentation criteria. Personality traits and lifestyles)

Why would customers from this segment want to buy

Value Proposition - Canvas

your product / service? In the

StartupWorkbook a template

can be found for Customer - Value - Canvas. Customer Segment: What are the 'Jobs-to-be-done'? Behavioral Segmentation (description + size estimated) (Dividing the market based on knowledge of a product such as loyalty, usage frequency, willingness to buy, purpose of use, level of use and the time of use).

Customer Segment:- What are the pains?

Why would customers from this segment want to buy your product / service?

Customer Segment: - What are the gains? Jobs-to-be-done?

□ Functional □ Social □ Emotional 70


Value Proposition: What are the gain-creators?

Describe a "Day-in-a-life" of your customer.

Value Proposition: What are the pain-relievers?

Value Proposition: Describe your service / product.

At what point of the day can you reach your customer?

Is your Customer - Value - Canvas different for the re-

Does your product / service provide a Gain? (what does

maining variants?

it provide?)

Give the differences.

□ Convenience □ Time □ Quality □ Less risk □ More service □ Faster learning curve □ Fun □ Other:

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Who is the user of your product / service? Does your product/ service solve a ‘Pain’? What does it solve?

□ Unwanted charges □ Undesirable situations □ Risks □ Negative emotions □ Time □ Costs

Who is the influencer of your product / service?

Who recommends your product / service to others?

Who decides to purchase your product / service? What does it solve? (from existing products / services)

□ Lack of additional functionality □ Malfunctioning □ Poor / inadequate performance □ Frustration □ High costs □ Long learning curve Describe 3 -5 archetypes.

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Who actually buys your product / service (buyer)?

Is there a saboteur in the decision making process? If so, who?


Type of market:

□ Existing market □ New market □ Resegmented market □ Clone-market

Do you have customers/revenues/profit?

What are the lessons learned in this step?

Who could be your first customer (launching customer) and why?

What parts have been changed over the last few steps? (think of your Golden Sentence, Business Case, etc.)

Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in your mailbox.

How are we doing? (Every step we will ask some questions about things you have done or have found out) What about your company Facebook and Twitter account? (How many likes? How many followers? What are you going to do with it?)

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STEP 7 Preparing for interviews and mvp | Google Code | Hypotheses | Manifesto Steve Blank | AARRR |


Customer Development manifesto Steve Blank Rule No. 1: There are no facts inside your building, so get outside!

engineers are locked into an implementation cycle, unable to change the product features without intolerable delay. By contrast, a startup engineering organization using an agile methodology is designed to continually take customer input and deliver a product that iterates readily around a “minimum viable product” (MVP) or its minimum feature set.

Rule No. 3: Failure is an integral part of the search. One of the big differences between a startup and an

A startup is a faith-based enterprise built on its found-

existing company is the one that’s never explicitly stat-

ers vision and a notable absence of facts. The founders

ed: “startups go from failure to failure.” In a startup,

job is to translate this vision and these hypotheses into

you’re searching, NOT executing, and the only way to

facts. Facts live outside the building, where prospective

find the right path is to try lots of experiments and take

customers live and work, so that’s where you need to

a lot of wrong turns. Failure is a part of the process.

go. Nothing is more fundamental to Customer Devel-

Failures are not truly failures, per se, but an integral

opment, and nothing is harder to do. It’s much easier

part of the startup learning process. You’ll be running

to write code, have meetings and build hardware than

dozens, if not hundreds, of pass/fail tests – on your

it is to find and listen to potential customers. But that’s

pitch, your features, your pricing, and on and on – so

what separates the winners from the losers.

get ready to accept failure and move on. When some-

Rule No. 2: Pair customer development with agile development.

thing isn’t working, successful founders orient themselves to the new facts, decide what needs fixing, and act decisively. This process demands frequent, agile

Customer Development is useless unless the product

iteration, followed by testing of the iteration, which

development organization can iterate the product with

often leads to another iteration or pivot, which leads to

speed and agility. If Engineering builds the product

more testing and…….. If you’re afraid to fail in a

using waterfall development, it will be deaf, dumb and

startup, you’re destined to do so.

blind to customer input except during a short period when it’s specifying the product. The rest of the time,

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Rule No. 4: Make continuous iterations and pivots.

The difference between a static business plan and dy-

Embracing failure in Customer Development demands

between a flameout and success. Startups should

frequent, agile iteration and pivots. A pivot is a sub-

dump the business plan and adopt the flexible busi-

stantive change in one or more of the nine boxes of

ness model (refer to the Business Model Canvas work-

the Business Model Canvas (for example, a pricing

sheet for its components).

namic business model could well be the difference

change from freemium to subscription, or a customer segment shift from boys to women). Iterations are minor changes to business model components (e.g., changing pricing from $99 to $79). When a company is limping along, only a dramatic change to one or more of its business model components can get it back on the road to success. Groupon’s legendary $12 billion pivot (their IPO valuation) is a perfect example.

Rule No. 6: Design experiments and test to validate your hypotheses Initially, hypothesis is just a fancy word for “guess.” To turn hypotheses into facts, founders need to get out of the building and test them in front of customers. How do you test? And what do you want to learn? Testing

Rule No. 5: No business plan survives first contact with customers so use a business model canvas.

and learning require you to be thoughtful on con-

There’s only one reason for a business plan: some in-

strong signal in the signal/noise ratio, something like

vestor who went to business school doesn’t know any

five of the first 12 customers you call on saying, “I need

better and wants to see one. But once it has delivered

this right now, even if it’s still buggy.” Early tests aren’t

financing, the business plan is fundamentally useless.

always precise, but should give you a “good enough”

Entrepreneurs often mistake their business plan as a cookbook for execution, failing to recognize that it is only a collection of unproven assumptions. A revenue

structing and designing your tests. We call this “designing the experiments.” Experiments are short, simple, objective pass/fail tests. You’re looking for a

signal to proceed. Start by asking yourself, “What insight do I need to move forward?” Then ask, “what’s the simplest test I can run to gain it?” Finally, think about, “how do I design an experiment to run this sim-

plan blessed by an investor, and composed over-

ple test?” One of the things that trips up engineering

whelmingly of guesses, suddenly becomes an opera-

founders is thinking that these tests have to be actual

tion plan driving hiring, firing and spending. Insanity.

code, hardware, or the real product. Most of the time,

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you can mock-up a web page or create a demo or phys-

the customer creation stage. While market type is ulti-

ical prototype to elicit valuable learning.

mately a “late-binding decision,” a working hypothesis

Rule No. 7: Agree on market type. It changes everything.

helps frame early customer discovery issues.

