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HI EVERYONE.

WELCOME TO THE STARTUP SUCCESS

VIRTUAL CONFERENCE BROUGHT TO

YOU BY SCORE AND FEDEX.

YOU ARE ATTEND THE WEBINAR, AN

EASIER WAY TO PREPARE YOUR

BUSINESS PLAN.

THE BUSINESS MODEL CANVAS.

MY NAME IS ALEXA ELLIOTT WITH

SCORE.

I WILL BE THE MODERATOR FOR THIS

PRESENTATION.

OUR PRESENTERS FOR THIS WEBINAR

ARE CERTIFIED SCORE MENTORS IN

THE -- CHAPTER.

MARK LOWE WEN STEIN AND MARK

GOLDBERG.

BOTH HAVING ENTREPRENEURIAL

EXPERIENCE COVERING A WIDE SPAN

OF SMALL BUSINESS OWNERSHIPS,

BUSINESS PLANS, SALES, MARKETING

AND MANAGEMENT FACETS OF

BUSINESS.

BEFORE TURNING THE SESSION ON

OVER TO MARK AND MARK, I'D LIKE

TO MENTION JUST A FEW

HOUSEKEEPING ITEMS.

THIS WEBINAR WILL LAST 45

MINUTES AND IS BEING RECORDED.

A LINK TO THE RECORDING AND THE

SLIDE DECK WILL BE E-MAILED TO

ALL PARTICIPANTS.

WE HAVE SET ASIDE TIME FOR Q AND

A AT THE END OF TODAY'S

PRESENTATION.

IF YOU HAVE ANY QUESTIONS,

PLEASE SUBMIT THOSE USING THE Q

AND A BOX LOCATED ON THE

LEFT-HAND SIDE OF YOUR SCREEN.

IF YOU EXPERIENCE ANY TECHNICAL

DIFFICULTIES, PLEASE USE THE

SAME Q AND A BOX FOR ASSISTANCE.

IF YOU'D LIKE TO DOWNLOAD THE

SLIDE DECK, YOU CAN DO SO FROM

WITHIN THE WEB PLAYER.

AT THE BOTTOM OF YOUR SCREEN,

THERE ARE SEVEN ROUND ICONS.

THE SLIDE DECK CAN BE DOWNLOAD

FROM THE THIRD ICON FROM THE

LEFT LABELED SLIDES.

I'D NOW LIKE TO BRING MARK AND

MARK ON THE LINE TO BEGIN AN

EASIER TO PREPARE YOUR BUSINESS

PLAN.

THE BUSINESS MODEL CANVAS.

>> YES.

HELLO.

MY NAME IS MARK LOWE WEN STEIN.

I'M GOING TO DO THE -- WEBINAR

WITH MY COLLEAGUE MARK GOLDBERG.

IF ANY OF YOU PAY ATTENTION TO

MEDIA IN THE ENTREPRENEURIAL AND

STARTUP WORLD, MUCH DISCUSSION

ABOUT BUSINESS PLANS AND THE

QUESTION BECOMES WHAT'S THE BEST

WAY TO DO THIS.

IT'S A CLASSIC BUSINESS PLAN,

IT'S A DIFFICULT THING FOR MOST

BEGINNERS TO DO FOR YOU TO LOOK

AT SOMETHING DIFFERENT.

THE BUSINESS MODEL CANVAS WHICH

IDENTIFIES PROBLEMS EARLY,

VALIDATES THE CONCEPT OF THE

BUSINESS AND ALLOWS PEOPLE TO DO

BUSINESS.

WHEN WOULD YOU USE A BUSINESS

PLAN VERSUS BUSINESS PLAN MODEL

CANVAS?

OKAY?

WHAT IS A BUSINESS MODEL?

A BUSINESS MODEL DESCRIBES THE

RATIONALE OF THE ORGANIZATION

AND HOW IT CREATES AND DELIVERS

VALUE.

IT'S THE VALIDATION OF THE

MOVING PARTS OF THE BUSINESS

EARLY IS VERY IMPORTANT.

YOU TEND TO WRITE A BUSINESS

PLAN.

IT'S A LINE, ARDUOUS DOCUMENT

AND YOU END UP GETTING CONFUSED.

THE BUSINESS MODEL CANVAS HAS

NINE BLOCKS, IT LOOKS SIMPLE, IT

ISN'T SIMPLE.

BUT IT ALLOWS YOU TO CREATE THE

MOST IMPORTANT THING, WHICH IS

TO UNDERSTAND THE VALUE

PROPOSITION OF WHAT YOUR

CUSTOMERS ARE.

WE'RE GOING TO FOCUS ON MY

DISCUSSION TODAY AND HOPEFULLY

MY COLLEAGUE WILL TAKE IT OVER.

WHAT PROBLEM DOES IT SOLVE, DOES

YOUR PRODUCT THE SERVICE SOLVE

FOR THE CUSTOMER AND WHAT'S THE

ULTIMATE VALUE.

THE EASIEST WAY TO DO IT IS

USING THE BUSINESS MODEL CANVAS

AND ANY WORK YOU'VE DONE ON THE

BUSINESS MODEL CANVAS CAN BE

REUSED IN A BUSINESS PLAN IF YOU

CHOOSE TO DO ONE LATER ON.

WHY IS THE BUSINESS MODEL CANVAS

GOOD?

AGAIN, IT'S THE CRITICAL PART OF

THE -- FIND ANY PROBLEMS EARLY,

VERY MANAGEABLE AND IT FINDS THE

PROBLEMS EARLY BEFORE YOU SEND

MONEY AND INVEST A LOT OF TIME

AND ENERGY INTO AN ISSUE THAT

WE'LL THEN TURN AROUND AND CAUSE

YOU PROBLEMS LATER ON.

IT'S MUCH SIMPLER TO DO THAN A

TRADITIONAL BUSINESS PLAN.

SO THE PURPOSES OF A BUSINESS

PLAN IS GENERALLY, THE

TRADITIONAL BUSINESS PLAN IS THE

MEANS TO COMMUNICATE TO

EMPLOYEES.

MOST LIKELY TO THE INVESTOR AND

TO A BANK.

THOSE ARE THE PEOPLE THAT WANT

TO GENERALLY -- IT'S CLEAR,

THOUGH, IF YOU READ THE

ENTREPRENEURIAL PRESS THAT MORE

AND MORE ORGANIZATIONS ARE

WILLING TO ACCEPT A BUSINESS

MODEL CANVAS AS A FIRST DOCUMENT

BEFORE YOU MAY GET THE BUSINESS

PLAN STAGE.

OF COURSE, ULTIMATELY A BUSINESS

PLAN IS A GUIDE TO MEASURING

PERFORMANCE.

WE SAID WE WERE GOING TO DO X

AND THEN THREE MONTHS OR SIX

MONTHS LATER, WE LOOK BACK AND

DECIDE DID WE DO X AND IF WE DID

NOT, WHY?

WE'D STILL LIKE TO KNOW WHY WE

DID BETTER THAN OUR FORECAST.

SO THE BUSINESS MODEL CANVAS WAS

CREATED MAYBE 15 YEARS AGO BY A

COUPLE PEOPLE LED BY ALEXANDER

OSSER WALL AND THERE'S A WEBSITE

.

THEY'VE CREATED A WHOLE INDUSTRY

AROUND THIS.

IT'S A VISUAL GUIDE THAT ALLOWS

PEOPLE WITH THE NINE ELEMENTS

AND WE'LL SHOW YOU THAT IN A

MINUTE, TO UNDERSTAND THE KEY

COMPONENTS OF ANY VEHICLE.

