session 2 – civic accelerator - redfworkshop · companies with an online business strategy. my...

Session 1- REDF Accelerator, Powered by the Points of Light Civic AcceleratorUnpacking Hypotheses

Venture Demos & Pitchbacks

“Your success as an entrepreneur is directly predicated on someone else’s ability to quickly and accurately communicate what you do and why it’s important.”

Venture Demos & Pitchbacks

60 seconds:WHY did you create your product / service?

(The problem)

So WHAT? (What does it do?)

HOW does work / HOW is it used?

Venture Demos & Pitchbacks

CivicX Feedback Model: What resonated? What worked? (+)

What wasn’t clear? What are you left wondering? (-)

What can the entrepreneur do differently next time? ( )

Venture Demos & Pitch-backs -ACTIVITY

15 mins: Collect and digest feedback

Small groups: Reflect on feedback; clarify unanswered questions

Iterate on your introduction; practice with peers

Repeat for groups 2 and 3

Return to group for pitch-backs

Daring Greatly

Two Operating Assumptions:More than fear of failure, we often

underestimate the potential of our staff / networks / friends / family / supporters

People underestimate by as much as 50% the willingness of others to help

The more you ask for, the more you get

Anchoring as a negotiation tool

Daring Greatly

“Only those who dare to fail greatly can ever achieve greatly” – Robert F. Kennedy

“Far better is it to dare mighty things, to win glorious triumphs, even though checked by failure...than to rank with those poor spirits who neither enjoy much nor suffer much, because they live in a gray twilight that knows not victory nor defeat.” --Theodore Roosevelt

Daring Greatly – THE GAME

What are you avoiding? What you happen if you ran toward the things that, if achieved, would markedly impact the trajectory of your venture for the better?

List 3 – 5 tasks / asks / to-do’s / challenges that are holding space in the back of your mind.

Criteria: If successful, this would significantly impact your

venture

Likely being avoided for reasons of fear, procrastination, vulnerability, or under-estimation.

Something you can take immediate action around (first steps) starting this week

Daring Greatly – THE GAME

What are you avoiding? What you happen if you ran toward the things that, if achieved, would markedly impact the trajectory of your venture for the better?

List 3 – 5 tasks / asks / to-do’s / challenges that are holding space in the back of your mind.

Criteria: If successful, this would significantly impact your

venture

Likely being avoided for reasons of fear, procrastination, vulnerability, or under-estimation.

Something you can take immediate action around (first steps) starting this week

Daring Greatly – THE GAME

Pick 1 Dare to share with the cohort What is the dare? (What do you want to achieve?)

What is the first step required to attempt this dare?

What steps can you take this week? What will you commit to do by Session 2?

Dares will be refined throughout the week and committed to on Saturday

Dares must pass the peer test: Can it be measured? (Will we know if they attempted or

not?)

Is it bold (truly high stakes?)

What is a value proposition?

Value Proposition:

A solution to a problem that has been consistently and passionately brought up by your customer

Who is your customer?

A customer doesn’t care what if it’s a good idea, or what it can do. They care if it solves their problem.

1. What are you selling?

2. To whom are you selling it?

3. What is their problem?

4. How do you know it solves the

problem?

5. How/why are you better / different?Ingredients of a

Value Proposition

I sell A to B.

My customer (A) has a problem, C. I

know my product solves by customer’s problem when D.

My customer chooses my product because E.

A = my core product

B= my customer

C= my customer’s pain point / problem

D= how/when I know my product is solving my customer’s problem (defined by a customer behavior)

E = how / why I’m different in the marketplace

Case Study: Google

I sell access to / data from internet consumers to companies with an online business strategy.

My customer has a problem, it’s difficult to get people to your website in a crowded internet.

I know my product solves my customer’s problem when online businesses grow their ad-spend proportionately with revenue.

My product solves my customer’s problem by providing the world’s best search / data products that allows for the greatest data and advertising opportunities to the most users than any other company in the world.

Case Study: Google

Other Examples?

Change.org

On your own, take 15 minutes to complete a customer mad lib for your venture.

WATCH OUT! Double-sided markets

Customer vs. End user

We don’t provide, we SELL

Do you have a solution looking for a problem?

Group Activity - Listen up!

Activity

1. Groups of 3 (teams can split up)

2. 15 mins. Each1. Read your value proposition slowly once, then read it

slowly again

2. Present the evidence for each hypothesis and/or discuss what evidence is needed

3. Refine / iterate on your value proposition with feedback from your peers

3. Goals for end product1. Short and concise

2. Specific (e.g “corporations” vs. “manufacturing companies with 200 – 1000 employees.”

3. Awareness of least known hypothesis and how/what to testActivity

What did you learn about your value proposition?

What is the greatest / least known assumption?

Problem

Customer

Solution

What was surprising?

Debrief

Introduction to Business Model Canvas for Social Impact

The Methodology

Source: Business Model Generation

What about Social Impact?

