startup accelerator 2014: indentifying gaps and refining business models by vivek agarwal_21st feb...

Fine Tuning the Business model Vivek Agarwal Feb 21, 2014

4 Questions for Biz Plan

• Who is your customer?

• Why will he pay you?

• How will you reach them?

• How large and profitable can it be?

Two sides to every Coin

(you have to die to go to heaven!)

You got to answer this question first

Jim Morrison Narayan Murthy

OR

What do you want your pie to look like?

Total Value – 10 cr

Your share – 100%

Your value – 10 cr

Total Value – 1000 cr

Your share – 10%

Your value – 100 cr

1

Scenario 1 Scenario 2

Watch the size

Must match your capability level

• Smaller scope • Too small for the “big guys”

… with killer potential!

• Need time to acquire capability

V / s

What is the model

Innovation Efficiency

What is the right rate of growth for you?

How much should you plan

Ready. Aim. Fire. FIRE. FIRE. FIRE

OR

How do you balance this

“World Class

Execution

Takes time”

“I have to meet

my monthly

payroll”

Watch who you listen to

“Core

Competence”

“Customer is

asking for

services we

currently do

not provide”

v/s

Can there be TOO much Focus?

“We know

how to service

this market”

“There are

many more

tempting

opportunities”

v/s

The Age-old debate!

Quality v/s Speed

One Thought

Minimum Viable Product (MVP)

MVP

• Simplified Offering that reveals how real customers – not cloistered focus groups-respond

• Actionable Metrics – not “Vanity Metrics”

• Iterating through a “Build-Learn-Measure-Loop”

• Enterprise v/s consumer

• Best Value Proposition

• Large v/s Small

Customer Segments

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• What is the key problem that it is solving?

• Are there too many features / Services?

• Is the offering too complex?

Product – Value Proposition

17

• Not an easy answer

• Scalability, reach, profitability

• Variable v/s Fixed costs

Channels

18

• Fixed v/s Variable

• Components

• Relative importance

Cost Structure

19

• One-time v/s annuity

• Growth potential

• Objective

Revenue Streams

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• Customers

• Fund Raising

• External Stakeholders

Key Activities

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