Disciplined Entrepreneurship

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Excellent presentation - http://sites.fsa.ulaval.ca/www4/scr/evenements/ccsbe/bill-aulet-presentation.pdf

Academia.edu download - https://www.academia.edu/14414170/Disciplined_Entrepreneurship_24_Steps_to_a_Successful_Startup_1


HintLightbulb.png Hint: What is the single sufficient element of a business? It is a paying customer. It is not some funky product or business plan - and not even a worthwhile product. A business is simply when someone is willing to give you money for what you have on a continuing basis.



Notes on Customer, Product, and Sales

Marketing revolves around understanding the market and cultivating lists of potential customers by answering questions of

  • Market segmentation - what specific market are we pursuing? Select a beachhead market - the main market of interest.
  • Market research - for a beachhead market - what are the needs and pain points that we can satisfy?
  • Identify an End User Profile
  • Define a Persona - someone who represents the End User Profile very well
  • Market size - what is the total adressable market size? TAM
  • Identify a Life Cycle Use Case - how does a person find out about, acquire, pay for, use, gains value from, and spreads the word about your product.
  • Define a high level product specification (Diagram), and then a Product Brochure.
  • Quantify the Value Proposition
  • Identify 10 more potential customer Personas who also fit the End User Profile -
  • Identify your Core - or Unique Value Proposition. What unique thing can only you offer? It is public design. There is nobody that makes real products via a collaborative process, outside of China. Such as: the only company in the world that allows you to make products with closed loop material cycles. Metal we melt, plastic we grind, and organics we return to the soil food web.
  • Chart competitive position: Show how well your product meets your persona's top 2 priorities
  • Determine customer's Decision Making Unit: who makes ultimate decistion to buy and who influences these decisions? Champion, user, buyer. May all be the same or all different people. There are also other agents here: influencers (negative and positive), veto power, and purchasing departments.
  • Map process to acquire a paying customer -understand the length of sales cycle. Determine cost to acquire customers.
  • Calculate market size of follow-on markets
  • Design a Business Model - for us it is to offer experiences and charge 100% over BOM for an excellent experience. The business model revolves around capturing the value of knowhow related to effective building. The core is efficient distributed production via high skill requirement of the knowledge worker. Some elbow grease is a bonus. Innovation on value capture model is key. For OSE - we get paid to teach Teachers, who in turn teach their kids to develop further open source products in a virtuous cycle. We teach enterprise, and grow our enterprise by further contributions to the enterprise. A business model is not pricing - it is a higher level approach of WHAT you charge for based on how much value someone receives. Distribution - make sure your distribution channel has the right incentives to sell your product.
  • Calculate Life Time Value - LTV - of a customer. LTV/COCA=3 or more. COCA=cost of customer acquisition
  • Map sales process - immediate, medium, and long term sales strategies. What you do and how you do it. What channels do you use?
  • Calculate COCA - short, medium, long term
  • Identify untested assumptions. Test key assumptions.
  • Produce MVBP - minimum viable business product
  • Sell MVBP, collect data.
  • Create product plan - evolve your minimum product and go to adjacent markets