Stakeholders / Customers

The different groups of people or entities an organization aims to reach and serve.There are often different customer groups:• Their needs require and justify a distinct offer• They require different relationships• They are reached through different distribution channels• They have substantially different profitabilities• They are willing to pay for different aspects of the offer•Stakeholder vs. customer vs. beneficiary – do you offer different value propositions to each?

Source: Business Model Generation / Impact Strategy Advisors

Source: Business Model Generation / Impact Strategy Advisors

Value Proposition

The bundle of projects and services that create value for a specific Customer Segment.

• This satisfies a particular problem or need.

• This is the reason why customers turn to one company over another.

• What different types of value do you create for your various stakeholders?

Customer RelationshipsDescribes the types of relationships a company establishes with specific Customer segments.• Customer relationships may be motivated by customer

acquisition, customer retention or enhanced sales.• In what manner do you want to interaction with your

customers and stakeholders?

Customer ChannelsHow a company communicates with and reaches its Customer Segment to deliver the Value Proposition.• How do you reach your customers and stakeholders?• Channels are customer touch points that play an

important role in the customer experience.

Source: Business Model Generation / Impact Strategy Advisors

Revenue StreamsThe cash a company generates from each Customer. There may be different revenue streams for different Customer Segments. • Each revenue stream may have different pricing mechanisms.

MagnitudeThe size and depth of the addressable social and economic opportunity for customers, stakeholders, and society. • This is based on data and will influence the scale of the intended value propositions,

the channel strategy, and the profit.

Source: Business Model Generation / Impact Strategy Advisors

Key ActivitiesMost important actions a company must do to operate a viable and sustainable business.• These activities are key to successfully

creating and providing the Value Proposition

Key ResourcesMost important assets required to make a business model work.• Key Resources can be physical, financial,

intellectual, or human. They can be owned or leased by the company, or acquired from key partners.

Source: Business Model Generation / Impact Strategy Advisors

Key Partners

Network of suppliers and partners that make the business model work.

• Can be formal / informalUsually involve an exchange of value

Source: Business Model Generation / Impact Strategy Advisors

CostsAll costs incurred to make the business model work.

Differentiation Describes how your venture is different or outlines your competitive advantage.• Can come from several other building blocks• Can be based in independent elements

Source: Business Model Generation / Impact Strategy Advisors

243

59

810

1*

11 7

12 6*

Group 1Rebel Nell, The Rock Found, Made by DWC,

Crossroads Pets, Infinitely Simple, Beautiful Day

Group 2Homeless Garden Project, Cala, Eat better

Today, Farming Hope, The Monkey and The Elephant, My Sister’s Café

Group 3Energy Ready, Good Seed, Clean Slate,

Intervine, Neighborhood Industries, Rebuilding Exchange

Activity –Impact Canvas

Small Group Format:1 min: Review of your core value

proposition3 min: What is your next milestone of

growth?What is most known about this strategy?What is least known about this strategy?

6 min: Peer Brain TrustAsk clarifying questionsChallenge assumptions with minimal

evidenceSuggest “Small bets” to test the greatest

unknowns

Activity –Impact Canvas

Customer Discovery & Experiment Design

Customer Discovery & Experiment Design

Path to Disaster = Product Focused

Path to Epiphany = Customer FocusedCustomer DiscoveryCustomer ValidationCustomer CreationCustomer Building

Substitute Customer for… InvestorPartnerUserEtc.

Customer Discovery & Experiment Design

We’ll start by identifying the riskiest hypothesis (Think back to your Mad Lib!)

Customer Hypothesis

Problem Hypothesis

Solution / Product Hypothesis

Market hypothesis

Pricing hypothesis

Operational Hypothesis

Customer Discovery –Experiment Design

Formulate a Hypothesis for your riskiest assumption

What is the unmet need (assumed)? For whom is this a problem (assumed)?

Start to go deeper & hypothesis key traits and behaviors

Design an experiment to test your hypothesis (likely interviews) Great experiments evoke a strong behavior or

reaction, and the results are observable and measurable

Commit to a go/no-go metric What percentage of subjects need to exhibit the

behavior you’re testing?

Customer Discovery –Experiment Design

Ingredients for a Successful Interview Set the stage: what are you trying to learn?

(not sell!)

Collect Demographics: are you talking to the right person?

Test the hypothesis: confirm the unmet need, but don’t lead the witness

Explore their world view: relatively, how important is this unmet need?

Wrap it up! If the hypothesis is confirmed, what are next steps?

RECORD

Customer Discovery –Experiment Design

Activity 20 min:

Build the hypothesis & draft experiment

Ideate test subjects

Jot down notes from script

30 min: Form groups of 2 Get feedback / confirm experiment

Source / ideate additional test subjects

10 min: Next Steps for tomorrow

Customer Discovery –Experiment Design

UnknownKnown

Critical

Not Critical

Test here

Customer Discovery –Experiment Design

Share out:What are you testing?What is the experiment?

# of interactions, who, how, etc.

What is the go / no – go metric?