This article is part of a series of articles, as an example how to use Customer Development in practice. If you didn’t read the introduction, please read it first.

Now we start with to State your business model Hypotheses as the first part of Customer Discovery. We use the checklists to fill. The checklists are all based on Customer Development from Steve Blank. In this part we describe checklists number 9, 10, 11 and 12. In part 3 checklists number 3, 4 and 5 are described and in part 4 the checklists number 4 6, 7 and 8

Checklist 9: Customer Relations
Goal: How you will “Get, Keep and Grow” customers in a web/mobile channel

Reference: Chapter 3, Customer Relationships

Draw your Get/Keep/Grow funnel

get-keep-grow

Describe your “Get customers” strategy:

  • Acquire [Co-founders wanted]: via meetups, LinkedIn groups and partners
  • Activate  [Co-founders wanted]: needs to be tested: via appointments, via calls, via “free” workshops

What are your “Get customers” Tactics?

  • Search (SEM/SEO)  [Co-founders wanted]: Via personal blog
  • Viral [Co-founders wanted]: LinkedIn Groups
  • PR  [Co-founders wanted]: Via personal blong (long term)
  • Trials  [Co-founders wanted]:  “free” workshops

Describe your “Keep Customers” Strategy

  • Interact  [Co-founders wanted]: Minimal once per week interaction as Founders wanted, works close together with clients
  • Retain [Co-founders wanted]: Minimal once per week interaction as Founders wanted, works close together with clients

What are your “Keep Customers” Tactics?

  • Customization?  [Co-founders wanted]: Yes
  • User groups? Blogs?  [Co-founders wanted]: Private blog
  • Loyalty or other physical channel programs  [Co-founders wanted]: no

Describe your “Grow Customers” strategy

  • Incremental customer revenue  [Co-founders wanted]:  Yes, when StartUp (so co-founder is client grows) then customer revenue is growing “automatically”.
  • Referrals [Co-founders wanted]:  No strategy planned yet

What are your “Grow Customers” tactics  [Co-founders wanted]: Not relevant as Co-Founders wanted is mainly a service.

  • Upgrades
  • Contests
  • Up-sell/Cross-sell
  • Viral

Exit criteria

  • A preliminary first hypothesis of all Get/Keep Grow activities [Co-founders wanted]: passed
  • Update your business model canvas [Co-founders wanted]: See part 6

Checklist 10: Key Resource Hypothesis
Goal: Identify external resources critical to the company’s success, and how the company will find and structure them.

Reference: Chaper 3 Key resources

Describe the all key resources costs, and how they will be acquired

  • Physical resources  [Co-founders wanted]: Not needed
  • Financial resources  [Co-founders wanted]: Not needed, every client should be profitable, partly paid in advance
  • Human resources [Co-founders wanted]: Team will grow with clients. Every client will get own team
  • Intellectual property  [Co-founders wanted]: Own software is protected
  • Other key resources  [Co-founders wanted]: No
  • Dependency analysis  [Co-founders wanted]: No

Exit criteria

  • Physical, financial, human, intellectual, property resources required  [Co-founders wanted]: passed
  • What they will cost [Co-founders wanted]: defined in financial plan.
  • Where they’ll be found [Co-founders wanted]: Poznan, Poland (Founder of Co-founders wanted is very experienced]
  • How they will be secured  [Co-founders wanted]: Poznan, Poland (Founder of Co-founders wanted is very experienced]
  • Update your business model canvas  [Co-founders wanted]: see part 6

Checklist 11: Partner Hyphothesis
Goal: Identify essential partners and the company’s “value exchange” with each

Reference Chapter 3, partners and Traffic partners

Understand Potential partners types:

  • Strategic Alliances  [Co-founders wanted]: with Investors, Incubators, Bootcamps and VC’s
  • Joint new business efforts [Co-founders wanted]: probably not needed
  • Coopetition  [Co-founders wanted]: with Investors, Incubators, Bootcamps and VC’s (this will be strategic alliances)
  • Key suppliers  [Co-founders wanted]: not needed
  • Traffic partners  [Co-founders wanted]: “Ambasadors” of Lean Startup (founders of meetups)

List your target partners

  • Necessary partners [Co-founders wanted]: Defined internally
  • What they will provide [Co-founders wanted]: Start-ups that can not find investors, Start-ups after bootcamp, Start-ups after incubator
  • How the Company will reciprocate [Co-founders wanted]: Defined internally

Exit criteria:

  • Understand potential partner types [Co-founders wanted]: passed
  • List target partners, their contributions and what company will offer in return [Co-founders wanted]: passed
  • Update your business model canvas [Co-founders wanted]: passed

Checklist 12: Revenue and pricing hypothesis
Goal: See if the business model makes financial sense

Reference Chapter 3, Revenue and pricing hypothesis

What is the revenue model

  • Sales? [Co-founders wanted]: By founder, later by Sales Consultants that want to take risk themselves.
  • Subscriptions? [Co-founders wanted]: Experiment with “free workshop”.  Later, experiment with free tools.
  • Pay-per-use? [Co-founders wanted]: no
  • Referral? [Co-founders wanted]: no
  • Affiliate? [Co-founders wanted]: no

What are the pricing tactics

  • Value pricing [Co-founders wanted]: Yes if a Founder takes his startup serious, you need to invest
  • Competitive pricing [Co-founders wanted]: Yes but more expensive then DIY (with outscourced freelancers)
  • Volume pricing [Co-founders wanted]: no
  • Portfolio pricing [Co-founders wanted]: not defined yet
  • Razor blade model [Co-founders wanted]: maybe, we make a low-start version (for example coaching for Customer Development)
  • Subscription [Co-founders wanted]: Yes, if experiment will work
  • Leasing [Co-founders wanted]: not relevant
  • Freemiun [Co-founders wanted]: Maybe, experiment with free tools
  • Etc
  • Does it add up to a Business worth doing?

Exit criteria
The unis/users, revenue model and pricing add up to a business worth doing [Co-founders wanted]: defined in Canvas.

>>> Go to next part (part 6)

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