SO HERE WE ARE AND THIS IS WHERE

I'M GOING TO START TO SPEND SOME

TIME ON THIS DOCUMENT.

SO THERE ARE NINE BOXES.

CUSTOMER SEGMENTATION AND VALUE

PROPOSITION ARE THE TWO BOX THAT

IS I BELIEVE HAVE TO BE DEALT

WITH AT THE BEGINNING AND IF YOU

DON'T GET THOSE RIGHT, ALL THE

REST OF THE SEVEN OTHER BOXES

ARE RELATIVELY MEANINGLESS.

SO CUSTOMER SEGMENTS AND VALUE

PROPOSITIONS WHICH I WILL

DISCUSS IN MORE DETAIL AND I'LL

JUST DO A BRIEF RUN DOWN ON THE

OTHER BOXES THAT ARE CRITICAL

COMPONENTS TO A BUSINESS.

CUSTOMER RELATIONSHIP, CHANNELS

WHICH IS HOW YOU DELIVER THE

PRODUCT TO THE END CUSTOMER.

DIFFERENT ACTIVITIES AND

RESOURCES YOU NEED AND OF

COURSE, PARTNERSHIP.

LOTS OF PARTNERS MAY BE

IMPORTANT, DEPENDING ON THE TYPE

OF BUSINESS YOU ARE.

THE BOTTOM TWO BOXES ARE COST

STRUCTURE AND REVENUE, WHICH IS

BASICALLY EXPENSES AND INTEL.

ALL RIGHT?

SO I'M GOING TO GO TO THE FIRST

SLIDE AND WE'LL TALK ABOUT

CUSTOMER SEGMENTATION.

SO IT ALL COMES DOWN TO WHO

WOULD BE INTERESTED, WHO NEEDS

YOUR SERVICE OR PRODUCT AND WHY

WOULD THEY WANT THAT?

WHAT KIND OF PROBLEMS ARE YOU

SOLVING FOR THEM?

SO IN THE CUSTOMER SEGMENTATION

STAGE, THERE ARE MULTIPLE

CUSTOMERS AT ANY TIME AND EACH

CUSTOMER MAY HAVE A SEPARATE

DISTINCT VALUE PROPOSITION.

THERE SHOULD BE A LINE WITH THAT

CUSTOMER.

NOT ALL CUSTOMERS CARE ABOUT THE

SAME THING.

DEPENDING ON THE SEGMENTATION.

WE'RE GOING TO TALK ABOUT THAT A

LITTLE MORE.

SO THE CUSTOMER SEGMENTATIONS

THAT WE HAVE ARE DRIVING.

SO THE DOCUMENT WE'RE GOING TO

TALK ABOUT IN THE STARTUP

BUSINESS IS WAZE.

WAZE IS A COMPANY THAT DOES THE

COMMUNITY-BASED TRAFFIC AND

NAVIGATION APP.

IT HAS STARTED IN ISRAEL A

NUMBER OF YEARS AGO AND SINCE

BOUGHT BY GOOGLE FOR A BILLION

DOLLARS A FEW YEARS AGO.

WHAT'S THE KEY ITEMS ON THIS

THING.

THE KEY ITEMS ARE ITS

GEOGRAPHICAL SEGMENTATION,

DRIVERS AND ONE OF THE

FASCINATING THINGS ABOUT THIS,

IT'S THE COMMUNITY-BASED GRAPHIC

APP.

SO AS YOU DRIVE AROUND WITH YOUR

PHONE USING WAZE, YOU'RE

CONTRIBUTING DATA.

IT'S SEEN ON A GPS READING, HOW

FAST YOU'RE GOING WHEN YOU'RE

STUCK IN TRAFFIC.

OKAY?

AND SO IT'S CROWD SOURCE

ESSENTIALLY.

AND IT'S COLLECTING ALL THAT

DATA AND FEEDING IT IN AND

EVERYBODY ELSE CONTRIBUTES AND

LIVES ON THAT DATA.

THE CUSTOMER SEGMENTATION

BASICALLY ARE THE KEY ONES,

DRIVERS AND THE DRIVERS BECOME

PARTS OF THE BUSINESS.

ROADSIDE BUSINESSES, BECAUSE

RECENTLY WAZE ADDED LOCAL ADS

BECAUSE IT'S AGAIN LIKE MANY

GOOGLE PRODUCTS, THERE'S NO FEE

FOR THIS SERVICE.

SO THEY MAKE REVENUE OFF OF

THAT.

AND CARPOOLING HAS BEEN ADDED,

WHICH WOULD -- MUNICIPALITIES

AND ALSO THERE'S A NEW THING

CALLED BEACON SYSTEM WHICH AGAIN

WOULD BE A MUNICIPALITY ISSUE.

BECAUSE BEACONS ALLOW YOU TO GO

THROUGH A TRAFFIC -- AND GET --

THROUGH SEVERAL MAJOR CITIES IN

THE U.S.

REGROUP ON THE CUSTOMER SEGMENT,

WE HAVE DRIVERS PRIMARILY, THE

COMMUNITY ASPECT AND BUSINESSES

AND MUNICIPALITIES.

SO NOW WE'RE GOING TO GOING OVER

TO THE VALUE PROPOSITION.

SO THIS ALL BECOMES VALUE

PROPOSITION.

WHAT'S THE VALUE WE ARE TO OUR

CUSTOMERS.

WHAT KIND OF PROBLEMS DO WE

SOLVE FOR OUR CUSTOMERS?

WHICH CUSTOMER NEEDS.

FROM A PROBLEM POINT OF VIEW, WE

CAN DISCUSS WHAT DOES WAZE

PROVIDING YOU A NAVIGATION

SYSTEM?

HOW DOES THAT HELP YOU?

IT ALLOWS YOU TO GET PLACES,

GIVES YOU REAL TIME TRAFFIC

UPDATES SO YOU CAN AVOID CERTAIN

ROUTES TO PREVENT SITTING IN

TRAFFIC AND WASTING TIME.

SO LOTS OF REAL VALUE ARE

DELIVERED.

AND THE ADVERTISERS, WHICH WOULD

BE CUSTOMER SEGMENT ALSO GET THE

ABILITY NOW TO SHOW YOU WHERE

THE LATEST DUNKIN' DONUTS,

CLOSEST DUNKIN' DONUTS AND

STARBUCKS IS.

FROM A MUNICIPALITY POINT OF

VIEW, THE CUSTOMER SEGMENT,

CARPOOLING, THEY'RE TRYING TO

REDUCE TRAFFIC ON THE ROAD.

SO THE FACT THAT WAZE HAS A

CARPOOLING APP, PART OF THE APP

WILL -- ALSO, GOING THROUGH

TRAFFIC PUDDLES WHEN PEOPLE

WOULD USE UNDER THE NEW BEACON

PROGRAM NORMALLY LOSE SIGNAL

FROM THEIR GPS WHICH ALLOWS

MINIMIZES CONGESTION.

AGAIN, THE VALUE PROPOSITION IS

VERY IMPORTANT AND VALUE

PROPOSITION IS TIED TO EACH

SEGMENTATION.

EACH CUSTOMER SEGMENT.

SO I'M NOW GOING TO LET MY

COLLEAGUE, MARK GOLDBERG, TAKE

OVER.

>>> AFTER WE'VE LOOKED AT THE

CUSTOMER SEGMENTS AND DEFINED

THE VALUE PROPOSITION ABOUT WHAT

NEED ONE OR DESIRE ARE YOU

FULFILLING, THE NEXT THING WE

WANT TO LOOK AT IS THE CUSTOMER

RELATIONSHIPS.

