I was a guest lecturer at the University of Toronto's Social Entrepreneurship course in the Faculty of Applied Science & Engineering. This was class 5 on October 12, 2011 on Assessing Business Potential. Learn more about this course at http://www.socialentrepreneurship.ca/aps1015h/.

1. Class 5 – October 12, 2011
Assessing Business Potential
Social Entrepreneurship (APS1015H)

2. Hello
A work in progress.
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3. Purpose
Assessing Business Potential

4. Social Entrepreneurship Confidential

5. Why?
Business models are flexible, iterative and
concise.
This allows for:
• integrated, not isolated thinking
• discussion, not documentation
• dynamic, not static content
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6. Why?
They provide a framework for assessment.
We are in a time of:
• unpredictable environments
• no life and death products
• limited runway
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7. Why?
They provide a framework for assessment.
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8. Disclaimer
There are terms and conditions of everything
that you learn.
• technology slant, industry-wide application
• there are no best ways, just be er ways
• practice is greater than theory
• it never stops changing
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9. Definitions
Assessing Business Potential

10. ‘Startup’:
A startup is a group in search
for a repeatable, scalable
business model. – Steve Blank
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11. ‘Business Model’:
A business model is how
something makes, gives and
gets value. – Alexander
Osterwalder
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12. ‘Value’:
The value is what customers
are willing to pay for.
– Someone
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13. Definitions
We have to assess if the startup’s business model
will produce enough value that a customer is
willing to pay.
How?
• lean startup
• agile development
• customer development
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14. Lean Startup
The intersection of agile development and
customer development principles to
incrementally reduce assumptions.
Values:
• lean thinking (Toyota)
• reduction of waste
• real customers
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15. -> Agile Development
The so ware development process based on
iterative and incremental building.
Values:
• cross-functional teams
• frequent prioritization
• frequent demonstration
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16. Social Entrepreneurship Confidential

17. -> Customer Development
The parallel process of customer
discovery and validation.
Values:
• get outside the building
• pick a first customer profile
• build necessary and sufficient
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18. Social Entrepreneurship Confidential

19. Concepts
Assessing Business Potential

20. Lean Canvas
• Business Model Generation meets Lean Startup
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21. Minimum Viable Product
• Minimum Feasible Product
• Minimum Desirable Product
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22. Product Backlog
• Managing Prioritization
• Themes, Epics & Stories
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23. Prototyping
• Necessary
• Sufficient
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24. Customer Interviews
• In-Person
• Remote
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25. Product Lifecycle
• Pivots
• (Source: Sarah Preve e)
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26. Product Runway
• How Long?
• How Much?
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27. Resources
steveblank.com theleanstartup.com runningleanhq.com leancoffeeto.com

28. Next Steps
1. Model your project using a
business model canvas!
2. Determine how lean, agile Satish Kanwar, Partner
satish@jetcooper.com
or customer development 416 669 2779
fit into your project.
3. Experiment with concepts
that can increase your
ba ing average.