Startup Thinking 101 for Libraries: Workshop
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The document outlines a course on entrepreneurship (MCS*4100), focusing on startup thinking principles and the importance of customer development and validation. It emphasizes the necessity of creating a dynamic business model based on observation and customer feedback, as well as mapping out the various components of a business model canvas. Additionally, it offers recommendations for addressing user needs and includes frameworks for testing business assumptions.
Startup Thinking 101 for Libraries: Workshop
- 1. 6gMONTEREY ! IL 2014 ! CALIFORNIA ! zzzzzzzzzzzzzzzzzzzzzzzz startup thinking 101 M.J. D’ELIA & HELEN KULA UNIVERSITY OF GUELPH UNIVERSITY OF TORONTO MISSISSAUGA
- 2. SECTION No. welcome MCS*4100 ENTREPRENEURSHIP 1 2
- 3. MCS*4100: ENTREPRENEURSHIP agenda welcome explore the challenge biz model canvas ! customer development discovery & validation wrap 3
- 4. MCS*4100 ENTREPRENEURSHIP objectives ★ apply principles of startup thinking ★ map out a model for a new idea ★ develop a plan to validate your idea ★ focus on creating value 4
- 5. about us O APRIL 8, 2014 Helen Kula Head, Learning & Curriculum Support Team University of Guelph mdelia@uoguelph.ca @mjdelia Librarian, Institute for Management and Innovation U of Toronto Mississauga helen.kula@utoronto.ca @helenkula M.J. D’Elia 5
- 6. MCS*4100 ENTREPRENEURSHIP plans vs. models 6
- 7. MCS*4100 ENTREPRENEURSHIP poor biz plan process 7 built on assumptions (secondary data) assumptions considered > > > “facts” “facts” are not challenged or altered
- 8. MCS*4100 ENTREPRENEURSHIP poor biz plan process 8 plan becomes static (it is not rewritten) company-centric approach productivity is measured against plan > >
- 9. MCS*4100 ENTREPRENEURSHIP first contact ! “no plan survives first contact with its customers.” ~ Steve Blank 9
- 10. MCS*4100 ENTREPRENEURSHIP biz model approach 1 0 built on assumptions (secondary data) assumptions considered > > > “facts” “facts” are not challenged or altered built on observation (primary data) assumptions are acknowledged assumptions altered based on new learning > > >
- 11. MCS*4100 ENTREPRENEURSHIP biz model approach 1 1 plan becomes static (it is not rewritten) company-centric > > approach productivity is measured against plan model continues to be rewritten (dynamic) customer-centric approach productivity is measured by performance > >
- 12. the scenario practice startup thinking
- 13. MCS*4100 ENTREPRENEURSHIP recommendations ★ choose a: ★ user/patron focused product or service ★ new idea or approach ★ challenge that targets a subset of your user population 1 3
- 14. MCS*4100 ENTREPRENEURSHIP scenario ★ public library partnership with local hotels to offer library collections to hotel guests ★ hotels can sign guests up for a free library card during their stay 1 4
- 15. SECTION No. explore the challenge MCS*4100 ENTREPRENEURSHIP 2 1 5
- 16. MCS*4100 ENTREPRENEURSHIP customers / users ★ who do you expect will use your product or service? ★ what problem(s) are you solving for your potential users? 1 6
- 17. MCS*4100 ENTREPRENEURSHIP problem / solution ★ what do your potential users do right now to solve those same problems? ★ why would they choose your solution over their current solutions? 1 7
- 18. MCS*4100 ENTREPRENEURSHIP analogs ★ successful predecessor examples ★ who do you want to emulate/copy? ★ what elements of their approach can you borrow? 1 8
- 19. MCS*4100 ENTREPRENEURSHIP antilogs ★ predecessor examples that did not work ★ what do you want to do differently? 1 9
- 20. SECTION No. biz model canvas MCS*4100 ENTREPRENEURSHIP 3 2 0
- 21. APRIL 8, 2014 customer segments 2 1
- 22. MCS*4100 ENTREPRENEURSHIP customer segments “...defines the different groups of people or organizations an enterprise aims to reach and serve.” ~BMG, p. 20 2 2
- 23. MCS*4100 ENTREPRENEURSHIP customer segments > questions ★ for whom does the company/project create value? ★ who are their most important customers/users? 2 3