WE HAVE TO ASK OURSELVES WHAT

KIND OF RELATIONSHIP DO WE WANT

WITH EACH ONE OF THESE CUSTOMER

SEGMENTS.

IF YOU LOOK AT CUSTOMER

RELATIONSHIPS, THEY COME IN A

VARIETY OF SHAPES AND SIZES.

SOME OF IT, SOME OF THEM ARE

LIKE PERSONAL ASSISTANTS.

WHERE YOU HAVE A RELATIONSHIP

BASED ON HUMAN INTERACTION.

WHERE IT MIGHT BE A DEDICATED

PERSONAL ASSISTANT WHO ACTUALLY

IS ASSIGNED TO YOU, LIKE IN AN

ACCOUNT, ADVERTISING AGENCY

WHERE THERE'S AN ACCOUNT MANAGER

OR IT MIGHT BE SELF-SERVICE

WHERE YOU GO IN, YOU FIND THE

PRODUCT AND YOU ACTUALLY CHECK

OUT YOURSELF.

IT'S COMPLETE SELF-SERVICE OR

EVEN LIKE A GAS STATION OR AN

AUTOMATED SERVICE WHERE YOU HAVE

SOME SOPHISTICATED FORM OF

CUSTOMER SELF-SERVICE WITH

AUTOMATED PROCESSES.

OR LIKE WAZE, YOU HAVE

COMMUNITIES WHERE YOU ACTUALLY

HAVE MEMBERS OF COMMUNITIES

WHERE YOU ARE INTERACTING AND

THAT'S THE RELATIONSHIP.

LASTLY, SOMETIMES IT'S

CO-CREATION WHERE YOU ACTUALLY

ARE RELYING ON THE COMMUNITY TO

WRITE REVIEWS WITH OTHERS IN THE

COMMUNITY AND HAVING THEM MAKE

THEIR DECISIONS.

LET'S TAKE A LOOK AND SEE WHAT

THEY DID.

WELL, IN THEIR CUSTOMER

RELATIONSHIP, THEY HAVE CASUAL

USERS OF THE FREE APP WHERE YOU

AND I ARE TRYING TO GET FROM

POINT A TO POINT B, WE'RE A

CASUAL USER.

COMMUNITY SUPPORTED BY GAME

MECHANICS.

ITS ADVERTISERS AND THE -- WITH

ADVERTISERS, THEY EXPECT WHEN

THE DUNK INDOUGHNUT POPS UP THAT

ADDS AN EXIT 6 ON THE MID CAPE

HIGHWAY THAT YOU WILL STOP TO

GET A CUP OF COFFEE.

SO WHAT YOU WANT TO DO IS AS YOU

VALIDATE YOUR VALUE PROPOSITION

WITH YOUR CUSTOMER SEGMENTS, YOU

NEED TO THINK ABOUT WHAT KIND OF

RELATIONSHIP DO YOU WANT WITH

EACH OF THE CUSTOMER SEGMENTS

THAT YOU HAVE TO FIND.

AS MARK SAID, EACH CUSTOMER

SEGMENT MAY HAVE A DIFFERENT

VALUE PROPOSITION.

THEREFORE, REQUIRE DIFFERENT

RELATIONSHIP.

WE ALSO WANT TO LOOK AT

CHANNELS.

NOW, CHANNELS ARE VERY SPECIFIC

IN THAT YOU HAVE TO UNDERSTAND

HOW DO YOU COMMUNICATE WITH YOUR

CUSTOMER SEGMENT.

SO THE QUESTION YOU HAVE TO ASK

YOURSELF IS, WHERE DO EACH OF

YOUR CUSTOMER SEGMENTS GET THEIR

INFORMATION SO THAT YOU CAN BE

THERE SO THAT YOU CAN

COMMUNICATE WITH THEM.

SO WHAT WE WANT TO THINK ABOUT

IS ARE WE TRYING TO COMMUNICATE?

FIRST OF ALL, WE'RE TRYING TO

COMMUNICATE AWARENESS.

YOU HAVE TO RAISE AWARENESS OF

THE COMPANY'S PRODUCT AND

SERVICE SO THEY KNOW THAT YOU

ARE EVEN THERE.

EVALUATION, HELPING CUSTOMERS

EVALUATE THE ORGANIZATION'S

VALUE PROPOSITION.

IF YOU HAVE DEFINED YOUR VALUE

PROPOSITION SO THAT THE NEED X

WANT OR DESIRE THAT YOU ARE

FULFILLING, YOU GOT TO HELP THAT

CUSTOMER EVALUATE IT BY HELPING

THEM.

YOU GOT TO FIGURE OUT WHERE THEY

ARE SO YOU CAN COMMUNICATE WITH

THEM.

THIRDLY, IT'S PURCHASE.

HOW DO WE ALLOW CUSTOMERS TO

PURCHASE SPECIFIC PRODUCTS OR

SERVICES FROM US.

WHAT PLATFORM ARE WE USING.

DO THEY GO TO A STORE OR

WEBSITE?

ARE THEY GOING TO SEE A PICTURE

OF YOUR PRODUCT ON INSTAGRAM?

WHAT CHANNEL ARE YOU GOING TO BE

USING TO HELP THEM MAKE THE

PURCHASE?

OR EVEN DELIVERY.

HOW DO WE DELIVER THE VALUE

PROPOSITION?

HOW DO WE COMMUNICATE WHAT NEED,

WANT OR DESIRE ARE WE OFFERING

FOR THAT CUSTOMER SEGMENT?

LASTLY, PROBABLY MORE IMPORTANT

THAN EVEN THE SALE IS AFTER

SALE.

ONCE WE'VE SOLD THEM, YOU HAVE

TO KEEP THEM SOLD.

HOW DO WE DELIVER THE AFTER SALE

COMMUNICATION TO THEM.

HOW DO WE CONTINUE THE

CONVERSATION WITH THEM TO GET

MORE OF THEIR PURCHASES IN THE

FUTURE?

WELL, WAZE LOOKED AT IT AND SAID

THE CHANNELS THAT WE USE MOST

ARE WORD-OF-MOUTH.

I HAVE TO TELL YOU, I NEVER

HEARD OF WAZE.

I WAS ON MY WAY TO A CUSTOMER

MEETING AND THE PERSON I WAS

WITH SAID, WHY DON'T WE TURN ON

WAZE AND FIND THE MOST EXPEDIENT

WAY TO GET THROUGH NEW JERSEY.

I NEVER HEARD OF IT I SAID.

SHE DIALED UP WAZE AND IT TOOK

US AROUND TRAFFIC AND OTHER

OBSTACLES THAT WOULD HAVE CAUSED

US TO BE LATE FOR OUR MEETING.

FREE APP, WHICH IS FULLY

FEATURED.

THAT'S WHAT PEOPLE REALLY LIKE

ABOUT APPS.

IT'S THAT THEY'RE FREE.

MOST OF THEM ARE FREE.

SOME OF THEM YOU HAVE TO PAY A

SMALL FEE.

BUT IT'S AN APP THAT'S FULLY

FEATURED.

THE ADVERTISERS WILL COME TO US.

SO WHAT WE WANT TO THINK IN

TERMS OF IN COMMUNICATING WITH

THE END USERS AND THEIR

CHANNELS.

LET'S TAKE A LOOK AT THE NEXT

BLOCK WHICH IS KEY ACTIVITIES.

WHEN WE THINK ABOUT KEY

ACTIVITIES, WE'RE TALKING ABOUT

WHAT IT IS THAT WE HAVE TO DO IN

ORDER TO DELIVER OUR VALUE

PROPOSITION.

