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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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