12. Lean startup

Question 1

4 core things to get from an idea to a business model:

Answer 1

1. Mindset - need to think like an entrepreneur - what problems out there can be solved?
2. Business idea - clear out what the idea is about, a product? B2C? Competitors to be aware of?
3. Financing - how do we fund this? Funding vs bootstrap etc.
4. Business model - think about how to capture value, what is the WTP? Who wants this?

Question 2

Why is a business plan not very helpful?

Answer 2

Because it is too detailed and as soon as you are finished, it is already outdated. Go for a lean canvas instead.

Question 3

4 cornerstones of market & sales:

Answer 3

1. Direct sales - call and visit customers and find early adopters.
2. Inbound & PR - website, find a good story to tell, awards etc.
3. Partner - find big players with the same target group that does not compete with your product and share values and mission
4. Referral - share your success and support other start-ups

Question 4

What is the main obstacle with contact and marketing?

Answer 4

That you must know your customer cements and sales funnel really well.

Question 5

What can you do to convince stakeholders of your great idea?

Answer 5

1. Demonstrate a product-to-market-fit through maximum learning with monomer effort
2. Pivoting (change market direction if it doesn’t match the needs). Learn fast, iterate faster.
3. Understand the whole value chain of the business model, you might have missed something/someone.

Question 6

Why is it important to test the market need as soon as possible?

Answer 6

Because the top 1 reason to why startups fails is because they have awesome product but not market need. Market need is essential so test it as soon as you can.

Question 7

MVP vs prototype

Answer 7

MVP is a functional and operational product that can actually be sold even though it only has the basic functionalities. A prototype is just a model or simulation that you can’t make money on. an only use it to showcase your idea.

Question 8

Why are MVPs good in lean?

Internally and externally

Answer 8

Internally: It gives an understanding of how feasible it is (economically) and what resources are needed for the development, as well as the time to market (speed) it can have.

Externally: gives an understanding of the market need (do this really solve the problem?), and we get insight into customers WTP, as well as what types of features should be developed in the next iterations (feedback).

Question 9

You need to be ready to pivot and change parts of the business model, what are the 10 types of pivots?

Answer 9

1. Zoom-in-pivot: a feature becomes a product.
2. Zoom-out: the product becomes a feature among others
3. Customer-segment pivot - add/change segment
4. Customer need pivot: the need change
5. Platform pivot: from app to platform and vice versa.
6. Business arch pivot: going from high margin low volume to low margin with high volume
7. Value capture pivot: different way to make money
8. Engine of growth pivot: change your way of growing
9. Channel pivot: change diet. channel
10. Tech pivot: same solution but new tech