lean launchpad columbia block week january 12-16, 2015
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Lean LaunchPad COLUMBIA BLOCK WEEK JANUARY 12-16, 2015. Turning Hackers, Hustlers and Designers into Entrepreneurs. Turning great ideas into great businesses. A brief HISTORY lesson. You’re in good company. US National Science Foundation National Institute of Health(last week) - PowerPoint PPT PresentationTRANSCRIPT
LEAN LAUNCHPADCOLUMBIA BLOCK WEEKJANUARY 12-16, 2015
Turning Hackers, Hustlers and Designers
into Entrepreneurs
TURNING GREAT IDEAS INTO GREAT BUSINESSES
A brief HISTORY lesson
YOU’RE IN GOOD COMPANY
• US National Science Foundation• National Institute of Health(last week)• Stanford, Berkeley, UCSF, Princeton• 350 Universities we’re aware of• Incubators, Accelerators Worldwide• Columbia Block Week and Full Term• Hundreds more educators per year
Steve Blank
More than a decade developing Customer Development8 startups in Silicon Valley• Semiconductors• Supercomputers• Consumer electronics• Video games• Enterprise software• Military intelligence
Teach: Stanford, Berkeley, Columbia, UCSF
TEACHING TEAM
FACULTY:
Bob Dorf, seven startups, CBS Adjunct, co-author Startup Owner’s Manual
Asha Saxena, Founder/CEO Future Tech, plus multiple other ventures
Alicia Syrett, Founder and CEO of Pantegrion Capital
Adam Royalty, Designer in Residence, CU Entrepreneurship
TBD, Seasoned entrepreneur
TA/COACH TEAM:
Nathaniel Kelner, Columbia University Entrepreneurship Team
Meghan Cross, 2nd year MBA, Co-President of CEO Club
COURSE INFOTeam: Application is by teams of 3-5
(ideally include 1 ENGR or technical);
avoid “all MBA” teams where you can
Workload: half-day in classroom, half “out of the building
don’t plan much of a social agenda for the week
Credit: 3 credits based on team improvement Mon-Fri, plus your contribution and student evaluation of startup
Format: Flipped Classroom; watch lectures nightly with team
Every team presents progress, gets feedback every day
Teams split into cohorts Tues-Wed-Thurs
THE BASICS
1. Join a team!
2. Business Model Canvas
3. Is it scalable…?
4. Who else is doing it?
The Entrepreneurial Venture FOUR PERIODS of DEVELOPMENT
Time
CashFlow
II III IVI
Customer Development is how you search for the model
The Entrepreneurial Venture FOUR PERIODS of DEVELOPMENT
Time
CashFlow
II III IVI
Business Models
Business Models
Business Models
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
Implications of Search and ExecutionThe Customer Discovery Approach
• Lower Initial Investment• Minimum Viable Product [MVP] tests only crucial features
• Earlier testing and validation. Room to recover AND REVISE.• More capital preserved and higher valuation achieved before
scaling• Scaling financing more available• Clarify the role of the entrepreneur• Able to retain entrepreneurs engaged in business senior
leadership• Higher rate of return for all
• Entrepreneurs• Investors• Employees
Example of a Team’s Final Presentation
As of: 8/31/12JerseySquare“The Netflix of Licensed Sports Jerseys”
Bryan Gitler Elmer Moore Jay NaikMichael Melmed
JerseySquare is a rental service for professional sports jerseys
Total Interviews: 169
Total Website Visits: 190TOTAL SUBSCRIPTIONS SOLD: 2
Customer Discovery
6655
207
2
15
4
0
10
20
30
40
50
60
70
80
Monday Tuesday Wednesday Thursday Friday
Key Partners
Cost Resources
Potential Customers
Over the course of the week, we spoke with 169 contacts during the customer discovery process
Yankee Stadium
Nike, NBA, NHL Stores
Cleaners,Shipping,
Sports BarsSocial Media,
StarStreet,Sports Bars
1
Customer Sales
1
Key Partners (7)Who are our key partners/ suppliers
Key Activities (5)Which key activities does the biz model require
Value Proposition (1)What value do we deliver to the customer
Customer Relationships (4)What type of relationship does each segment require of us
Customer Segments (2)For whom are we creating value
Channels (3)Through which channel does each segment want to be reached
Cost Structure (9)What are our cost drivers
Key Resources (6)Which key resources does the biz model require
Professional Sports Game Attendees
- Male
- Adult
- <$100k income
- Attend 10+ games per yr
