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Innovation Management Workshop - #2

Innovation Management Workshop - #2

How to start a scalable business

Manish Chiniwalar

October 01, 2016
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  1. HOW-TO START AND SCALE IMPACTFUL BUSINESS IDEAS Kuldip Chakraborty @cooldip

    Manish Chiniwalar @manishrc Karthik Gupta @karthikvgupta
  2. GOODKARMA • 4 Customers • 3 Pivots • 0 Lines

    of code “Help yoga practitioners grow with consistent and deliberate practice.”
  3. GOODKARMA PIVOTS 1. Inconsistent Students → Consistent Students 2. Add

    Teachers 3. Teachers → Yoga Studio Founders “Help yoga practitioners grow with consistent and deliberate practice.”
  4. 1961 John F. Kennedy I believe that this nation should

    commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth.
  5. WHERE DO YOU WANT TO BE? “If you don’t know

    where you are going, any road will take you there.”
  6. DO IT NOW 1. Write your Minimum Success Criteria in

    terms of revenue per year Is it $1k, $10k, $100k, $1M, $10M? 2. Write when do you want to reach there Anytime between 2-5 years is a good timeframe 5 MIN
  7. CUSTOMER SEGMENT 1. Identify your key customer segment 2. Identify

    the roles that will interact with this customer 3. Identify early adopters #1
  8. UVP 1. Single, clear, compelling message that states why you

    are different and worth paying attention. 2. Tips for UVP: - Be different, but make sure your difference matters - Target early adopters - Focus on finished story benefits - Pick your words carefully and own them - Answer: what, who, and why - Study other good UVPs. 3. Good Formula Instant Clarity Headline = End Result Customer Wants + Specific Period of Time + Address the Objections 4. Create a high-concept pitch. #3
  9. CHANNELS 1. Failing to build a significant path to customers

    is among the top reasons why startups fail. 2. Write both inbound and outbound paths to your customers. #5
  10. REVENUE STREAMS List your sources of revenue. Don’t let cost

    drive your price. Base it on the “Perceived Value” and existing alternatives. #6
  11. “What we document is that price is not just about

    inferences of quality, but it can actually affect real quality,” BABA SHIV
  12. “What we document is that price is not just about

    inferences of quality, but it can actually affect real quality,” “So, in essence, [price] is changing people's experiences with a product and, therefore, the outcomes from consuming this product.” BABA SHIV
  13. REVENUE STREAMS List your sources of revenue. Don’t let cost

    drive your price. Base it on the “Perceived Value” and existing alternatives. #6
  14. A B

  15. UNFAIR ADVANTAGE Something that cannot be easily be copied What

    will prevent a big company ripping off your product? #9
  16. “If you want to unleash more creativity in your company,

    you need to allow for a little contamination. It is the sand in the oyster that creates the pearl.” - Fred Wilson LOCAL MAXIMA
  17. DO IT NOW 1. Copy the canvas & create more

    versions 2. Start with changing the Customer Segments 3. Rank and pick one, based on: - Customer Pain Level - Ease of Reach - Gross Margins - Market Size - Tech Feasibility 60 MIN
  18. CUSTOMER PRODUCTION RATE = REVENUE/YEAR $1,000,000 CUSTOMER LIFETIME VALUE =

    ($2,400 REVENUE/CUSTOMER/YEAR) x (2 YEAR LIFETIME)
  19. REQUIRED LEADS = CUSTOMER PRODUCTION RATE 200 CONVERSION RATE 1%

    OR 0.01 For SaaS Companies, It’s usually single digit
  20. 200 100 NEW CUSTOMERS EVERY YEAR 500 250 ACTIVE CUSTOMERS

    $1M REVENUE/YEAR 20,000 10,000 LEADS PER YEAR
  21. DO IT NOW 30 MIN 1. Determine time-boxed minimum success

    criteria Keep time box under 3 years Frame the outcome in terms of revenue (or throughput) goal 2. Estimate LTV 3. Calculate the required Throughput 4. Refine and adjust your model Can you Increase Pricing? 5. Eliminate any models that don’t work
  22. To achieve a large fuzzy goal, it is best to

    break it down into smaller measurable steps STARTUP STAGES
  23. PROBLEM-SOLUTION FIT PRODUCT-MARKET FIT SCALE Understanding the value that can

    be delivered Delivered value > Captured value Delivering value to more and more customers
  24. GROWTH TIME 3 months 1 year 2 years 10X PROBLEM-SOLUTION

