Calendar What is the BMC?

Technium (Paul Ahlstrom) Ideation (Nile Hatch) Getting Started (Scott Petersen) Resources/Conclusion

 Training Workshops Oct 15th Nov 5th Dec 3rd Jan 14th (Submission Focused)

 A startup exists to search for an unknown but viable business model, not to develop a known product Startups need to focus on customer development first

no business plan survives first contact with a customer. Steve Blank

Scale

Idea

Launch

Model

 A startup exists to search for an unknown but viable business model, not to develop a known product Startups need to focus on customer development first

no business plan survives first contact with a customer. Steve Blank

 Business model describes how your company creates, delivers, and captures value A business plan is static A business model is dynamic The facts are out in the real world with real customers, not in your office building Business model first, then business plan

A competition that rewards entrepreneurs who get out of the building and validate with customers!

 Breaking down ideas into hypotheses/ assumptions Getting outside the building to test assumptions with customers Applying customer development & lean startup principles to nail the solution Learning to pivot until you arrive at a customer-validated business model

 Identify a pain
Paul Ahlstrom Nile Hatch

Validate your assumptions

Scott Petersen Scott Petersen

Pivot and Repeat

Technium + IBMC
Select IP Validate Market Win!

What is Technium?

Direct access to federally funded IP for your startup.

Platform for advanced tech startups in software, energy, biotech, etc.

Think Bigger

2012

2013 Saving >2500 infant lives from SIDS (Sudden Infant Death Sydrome)

Impact:

Reserve parking ahead of time

2014 Work on a problem worth solving with groundbreaking technology

Benefits:


$10,000 cash bonus Startups with university IP has a 3x greater chance of survival o 35% failure rate vs. 90% failure rate o Stronger IP - Avg. $3M R&D per invention Some technologies come with additional perks Apply business model validation skills to big, hard problems with cutting edge technology.

Timeline
Brainstorm Ideas Reserve Technology Submissions Open Win the Submissions business model Close competition! License the technology

Oct

Nov

Jan

Mar

May

Change the world Training Sessions Validate the business model

Beyond Beta

Network with other teams Share your market insights Chat with world-class scientists & experienced mentors Post progress and funding requests Connect to resources and NISI content

Get Out Of The Building!

How to find a great idea for fun and profit

BMC Training Workshop
October 15, 2013
Nile Hatch
Brigham Young University
2005 2013

The way to get good ideas is to get lots of ideas and throw the bad ideas away. Linus Pauling, 1979

26

Ideas are like feet

27 27

What makes a good (non-stinky) idea?

Serving customers with real and enduring pain
Delivering a solution that really solves their pain Delivering the solution through the proper channel Delivering the solution in a market you can enter and compete
28

Start with pain

29

What is pain?

Any problem or unmet need that customers will spend their time or money to solve

30

What is the pain, really?

What is the problem to be solved?
What are the current solutions? What are the workarounds?

What is the residual pain?

Who has it? Why do they have it?

Can you recognize them?

31

What is the pain really?

You have been suffering from gastrointestinal pain
Your doctor diagnoses celiacs disease

What is your pain, really?

32 32

How do you find pain?

33

Dont start by asking

We have a difficult time articulating what causes us pain

We are accustomed to living with pain

We often consider our workarounds to be evidence of success rather than pain

34

Observation and Empathy

ObservationEmpathy
Ideo
35

Build your bugs list

What bugs you?

Michalko
36

Ways to Engage

Conversation

37

Ways to Engage
Role Playing

38

Ways to Engage
Shadowing

Been following me around all day. I think its the new intern

39

Ways to Engage

Prototypes

40

Consider the case of Gillette in India

41

Great ideas start with pain

There is no solution so good that customers will buy it if they dont want it Customers with real, enduring pain will pay you to relieve it for them Find it by observing, hypothesizing, and then asking customers
42

Go find some

to solve.
43

________ ________ ________ ________ ________ ________ ________

________ ________ ________ ________ ________

Elevator Pitch Holes = Gaps in service, opportunities, differentiators

Hypotheses
________ ________ ________ ________ ________

________ ________ ________ ________ ________

Sell G-T-M

Validate MODEL
Build MVP

Validate

Model
Test Learn Pivot Iterate

Pricing
Revenue streams Market channels Customer segments Go-To-Market strategies

Collective Wisdom 0 No Money Until Here

Business Model Canvas

Who are your key partners? Manufacturers, suppliers, distributors, channel partners, strategic alliances, outsourcing, etc. What are your key activities? Designing, producing, coding, problem solving, platforms, supply chain management, sales, etc. In what ways are you unique? Can you quantify the economic upside, in $$, of your solution(s)? Identify each unique feature, application, & opportunity. What key resources will you need to execute Your business? Physical = buildings, vehicles, Machines, etc. Intellectual = patents, trademarks Human = employees Financial = $$ Define holes /problems/ pain points in current Solutions. How do you acquire, Serve, and retain customers? Who are we creating value for? Large Customers Med. Sized Customers Small Customers Private Branded (OEM) Big Box Stores Specialty Shops

User communities, automated services, self service, customer Reps, etc.

Identify the market channels through which Your products/services can be marketed to: Direct sales force, web sales, wholesalers, distributors, etc.

What are your cost structures, cap-ex expenses, and projected operating expenses?

How do you derive revenue? How do you price your product or services? Product sales, user fees, subscription fees, licensing, advertising, etc.

 Website - businessmodelcompetition.com Resources videos, book summaries, workshops, best practices, judging criteria, rules. Local Competition Contact the competition you are near (map available)

 Training Workshops Oct 15th Nov 5th Dec 3rd Jan 14th (Submission Focused)

 BYU Clubs NVC Leadership Team Venture Mentoring Workshops Rollins Center Cougar CoFounders

 NVC BMC Deadline - Jan 24th 2014 NVC BMC Final - Feb 7th 2014