A cheaper way to wear Officially Licensed sports jerseys to a game
Eliminate risk of owning a player jersey who is traded
Provide alternative to purchasing counterfeit jerseys Website
Stadium Shops/Vendors
Ticket Websites
Direct Mail
Annual Subscription Model
Search ads
Social Media
At Stadium Promotions
Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount
Warehouse, shipping, cleaning, logistics tracking, website development/maintenance
Jersey Inventory
Warehouse
Logistics system
- Rental Tracking
- Shipping
- Dry cleaning
- Marketing
- Customer Service
Professional Sports Leagues
Jersey Suppliers
Dry Cleaners
Stadium Shop/Vendors
Pre-paid Envelope Suppliers
USPS/Fedex/UPS
Day 1 Canvas As of: 8/27/12
Day 1 - Yankee StadiumCustomer Discovery
Current CanvasKey Partners (7)Who are our key partners/ suppliers
Key Activities (5)Which key activities does the biz model require
Value Proposition (1)What value do we deliver to the customer
Customer Relationships (4)What type of relationship does each segment require of us
Customer Segments (2)For whom are we creating value
Channels (3)Through which channel does each segment want to be reached
Cost Structure (9)What are our cost drivers
Key Resources (6)Which key resources does the biz model require
Professional Sports Game Attendees
- Male and Female
- Young Adult 18-30
- <$100k income
- Attend >10% of home games per yr
- Casual sports fans
A cheaper way to wear Officially Licensed sports jerseys to a game
Eliminate risk of owning a player jersey who is traded
Provide alternative to purchasing counterfeit jerseys Website
Stadium Shops/Vendors
Ticket Websites
Direct Mail
Annual Subscription Model
Pay per Rental
GET - Search Ads, Partnerships, At stadium promotion
KEEP - Customer Service
GROW - Referral Program
Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount
Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees
Jersey Inventory
Warehouse
Logistics system
- Rental Tracking
- Shipping
- Dry cleaning
- Marketing
- Customer Service
Professional Sports Leagues
Jersey Suppliers
Dry Cleaners
Stadium Shop/Vendors
Pre-paid Envelope Suppliers
USPS/Fedex/UPS
Day 2 Canvas As of: 8/28/12
Day 2- Customer DiscoveryNike Town NBA Store NHL Store
Current CanvasKey Partners (7)Who are our key partners/ suppliers
Key Activities (5)Which key activities does the biz model require
Value Proposition (1)What value do we deliver to the customer
Customer Relationships (4)What type of relationship does each segment require of us
Customer Segments (2)For whom are we creating value
Channels (3)Through which channel does each segment want to be reached
Cost Structure (9)What are our cost drivers
Key Resources (6)Which key resources does the biz model require
Professional Sports Fans
Website
Stadium Shops/Vendors
Ticket Websites
Direct Mail
GET - Search Ads, Partnerships, At stadium promotion
KEEP - Customer Service
GROW - Referral Program
Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount
Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees
Jersey Inventory
Warehouse
Logistics system
- Rental Tracking
- Shipping
- Dry cleaning
- Marketing
- Customer Service
Jersey Suppliers
Dry Cleaners
Pre-paid Envelope Suppliers
USPS/Fedex/UPS
Day 3 Canvas As of: 8/29/12
SPORTS JERSEY OWNERS- Male- Kid to Young
Adult 13-35
SINGLE GAME ATTENDEES- Male and
Female- Young Adult 18-
30- Casual fan
SPORTS JERSEY OWNERS- Flexibility to change jersey- Eliminate risk of owning jersey who is traded
SINGLE GAME ATTENDEES- Cheaper way to wear jersey to a game
SPORTS JERSEY OWNERS- Annual Subscription
SINGLE GAME ATTENDEES- Pay per Rental
Jersey Suppliers
Dry Cleaners
Pre-paid Envelope Suppliers
USPS/Fedex/UPS
Jersey Inventory
Warehouse
Logistics system
Rental Tracking
Shipping
Dry cleaning
Marketing
Customer Service
Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees
Website
Stadium Shops/Vendors
Ticket Websites
Direct Mail
GET - Search Ads, Partnerships, At stadium promotion
KEEP - Customer Service
GROW – Referral/ Reward Program
Day 3 - Customer Discovery
Commercial Dry Cleaners USPS & FedEx
Sports Bars
Jersey Suppliers
Left Side of Canvas Right Side of Canvas
Social Media
Current CanvasKey Partners (7)Who are our key partners/ suppliers
