Transcript Presentation Title - City University London

Research and Enterprise
Linking Minds and Markets
Business Planning
Dr. Tim Meldrum
Section 1 - Title
Student Start-Up Event
Wednesday 28th March 2012
Research and Enterprise
Linking Minds and Markets
‘Ideas are ten-a-penny. Execution is everything’
Felix Dennis
Research and Enterprise
Linking Minds and Markets
The causal route to execution …
£
£
£
Product
Team
Analysis
Plan
Investor
Cash
Research and Enterprise
Linking Minds and Markets
…can be a very rocky road
0
20
40
60
250 hours….
80
Plans submitted

After quick scan
After few hours study
3.1 minutes
After full investigation
After price
negotiations
2.0%
% Remaining
100
Research and Enterprise
Linking Minds and Markets
Why do we need an alternative?
‘Most start-ups fail because they
didn’t develop their market, not because
they didn’t develop their product.’
Steve Blank (2005)
Research and Enterprise
Linking Minds and Markets
The effectual route to execution
1. The
market
2. The
product
Pivot …
3. The
venture
4. The
future
Research and Enterprise
Linking Minds and Markets
Four steps to validation
1. Market – customer discovery: what do they need?
2. Product – customer validation: meet that need
3. Venture – company creation: make & sell
4. Future – company sustainability: it lives & grows
The DOT Principle: Do, Observe, Think
Research and Enterprise
Linking Minds and Markets
Steps One & Two
Customer
Discovery
Customer
Validation
ProblemSolution fit
ProductMarket fit
Proposed
MVP
Business
Model
Proposed
Channel
Marketing
Roadmap
Pivot
Research and Enterprise
Linking Minds and Markets
What is ‘MVP’?
Customer
Discovery
ProblemSolution fit
Proposed
MVP
Proposed
Channel
Customer
Validation
‘The product version
that allows you to get
maximum proven
learning about
customers with the
minimum effort’
Research and Enterprise
Linking Minds and Markets
What is ‘Product-Market Fit’?
Customer
Validation
‘a big-enough set
of passionate customers
who are positive enough
to pay’
ProductMarket fit
Business
Model
Marketing
Roadmap
Research and Enterprise
Linking Minds and Markets
What is ‘Pivot’?
Customer
Validation
Customer
Discovery
ProblemSolution fit
‘you change a
bit of your solution
based on iterative
learning’
Proposed
MVP
Proposed
Channel
Pivot
Research and Enterprise
Linking Minds and Markets
The CitySpark plan
1. The Problem: market opportunity
2. Whose Problem? customers or clients
3. The Solution: product or service
4. The Team: who and why
5. The Business Model: delivering the solution
6. Irresistible: different from your competitors
7. The Future: growth plans
Research and Enterprise
Linking Minds and Markets
Effective business planning
1. Accept this is the first, not the last, plan
2. Be ready to iterate and change
3. First discover customers then validate demand
4. And Do, Observe, Think
5. Avoid being wedded to your 1st idea!
6. Write that plan for the right audience: who are
your partners & investors?
Research and Enterprise
Linking Minds and Markets
CitySpark Summer School
11th to 13th June 2012
Northampton Square
www.city.ac.uk/cityspark