Not all startups are alike. One of the key ways in which

Rule No. 8: Startup metrics differ from those in existing companies

they are different is in the relationship between a

Existing business have established tools for measuring

startup’s new product and its market. These product/

performance – P&Ls, balance sheets, cash flow , fore-

market relationships generally fit one of these descrip-

casts, etc. Here’s hoping your startup becomes big

tions:

enough to need them someday. We now know that startup metrics should focus on tracking the startups

Bringing a new product into an existing market

Bringing a new product into a new market

progress converting hypotheses into incontrovertible facts rather than measuring the execution of a static plan. These hypotheses should be continuously tested

Bringing a new product into an existing market

Customer Development Manifesto by management

and trying to re-segment that market as a low-

and the board until the entire business model is worth

cost entrant, or re-segmenting that market as a

scaling into a company. Management and investors

niche entrant, or cloning a business model

must agree on a set of metrics that truly matter. These

that’s successful in another country.

should track the results of pass/fail tests and the re-

Market type influences everything a company does. Strategy and tactics that work for one market type sel-

sulting iterations: 

dom work for another. Market type determines the startup’s customer feedback and acquisition activities and spending. It changes customer needs, adoption

tures been validated? 

panies generally enter one of these market types and ultimately must commit to one. The consequences of a wrong market-type choice will prove to be severe in

Does the minimum feature set resonate with customers?

rates, product features and position as well as its launch strategies, channels and activities. Startup com-

Has the customer problems and product fea-

Who, in fact, is the customer and have hypotheses on the value proposition, customer segments, and channels been validated through face-to-face customer interaction? The relative-

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ly few financial metrics to be tracked are cash-

Rule No. 10: It’s all about passion.

burn rate, number of months’ worth of cash left,

A startup without driven, passionate people is dead by

short-term hiring plans, and amount of time

the day it opens. “Startup people” are different. They

until the company reaches cash-flow break even.

think different. In contrast, most people are great at

Rule No. 9: Fast decision-making, cycle time, speed and tempo.

execution. They work to live, do their jobs well, and

Speed matters at startups where the only absolute cer-

ry are just different. They’re a very tiny percentage of

tainty is that the bank balance declines every day. Piv-

the world population, and their brains are wired for

ots and iterations should happen the faster the better.

chaos, uncertainty, and blinding speed. They’re irration-

The faster these cycles happen, the greater the odds of

ally focused on customer needs and delivering great

finding a scalable business model with the cash on

products. Their job is their life. It’s not 9-to-5, it’s 24/7.

hand. If cycles happen too slowly, the startup runs out

These are the people who found high-growth, highly-

of cash and dies. The biggest impediment to cycle time

successful scalable startups.

enjoy their family, their lives, and their hobbies. The people leading almost every successful startup in histo-

is psychological: it requires the admission of being wrong or even of suffering a short-term tactical defeat.

any problem and founders shouldn’t agonize over try-

Rule No. 11: Startup job titles are very different from a large companies.

ing to find one. This doesn’t mean gambling with the

In an existing company, job titles reflect the way tasks

company’s fortunes on a whim. It means adopting plans

are organized to execute a known business model. For

with an acceptable degree of risk and doing so quickly.

example, “sales” means there’s a sales team repeatedly

Make sure these decisions are fact-based, not faith-

selling a known product to well understood customers,

based. Agile startups have mastered another trick: tem-

using a standard corporate presentation with standard

po – the ability to make quick decisions consistently

price terms, etc. startups demand executives who are

and at all levels in the company. Speed and tempo are

comfortable with uncertainty, chaos and change. They

integral parts of startup DNA, and a great startup’s tem-

need executives who are:

Most startup decisions are made in the face of uncertainty. There’s seldom a clear-cut, perfect solution to

po is often 10 times that of a large company.

Open to learning and discovery: highly curious, inquisitive and creative

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Eager to search for a repeatable and scalable

graph is worth deconstructing:

business model Preserve cash: when a startup has unlimited cash, it 

Agile and confident enough to deal with daily

can iterate on its mistakes by burning more dollars.

change, and operating “without a map”

When money is tight, without dollars to redo mis-

Readily able to wear multiple hats, often on the same day

takes, it’s crucial to minimize waste. The Customer Development process preserves cash by not hiring any sales and marketing staff until the founders turn hy-

Comfortable celebrating failure when it leads

potheses into facts and discover a viable product/

to learning and iteration

market fit.

Able to listen to customer objections and de-

While searching: Customer Development observes

termine whether they are issues about the

that at the start, the company and its business model

product, the presentation, the pricing, or

are based solely on hypotheses, not facts, and that

something else (or if there are the wrong type

the founders need to get out of the building to turn

of customer)

these hypothesis into customer data.

Experienced in talking to and moving between

Repeatable: Startups may get orders that stem from

customers and engineers

board members’ customer relationships, engineering one-offs, or heroic single-shot efforts by the CEO. Al-

Able to walk in their customers’ shoes, under-

though great, they aren’t repeatable by a sales organi-

standing how they work and the problems they

zation. Search not for the one-off revenue hits, but

face.

rather for a pattern that can be replicated by a sales

Rule No. 12: Preserve all cash until needed. Then spend.

organization or by customers regularly visiting the website. Scalable: The goal is not to get one customer, but

The goal of Customer Development is not to avoid

many – and for each additional customer to add incre-

spending money, but to preserve cash while searching

mental revenue and profit. The test is: Does the addi-

for the repeatable and scalable business model. Once

tion of one more salesperson or more marketing dol-

found, then spend like there’s no tomorrow. This para-

lars bring in more gross profit (or users or clicks) than

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you invested? Who influences a sale? Who recom-

allowing outsiders to see the company’s progress and

mends a sale? Who is the decision-maker? Who is the

offer suggestions and course corrections.

buyer? Where’s the budget for purchasing this type of product? What’s the customer acquisition cost? Affirming the repeatable, scalable sales model is the custom-

Rule No. 14: Customer development success begins with buy-in.

er validation step and most important phase of this process.

For Customer Development to succeed, everyone on the team - founders, investors, engineers, marketers,

Business model: How the company makes money. Is

accountants – needs to realize that this process is vast-

this a revenue play, or is it a freemium model seeking

ly different from executing a plan, all the way to its

users? Something else? Who’s the customer?

core. If the engineering VP is talking waterfall develop-

Spend like there’s no tomorrow: The goal of an investor -backed startup is not to build a lifestyle business. The goal is to reach 10 times the return on investment, or more. When management and board agree that they’ve found a repeatable and scalable sales model, then invest to create end-user demand and drive those customers into the sales channel.

ment of the board demands a rigid timetable, then it is destined for disaster. Everyone must accept the process, recognizing that this is a fluid, nonlinear search for a business model that sometimes can last for years. Customer Development reinvents the business model on the fly, iterating often and pivoting whenever indicated. Founders need to have the commitment of the team and board before embarking on this process.