Key Activities (5)Which key activities does the biz model require
Value Proposition (1)What value do we deliver to the customer
Customer Relationships (4)What type of relationship does each segment require of us
Customer Segments (2)For whom are we creating value
Channels (3)Through which channel does each segment want to be reached
Cost Structure (9)What are our cost drivers
Key Resources (6)Which key resources does the biz model require
Professional Sports Fans
Website
Stadium Shops/Vendors
Ticket Websites
GET - Search Ads, Partnerships, At stadium promotion
KEEP - Customer Service
GROW - Referral Program
Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount
Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees
Jersey Inventory
Warehouse
Logistics system
- Rental Tracking
- Shipping
- Dry cleaning
- Marketing
- Customer Service
Jersey Suppliers
Dry Cleaners
Pre-paid Envelope Suppliers
USPS/Fedex/UPS
Day 4 Canvas As of: 8/30/12
SPORTS JERSEY OWNERS- Male- Kids to Young
Adult 13-35
SINGLE GAME ATTENDEES- Male and
Female- Young Adult 18-
30- Casual fan
SPORTS JERSEY OWNERS- Flexibility to change jersey- Eliminate risk of owning jersey who is traded
SINGLE GAME ATTENDEES- Cheaper way to wear jersey to a game
SPORTS JERSEY OWNERS- Annual Subscription $200
SINGLE GAME ATTENDEES- Pay per Rental
Jersey Suppliers
Dry Cleaners
Pre-paid Envelope Suppliers
USPS/Fedex/UPS
Jersey Inventory
Warehouse
Logistics system
Rental Tracking
Shipping
Dry cleaning
Marketing
Customer Service
Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees
Website
Ticket Websites
GET - Search Ads, Partnerships, Social Media, At stadium promotion
KEEP - Customer Service
GROW – Referral/ Reward Program
Launched JerseySquare.com
81 VisitorsIn 1st 9 hours
Our First Customer
Our Email Blasts
Current CanvasKey Partners (7)Who are our key partners/ suppliers
Key Activities (5)Which key activities does the biz model require
Value Proposition (1)What value do we deliver to the customer
Customer Relationships (4)What type of relationship does each segment require of us
Customer Segments (2)For whom are we creating value
Channels (3)Through which channel does each segment want to be reached
Cost Structure (9)What are our cost drivers
Key Resources (6)Which key resources does the biz model require
Professional Sports Fans
Website
Stadium Shops/Vendors
Ticket Websites
Direct Mail
GET - Search Ads, Partnerships, At stadium promotion
KEEP - Customer Service
GROW - Referral Program
Revenue Streams (8)How much is each segment willing to pay and how would they like to pay us this amount
Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees
Jersey Inventory
Warehouse
Logistics system
- Rental Tracking
- Shipping
- Dry cleaning
- Marketing
- Customer Service
Jersey Suppliers
Dry Cleaners
Pre-paid Envelope Suppliers
USPS/Fedex/UPS
Day 5 Canvas As of: 8/31/12
SPORTS JERSEY OWNERS- Male- Kids to Young Adult 13-35
SINGLE GAME ATTENDEES- Male and Female- Young Adult 18-30- Casual fan
SPORTS JERSEY OWNERS- Flexibility to change jersey- Eliminate risk of owning jersey who is traded
SINGLE GAME ATTENDEES- Cheaper way to wear jersey to a game
SPORTS JERSEY OWNERS- Annual Subscription, Monthly Subscription, One-Time
SINGLE GAME ATTENDEES- Pay per Rental
Jersey Suppliers
Dry Cleaners
Pre-paid Envelope Suppliers
USPS
Jersey Inventory
Warehouse
Logistics system
Rental Tracking
Shipping
Dry cleaning
Marketing
Customer Service
Jerseys, warehouse, shipping, cleaning, logistics tracking, website development/maintenance, customer service employees
Website
GET - Search Ads, Partnerships, Social Media, At stadium promotion
KEEP – Seniority, loyalty program
GROW – Premium subs, Family plan
What We Thought Results What We Found
Customer segment is adult males who attend lots of games each year X
There are two customer segments:• SPORTS JERSEY OWNERS
o Male, Kids to Young Adult 13-35• SINGLE GAME ATTENDEES
o Male and Female, Young Adult 18-30, Casual fan
Customers will use JerseySquare because we are cheaper X
Customers like our company because we provide both:• the ability to wear different jerseys throughout
the season• a hedge against players being traded, getting
hurt, retiring, etc.