WHAT KIND OF DISTRIBUTION

CHANNELS DO WE USE AND HOW DO WE

MARRY THAT WITH OUR CUSTOMER

RELATIONS.

WHEN YOU THINK ABOUT THE

ACTIVITIES, SOME OF THE

ORGANIZATION'S ACTIVITIES ARE

PRODUCTION, WE'RE MAKING

SOMETHING.

WE'RE DELIVERING IT.

SOME OF THEM ARE PROBLEM SOLVING

OR MARKETING SERVICE FIRMS OR

WEB DESIGNERS AND DEVELOPERS.

THEY'RE CREATING NEW SOLUTION BY

PROBLEM SOLVING OR MAYBE IT'S

JUST PLATFORM NETWORKING.

IN TODAY'S ENVIRONMENT, WE FIND

THAT MANY ACTIVITIES WITH

ORGANIZATIONS HAVE TO DO WITH

MANAGING THE INTERFACE BETWEEN

CUSTOMERS AND SYSTEMS.

SO WHEN WE THINK IN TERMS OF

WAZE, THEIR ACTIVITIES REALLY

SURROUND THEMSELVES AROUND NEW

MARKETS, FINDING THOSE NEW

MARKETS.

R&D SOFTWARE, THEY DID NOT GET

TO THE CARPOOLING SEGMENT OF

THEIR VALUE PROPOSITION AND

SERVING THAT CUSTOMER SEGMENT

WITHOUT R&D SOFTWARE.

THEY ALSO SELL TO ADVERTISERS,

THEY GO OUT AND SELL TO

McDONALD'S, THEY SELL TO DUNKIN'

DONUTS.

THEY ALSO CREATE DATA AND ABOUT

COMMUNITIES.

SO WHEN YOU'RE DRIVING THROUGH

TUPELO, MISSISSIPPI, IT WILL POP

UP AND SAY THE BIRTHPLACE OF

ELVIS PRESLEY.

WHAT YOU WANT TO DO IS THINK IN

TERMS OF WHAT ARE THE ACTIVITIES

THAT YOUR ORGANIZATION ARE

GOING -- IS GOING TO USE IN

ORDER TO DELIVER THAT VALUE

PROPOSITION TO YOUR CUSTOMER

SEGMENT.

NOW, NEXT WE WANT TO LOOK AT THE

KEY PARTNERS.

THES THAT'S UP IN THE LEFT-HAND

CORNER.

EVERY ORGANIZATION NEEDS

PARTNERS.

SOME OF THE PARTNERS END UP

BEING OUR SUPPLIERS.

WHAT WE HAVE TO DO IS UNDERSTAND

WHAT DO THESE PARTNERS DO TO

HELP US DELIVER THE VALUE

PROPOSITION.

SO WE ASK OURSELVES THE

QUESTION, DO THESE PARTNERS

OPTIMIZE OUR ORGANIZATION?

DO THEY HELP US WITH OUR ECONOMY

SCALE?

DO THEY ALLOW US TO DO MORE THAN

WE COULD WITH JUST OUR EXISTING

ORGANIZATION?

BOTH WITH FACILITIES RESOURCES,

HUMAN RESOURCES, FINANCIAL

RESOURCES?

DO THEY EXTEND THE SPHERE OF OUR

INFLUENCE AS A BUSINESS?

DO THEY REDUCE OUR RISK AND

UNCERTAINTY?

IN OTHER WORDS, IF YOU CAN HAVE

A PARTNER THAT CAN HELP DELIVER

A PRODUCT TO YOU OR A SUB

PRODUCT TO YOU IN A TIMELY

MANNER, IN A MANNER BETTER THAN

YOU DELIVERING IT YOURSELF, WILL

THAT HELP YOU DELIVER YOUR VALUE

PROPOSITION?

THIRDLY, IT'S ALSO ACQUISITION

OF PARTICULAR RESOURCES AND

ACTIVITIES FOR WIT ENTERPRISE

DOESN'T OWN.

IT MAY BE DELIVERY.

YOU MAY HAVE A PARTNER THAT

DELIVERS YOUR PRODUCT FOR YOU

BECAUSE YOU DON'T HAVE TRUCKS

AND DRIVERS TO DELIVER IT.

LET'S TAKE A LOOK AT WHAT WAZE

DOES.

THEY HAVE BIG ADVERTISERS LIKE

GAS CHAINS.

THEY'RE THEIR BIG PARTNERS.

AS WELL AS COMMUNITY LEADERS.

COMMUNITY ORGANIZATIONS.

CHAMBERS OF COMMERCE.

THESE ARE ALL THEIR PARTNERS

THAT GIVE YOU THE INFORMATION AS

YOU'RE DRIVING ALONG AS TO WHAT

IT IS YOU MIGHT WANT TO STOP AND

TAKE NOTE OF WHILE YOU'RE ON A

TRIP.

OKAY.

NOW LET'S TAKE A LOOK AT

RESOURCES.

BECAUSE WHAT WE HAVE TO DO IS

ASK OURSELVES, WHAT KEY

RESOURCES DO WE NEED IN ORDER TO

DELIVER THE VALUE PROPOSITION TO

OUR CUSTOMER SEGMENTS THROUGH

THE CHANNELS THAT THEY'RE TUNED

INTO.

SO SOME OF THE RESOURCES THAT WE

NORMALLY LOOK AT ARE LIKE THE

PHYSICAL RESOURCES.

DO YOU NEED BRICK AND MORTAR OR

CAN YOU SELL EVERYTHING YOU WANT

TO SELL ONLINE?

WHAT KIND OF INTELLECTUAL

PROPERTY DO YOU NEED?

DO YOU HAVE TO CREATE SOFTWARE

SYSTEMS?

DO YOU HAVE TO CREATE

INSTRUCTION MANUALS?

DO YOU HAVE TO CREATE

INTELLECTUAL PROPERTY IN ORDER

TO DELIVER YOUR VALUE

PROPOSITION?

WHAT KIND OF HUMAN RESOURCES DO

YOU NEED?

CAN YOU DO IT AS A SOLE

ENTREPRENEUR?

DO YOU NEED PEOPLE ON STAFF?

ARE THEY 1099, CONTRACT

EMPLOYEES, OR ARE THEY

EMPLOYEES?

LASTLY, FINANCIAL.

WHAT KIND OF RESOURCES DO YOU

NEED FROM A FINANCIAL STANDPOINT

TO LAUNCH YOUR BUSINESS, TO GROW

YOUR BUSINESS AND EXPAND YOUR

BUSINESS?

SO WE CONSTANTLY HAVE TO BE

LOOKING AT THESE FOUR ELEMENTS

OF RESOURCE IN ORDER TO

DETERMINE HOW WE CAN DELIVER

THIS VALUE PROPOSITION MOST

EFFECTIVELY TO OUR CUSTOMER

SEGMENTS.

SO LET'S TAKE A LOOK AGAIN AT

WHAT WAZE IS.

WELL, WAZE KEY RESOURCES IS

SOFTWARE.

OUR ALGORITHMS.

THEY NEED DEVELOPERS IN ORDER TO

MAKE THIS WORK.

THEY NEED MAPS.

THEY ALSO NEED AN I.T.

INFRASTRUCTURE.

BUT ONE OF THE KEY RESOURCES,

THEY NEED MINE SHARE.

THEY NEED PEOPLE TO THINK IN

TERMS OF, IF I NEED TO GET FROM

POINT A TO POINT B, HOW DO I GET

THERE?

I'M GOING TO CALL UP MY WAZE

PROGRAM IN ORDER TO GET ME FROM

POINT A TO POINT B.

