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Business Model CompetitionWorkshop #2

November 5, 2013

Thomas L. PetersonEntrepreneurship Faculty

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SCALE IDEA

LAUNCH MODEL

Academic Year 2013-14 Execution Model

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T

Idea

Model

Execute

Plan

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T

IDEAreally means

INNOVATE

MODEL

meansVALIDATE

EXECUTEmeans

LAUNCH

PLAN

meansFORECAST

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IDEA

Principles of Innovation:- Innovators DNA

- Idea Generation and Development

Initial Pain or Problem Statement

Initial Solution

- Early Hypothesis- List of Early Assumptions

Differentiation

Model

Execute

Plan

MVP

MVP

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MODEL

Testing & Validation

- Vetting hypothesis thru

Interviewing customers,

Partners, vendors, etc.Multiple Iterations of

Learning & Pivoting

Evidence of Validation

Work Papers

Initial IP

MVP

MVP

Execute

Plan

Idea

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FORECAST for SCALE

1. Finished Pain

2. Finished Solution

3. Business Model Progress/Results4. Underlying Technology (Secret Sauce, Blue

Ocean, Disruption)

5. Competitive Analysis

6. Validated Revenue Streams

7. Validated Marketing & Sales Plan

8. Leadership Team (Qualifications)9. Financial Summary*

- Income projections w/ validated assumptions

- Cash flow projection w/ validated assumptions

- Projected cash requirements, timing

10. Milestones, Current Status, and Scaling

11. Draft Executive Summary

*Projections and funding requirementshave been validated in MODEL andextrapolated accordingly.

**Milestones prove currentmarket traction, current state

of the company, and next steps

for scaling.

Execute Idea

Model

FINAL DRAFT of

Executive Summary

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EXECUTE

Plan Model

Idea

1. Legal Work

- Articles of Incorporation- Shareholder Agreement

- CAP Table

- Non Competes, Confidentiality, etc.

2. Team Building & Development

3. Scaling Plan Execution

4. Fund Raising- F&F, Accelerator, Seed Funds, VCs

5. Leadership & Culture Development

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MODELBuild MVP

0 No Money

Until Here

ModelTest

Learn

PivotIterate

PricingRevenue streams

Market channels

Customer segmentsGo-To-Market

strategies

Collective Wisdom

________ ________

________ ________

________ ________

________ ________

________

________________

________ Hypotheses Sell G-T-M________ ________

________ ________

________ ________

________ ________

________ ________

Elevator Pitch

Holes = Gaps in service, opportunities, differentiators

Validate Validate

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Business Model Canvas

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The Business Model Canvas

Includes elements to in-/validate an idea.

Mission is to leave the building, interview

potential paying customers and LISTEN.

Invite a monologue and take notes.

What is The Business Model Canvas? Key Partners, Key Activities, Key Resources

Value Proposition, Cost Structure, Revenue Streams

Channels, Customer Relationships, Customer Segments

A method for collecting/organizing insights

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What makes the difference?

Innovation is creation using an existing foundation; it is

building upon an earlier idea. Use the tools of brainstorming, diversity and carefully

listeningto find the market pain to nail before scaling.

Scaling means SALES, what you may think is a dirty little

word; but it defines sustainable success. Value sales. Ideas are nothing; execution is everything. Executionnot just brilliant ideasis what brought us the greatinnovations in technology.

Permit yourself the freedom and flexibility to admit your

weaknesses, play to your strengths, listen to everyone,adapt, pivot and start all over again.

All this is where innovation originates.

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Validation is getting outside the building

It is talking with strangers.

It cant be your Mom

It cant be your roommate

It cant be your best friends

It cant be someone you work with It has to be someone who does not love

you

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Five Magical Phrases

Get a MONOLOGUE started:

Share with me

Tell me about

Help me understand

Clarify for me

What is your opinion

Could you elaborate

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Validation is getting outside the building

It is taking NOTES

Notes are to remember what was said.

You cant remember after 10 interviews.

You will gather positives/forget negatives.

You will find you were autobiographical.

Competitive advantage in invitationalcompetitions is: VALIDATION of customerpain.

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Business Model CompetitionWorkshop #2

November 5, 2013

Thomas L. PetersonEntrepreneurship Faculty