Rule No. 13: Communicate and share learning.

Comments like “we can’t change the features since

Share everything that’s learned outside the building

the company must commit to this process, stressing

with employees, co-founders and investors. The best

learning, search for a successful business model.

way to do this is via a blog or a Customer Relationship Management tool. Record your starting hypotheses, who the team has talked to, the questions asked, the tests conducted, what’s been learned, and questions for advisors or investors. It takes a lot less time than weekly meetings. The result is a communications tool

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development is underway” or “we need to launch to make the plan numbers” are all red flags. To succeed,


Types of markets

for opportunities, which existing companies do not see or think they are interesting.

Existing Markets

Low-cost Re-segmentation

The marketing for existing markets is relatively simple,

Are there customers at the 'low end' of an existing mar-

because the users, the market and the features are

ket, who are buying products at a much lower price,

known. Product / service introduction is usually faster,

they are just "good enough" to buy? In Holland for in-

better or cheaper. Whether it is an improvement of a

stance Lidl and Aldi are companies where they are tak-

customer-defined attribute. Users, the market and com-

ing the customers away from the existing companies.

petitors are known. Competition consists of comparing

(For example Albert Heijn)

the product and its features with others.

Niche Re-segmentation

New Market

Look for an existing market and ask yourself whether a

Customers can do something they could not do before.

new segment of the market or a new product for spe-

You have a product or service that not previously exist-

cific needs can be developed. For example, in addition

ed, you are able to reduce the cost of a product or ser-

to a general dating site, a specific segment: for women,

vice, or you can create a new sort of users. You do not

homosexuals or a Christian dating site. These segments

have any customers, so there is no one who knows how

require more specific needs.

the product works or why they should buy it. Therefore, the Customer Development process can be very in-

Pivots

tense. The key is not to compete, but the searching for

In the coming weeks we will deal with testing the hy-

if there is a large customer base and whether custom-

potheses that you have conceived. That testing comes

ers can be persuaded to buy your product. The Classic

in three steps. The first step is to do some so-called

Startup mistake is' fast-burn spending on sales and mar-

Problem Interviews. If you did enough interviews you

keting, a practice that works in existing markets, with

need to think about solutions for the identified prob-

existing customers, but which makes no sense in the

lems and then you are going to do some so-called Solu-

new markets. Re-segmenting an existing market if you

tion Interviews. After the Solution Interviews you are

see opportunities in an existing product or service. A re-

going to make your first MVP (Minimum Viable Pro-

segmentation strategy is based on getting market- and

duct), which is going to be tested in a number of pivots

customer knowledge (Market-Customer-Fit), searching

(steps).

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Key Metrics

Unfair Advantage

To be able to learn from your customers, it is necessary

An unfair advantage, gives an unfair advantage over

to measure in every stage of the Customer Development how many (potential) customers you have.

your competitors: something they do not have or know. This benefit could help you starting up your business. Passion or the already chosen things aren’t

AARRR = Acquisition, Activation, Retention, Revenue, Referral Acquisition: describes the moment when an unconscious visitor is interested in your product/service When you let someone else do something more then just going to your website, is acquisition To make sure the visitors are going to an login page (landings page), is acquisition Activation: when the customers who are interested in the product are having their first (positive) user experience When a potential customer signs up, you should make sure that you could deliver what you promise on the

unfair advantages. A real unfair advantage is not for sale. 

Inside knowledge

Expert notes

Dream team

Authority in a particular field

Large network effects

Community

Existing customers

SEO rank

landing page Retention: measuring the reuse and the involvement in the product / service

Preparing for interviews

Revenue: measuring the product / service what you

Prepare well for your customer appointments:

get paid Referral: the number of customers who are coming back

Start by gathering a list of 50 potential customers, with whom you want to test your hypotheses / ideas. Use your connections on Twitter, Facebook, LinkedIn, Quora, Littlebird en Google to find customers to interview.

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You are interested in finding people, who wants to help you solve your problems, even if they aren’t fitting in your customer segment. One person per interview: focus groups aren’t work-

and know what is a possible price. You need to do this, but in a separate session. Discourage courtesies: people won’t say you have an ugly baby. You need to let your partner feel so

ing, so don’t do that and talk with only 1 person at

convenient that he’s going to do so. Ask to be

a time. Eventually can you take someone who is

honest and hard and say that it’s the best way to

taking notes. Make sure the conversation is per-

help you. If they are unsure about this, tell them

sonally and focus on the conversation and the

you don’t want to make something nobody is

body language of the interviewee.

waiting for.

Know your targets, questions and time: make sure you

Ask open questions: don’t do yes/no answers, like “Do

know your hypotheses and determine where you

you love Groupon?”, but for example: “Why are

want to talk about. Decide with whom you want

you looking for offers?” Sometimes it is still neces-

to talk (age, gender, location, social characteris-

sary to ask a yes-no question, but then ask “why”

tics, etc.). Prepare for the interview and make sure

the gave you that answer? (Why!? Tell something

you have an overview of questions.

more about it).

Separate behavior and feedback: decide where you

Focus on the behavior you see, not on abstract feel-

want to talk about: what do you want to learn

ings. People aren’t easy to predict in what they do

about the behavior of your user? Or do you want

and why. Your job isn’t to hear the solution of

feedback on your product / service (or mockup)?

your partner. Your job is to determine the best

Don’t confuse these two conversations. Start with

solution and validate this if it’s the best solution

the behavior. Don’t let the interviewee elaborate

for the problem. People like to talk about features

on suggestions for features of your product / ser-

and solutions. If you’re still in the phase to learn

vice, focus on his problem and how he solved it in

and get the problem clearly, don’t leave it as the

the past, then ask feedback on your product (on

basis for the conversation. Try to stay with the

paper or digital).

facts about the problem and how they have

Focus on things you don’t want to hear: if you don’t do this, try to convince yourself of your good product / service. Your main target is to know about your partner. You want to get your market clearly

solved the problems earlier (or not) and what happened). Listen, don’t talk: try to keep your mouth as much as possible. Ask short questions and don’t ask about

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answers you want to hear. Don’t fill in the silences.

Develop a Story

Apparently they think about it if they don’t say

Try to emphasize that you are trying to solve the prob-

anything. Make sure you learn and don’t sell!

lems and why it is important to resolve them.