OKAY.

NOW, THE AREA THAT MANY PEOPLE

HAVE QUESTIONS ABOUT IS, WHAT

ARE MY COSTS?

WHAT DOES IT COST ME TO LAUNCH

THIS BUSINESS?

HOW MUCH DO I NEED IN ORDER TO

BUILD OUT THE RETAIL SPACE THAT

I'M GOING TO HAVE?

SO WHAT WE WANT TO DO IS THINK

ABOUT THE FACT THAT SOME OF OUR

BUSINESSES ARE STRICTLY

COST-DRIVEN.

AND SO WE NEED TO ASK OURSELVES

QUESTIONS ABOUT HOW DO WE REDUCE

THE COST AND CONTROL THE COST

AND MAINTAIN THE COST.

SOME ARE VALUE-DRIVEN.

WE'RE FOCUSED ON THE VALUE THAT

WE'RE CREATING AND MAYBE A

PERSONALIZED SERVICE.

IT MAY BE A HIGH-END SERVICE AND

THE COST OF EXECUTING THE

BUSINESS IS NOT AS IMPORTANT AS

THE VALUE THAT YOU'RE DRIVING.

NOW, WHEN WE LOOK AT THE COST,

PHYSICAL COST, SOME OF THOSE ARE

FIXED COSTS, SOME ARE VARIABLE

COSTS.

YOU HAVE A BRICK AND MORTAR

SPACE, YOU HAVE $3,000 PER MONTH

FIXED COSTS.

VARIABLE COSTS ARE ONES YOU HAVE

BASED UPON THE NUMBERS OF HOURS

YOU'RE OPEN, THE NUMBER OF DAYS

OF WEEK YOU'RE OPEN.

ALSO, ECONOMIES OF SCALE.

IF YOU HAVE ONE LOCATION, WHAT

WOULD IT TAKE TO TAKE TWO

LOCATIONS, WHAT ABOUT THREE

LOCATIONS AND WE WANT ECONOMIES

OF SCOPE.

IF YOU HAVE ONE PRODUCT, WHAT

ARE THE EXPENSES INVOLVED IF

IT'S TWO PRODUCTS OR THREE

PRODUCTS?

WHAT WE WANT TO DO IS TAKE A

LOOK AT THE COST AS IT RELATES

TO OUR BUSINESS MODEL.

WHEN WE DO THAT, WE DO THAT --

WAZE LOOKS AT IT AND LOOK AT THE

COST OF DEVELOPING THE SOFTWARE,

OF HAVING THE I.T.

INFRASTRUCTURE, OF CREATING THE

MAPS AND ALSO WHAT DOES IT COST

THEM TO SELL TO THE ADVERTISERS.

LAST, WHAT WE WANT TO LOOK AT

ARE THE REVENUE.

WHAT STREAMS OF REVENUE ARE YOU

GOING TO BE ABLE TO GENERATE IN

ORDER TO CREATE THE BUSINESS.

BECAUSE WE ALL KNOW THAT IT'S

ALL ABOUT SELLING SOMETHING.

IF WE'RE TRYING TO SELL THIS

VALUE PROPOSITION, WHAT ARE THE

REVENUE STREAMS?

WHAT ARE WE PAYING FOR?

WHAT ARE WE DOING IN ORDER TO

ACHIEVE REVENUE?

IT MAY BE ADVERTISING.

IT MAY BE SELLING CONSULTING

SERVICES.

IT MAY BE THAT WE'RE SELLING

PRODUCTS.

IT MAY BE THAT WE'RE DOING

WORKSHOPS THAT ARE FEE-BASED.

SO YOU'VE GOT TO LOOK AT WHAT

ARE THE STREAMS OF REVENUE THAT

YOU'RE GOING TO GENERATE THAT

WILL ENABLE YOU TO COVER THE

COSTS AND GENERATE A PROFIT

WHILE DELIVERING THE VALUE

PROPOSITION TO YOUR CUSTOMER

SEGMENTS.

WELL, WAZE DOES IT BY

ADVERTISING.

ROADSIDE BUSINESSES.

ALSO -- THINK IN TERMS OF THIS

IS A REAL TIME MARKET.

WHAT YOU'RE DOING IS DRIVING

FROM POINT A TO POINT B.

OKAY.

WHAT WE HAVE -- WHEN YOU

DOWNLOAD THIS, YOU WILL SEE A

COMPLETED BUSINESS MODEL CANVAS.

YOU CAN SEE WHAT IT LOOKS LIKE

AS A SAMPLE.

>> THIS SLIDE IT SHOWS YOUTUBE

VIDEOS.

THERE ARE A NUMBER OF YOUTUBE

VIDEOS THAT TALK ABOUT BUSINESS

MODEL CANVAS.

AS YOU SEARCH THROUGH THE LARGE

INVENTORY OF THE VIDEOS OUT

THERE, YOU TEND TO WATCH THE

ONES WHERE THE AUTHOR, ALEXANDER

OSCAR WILDER DID THESE.

BECAUSE THERE'S MANY OTHER

PEOPLE DOING THEM LIKE MANY

THINGS.

IT ALWAYS PAY TOSS GO TO THE

STORE.

FOR THE INFORMATION.

OKAY?

THERE'S ALSO A SAMPLE BUSINESS

PLAN TEMPLATE.

EVEN THOUGH WE'RE TELLING YOU DO

THE BUSINESS MODEL CANVAS FIRST,

THERE IS ONE WWC CORP..COM AND

THERE ARE A NUMBER OF OTHER

TEMPLATES OUT THERE THAT ONE CAN

USE.

SO BASICALLY WHAT IS THE

BUSINESS MODEL CANVAS IN A

NUTSHELL.

IT'S A VALIDATION TOOL THAT

ALLOWS YOU TO TEST, VALIDATE

YOUR BUSINESS CONCEPT ON PAPER

BEFORE YOU SEND ANY MONEY, CAUSE

ANY PROBLEMS.

SO THE TRICK IS TO USE THIS TOOL

TO GO THROUGH EVERY ONE OF THESE

BLOCKS TO SEE ITS RELATIONSHIP,

TO SEE WHERE YOU MAY HAVE

POTENTIAL PROBLEMS, TO VALIDATE

THE CONCEPTS AND LOOK FOR THAT

BEFORE YOU SPEND ANY MONEY.

REMEMBER, AS I SAID EARLIER,

MARK HAS MENTIONED, THAT

ANYTHING YOU DO IN THE BUSINESS

MODEL CANVAS, CAN BE ROLLED INTO

A BUSINESS PLAN IF AND WHEN YOU

NEED TO DO THAT AT A LATER DATE.

OKAY?

>> SO LET ME GIVE YOU A COUPLE

QUICK THINGS BEFORE WE CLOSE OUT

AND TAKE QUESTIONS.

SO USE THE BUSINESS MODEL CANVAS

BEFORE YOU DO A BUSINESS PLAN.

USE IT TO VALIDATE YOUR CONCEPT.

FOR ANY PROBLEM IN THE BUSINESS

FLOW BEFORE YOU SPEND MONEY AND

DO ANYTHING ELSE.

IT'S MUCH EASIER TO CORRECT ANY

PROBLEM ON A PIECE OF PAPER

USING THE CANVAS.

ONCE YOU'RE START TO GO MAKE

INVESTMENT.

FOCUS.

MAKE SURE YOU GET THE TWO BLOCKS

CORRECT BECAUSE THE REST OF THE

BUSINESS MODEL CANVAS IS TOTALLY

DEPENDENT ON THESE ASSUMPTIONS.

