From Ideas to Business May 14, 2014 Anilesh Seth Co Founder & CEO, KROW (www.krow.in ) Partner, ANSR Consulting (www.ansrconsulting.com ) www.slideshare.net/anilesh http://In.linkedin.com/in/anileshseth [email protected] [email protected]
TiE Institute Workshop- Ideas to Business
May 06, 2015
This workshop was aimed at budding and existing entrepreneurs who :
- Have an idea and want to evaluate it and take the next steps in building their business
- Entrepreneurs who have already set up a business and but are finding it difficult to gain traction
Take aways from the workshop:
- Gain an introduction to formal tools and techniques (the core focus will be on the “9 Grid Business Canvas”) that can be used to help you define and evaluate your business idea
- Understanding how to use these tools as a foundation to build your business plan on
Workshop Agenda:
• The “softer” aspects of converting your idea into a business
• The use of tools (such as SWOT and the Positioning Grid) to help position your offering
• An introduction to the 9 Grid Business Canvas; explanation of the BC using a real-life example
• Moving to a business plan
• Execution
Facilitated by Mr. Anilesh Seth
- Have an idea and want to evaluate it and take the next steps in building their business
- Entrepreneurs who have already set up a business and but are finding it difficult to gain traction
Take aways from the workshop:
- Gain an introduction to formal tools and techniques (the core focus will be on the “9 Grid Business Canvas”) that can be used to help you define and evaluate your business idea
- Understanding how to use these tools as a foundation to build your business plan on
Workshop Agenda:
• The “softer” aspects of converting your idea into a business
• The use of tools (such as SWOT and the Positioning Grid) to help position your offering
• An introduction to the 9 Grid Business Canvas; explanation of the BC using a real-life example
• Moving to a business plan
• Execution
Facilitated by Mr. Anilesh Seth
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Transcript
From Ideas to Business May 14, 2014
Anilesh Seth Co Founder & CEO, KROW (www.krow.in) Partner, ANSR Consulting (www.ansrconsulting.com) www.slideshare.net/anilesh http://In.linkedin.com/in/anileshseth [email protected] [email protected]
From ideas to business
• The softer aspects of converting your idea into a business
• The use of tools to help position your offering
• An introduction to the 9 Grid Business Canvas
• Moving to a business plan
• Execution
Note several slides on the BMC taken from http://www.slideshare.net/malayeri/introduction-to-business-model-canvas?qid=ce4d6e96-f236-42b7-bf7c-8ab86d761662&v=qf1&b=&from_search=1
Where does reality lie?
Where does reality lie?
The softer (or “harder”) aspects of a startup
• Its about your conviction
• Its about seriously hassling your family
• Its about aiming for the moon and landing up on Pluto
• Its about perseverance
• Its about getting the right team….and making it work with them
• Its NOT about “I’ll do this till I get a job”
• Its about getting it wrong till you get it right
(Notice, I didn’t talk about “Money”)
Examples of start ups that have modified their direction
Name of company More info Changes
makemytrip http://en.wikipedia.org/wiki/Makemytrip
#History_and_Growth
Founded in 2000 it started by providing
air travel options for the US-India
corridor for Indians. Today it provides
additionally holiday solutions and is a
big player in India
redbus Brick and mortar outlets.
paypal http://chargify.com/blog/6-companies-
that-succeeded-by-changing-their-
business-model/
Cryptography company to means of
transmitting money via PDAs to online
payment system
YouTube http://mashable.com/2011/07/08/startup
s-change-direction/
Started as a dating site called "Tune In
Hook Up,“ & morphed to simply sharing
videos online
MingleBox http://www.nextbigwhat.com/indian-
startups-that-pivoted-successfully-297/
Started as a social network &
transformed into an educational content
company
Flipkart http://www.nextbigwhat.com/indian-
startups-that-pivoted-successfully-297/
Moved from selling books to everything
Some really stupid stuff….
• “I don’t need a mentor”
• “Its just about building a website…and then watch the magic happen”
• “I know they do it too, but I am different because……”
• “You should see my powerpoint deck, its awesome”
• “We have a terrific product”
• “Marketing is simple…..we just need to build a Facebook page”
So what are the building blocks of successful startups?
Target segment (WHO) Product/Service (WHAT)
Addresses a need or a problem
“better” than others
TEAM ATTITUDE
Some tools of the trade: the SWOT analysis STRENGTHS - Your proposed
features/differentiation - Your agility - Your team
WEAKNESSES - Financial - Lack of a key skill set : eg Digital Marketing
OPPORTUNITIES - Spaces/markets/segments not occupied by your competition - Size of market/no of players - Market growth
THREATS - Competition - New government regulations?
INW
AR
D F
AC
ING
O
UTW
AR
D F
AC
ING
The product position map
High BHP
High Price
Low Price
Low BHP
A
B
C
D
Example: Motorcycles……or motorized two-wheelers…….only males or females also? AGE GROUP?