Follow your nose: each time you are triggered during the conversation you ask and call (the why behind the what-questions). Try as deep as possible until the moment you notice your partner doesn’t want to continue. Parrot: repeat, on important issues, the interviewee. It may deliver two things: you may have misunderstood him or he will sharpen his answer if he listens to his own thoughts. Another way is to repeat his words wrong and see if you corrected (don’t use this too much). Ask for instructions: at the end of the interview, try to get 1 to 3 new names of people you could inter-

"Hi, I'm Dave Lennon of (mention name of your product / service) and a student of the Saxion University. I was referred to you by (name here is a useful reference name), who said that you are an expert in (mention the name of the market in which you operate). I do not want to sell you anything. I'm working on setting up a new company (during my studies) and I may have a solution for (your problem). I just want 20 minutes of your time to learn from you and to see if we really understand the problem and current solutions. "

Make appointments 

view. Its is clear to DON’T interview your friends and family.

someone in a company (use Linkedin).   

Explain that the goal is to understand the pro-

cant make an interviewee open enough). Look for

blem, so you are as an interviewer with

patterns, customer development interviews may

pert.

not give you statistic data, but are giving you some

ex-

Invite them for a cup of coffee, a Skype session or a phone call.

statistic data, but tell something about patterns. You should be able to read between the lines, the

A good base is usually 10-15 interviews per step.

body language, understand the context and

For the 50 planned interviews you need to ask

(hidden) agenda’s and read between the lines.

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Email is possible, but less efficient. It is easier for people to say 'No’ in a mail

you haven’t entered the conversation you have to write this down as quickly as possible (a recorder

The best way is calling people to schedule interviews or to interview immediately.

Write everything down as soon as possible: details after a conversation are vague very quickly, so if

The best introduction is a recommendation from

at least 200 people.


You need 10 people speak every day.

ning of the conversation. It will give you feed-

Keep calling until you have a schedule of at

back on the question if you really understood

least three interviews a day for the next few

the problem.

weeks. 

If they are too busy, ask who else you could call.

Expect around 5 to 10 visits for every 50 calls you’ll make.

Good techniques for 'Stories': "Tell me about the last time ..." "Yes, and ..."

Plan several topics with your (potential) cus-

"5 why's"

tomers, not every customer will have inter-

"Why, tell me more? "

esting insights for all of your questions.

"What do you mean by x?"

Test your understanding of the issues and rate

"How did you deal with your problem?"

the importance of the reactions you get.

Create a problem presentation

Bad questions: ‘"Would you use a shampoo that makes your dog

Create a problem presentation, this is meant to get information from your customers.

currently solve these issues. Put the assumptions of your business model canvas in the presentation.   

"Would you pay $5 per month for the ability to stream

Your presentation contains hypotheses on the issues of your (future) customers and how they

smell better?

First, sum up the observed issues and then your

films on your computer?' "How often do you think you'd go cycling if you could rent a cheap bike?' "How many times have you gone to the movies in the past month?"

proposed solution(s).

0 times

Do not forget that your clients should speak,

1-3 times

not you.

4-8 times

You are not there to convince someone that

9 or more

you’re right, you are there to listen. 

You should show this presentation at the begin-

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Good questions: 

"Have you ever washed your dog? Tell me

TIPS 

about the last time? " 

"Do you use a bike for commuting? When was the last time? When was the last time you considered to go cycling? Why not? How many days per week do you work? What kind of bike do you have? Why did you buy that bike? "

"What are the last three movies you've seen? Why those movies? With whom? "

Interviews During the interview, take small blank cards with you. Write every problem on a separate ticket and take a voice recorder along.

In the book Value Proposition Design - Alexander Osterwalder is on page 212 an example of testcard.

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  

No prejudices, no "ice-cream' questions. An Ice-cream question is a question that no one will say no to. "I want to start an ice cream shop, do you love ice cream?" Pull, don’t push. Past behavior is the best predictor of future behavior. Stories are better than opinions.


Get out of the building


Questions

STEP 7 Quantitative Market Research (desk research)

Is the market growing? By what percentage?

What are the three most important trends and developments in your market?

What are the current trends related to your product / service?

Make use of the desk research techniques described in the book â&#x20AC;&#x2DC;The Google Code- Henk van Ess' Who are your competitors?

What makes your product or service stand out from your competitors?

How big is the market? (measured in sales)

Which players are in this market?

Try everything to say about your Aarrr (= Acquisition, Activation, Retention, Revenue, Referral-figures?

Qualitative research What problem do you solve for the customer (according to customer)?

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How do you become customer of existing solutions to The problem they are experiencing, is it for just a small

the problem? (solution of your competitor)

group or a larger group?

What are the most important and unresolved client Will they use the product for themselves or will they

needs to your product/service?

use it in a relationship with others like family, friends or colleagues? Who would you need to know for your product/ service? (ask your potential customers) How important is your solution / product / service? Is it nice to have, or is it required to solve the problem? What are the main value propositions of your competitors? If I would use such a product or service I wouldâ&#x20AC;Ś (describe in global terms how long you would use it) On which values are your competitors better? (Customer values) Your goal is to understand your (future) customers, how they work/deal with it and how they spend their day. How do you make sure you become one of them?

What are you better at?

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How can this hypothesis be tested? What are their main customer reviews and their news? (ask your potential customers, search for it on their websites)

Describe the experiment as 'threshold' . Value Hypothesis: What will people see as valuable to your product / service?

What are your competitors going to do in the near future? Growth Hypothesis: How do you want your company to grow to get more customers? What part of your value proposition is most important to your (future) customer?

What are the critical success factors to sell your product / service to your (potential) customers?

Where is your market?

□ New market with new product □ New market with existing product □ Existing market with new product □ Existing market with existing product How will you do quantitative research?

Which assumption in your Business Model Canvas brings the most risk?

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□ Google □ Databases □ Social Media □ Alert monitors (Google Alerts - Trapit)


□ Exhibitions / Conferences □ Slideshare □ Other

Do you have customers/revenues/profit?

What are your Unfair Advantages?

□ Inside knowledge □ Expert notes □ Dream-team □ Authority in a particular field □ Large network effects □ Community □ Existing customers □ SEO-ranking □ Other

What are the lessons learned in this step?

Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in your mailbox.

How are we doing? (Every step we will ask some questions about things you have done or have found out) What about your company Facebook and Twitter account? (How many likes? How many followers? What are you going to do with it?)

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STEP 8 Problem interviews | Problem | MVP0.0 |


Method

(minimum viable product). You will improve these MVP’s during a few pivots until you know your optimal product or service and know where your clients are.

The past few weeks you have carefully considered whether you are, or want to be, an entrepreneur or not; thought about the values and identity of your future business and about your business models. You have analyzed different versions of your business models and made some choices: which are the most promising? You've looked at your competitors, perhaps looking for a Blue Ocean and you went looking for your customers. You have done a lot of desk research and eventually you have determined your business-case.