THAT ASSUMPTION AT THE BEGINNING

WILL JUST RIPPLE THROUGH THE

REST OF THE CANVAS.

THE TWO CRITICAL ONES YOU MUST

GET RIGHT AND SPEND LOTS OF TIME

ON IF NEED BE.

FIGURE OUT WHO YOUR CUSTOMER

SEGMENTS ARE, FIGURE OUT THE

VALUE PROPOSITION FOR EACH ONE.

WHY WOULD THEY BUY YOUR PRODUCT

SERVICE.

WHAT PROBLEMS ARE YOU SOLVING

FOR THEM BECAUSE THEY WON'T BUY

YOUR SERVICE OR YOUR PROBLEMS IF

YOU'RE NOT MAKING YOUR LIFE

BETTER.

EITHER YOU'RE GOING TO MAKE THE

JOB EASIER, SOLVE A PROBLEM THAT

THEY HAVEN'T SEEN A SOLUTION FOR

OR THEY'VE BEEN DOING IT A

CERTAIN WAY AND YOU CAN DO IT

BETTER AND CHEAPER.

SO THAT'S THE KEY.

WE HIGHLY RECOMMEND THIS.

MARK AND I BOTH USE THIS WITH

LOTS OF DIFFERENT STARTUP

BUSINESSES TO GREAT SUCCESS.

SO AT THIS POINT, WE'LL BE

TAKING QUESTIONS.

WE'RE HAPPY TO ANSWER ANYTHING

WE CAN TO HELP YOU START YOUR

BUSINESS IMPROVE YOUR EXISTING

BUSINESS AND GO FORWARD AND BE

SUCCESSFUL.

THANK YOU.

>> OKAY.

WE'LL NOW GO AHEAD AND START THE

Q AND A PORTION OF THIS WEBINAR.

WE'LL ADDRESS JUST AS MANY

QUESTIONS AS WE CAN.

LET'S KICK OFF THESE QUESTIONS.

MARK SAYS THAT THE CANVAS THAT

SHOWED IN THE PRESENTATION IS

LAID OUT WITH KEY PARTNERS ON

THE LEFT.

YOU'D PUT THE INFORMATION FROM

RIGHT TO LEFT.

IS THERE A RECOMMENDED PROCEDURE

TO FILL OUT THE CANVAS?

>> YES.

IT'S A GREAT QUESTION, BY THE

WAY.

YOU'RE RIGHT.

HERE'S WHAT I RECOMMEND HAVING

DONE THIS A LOT.

THERE'S TWO CRITICAL BOXES IF

YOU DON'T GET RIGHT.

THE REST OF THE CANVAS IS NOT

GOING TO HELP YOU THAT MUCH.

THE TWO CRITICAL BOXES OF

SEGMENTS OF VALUE PROPOSITION.

EACH CUSTOMER SEGMENT NEEDS AN

ASSOCIATED VALUE PROPOSITION.

YOU START WITH SEGMENT, YOU DIG

DOWN AND GET THAT RIGHT.

ONCE YOU'VE IDENTIFY THAT

CUSTOMER SEGMENT, YOU FIGURE OUT

THE PROPOSITION WITH EACH

SEGMENT.

THE REST OF THE CANVAS IS

GENERALLY UP TO YOU IN MY

EXPERIENCE HOW YOU WANT TO DEAL

WITH IT.

AND I WANT TO REMIND PEOPLE THAT

NOT EVERY BOX IS GOING TO BE

IMPORTANT TO EVERY TYPE OF

BUSINESS.

MOST PEOPLE GENERALLY DO.

NOT THAT IT'S LESS IMPORTANT.

THE FINANCIAL ONE.

COST STRUCTURE AND REVENUE, THE

BOTTOM TWO, YOU NEED TO GET THE

REST OF IT.

AGAIN, CUSTOMER SEGMENTATION AND

VALUE PROP.

NEXT QUESTION, ALEXA.

>> OKAY.

THIS NEXT QUESTION IS COMING TO

US FROM RHONDA.

RHONDA IS ASKING, DO YOU HAVE TO

DO MARKET RESEARCH FOR A SERVICE

BUSINESS USING --

>> YEAH.

SO THE BUSINESS MODEL CANVAS

ISN'T DEPENDENT ON MARKET

RESEARCH?

IF YOU DON'T UNDERSTAND YOUR

MARKET, IT WILL BE YOUR

CUSTOMERS TO SOME LEVEL.

MAYBE BROADER THAN THAT.

YOU'RE REALLY BASING IT ON FALSE

ASSUMPTION.

SO THE BUSINESS MODEL DOES NOT

ELIMINATE THE NEED TO DOING GOOD

BASIC RESEARCH.

THE BUSINESS MODEL CANVAS AS WE

SAID IN THE PRESENTATION, AITS A

GREAT WAY TO VALIDATE IDEAS.

LOOK FOR PROBLEMS BEFORE YOU

START DOING A BUSINESS PLAN.

YOU MAY NEED A BLISS PLAN.

YOU MAY NOT.

I THINK ONE OF THE OTHER

QUESTIONS DOES ASK THAT, ALEXA.

RIGHT?

>> RIGHT.

AND WITH THE QUESTION FROM

SHELLY ASKING WHAT IS THE -- I

WANT MY BUSINESS TO ASSESS IN

THE FUTURE.

SHOULD I CALL THOSE OUT IN THE

INITIAL CANVAS?

>> WELL, THE CANVAS IS NOT A

FIXED DOCUMENT BASICALLY TO

ANSWER YOUR QUESTION.

THE CANVAS CAN'T -- WILL BE A

LIVING DOCUMENT TO SOME EXTENT.

AS YOUR BUSINESS GROWS, YOU CAN

ADD OTHER CUSTOMER SEGMENTS AND

THEREFORE, YOU MAY CREATE IT.

YOU GET TO THE ORIGINAL PART OF

THE QUESTION, IF YOU THINK

WHAT'S YOUR PRIMARY CUSTOMER

SEGMENT, YOU'RE GOING TO START

YOUR BUSINESS, YOU CAN ALWAYS

ADD OTHER PRODUCT LINES OR

BUSINESS LINES, CUSTOMER

SEGMENTS AS YOU GO ON.

I SUGGEST THAT YOU DEAL WITH

THEM AS THEY COME.

AGAIN, DECIDE WHAT ARE THE FIRST

TWO TARGET MARKETS, SEGMENTATION

THAT YOU WANT TO GO AFTER.

DO THE CANVAS BASE IN THAT.

YOU CAN EXTEND THE CANVAS

BASE --

>> THIS NEXT QUESTION COMES TO

US FROM LILLIAN A.

WHERE CAN YOU FIND WHICH FINANCE

ENTITIES -- INSTEAD OF BUSINESS

PLAN WHEN YOU'RE LOOKING FOR

MONEY FOR YOUR BUSINESS?

>> RIGHT.

THERE IS NO LIST.

IT'S GOING TO BE DEPENDENT ON

THE LENDER.

WHETHER YOU'RE GOING TO WHATEVER

BANK OR LOCAL COMMUNITY

FINANCING AND I'M NOT SAYING

THAT THE CANVAS WILL TOTALLY

ELIMINATE THE BUSINESS PLAN.

SOME LENDERS MAY REQUIRE YOU

STILL TO DO A BUSINESS PLAN.

BECAUSE IT'S THEIR RULES THAT

YOU WANT TO PLAY BY TO GET THE

MONEY.