The axes you use will depend upon: - What need you are addressing for what segment?
The Business Model Canvas
A Business Model for a company is all about creating value for itself while delivering a product or service to its customers. The BMC was originally proposed by Alex Osterwalder
The Business Model Canvas
1/2 2/1 3/4
4/3
5
6
7 8
9
Value Proposition
It is not about your idea or product
It is about solving a NEED or PROBLEM
It is about SATISFYING a customer need
(and defining WHO are your customers are)
Customer Segments
WHO are they? Types of customers?
For whom are we solving the problem and creating value?
Who are our most important customers?
WHY would they buy?
Channels
Through which channels do our customer segments want to be reached?
Offline: Events
Online: Social Media
Which ones are most cost effective?
Customer Relationships
How do you GET, KEEP, GROW your customers?
Revenue Streams
How do you make money from each customer segment?
What value is the customer paying for?
Revenue Models are the strategy
Pricing is the tactics
Key Resources
What are the most important assets to make your Business Model work?
Key Partners
Who are the key partners and suppliers to make your business model work?
What key resources are we acquiring from them?
What key activities do they perform?
Key Activities
What are the most important things you should DO to make the businessmodel work?
Production?
Problem Solving?
Supply Chain Management?
Costs
What are the costs to operate the business model?
• What are the most important costs?
• What are the most expensive costs?
• What key activities are most expensive?
• Fixed cost / Variable cost?
Case Study - Flipkart
Flipkart is an Indian e-commerce company founded in 2007, by Sachin and Binny Bansal
Key Partners
Key Activities
Key Resources
Value Proposition
Customer Relationships
Channels
Customer Segments
Revenue Streams Cost Structure
Convenience Wide Selection Cheaper Trust (COD)
Key Partners
Key Activities
Key Resources
Value Proposition
Customer Relationships
Channels
Customer Segments
Revenue Streams Cost Structure
Urban Indian Book Lovers Internet connected people with no credit cards First time online shoppers
Convenience Wide Selection Cheaper Trust (COD)
Key Partners
Key Activities
Key Resources
Value Proposition
Customer Relationships
Channels
Customer Segments
Revenue Streams Cost Structure
Urban Indian Book Lovers Internet connected People with no credit cards First time online shoppers
Web
Convenience Wide Selection Cheaper Trust (COD)
Key Partners
Key Activities
Key Resources
Value Proposition
Customer Relationships
Channels
Customer Segments
Revenue Streams Cost Structure
Email Online Chat
Urban Indian Book Lovers Internet connected People with no credit cards First time online shoppers
Web
Convenience Wide Selection Cheaper Trust (COD)
Key Partners
Key Activities
Key Resources
Value Proposition
Customer Relationships
Channels
Customer Segments
Revenue Streams Cost Structure
Email Online Chat
Urban Indian Book Lovers Internet connected People with no credit cards First time online shoppers
Web
Convenience Wide Selection Cheaper Trust (COD)
Book sales
Key Partners
Key Activities
Delivery Staff Technology Capability urces
Value Proposition
Customer Relationships
Channels
Customer Segments
Revenue Streams Cost Structure
Email Online Chat
Urban Indian Book Lovers Internet connected People with no credit cards First time online shoppers
Web
Convenience Wide Selection Cheaper Trust (COD)
Book sales
Key Partners
Key Activities
Delivery Staff Technology Capability urces
Value Proposition
Customer Relationships
Channels
Customer Segments
Revenue Streams Cost Structure
Email Online Chat
Urban Indian Book Lovers Internet connected People with no credit cards First time online shoppers
Web
Convenience Wide Selection Cheaper Trust (COD)
Book sales
Publishers
Key Partners
Key Activities
Delivery Staff Technology Capability urces
Value Proposition
Customer Relationships
Channels
Customer Segments
Revenue Streams Cost Structure
Email Online Chat
Urban Indian Book Lovers Internet connected People with no credit cards First time online shoppers
Web
Convenience Wide Selection Cheaper Trust (COD)
Book sales
Publishers
Supply Chain Optimization Delivery Optimization SEO Auto Recos
Technology, Warehouse, Deep Discounts
Moving to a business plan
• Pick the key building blocks of what you need to do: • People, capability, relationships/partnerships, working capital etc
• Prepare a detailed short term plan (for me, 12 months works well) and a high level future one
• Build the plan keeping in mind that hopefully sooner rather than later you need to build one for prospective investors
(See example)
Execution
• Focus on cash flows and chasing milestones/metrics
• Remember that Rome wasn’t build in a day. Focus on key foundational pieces and build it up
• Review every piece ofb feedback that you get from customers: need to decide if it’s a trend or a one off…..
• Get into a daily huddle….
• Identify and address any team issues right up front. Not doing so can be the root cause for failure
Thank you!
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