Customers will not be willing to spend as much on rental jerseys X Customers are actually willing to spend as much (if
not more) on a subscription for jersey rentals as they do on buying a jersey!
There is a market for renting professional jerseys! P We received payment from our first customer on
Thursday, 8/30/2012
Biggest Learning Moments
Archetypes
Attribute Gasol Junior Becky
Age 32 15 24
Income $65K N/A $40K
Demographics White White White
Type Jersey Buyer Social Statement Social Sports Viewer
Fan Type Avid In-Season Casual
Class Middle Middle Middle
Facebook Status Single/It’s Complicated Single In Relationship
SUBSCRIPTION SUBSCRIPTION PAY PER RENTALRENTAL TYPE
Unit Economics
Jersey Cost(w/ 25% off)
$ 150
Shipping$ 9
Cleaning$ 1
Customer Acquisition
$ 25
Processing$ 1
X 5
X 5
X 5
Unit Costs- $ 230
Revenue$ 199
Net- $ 31
Shipping$ 9
Cleaning$ 1
Processing$ 1
X 5
X 5
X 5
Unit Costs- $ 55
Revenue$ 199
Net$ 86
Year 1 Year 2
Retention 60 %x
TurnsTurns
(For One Person)
Current Pricing Plans
Annual Subscription$199 /year
• Authentic Top of Line Jerseys• Free Shipping• Send back a jersey in exchange for another
Monthly Subscription$29.99 /month
• Authentic Top of Line Jerseys• Free Shipping• Send back a jersey in exchange for another
1 Time, 1 Week Rental$24.99
• Authentic Top of Line Jerseys• Free Shipping• Send back jersey within 1 week
(But A/B Testing for Price Elasticity)
Customer Relationships
GET
KEEPGROW
Results Pending…
• Google AdWords• Guerilla style marketing on
FB, YouTube, and Twitter• Customer referral bonuses• Targeted promotions
• Customer Loyalty program with bonus rentals and discount purchases
• Seniority credits• Partnership rewards and
discounts• Free jersey giveaways
• Sale of customer data• Family plan• Premium
subscriptions• Additional products
Market Size
Total Addressable Market
(how big is universe)
150 Million Americans watch the 5 major team sports (in some capacity)
Served Available Market
(how many can I reach with my sales channel)
11 Million NY Metro Area watch the 5 major team sports (in some capacity)
Target Market (who will be most likely buyers)
Based only Yankee Stadium Research:11.7% of SAM showed strong interest
1.3 Million People - Half subscription / Half Pay Per Rental
• Teenager Customer Discovery
• Customer Acquisitiono More Google Adwords Testingo More Website Conversion Testing
• LISTEN TO/OBSERVE OUR CUSTOMERS
Next Steps
Who Is the Team?500 CUSTOMERS
TEAM MEMBERS
Degree program and Department/Major
Provide your LinkedIn public profile URL
Are you the subject matter expert (SME) for this team?
Pick a role you think you most likely will play on this team (Hustler, Hacker, Designer or Product Picker)
Anything interesting we should know about you (be brief)
Star
tup
Ecos
yste
m
Corporate
Higher
Education
Adul
t
Lear
ning
/
Skills
Institutions
What’s the Competitive Landscape?
What’s Your Business Model?
What happens next?
Applications will be reviewed and accepted on a rolling basis - first come-first served. Finalists will be notified by email.
Step 1: Review Course Websitehttp://www8.gsb.columbia.edu/entrepreneurship/leanlaunchpad/
Step 2: Form a Team (Use above website to form or join a team)
Step 3: Submit Application (Team submission, not Individual)
Step 4: Each Team Member must Acknowledge and Accept Class Requirements by Email (Sent by Jay Mehta)
Step 5: Application is Reviewed for completeness and Individual Eligibility is VerifiedStep 6: Notification of Acceptance, Registration and Bid Point Reduction (MBA/EMBA only)
• January 12 INITIAL CANVAS DUE by 6pm ET• January 13 Class starts 8:30am ET
Turning great ideas into great businesses
Syllabus and more course info:http://www8.gsb.columbia.edu/entrepreneurship/leanlaunchpad/General Lean LaunchPad background:http://steveblank.com/category/lean-launchpad/Startup Tools:http://steveblank.com/tools-and-blogs-for-entrepreneurs/
In Conclusion…• Questions about the course or process?• Looking for Team Members?• Looking for a Team to Join?First look here: http://www8.gsb.columbia.edu/entrepreneurship/leanlaunchpad/
Still need help?• Also: Ashley Zwick… [email protected]• OR if needed… [email protected]