MVP0.0 The

contains a presentation, along

with a large number of cards which you could use, All those weeks you’ve spoken in terms of ‘I believe…’

after you’ve printed them, to create your first MVP0.0.

and ‘I think...’. Those are all hypotheses which you will,

The presentation contains all the elements that could

in the coming steps, convert to facts with the Custom-

need to make a visual concept of your business. The

er Development method. For this you will need to go

MVP0.0 should not be used during your interviews.

out to your (future) customers (Get out of the Building)

The purpose is to get a clear view on all subjects and

and interview them. These interviews will give you the

relations so you could focus on that during the Prob-

insight if your product or service will provide the solu-

lem interviews.

tion they need for their problem. And if they are prepared to pay for it. You will do this by means of Problem interviews (minimum of 50), creating a Solution presentation, a MVP 0.0, Solution interviews (minimum of 20), and creating various MVP’s

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Validation Board

Ask open questions: no yes/no questions, just W-

You could use the Validation Board to convert your hypotheses. This canvas will make your hypotheses easier

questions (Why, Where, What, how?) Listen, don’t talk: Try to talk as little as possible and try

to test. The first step is to determine your ‘customer’.

to ask your questions as short and neutral (so don’t

Next you will sort out your most important hypotheses

enclose your wanted answer intro the question) as

and test them during the interviews (Get out of the

possible. Do not sell – that’s for another time!

building).

Don’t try to fill the ‘void’ when the customer stops talking.

Interviews Within the

Encourage your interviewee, but try not to influence there’s a presentation on

interviews along with a template to guide you through the interview process. Tips: For ‘Customer Development’ interviews. Make appointments with your potential customers according to their schedule: be flexible. Focus on the things you do not want to hear: if not, you will only be concerned with what you already know and what you want to hear. Remember that, in this stage, you want to learn and validate, not sell! Remember that people often respond politely. You need to make people feel safe and ensure it’s safe to help you. Try to explain that you’re looking for honest answers to create a product/service that is actually wanted. Start out with behavior, not with feedback: start with questions about the behavior of the person in front of you, in relation to the ‘problem or opportunity’. As soon as that’s clear for you, you can ask for feedback.

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them: you can stimulate them by nodding or by saying, ‘I see…’, ’interesting’.


(Do not be afraid to ask about the 'why' behind the 'what' clarification. Confirm key issues and try to repeat what the interviewee says. This can produce two meaningful results. Firstly, they will correct you if you misunderstood them. Secondly, by hearing their own thoughts, they will actually realize what their real opinion is and they will have a second, giving you a more refined answer. Thank them at the end of the call and ask for introductions to others that you could interview. Write your notes as soon as possible: the details of a conversation fading fast, so if you have not recorded the session, write your notes and color commentary as fast as you can.

Template validation board A template of the Validation Board can be found in the

Problem-interview-script

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TIP Free tool : Leanlaunchlab (www.leanlaunchlab.com), is a great tool for this process (description of your canvas, your hypotheses and your interviews) to capture and manage. In addition, it gives you the possibility to let others watch with your Customer Development process.

Customers care about their problems, not your solution.

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Questions

STEP 8 MVP (Minimum Viable Product)

How 'Painful' are these?

How do they solve them now?

How good are these solutions for their problem?

You've made your MVP-0.0. Which problems did you discover that youâ&#x20AC;&#x2122;ll have to ask in the ProblemInterviews? Give a brief feature list that people want according to the interviews?

Interviews (at least 50) How many people did you talk to?

Prioritize this list (you can not solve every problem Which problems, according to them, do they have?

with a feature. If that's the case, then you do not need one for your MVP)

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What is the percentage of people that is interested in

Are you sure this product / service is going to solve the

the solution of the problem? (at least 10%, preferably

problem of the customers?

25% or 50%)

Enter the 5 (no more!) Key features and the problems What is the percentage of interviewees that would tell

to be solved.

the solution offered to the problem, to their friends or colleagues?

What is the percentage of interviewees that is very

Once the customers have heard your solution do they

enthusiastic about the solution to the problem ("Pain")

think their problem is solved then? How, why?

or the "Gain" (the early adapters / evangelists)?

What will they find a real price for the product / serIs it clear for yourself that your potential customers

vice?

have a problem that you can solve? And are there enough people who think itâ&#x20AC;&#x2122;s as important as you think it is? (if not, go back to your value propositions). How would your customers buy or use your product / service? Product â&#x20AC;&#x2DC;Solutionâ&#x20AC;&#x2122; Presentation: Which assumptions / hypotheses are you going to present?

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Do they first ask other people for advice before they use / buy the product? Which model of collaboration would your partners like? Why wouldnâ&#x20AC;&#x2122;t the interviewees buy your product or service , although they are excited? How does your partner work? Per project/hour, reselling? Are you going to conferences, seminars, etc.? If so, which? How many of the interviewees would tell a friend? Which magazines, blogs, (Youtube / Vimeo) movies did you use? How many of the interviewees would like your product / service without adjustment? Although it is too early to find partners, you should approach them yourself. What do they think of your product / service? How many of the interviewees would like an extra feature? What partners have learned from previous customers about your problem / product / solution?

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How many of the interviewees understand the product

Do you have customers/revenues/profit?

after a (long) explanation and are excited enough to buy / use? What are the lessons learned in this step? How many of the interviewees donâ&#x20AC;&#x2122;t see anything in your product?

Who are your advisers? (technical problems, domainspecific knowledge, design - product development)

How are we doing? (Every step we will ask some questions about things you have done or have found out) What about your company Facebook and Twitter account? (How many likes? How many followers? What are you going to do with it?)

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Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in your mailbox .


STEP 9 Solution Interviews | Customer risk | Product risk | Market risk| AIDA |


Solutioninterviews What will you learn during your interviews? With a prioritized list of problems and an understanding of the existing alternatives, you're ready to determine a solution and test.

blem. 

Build enough of the solution (prototype, screenshoots) to determine their reaction.

The demo should be quickly adjusted with feedback for the Solution Interviews thereafter.

The demo should use data that seem real.

Solution Put your presentation in your portfolio when you use AIDA Solution-Interview.

AIDA is an acronym for Attention, Interest, Desire, and Action.

Attention 

Try to get attention by telling a problem from earlier interviews.

Customer risk: Who has a pain (Early Adopters)?

How do you determine whether you will find the Early

The most effective is identifying and getting the problem of the interviewee clearly.

Adopters? Product risk: What is the minimum of functions to your

Interest

product or service to launch? (Solution)

Market risk: What is your pricing model? (Revenue

Use the demo to show what your UVP will be.