SO OUR FUNDAMENTAL CONCEPT,

AGAIN, REPEATING SOME OF THE

THINGS WE SAID IN THE

PRESENTATION IS, THE CANVAS IS A

MUCH SIMPLER WAY TO GET A HANDLE

ON THE BUSINESS, LOOK FOR

PROBLEMS BEFORE YOU SPEND THE

TIME TO DIG INTO WRITING A 20,

30, 40-PAGE BUSINESS PLAN.

SO EACH LENDER WILL HAVE

SPECIFIC THINGS THAT THEY'RE

LOOKING FOR.

SOME LENDERS WE HEAR BY TALKING

TO CLIENTS IN LIEU OF THE

BUSINESS PLAN.

YOU ALWAYS NEED FINANCIAL

INFORMATION FOR FORMER -- TO

BACK UP YOUR NUMBERS.

MOST LENDERS ARE ALWAYS GOING TO

LEND ON THE FACT, CAN YOU PAY

BACK THE LOAN WITH THE INTEREST?

THAT'S WHAT THEY CARE ABOUT THE

MOST.

NEXT QUESTION.

>> OKAY.

THIS NEXT QUESTION, ACTUALLY

COMING FROM SEVERAL PARTICIPANTS

ON THE LINE TODAY.

REGARDING WHERE TO FIND AN

EXAMPLE OF THE BMC CANVAS FOR

USE OF MY BUSINESS, WHERE CAN I

FIND A TEMPLATE.

WHAT IS THE BEST TEMPLATE TO USE

WHEN THERE'S SO MANY TO CHOOSE

FROM.

>> THERE ARE A TON OF THEM.

I HAVE ONE I USE REGULARLY.

FRANKLY, I DON'T REMEMBER WHERE

I GOT IT, TO BE HONEST.

THE TEMPLATE, IF YOU GOOGLE

BUSINESS MODEL CANVAS.

YOU WILL FIND A TON OF VIDEOS ON

YOUTUBE.

IF YOU GO TO YOUTUBE, I SUGGEST

YOU FIND THE VIDEOS DONE BY ONE

OF THE AUTHORS, THE ORIGINAL

AUTHORS RATHER THAN SOMEBODY

ELSE.

ONE OF THE AUTHORS WAS ALEX

OSSER WALDER.

THERE ARE VIDEOS ON YOUTUBE.

THERE ARE A COUPLE OF THEM THAT

ARE DONE.

MOST OF THEM TEND TO MOVE TO

TECH COMPANIES.

THEY TEND TO MOVE -- IF YOU DO

SOME GOOD GOOGLING, YOU WILL

FIND A NUMBER OF CANVASES AND

THERE MAY BE ONE THAT YOU LIKE.

THEY ALL HAVE THE NINE BOXES,

SOME WILL HAVE OTHER THINGS AND

THERE'S A WHOLE LARGE INDUSTRY

THAT HAS BEEN CREATED AROUND

THERE.

THERE'S A LOT OF OTHER

SUPPORTING BOOKS AND RELATED

DOCUMENTATION OUT THERE.

NEXT.

>> OKAY.

THE NEXT QUESTION IS FROM AT

THIS A.

AS YOUR BUSINESS GROWS IN

SUCCESS, IS IT IMPORTANT TO

REVAMP YOUR BUSINESS MODEL

CANVAS?

>> YEAH.

I WOULD SAY IF YOU THINK THERE'S

ANY REAL MAJOR CHANGES,

DEFINITELY.

PROBABLY NOT A BAD IDEA TO DO A

ONCE A YEAR SEE HOW WE'RE DOING.

SEE IF THE MARKET HAS CHANGED

WHICH CAUSED US TO, WE HAVE TO

REACT THE MARKET FORCES OR ARE

WE TRYING TO EXPAND OR MARKETS

IN AREAS, A FEW PEOPLE ASK

QUESTIONS RELATED TO THAT.

I WOULD SAY, LIKE ANYTHING ELSE,

IT'S NOT A STATIC MARKET OUT

THERE.

YOU'RE ALWAYS GOING TO GET NEW

COMPETITORS AND NEW PROBLEMS OUT

THERE.

I THINK IT'S GOOD PRACTICE TO DO

EVERY SIX MONTHS OR ONCE A YEAR

DEPENDING ON YOUR SITUATION TO

STOP THE DAYS OF THE GRIND AND

SIT BACK AND THINK STRATEGICALLY

AND LOOK AT THE CANVAS AND SEE,

HAVE FACTORS CHANGED.

NEXT QUESTION.

>> OKAY.

NEXT QUESTION IS FROM JAMES.

DO I NEED A FORMAL LOAN BUSINESS

PLAN OR CANVAS IF I'M BOOT

STRAPPING MY BUSINESS STARTUP?

>> WELL, THAT'S A GOOD QUESTION,

JAMES.

I WOULD SAY TO YOU, YOU DO NOT

NEED IT, BUT YOU DO NEED TO DO

THE HOMEWORK.

SO IT'S NOT THE QUESTION OF THE

DOCUMENTS.

ESPECIALLY A BUSINESS PLAN.

BUT THE BUSINESS MODEL AS WE'VE

TALKED ABOUT HAS A LOT OF THINGS

THAT WILL BE IMPORTANT TO SOME

PEOPLE BUT MAY NOT BE.

I WOULD SAY TO YOU, IT ALWAYS

PAYS TO USE THE CANVAS TO

VALIDATE YOUR STARTUP TO MAKE

SURE YOU'RE NOT MAKING ANY BIG

MACE MISTAKES.

THE EARLIER YOU CAN CATCH A

MISTAKE AND I'LL TELL YOU,

HAVING STARTED A FEW BUSINESSES

MYSELF, AND EVEN IF IT TELLS YOU

THEY'RE NOT GOING TO MAKE ANY

MISTAKES IS STUPID OR A LIAR.

ALL WE'RE TRYING TO DO IS

MINIMIZE THE AMOUNT OF MISTAKES

AND IF WE DO MAKE MISTAKES, WE

WANT TO CATCH THEM EARLY BEFORE

THEY'RE COSTLY.

I WOULD STILL RECOMMEND YOU

DOING A CANVAS EVEN IF YOU'RE

BOOTSTRAPPING YOUR OWN BUSINESS

WITH NO OUTSIDE INVESTMENT.

I WOULD PROBABLY HOLD OFF ON THE

BUSINESS PLAN BECAUSE THAT'S A

LOT MORE TEDIOUS AND I DON'T

THINK WOULD HELP YOU AT THAT

STAGE.

NEXT QUESTION.

>> OKAY, NEXT QUESTION.

IT'S FROM JEANNETTE.

SHE'S ASKING IF A CANVAS IS

SIMILAR TO A ROUGH DRAFT BEFORE

REFINING THE PLAN.

>> ACTUALLY, I WOULD SAY THAT

THE CANVAS IS MORE PRELIMINARY.

THIS IS THE CANVAS BECAUSE OF

THE BOXES ALLOWS YOU TO THINK

ABOUT ALL THE PIECES THAT YOU

WILL NEED MAY OR MAY NOT NEED TO

INTERACT WITH TO MAKE THE

BUSINESS PROPERLY.

I WOULD SAY IT'S LIKE DOING YOUR

EARLY HOMEWORK AND ULTIMATELY,

IF YOU NEED TO WRITE A BUSINESS

PLAN, IF YOUR LENDER OR SOMEONE

ELSE REQUIRES YOU TO DO IT,

ALMOST EVERYTHING YOU PUT INTO

THE CANVAS IS REUSABLE.

YOU'RE NOT WASTING ANY TIME AND

ENERGY.

NEXT QUESTIONMENT.

>> OKAY.