- 24. APRIL 8, 2014 value proposition 2 4
- 25. MCS*4100 ENTREPRENEURSHIP value proposition “...describes the bundle of products and services that create value for a specific customer segment.” ~BMG, p. 22 2 5
- 26. MCS*4100 ENTREPRENEURSHIP value proposition > questions ★ what value does the idea deliver? ★ which problem is getting solved? ★ which needs will be satisfied? ★ what bundles of products/services do they offer each customer segment? 2 6
- 27. APRIL 8, 2014 channels 2 7
- 28. MCS*4100 ENTREPRENEURSHIP channels “...describes how a company communicates with and reaches its customer segments to deliver a value proposition.” ~BMG, p. 26 2 8
- 29. MCS*4100 ENTREPRENEURSHIP channels > questions ★ how do the segments want to be reached? ★ how are they reached now? ★ how is the company integrating with customer routines? 2 9
- 30. APRIL 8, 2014 customer relationships 3 0
- 31. MCS*4100 ENTREPRENEURSHIP customer relationships “...describes the types of relationships a company establishes with specific customer segments.” ~BMG, p. 28 3 1
- 32. customer relationships > questions ★ what type of relationship does each segment expect? ★ which relationships have been established? ★ how are they integrated with the rest of the model? MCS*4100 ENTREPRENEURSHIP 3 2
- 33. APRIL 8, 2014 revenue streams / return 3 3
- 34. MCS*4100 ENTREPRENEURSHIP revenue streams / return “...represents the cash a company generates from each customer segment (costs must be subtracted from revenues to create earnings).” ~BMG, p. 30 3 4
- 35. MCS*4100 ENTREPRENEURSHIP revenue streams > questions ★ for what value are customers really willing to pay? ★ for what do they currently pay? ★ how are they currently paying? ★ how much does each revenue stream contribute to overall revenue? 3 5
- 36. APRIL 8, 2014 key resources 3 6
- 37. MCS*4100 ENTREPRENEURSHIP key resources “...the most important assets required to make the business model work.” ~BMG, p. 34 3 7
- 38. MCS*4100 ENTREPRENEURSHIP key resources > questions ★ what key resources do your value propositions require? ★ distribution channels? ★ customer relationships? ★ revenue streams? 3 8
- 39. APRIL 8, 2014 key activities 3 9
- 40. MCS*4100 ENTREPRENEURSHIP key activities “...describes the most important things a company must do to make its business model work.” ~BMG, p. 36 4 0
- 41. MCS*4100 ENTREPRENEURSHIP key activities > questions ★ what key activities do your value propositions require? ★ distribution channels? ★ customer relationships? ★ revenue streams? 4 1
- 42. APRIL 8, 2014 key partnerships 4 2
- 43. MCS*4100 ENTREPRENEURSHIP key partnerships “...describes the network of suppliers and partners that make the business model work.” ~BMG, p. 38 4 3
- 44. MCS*4100 ENTREPRENEURSHIP key pARTNERSHIPS > questions ★ who are the key partners? ★ who are the key suppliers? ★ which key resources do you need from someone else? ★ which key activities do partners perform? 4 4
- 45. APRIL 8, 2014 cost structure 4 5
- 46. MCS*4100 ENTREPRENEURSHIP cost structure “...describes all costs incurred to operate the business model.” ~BMG, p. 40 4 6
- 47. MCS*4100 ENTREPRENEURSHIP cost structure > questions ★ what are the most important costs inherent in our business model? ★ which key resources are most expensive? ★ which key activities are most expensive? 4 7
- 48. SECTION No. customer development MCS*4100 ENTREPRENEURSHIP 4 4 8
- 49. KP KA VP KR CR CH CS C$ R$ BMG, p. 74-75 biz model
- 50. KP KA VP KR CR CH CS C$ R$ BMG, p. 74-75 biz model ASSUMPTIONS (LEAPS OF FAITH)
- 51. MCS*4100 ENTREPRENEURSHIP customer development ★ four-step framework ★ discover and validate your market ★ built the right product features ★ solve customers’ needs ★ tested methods for acquiring customers ★ deployed resources to scale business 5 1
- 52. MCS*4100 ENTREPRENEURSHIP customer development ★ process by which you question and test the core assumptions of your idea 5 2