Streams)

Desire

Do your customers want to pay for your solution?

Create desire scarcity and price.

What price are they willing to pay?

Action

Test your solution.

Use a demo to help you to visualize your solution and confirm whether that solves their pro-

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Get an oral, written promise or payment for your product.


SOLUTION INTERVIEWS Welcome (same problem as with your interview). Determine the customer segment, where the interviewee belongs (you can skip if you interviewed the person before).

Tell a Story '(which determines the ProblemContext) 

Tell the top three issues in a 'story'.

Question: do you recognize this?

If you do not have a strong recognition, then it is again a problem interview. If yes, continue with your solution interview.

Demo (Test Solution) 

Treat every problem and show a demo of how you're going to fix that.

Pause after every problem and ask if they have questions.

If you've followed all the problems then imagine that you are going to prioritize any problems / solutions and ask some questions:

Which part of the demo you recognize the best?

Which part (solution) is not needed?

Are there things / features that you miss?

Ask why.

Many listen, ask for feedback. Solution-interview-script

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Test your pricing (Revenue Streams).

The right price is the price that the customer

When to stop interviewing?

accepts (though with little weather mode).

You are ready when you:

Test price is the 'starting price' that you previ-

can identify (segmentation) early adopters .

ously specified for this customer segment.

have found a 'must-have' problem.

They do not ask for an overall price. Tell them

Can define the minimum set of functions / fea-

 

you pricing and check whether they accept this. 

tures, to solve this problem.

Determine who is protesting, who accepts and

have a price that customers are willing to pay.

who doubts.

can build this business (using the an 'on the back of a beer mat’ calculation)?

FollowUp 

Ask if they want to test if it's ready. Your product or service.

Ask for referrals to others.

Results 

Did you really solve the problem?

Review the results daily.

Add features or remove functions.

Try to determine whether features of your product or service can be taken away from the interviewee.

Confirm previous hypotheses.

Adjust your price model.

If there is no resistance, test a higher price, there are too many 'no's', lower your price.

Look for patterns.

Who are your early adopters? What price are they willing to pay?

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Can you set up a viable business for this price?


Questions

STEP 9

Do customers think that their problem will be solved, after they have seen your presentation?

Is it for them the creation of something new or just a better version of something else / that already exists?

Solution-Interviews How many people have you spoken to? (Minimum 20)

Are they excited? (state their responses here)

Do you (and potential investors) jointly agree that you have a problem, that enough people worry about to set up a prosperous business? If not, time to reconsider your value proposition and search for a more serious problem.

How many people said "I want it now," or "when can I have this?"

□ Yes □ No Create a Product "Solution”- Presentation. What does this look like? Describe it and put it in your portfolio?

How many people said they consider the problem important enough to find that they will advise their friends and family?

Which revised assumptions about the product itself are mentioned in there?

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How many people said "I want it now," or "when can I have this?"

How are we doing? (Every step we will ask some questions about things you have done or have found out).

What issue do you have to solve first?

What about your company Facebook and Twitter account? (How many likes? How many followers? What are you going to do with it?)

How many people grade the problem between 8, 9 or 10 (serious problem as such)?? Do you have customers/revenues/profit?

How many people said they would pay for that difference?

Are there enough customers to make for a comprehensive Business Opportunity??

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What are the lessons learned in this step?


STEP 10 Your first MVP | Minimum Viable Product | Customers |


Use a Minimum Viable Product (MVP), during the search for product-market fit. It helps startups avoid building stuff that customers donâ&#x20AC;&#x2122;t want. Alexander Osterwalder

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MVP Eric Ries, described the concept of the Minimum Viable Product in his book in ‘The Lean Startup’. Ries is referring to the quest for the fastest way to test your idea. Don’t spend many months and dollars to build a perfect product if your customers, which apparently still need an adjustment of your product or

Types MVP’s

service, have questions. So consider the

Explanation Groundbreaking Video - possibly on Youtube or Vimeo;

fastest and cheapest way to test your

value proposition;

product. In practice (by users) the Minimum Viable Product will save you a lot

Wizard of Oz MVP - resembling a working product or application, but functions are performed

of unnecessary investments, gives you fast insight into the real needs of users,

A Landing Page registration page explaining your

manually; 

Concierge MVP manual steps;

Piecemeal MVP - intermediate version between

meanwhile, creates a valuable group of

the Wizard of Oz and Concierge, MVP based on

early adopters.

existing tools; 

Crowdfunding-MVP;

MVP with one function.

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"Are you still interested in trying this product /

Conducting MVP Interviews An MVP interview is NOT a pitch, you want to learn as much as possible from your (future) customers. Essential for MPV interviews is that you carry it out the face-to-face, possibly via Skype.

service?" And "You can register by clicking the link above.' Ask questions at the conclusion of the call, such as: “What did you think of the process?”, “Can we improve something?”, “What is the most annoying?”, “What is most striking?”, “Now do you

In the

is a presentation on MVP’s.

MVP-Interview-Script: an example of a Landing-page

know what you should do?”

TIPS 

Tell at the beginning that you will show that you want the product feedback and if he/she is interested in, that you will give more features and infor-

mation. Ask a few questions. Here it is really worthwhile to you, but also the interviewee, think out loud.

Show your Landing Page

 

"Feel free to look around, but please don’t click on anything yet." Is the purpose of the product or service clear? Ask questions such as "What would you do?" And "Why?" Show the prices page. "Feel free to navigate around the site." By the time he goes to the pricing page: "This is the pricing model, which we think of, what do you think?" Let the interviewee register

110

Always ask what is wrong with the MVP, what could be better. Always ask: "Why, why and why?" Determine to what the interviewee is one customer segment (geographic, demographic, values and norms). Make the interview a real conversation. Make sure you get insight into all three MVP problems (functional, social and emotional) during the interview. Do not limit yourself to interviews with people who you think belong to your client segment.


tions: Is it important or essential for a client? Did se-

TIP There are different websites, where you could set up a Landing page for free:  www.weebly.com  www.moonfruit.com

Tool for MVP interviews

veral clients have been appointed, that they are willing to pay more money?

MVP- Flyer or Presentation 

Start with your UVP, problem and solution;

Make a big promise about your UVP;

Write a short headline that sums up what your product does for the customer (ADVANTAGE);

Clear head: tell what the end result is what the customer wants, put the relationship between

(This Tool is in the

)

the problems and tell when; 

Do something unexpected, attract attention;

In step 6, we have explained 'Jobs-to-be-done' With

Connecting with the customer (problem);

your MVP interviews template above, is good use. A

Write a short paragraph, in which the problem

job (task) is to solve a fundamental problem that you have with your potential customers MVP. There are

of the client is outlined; 

three types of 'Jobs' (tasks): F = Functional: says something about the operation of the product or service.

information or insights from your interviews; 

Show that you understand the client;

Generating interest / desire (solution);

Tell what your product does in a short paragraph (how to solve the problem);

S = Social: says something about how the potential customer with your product / service wants to be perceived by others.