NEXT QUESTION FROM -- I'M

CONCERNED ABOUT SHARING MY

BUSINESS PLAN BECAUSE OF THE

INTELLECTUAL PROPERTY AND HIGHLY

DISRUPTIVE MODEL.

HOW EFFECTIVE ARE NDAs WITH

LENDERS.

>> LOOK, FIRST OF ALL,

NONDISCLOSURE AGREEMENT IS ONLY

AS GOOD AS THE PERSON WHOSE

MORALITY OR HONOR ON SIGNING IT.

MOST BANKS ARE NOT GOING TO BE A

PROBLEM.

THE BANKERS ARE NOT GOING TO

TAKE YOUR IDEA AND GO ON THE

START OF BUSINESS.

JUST HAVING THE IDEA IS MAYBE OF

INTEREST BUT THERE'S A LOT OF

WORK TO MAKE IT ACTUALLY HAPPEN.

KNOW EITHER FROM EXPERIENCE OR

ARE GOING TO -- I WOULD TELL YOU

THAT IT'S STILL A JUDGMENT OF

WHO YOU'RE DEALING WITH.

NOT EVERYBODY IS HONEST AS WE

KNOW AND NONDISCLOSURE -- YOUR

ONLY OTHER CHOICE IS TO GO BACK

AND SUE THEM AND IS HARD TO DO

AND NOT PRACTICAL.

NEXT QUESTION.

>> COUPLE OF SIMILAR QUESTIONS

HERE.

I ALREADY HAVE A BUSINESS PLAN

CREATED.

IS IT A GOOD IDEA TO CREATE A

BUSINESS MODEL CANVAS AS WELL?

DO YOU THINK THE BMCs REPLACES

THE TRADITIONAL BUSINESS?

>> WELL, WE USUALLY RECOMMEND TO

DO THE BMC BEFORE THE BUSINESS

PLAN.

FRANKLY, I THINK I WOULD TELL

YOU BEFORE YOU'VE DONE A FORMAL

BUSINESS PLAN, IT WOULD NOT HURT

YOU.

YES, IT'S GOING TO TAKE TIME AND

ENERGY TO RUN IT THROUGH THE

BUSINESS MODEL CANVAS AND A LENS

SO TO SPEAK TO CLARIFY BECAUSE

MOST DON'T DEAL WITH THE ISSUES

IN THE SAME -- THEY DON'T DEAL

WITH THE SAME -- LET ME REPEAT

WHAT I SAID EARLIER.

EVERY TYPE OF BUSINESS WILL

NOT -- NOT ALL OF THE BOXES ARE

IMPORTANT.

MINIMUM OF FOUR ARE IMPORTANT.

CUSTOMERS VALUE PROPOSITION.

MONEY IN, MONEY OUT AT THE

BOTTOM.

SOME BUSINESSES MAY NOT -- MAY

BE SELLING DIRECT ONLINE.

THE CHANNELS -- NOT DEALING WITH

ANY THIRD PARTY.

>> IT'S A VERY, AGAIN, IT'S A

ONE SIZE FITS ALL.

YOU HAVE TO REMEMBER THAT THERE

WILL BE ADJUSTMENTS DEPENDING ON

THE TYPES OF BUSINESS YOU HAVE.

>> MARK, NEXT QUESTION IS FROM

JACQUELINE.

COMPETITION OR PROBLEM.

CAN YOU TALK ABOUT WHERE THAT

WOULD GO IN THE CANVAS?

>> NO.

WELL, YES AND NO.

THE CANVAS DOESN'T HAVE A

PARTICULAR BOX FOR THAT.

WHERE THE TRADITIONAL BUSINESS

PLAN DOES.

LET'S NOT KID OURSELVES.

YOU ABSOLUTELY HAVE TO

UNDERSTAND YOUR COMPETITIVE

MARKET SPACE BEFORE YOU'RE GOING

TO BE SUCCESSFUL.

THAT IS THE PRELIMINARY WORK

THAT YOU NEED TO DO.

THE BUSINESS MODEL CANVAS DOES

NOT HAVE A PARTICULAR BOX FOR

COMPETITION LOOKING AT THAT.

BUT I ABSOLUTELY -- YOU

ABSOLUTELY NEED TO DO THAT

BECAUSE YOU CAN'T CREATE A

BUSINESS MODEL CANVAS IN A TOTAL

VACUUM.

>> OKAY.

SHEER A WANTS TO KNOW IF WE CAN

GO WITH A BMC TO THE BANK IN

ORDER TO GET A LOAN TO START A

BUSINESS.

>> SO I WOULD TELL YOU AGAIN AS

I MENTIONED EARLIER, IT'S VERY

BANK SPECIFIC.

THE COMMERCIAL LENDING OFFICERS,

EVERYBODY HAS THE WAY THEY DO

IT.

I DO TELL CLIENTS THAT YOU MAY

WANT TO DO A PRELIMINARY MEETING

WITH THE LENDER.

AND ASK THEM IF I JUST WANT TO

HAVE A MEETING, I WANT TO RUN BY

THE IDEA WITH THE CANVAS TO SEE

WHETHER YOU ARE INTERESTED IN

THE IDEA, B, WHETHER YOU NEED A

BUSINESS PLAN OR YOU'LL ACCEPT

THE CANVAS.

I THINK IT'S NOT A BAD IDEA TO

PICK A LENDER, MAYBE NOT YOUR

TOP LENDER, BECAUSE YOU NEVER

KNOW.

IT'S THE QUESTIONS THAT THE

LENDER IS GOING TO ASK YOU.

YOU NEED TO HAVE THE ANSWERS TO

IT.

AGAIN, IN REAL LIFE, LENDERS ARE

ALWAYS LOOKING AT THE NUMBERS.

THE CANVAS OBVIOUSLY HAS THAT IN

THERE.

IN REAL LIFE, THEY WANT TO MAKE

SURE THAT WITH THE MONEY YOU'RE

BORROWING, WHERE IS IT GOING,

HOW ARE YOU USING THE FUNDS.

HOW ARE YOU GOING TO PAY BACK

THE LOAN, WHAT ARE YOUR MARGINS

OR PROJECTED FEES.

BANKS ARE NOT VENTURE

CAPITALISTS.

THEY LOAN MONEY TO PEOPLE AND

THEY WANT TO GET PAID BACK WITH

INTEREST IN THE LOAN.

THEY'RE A DIFFERENT KIND OF

BREED THAN EITHER INVESTORS OR

VENTURE CAPITALISTS.

>> MARK, THOSE ARE ALL THE

QUESTIONS THAT WE HAVE TIME FOR

IN THIS LIVE SESSION.

>> GREAT.

THANKS EVERYBODY.

>> YES.

APPRECIATE YOU COMING.

>> ON BEHALF OF SCORE AND FEDEX.

I WANT TO GIVE A BIG THANK YOU

TO MARK WALL EN STEIN AND MARK

GOLDBERG FOR PRESENTING SO MUCH.

>> HAPPY TO HELP.

>> THANK YOU ALL SO MUCH FOR

ATTENDING AS WELL.

WE HAVE RECORDED THIS WEBINAR

SESSION.

IT CAN BE VIEWED AT A LATER TIME

THROUGH THIS WEB PLATFORM AS

WELL AS ON WWW..

DURING THE BREAK, WE HOPE YOU

ENJOY THE VIRTUAL CONFERENCE

ENVIRONMENT.

VISITING THE MENTORING HALL, THE

EXHIBITOR HALL FOR ADDITIONAL

RESOURCES.

WE HOPE WE SEE YOU BACK AT ONE

OF THE NEXT WEBINARS STARTING IN

15 MINUTES.

THANKS SO MUCH.

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