12. Common Mistakes
• Is it just a feature of someone elses
product?
• Is it a “nice to have” product?
• Is it a “got to have” product?
• Can it scale to a company?
13. Product
• Problem statement: what is the
problem?
• Technology/Market Insight: why is
this problem hard to solve?
• Market size: how big is this problem?
• Competition: what customers do today?
• Product: how to do it?
14. Step 2: What is the
MVP
• Test your understanding of the problem
• Test your understanding of the solution
• Avoid building products nobody wants
15. Test the MVP
• Landing pages
• Prototypes
• Interviews
• Surveys
30. Common BMC Errors
• More customer segments than a Fortune
100 company
• “End users” as customer segments
• Value proposition/customer segment
mismatch
• Forget to search for a repeatable and
scalable business model
31. Market Types
• Clone Market (copy of an existing business
model)
• Existing Market (faster, better/high-end)
• Resegmented Market (niche, cheaper/low-
end)
• New Market (good enough, innovative)
32. Market Size
• TAM – Total Available Market
• SAM – Served Available Market
• Year1-3 – Target Market
http://www.slideshare.net/sblank/nsf-lecture-1-
bus-model-cust-dev/207
35. Presentation for Next
Class
• Slide 1: Cover slide
• Slide 2: Business Model Canvas (changes marked in red,
different colors for multi-sided markets)
• Slide 3: Value Proposition Canvas: Customer Segments
(for each customer segment: jobs, pains, gains)
• Slide 4: What were your experiments to test Customer
Segments
• Slide 5-n: What did you learn about Customers from the
interviews (hypothesis, experiments, results, action)
36. Before Next Class
• Talk to 10 customers about Value
Proposition
• Update LPC Narrative and Canvas
• Prepare Class Presentation
• Watch Lecture 3: Customer Segments