Customize this text so that it is in line with new

Provide a list of the top three features and describe them as benefits.

E = Emotional: says something about how customer feels or thinks about your product / service. The priority you decide by asking yourself these ques-

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Landing page 

Purpose of the landing page is to test your UVP and obtain a list of potential customers that you can interview.

Do not give away too much information about your product, focus on the problem, not the solution;

Start simple. Later you can expand it to a full marketing-site;

Select a product name;

Ensure that Twitter and Facebook pages are available by that name;

Keep it simple for the time being, it is your UVP;

It's you to attract attention by indicating a problem that you understand visitors (no product pitching);

Follow your page with SEO and other statistical features (standard in Facebook);

Put your UVP in the title tag and place the right search terms, NO product name.

Do not even worry about a logo, if you don’t have already.

Collecting email addresses is the most important activity.

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Use if necessary a 'call to action' button.

A minimum viable product (MVP) is the version of a new product which allows a Startup to collect the maximum amount of validated learning about customers with the

least effort. Eric Ries


Questions

Describe your MVP-1.0

STEP 10 How's your first MVP (1.0) look like?

Product-market-fit Have you found a product market fit?

□ Yes □ No □ I don’t know yet Is the problem, in the eyes of customers, well solved by your solution?

Who are your customers and how can you reach them?

Can you earn money, and let your company grow?

□ Yes □ No □ I don’t know yet

□ Testproduct - paper □ Testproduct - prototype □ Mockup- Screenshots □ Presentation □ Youtube movie □ Storyboard □ Website □ Landing page □ Leaflet /flyer □ Wizard of Oz □ Crowdfunding □ Other

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How many interviews did you carry out with your first MVP?

What are the lessons learned in this step?

What were the key comments? What features should be eliminated?

How are we doing?

Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in

(Every step we will ask some questions about things you have done or have found out) What about your company Facebook and Twitter account? (How many likes? How many followers? What are you going to do with it?)

Do you have customers/revenues/profit?

114

your mailbox.


STEP 11 MVP 2.0 | Product - Market-fit | MVP |


Product-Marketfit You have a product market fit, if...   

customers want to buy your product as soon as

would be “very disappointed” without your product, there is a great chance you can build sustainable, scalable customer acquisition growth on this “must have” product and you have found a PRODUCT-MARKET-FIT.

you produce it.

This 40% benchmark was determined by comparing results

you have to hire ASAP sales- staff and customers

across hundreds Startups. Those that were above 40% are

employees.

generally able to sustainably scale the businesses; those

reporters call you, because they have heard about

significantly below 40% always seem to struggle.

you and they want to talk about your product / service.

This is a simple test: The Sean Ellis test. The key question is: How would you feel if you could

no longer use [product]? 1. Very disappointed 2. Somewhat disappointed 3. Not disappointed (it isn’t really that useful) 4. N/A – I no longer use [product]

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If you find that over 40% of your users are saying that they


Questions

STEP 11 Product-market-fit Do you have found a product market-fit?

□ Yes □ No □ I don’t know yet Is the problem, in the eyes of customers, well solved by your solution?

Who are your customers and how can you reach them?

Can you earn money, and let your company grow?

□ Yes □ No

□ I don’t know yet Describe your MVP-2.0

How's your second MVP (2.0) look like?

□ Testproduct - paper □ Testproduct - prototype □ Mockup- Screenshots □ Presentation □ Youtube movie □ Storyboard □ Website □ Landing page □ Leaflet/flyer □ Wizard of Oz □ Crowdfunding □ Other 117


How many interviews have you had with your second

Do you have customers/revenues/profit?

MVP?

What are the lessons learned in this step? What were the key comments? What features should be eliminated?

What percentage of your clients say they would be very disappointed if they could not use your product? (Sean Ellis-test)

Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in your mailbox. .

How are we doing? (Every step we will ask some questions about things you have done or have found out) What about your company Facebook and Twitter account? (How many likes? How many followers? What are you going to do with it?)

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STEP 12 Last MVP and Pivot | Product Market-fit | MVP | Pivot | TAM | SAM |


Last week

L.T.V. (LifeTime Value) of a customer. C.A.C. can be calculated by determining (including salaries and other personnel expenses) the total cost of sales and marketing of the company for a certain period

It's good, now that you have done all the Customer Development-

and dividing it by the number of customers that the company acquired in that period. L.T.V. can be calculated by looking at the average revenue

steps, to critically review the whole

per user (Average Revenue Per User / Customer

program and make the right adjust-

(ARPU) throughout the life of the relationship with a

ments.

customer. Steve Blank argues that a Startup has found an initial indication of the appropriate business model, when the cost

That means you adjust the following (place the adjustments also in your portfolio):

of acquiring customers are less than the income from the customer.

Your Golden sentence

TAM and SAM

Your Customer values

How big is your pie? TAM - Total Available Market

Your business Model Canvas

MVP-0.0

Value Proposition Canvas

TAM/SAM

Business Model viability In order for a company to be profitable, a startup has to find a balance between two variables: C.A.C (Customer Acquisition Costs) - The cost of acquiring customers;

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How many people would be interested in your product?

How big is the market (%), if they would all buy it?

How many units is that?

How big is your piece of the pie?


SAM - Served Available Market 

How many people use similar products?

How big is the market (in money), if they would all buy it?

How many units are that?

How much can I buy (to) eat? Target Market

To whom am I selling during the first year?

How big is the market (money), if they would all buy it?

How many units are that?

Get: make sure that customers know that you are there, acquisition and guarantee that the C.A.C. as low as

Startup next step Now you have looked at the last 12 steps for your scalable and repeat-able business model (and found!), you have to take the next step: knowledge and information for optimal

possible; Keep: retaining customers through loyalty programs, product updates and service of high quality; Grow: raising the L.T.V.

management of your company. This involves matters such as setting up budgets, tax returns, pitching and networking, finding investors, offers writing and more. A lot of information on these topics are in the

.

Get-keep-grow Now that you've found the right product-market fit and therefore your repeatable and scalable business model, you can start your business. Steve Blank has this on the Funnel:

121


Questions

STEP 12 Product-market-fit Do you have found a product market-fit?

□ Yes □ No □ I don’t know yet Is the problem, in the eyes of customers, well solved by your solution?

Who are your customers and how can you reach them?