    FIT PRODUCT-MARKET FIT SCALE 100X MINIMUM SUCCESS CRITERIA RISK - CUSTOMERS RISK - TECH
  25. You have a single goal from ideation to scale The

    10X model requires non-linear thinking The 10X model works to expose the riskiest parts of your business
  26. GROWTH TIME 3 months 1 year 2 years 10X PROBLEM-SOLUTION

    FIT PRODUCT-MARKET FIT SCALE GOODKARMA TRACTION MODEL 400 studios $1MM Revenue 40 studios 4 studios 7 months RISK - CUSTOMERS 100X RISK - TECH
  27. IN EVERY STAGE FOCUS ON REPEATABILITY GROWTH TIME 3 months

    2 years 3 years 10X PROBLEM-SOLUTION FIT PRODUCT-MARKET FIT SCALE 1 year 100X
  28. GROWTH TIME 3 months 2 years 3 years 10X PROBLEM-SOLUTION

    FIT PRODUCT-MARKET FIT SCALE 1 year 100X SINGLE BIGGEST THING TO BUILDING TRACTION GET OUT OF THE BUILDING
  29. DO IT NOW 30 MIN Stage: PS Fit 1x PM

    Fit 10x Scale 100x Timebox 3 months 1 year 2 years Customer Throughput 30 300 3000 Timebox and customer throughput: Using the funnel, come up with the throughput for Problem-Solution Fit: Stage: Leads Trials Customers Conversion 10% 10% Numbers ??? ?? 30
  30. “I’m Gonna Make Him An Offer He Can’t Refuse” -Don

    Corleone VALIDATE WITH AN “OFFER”
  31. - UVP - Demo - https://invis.io/ME8GASP8N - Pricing - 5%

    of the fees collected from students through the app GOOD KARMA OFFER
  32. Now that you have defined a goal and a path,

    you now need a repeatable process to keep delivering value one customer at a time. THE CUSTOMER FACTORY
  33. ACQUISITION GoodKarma: Identify the yoga studio founder and set up

    a call to place the offer Disneyland: People queuing up outside Disneyland
  34. ACQUISITION ACTIVATION GoodKarma: Install the Manager’s App at the studio

    and have the manager send an invite to enquiry Disneyland: After the visitor has taken the first ride
  35. ACQUISITION ACTIVATION REVENUE GoodKarma: Student makes a payment to the

    studio through the app Disneyland: Visitor is happy and takes all the rides
  36. ACQUISITION ACTIVATION REVENUE RETENTION GoodKarma: Student continues to use the

    app and maizntains the relationship with the studi Disneyland: Visitor takes more rides and spends more time
  37. ACQUISITION ACTIVATION REVENUE REFERRAL RETENTION GoodKarma: Student talking to another

    student in another studio Disneyland: Visitor talks to her neighbours
  38. DO IT NOW 1. Identify the events corresponding to each

    of the steps in the customer factory: - Acquisition - Activation - Retention - Revenue - Referral 2. If you already have paying customers, Add current numbers. 30 MIN
  39. GoodKarma: Install the Manager’s App at the studio and have

    the manager send an invite to enquiry ACQUISITION ACTIVATION REVENUE REFERRAL RETENTION GoodKarma: Identify the yoga studio founder and set up a call to place the offer
  40. GoodKarma: Install the Manager’s App at the studio and have

    the manager send an invite to enquiry ACQUISITION ACTIVATION REVENUE REFERRAL RETENTION GoodKarma: Identify the yoga studio founder and set up a call to place the offer
  41. You can contact any of us: • [email protected][email protected]

    [email protected] Would you like to attend the follow-up workshop? WHAT’S NEXT?
  42. “If I have seen further, it is by standing on

    the shoulders of giants.” - Isaac Newton THANKS TO...
  43. CREDITS Icons from TheNounProject - Factory by David - Graph

    by chance smith - Einstein by oksana latysheva - Dollar by thomas bruck