- 53. cust dev > 1. customer discovery MCS*4100 ENTREPRENEURSHIP 5 3 customer discovery problem-solution fit proposed mvp ★ a product solves a problem for an identified group of users
- 54. cust dev > 2. customer validation MCS*4100 ENTREPRENEURSHIP 5 4 customer validation product-market fit biz model sales map ★ the market is large enough to build a viable business
- 55. MCS*4100 ENTREPRENEURSHIP cust dev > 3. company creation 5 5 company creation scale execution ★ the business is scalable through repeatable sales
- 56. MCS*4100 ENTREPRENEURSHIP cust dev > 4. company building 5 6 company building scale organization scale operations ★ company grows and operational processes are created to support growth
- 57. MCS*4100 ENTREPRENEURSHIP cust dev > framework 5 7 customer discovery customer validation company creation company building problem-solution fit proposed mvp product-market fit biz model sales map scale execution scale organization scale operations
- 58. MCS*4100 ENTREPRENEURSHIP cust dev > pivot 5 8 customer discovery pivot company creation company building problem-solution fit proposed mvp product-market fit biz model sales map scale execution scale organization scale operations customer validation
- 59. MCS*4100 ENTREPRENEURSHIP pivot “...a structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.” ~ Eric Ries, The Lean Startup 5 9
- 60. MCS*4100 ENTREPRENEURSHIP pivot > based on learning “A pivot requires that we keep one foot rooted in what we’ve learned so far, while making a fundamental change in strategy in order to seek even greater validated learning.” ~ Eric Ries, The Lean Startup 6 0
- 61. SECTION No. discovery + validation MCS*4100 ENTREPRENEURSHIP 5 6 1
- 62. MCS*4100 ENTREPRENEURSHIP cust dev > first stage 6 2 customer discovery pivot company creation company building problem-solution fit proposed mvp product-market fit biz model sales map scale execution scale organization scale operations customer validation
- 63. empathy map > bonus worksheet ★ understanding the mindset of the user ★ influences ★ pressures ★ pains, gains ★ anticipating their needs MCS*4100 ENTREPRENEURSHIP 6 3 BMG, p. 131
- 64. SECTION No. wrap MCS*4100 ENTREPRENEURSHIP 6 6 4
- 65. MCS*4100 ENTREPRENEURSHIP instinct “There is no way to remove the human element--vision, intuition, judgment-- from the practice of entrepreneurship, nor would that be desirable.” ! ~ Eric Ries, The Lean Startup 6 5
- 66. MCS*4100 ENTREPRENEURSHIP reminders for application There are no facts inside your building, so get outside. 6 6 The best startup ideas ideas come from noticing.
- 67. MCS*4100 ENTREPRENEURSHIP reminders for application Determine what you want to learn before you build. 6 7 Build a minimum viable product with the smallest possible feature set.
- 68. MCS*4100 ENTREPRENEURSHIP reminders for application No business plan survives first contact with customers. 6 8 Failure is an integral part of the search.
- 69. evaluation what did you think?
- 70. contact info O APRIL 8, 2014 Helen Kula Head, Learning & Curriculum Support Team University of Guelph mdelia@uoguelph.ca @mjdelia Librarian, Institute for Management and Innovation U of Toronto Mississauga helen.kula@utoronto.ca @helenkula M.J. D’Elia 7 0
- 71. MCS*4100 ENTREPRENEURSHIP references 7 1 Blank, S. & Dorf, B. (2012). The Startup Owner’s Manual. Pescadero, CA: K&S Ranch. Cooper, B. & Vlaskovits, P. (2010). The Entrepreneur’s Guide to Customer Development. Newport Beach, CA: Cooper-Vlaskovits Greenberg, D., McKone-Sweet, K. & Wilson, H. J. (2011). The New entrepreneurial leader. San Francisco: Berrett-Koehler Publishers. Kiefer, C. F., Schlesinger, L. A. & Brown, P. B. (2010). Action trumps everything. Duxbury, MA: Black Ink Press Komisar, J. & Mullins, R. (2009). Getting to Plan B. Cambridge, MA: Harvard Business. Martin, R. (2009). The design of business. Boston: Harvard Business Press. Osterwalder, A. & Pigneur, Y. (2010). Business model generation. Hoboken, NJ: Wiley. Ries, E. (2011). The Lean Startup. New York: Crown Business.