Can you earn money, and let your company grow?

□ Yes □ No 122

□ Don’t know yet Describe your MVP-3.0

How's your third MVP (3.0) look like?

□ Test product - paper □ Test product - prototype □ Mockup- Screenshots □ Presentation □ Youtube movie □ Storyboard □ Website □ Landing page □ Leaflet/flyer □ Wizard of Oz □ Crowdfunding □ Other


How many interviews have you had with your third MVP?

Did you expect the size of the market as you had checked by customer feedback and data (Google)?

What were the key comments? What features should be eliminated?

What is your TAM? (Total Available Market)

Is this market growing significantly?

Are you sure now whether the customer will often buy / your product / service and that he will recommend other people to do the same?

What is your SAM? (Served/Serviceable Available Market) Did you find, in your investigation, unexpected costs and / or revenues?

Did you validate your TAM (Total Available Market) and SAM (Served/Serviceable Available Market)? Did you find, in your research, unexpected threats (unknown competitors, etc.)?

What is your SOM (Serviceable Obtainable Market)? How many customers are now saying that they want to buy your product / service ? Number of early-adopters?

123


What is the number of passionate evangelists? Notify your customers that your solution is a great improvement in their day / problem? Now do you know who your customers are and how to reach them? Did you find new segments or did you discover that you expected segment is not relevant? You can now create a client-archetype for each of your customer segments? Do you know now where to find them?

Do you know what your potential customers read, which trade shows they visits, gurus they follow and where they go for information on new products?

Can you draw a day in the life of your client? If so, how does it look like? Can you draw a diagram, showing step-by-step development of the product from the beginning to the client, along with the cost and marketing / sales? (put this drawing in your portfolio) Give a review of the actual costs (staff time, overhead, etc.) of sales to 50 customers. Respond some segments better, faster or deliver larger orders than other segments?

124


If you add up all the costs, are you confident that you can

Combine these data to make an accurate net revenue fore-

get more customers for the same price per customer?

cast for at least the coming year and the following year (estimated).

Do some research: If you could increase your marketing campaign five times over, would your results also be five

Determine the best estimate of the total turnover of the

times as high?

company which are received from customers, quarterly directly.

How high are the costs for 50 customers? Revue channels costs (margin, fees, promotional expenses, etc.) and deduct the income channel? What is the cost if you have 10 times as many customers? Add the channel net revenues to the total direct revenue per quarter and to the total enterprise to determine total What are the potential sales revenue expectations over

sales.

time?

Pull off the quarterly operating costs from the revenues. What are your Customer Acquisition Costs (C.A.C.)?

125


What are the lessons learned in this step? Give three different forecasts for (near) future.

□ Good □ Very goodl □ Booming How are we doing? (Every step we will ask some questions about

things you have done or have found out) What about your company Facebook and Twitter account? (How many likes? How many followers? What are you going to do with it?)

Do you have customers/revenues/profit?

126

Do you want feedback on your answers? Apply for an account (info@startupwerkboek.nl). You can digitally complete the questions and receive the answers in your mailbox.


Itâ&#x20AC;&#x2122;s not the beginning of the end, but it is perhaps the end of the beginning

127


Literatuur In the

are several additional books.

Simon Sinek - Start with why - (oktober 2011) ISBN: 0241958229 Eric Ries - The Lean Startup – (oktober 2011) ISBN: 90670921602 Alexander Osterwalder - Business Model Generation (august 2010) ISBN: 0470876417 W. Chan Kim - The blue ocean - (february 2015) ISBN: 91625274491 Tim Clark - Business model you - (mei 2012) ISBN: 9013103723 Martijn Driessen - De ondernemende ondernemer (november 2010) ISBN: 9081101951 Ruud Hendriks - I’m hungry - (april 2013) ISBN: 9461561091 Steve Blank - The Startup Owner’s Manual - (maart 2012) ISBN: 0984999396 M. Lubberding - My Moodboard Huisstijl oriëntatie werkboek (2013) ISBN: 9461900198 Ash Maurya - Running Lean ( (2012) ISBN 9781449305178 Pieter Jongerius Et Al. - Get Agile (2014) - ISBN 9063693028 Cindy Alvarez - Lean Customer Development (2014) ISBN 1449356354

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Alexander Osterwalder & Yves Pigneur—Value Proposition Design (2014) ISBN 1118968050


Creative Commons License

ers from doing anything the license permits. Check the website of Creative Commons for the complete license:

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You are free to: 

Share — copy and redistribute the material in any medium or format

Adapt — remix, transform, and build upon the material

for any purpose, even commercially.

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Under the following terms Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original. No additional restrictions — You may not apply legal terms or technological measures that legally restrict oth-

129


Justification

3.

Eric Ries with Lean Startup and MVPs

4.

Steve Blank with Customer Development

5.

Ash Maurya with the interpretation of Customer Development, through the Problem - and Solution interviews.

This Startup Workbook is a product of Saxion Valorisation Enterprise BV (SAVaE) and published under the auspices of the Center for Entrepreneurship Saxion. The first version of the workbook has been realized in 2014 within the RAAK SME funding project "Virtual expectation, physical experience" (an initiative of the Research Design and Technology Saxion), and is being used in business development trajectory for students who graduate within their own business in the Saxion Startup Center.

This workbook largely follows a number of methods of people, who have in recent years been dealing with Startup theories. Many texts, tools, and quotes also come from them: 1.

Simon Sinek with the Golden Circle, why do you do what you want to do?

2.

Alexander Osterwalder with its Business Model Canvas and Value Proposition Design

130


YOUR QUEST FOR A SCALABLE AND REPEATABLE BUSINESS MODEL Do you want to develop your idea into a promising business? Do you want to run your own business? Then you're a 'startup'. You really can use this workbook. This workbook will help you in just twelve steps, to find your optimal business model. You will learn what problem you want to solve for your customers, you will discover where your customers are and you will learn that they want to pay for your product or service. In this workbook you will read about different startup methodologies and theories. You practice with a handy toolbox and discover the latest developments you need to know. As Startup â&#x20AC;&#x2DC;Doing and learningâ&#x20AC;&#x2122; are central: investigate what is working, learn from your own mistakes and make adjustments where necessary.

A must-read for any novice entrepreneur! Berrie Coelman is project leader of the Startup Center, part of the Center for Entrepreneurship at Saxion Enschede. Berrie annually guides 60 students who graduate within their own company. Experimenting, learning and DIY are the main starting points - according to Berrie - for a successful startup.

See for more information about Berrie Coelman: http://nl.linkedin.com/in/berriecoelman

StartupWorkbook English version 0.1  

Your quest for a scalable and repeatable businessmodel