Workshop # 3

Strategic Aim
+
The Numbers Game
Workshop # 1: Your New Superpower: Entrepreneurship

Workshop # 2: Lean Mean Startup Machine

Workshop # 3: Strategic Aim + The Numbers Game

Workshop # 4: FastPitch: Fishing for Sharks

Workshop # 5: Were Live! Fastpitch Scholarship Competition

Workshop # 1: Your New Superpower: Entrepreneurship

Workshop # 2: Lean Mean Startup Machine

Workshop # 3: Strategic Aim + The Numbers Game

Workshop # 4: FastPitch: Fishing for Sharks

Workshop # 5: Were Live! Fastpitch Scholarship Competition

Workshop # 3: Strategic Aim + The Numbers Game

Financial Strategy
Startup Strategy
Business Model
Lets discuss homework.

Customer Development (Good/Bad?)

Startup Hypothesis (Validated / Invalidated / Start Over?!)

MVP (Show me the sketches)

Pivot / Product Iteration (Did anybody do this?)

We will be using your MVPs to build a strategy and financial plan.

Startup Strategy
 Module # 3.1

Business Model Canvas

 As a class, build a
Business Model Canvas for
Disneyland
 Business
Model
Canvas
A simple planning document
used to develop Strategy for your Startup
 In each box,
use question prompts to provide
Simple bullet-point answers
"What this country really needs is an amusement park that
families can take their children to. Most other amusement
parks have gotten so honky-tonk, with a lot of
questionable characters running around, and they're not to
safe. They're not well kept. I want to have a place that's
as clean as anything could ever be, and all the people in it
are first-class citizens, and treated like guests.

Walt Disney
Business Model Canvas for Disneyland
In your team...
Facilitator: Will lead and guide the discussion; Keep team
member accountable
Note Taker: Take notes about your conversation and provide
questions or concerns your team may have; Share notes.
Harmonizer: Will encourage the team to stay on track, will
motivate and encourage team members
Reporter: Will present to the class what your team discussed,
asked and created to the class
 Solution Statement
The solution your startup
offers to solve the problem.
Problem Statement
The core problem your startup
is attempting to solve.
 Unique Value Proposition
What benefits can customers expect
from your product? Why is your product
valuable to customers? Be specific.
 Unfair Advantage

A business advantage that can't be easily copied

or bought. What major advantage do you have
over your competitors? (Patents, Best Team,
Business Connections, First to Market, Etc.)
Customer Profile
Detailed list of customer traits and needs.
Key Metrics
Of all the performance data that your startup
generates, which are the most important to
measure? How will you track growth and
progress?

(Total Customers, Total Sales, Feedback

Surveys, Youtube Views, App-store Downloads )

`
 Channels
Where will you reach, interact with, and
sell to the customer?

(Storefront, Facebook, UPS, Amazon,

App store, Sales Reps, etc.)

`
 Cost Structure Revenue Streams
Different ways your startup can
A breakdown of the main costs make money, while providing
associated with doing business. value to customers.
 Activity:

Build your own

Business Model Canvas,
using a different theme
 In groups of 2, choose a theme for your park, and fill out a
Business Model Canvas. You will present to the class in 4 min.

CandyLand Gamers Paradise NBA Experience Nature Valley RockCity

Moto Mountain Fashion Island Marvel Matrix

?
Make Your Own
 Activity:

Present Theme Park

Business Model Canvas
Module # 3.2

SWOT Analysis
 SWOT
Analysis
A simple planning document
used to develop Strategy for your Startup
 S W
Internal Internal
Company Company
Strengths Weaknesses
Strength Weakness

External External
Marketplace
Opportunities
O
Opportunities
T
Threats
Marketplace
Threats
 Module # 3.3

Startup Costing
and Budgeting
 Startup
Budget
A list of costs required
for getting your Startup off the ground.
 Activity:

Lets Open a Restaurant:

Estimating Startup Costs
American
Burger
Bistro
Average Restaurant
 Restaurant Startup Budget: What are the top 5 most significant costs to cover?

Restaurant tables and furniture First Month's Utilities Fliers/ads/coupons

Location Security Deposit

Interior Design and Construction And First Month's Rent Business cards

Kitchen Appliances Utensils, Dishes, Napkins etc. Restaurant Grand-Opening Event

Initial Food and Beverage Supply Ordering and Payment Tech Menus

Insurance City Permits and licenses Signage

 Restaurant Startup Budget: What are the top 5 most significant costs to cover?

Restaurant tables and furniture First Month's Utilities Fliers/ads/coupons

Location Security Deposit

Interior Design and Construction And First Month's Rent Business cards

Kitchen Appliances Utensils, Dishes, Napkins etc. Restaurant Grand-Opening Event

Initial Food and Beverage Supply Ordering and Payment Tech Menus

Insurance City Permits and licenses Signage

 Restaurant Startup Budget: Estimate $ value of the the top 5 startup costs

Restaurant tables and furniture

$ 40,000 Average Restaurant
Startup Cost:

$ 100,000 $500,000
Interior Design and Construction

How might we be able to

Kitchen Appliances
$100,000 reduce the cost of starting
a restaurant?

$ 20,000 Important:
Utensils, Dishes, Napkins etc. These costs can differ
tremendously, depending on
restaurant type, business

Ordering and Payment Tech

$20,000 type, and overall strategy.
 Module 3.4

Business Model Dynamics:

Financial Strategy + Risk Management
Bring it all together:

Activity:
Simulating SpaceX
Interstellar Revenue and Risk
Elon Musk
 SpaceXs Potential Business Models

(1x) (2x) (2x) (4x)

Space Launch Satellites ISS Resupply Asteroid Mining

Tourism for Telecos Missions for Platinum
= Capital and Financial Resources

= Potential Revenue Streams and business

models. Smaller, higher-risk buckets offer revenue
multipliers.

= Government Regulation, Laws, Requirements.

DO NOT CROSS. CANNOT PICKUP

= Classroom is the Marketplace

Things to Consider:

You have a limited amount of capital. Use it wisely.

What is your strategy for risk? Big buckets, or little buckets?
Simpler more consistent revenue, or high risk revenue?
What is the strategy for accuracy?
How will you adapt to shifts in the market?
END
 What is the Problem Statement for SpaceX?

Earth is running out of Launching rockets is too Rockets cant travel the
Platinum ore. expensive. required distance.
 What is the Problem Statement for SpaceX?

Earth is running out of Launching rockets is too Rockets cant travel the
Platinum ore. expensive. required distance.
 Which Customer Profile did SpaceX pursue?

Government Agencies
Wealthy Space Tourists Mining Companies
and Telecos
What is the Customer Profile of your Target Market?
What Unique Value Proposition did SpaceX pursue?

Most Seaworthy Rocket in The Most Powerful

Reuseable Rockets
Emergency Ocean Abort Rocket on the Market
What is the key value you create for your customer?
What Unfair Advantage did SpaceX pursue?

Patenting all rocket components Hiring the Best Engineers in the

and engineering Aerospace Industry
What can your startup do, that no other startup can?
What key Performance Metric might SpaceX track?

Total Space-Miles Traveled Total Cost Per Launch

Total Cargo Tonnage Delivered Total # of Launch Contracts Signed
 Data drives decisions.
Manage by the Metrics.
Which metrics will you measure and grow?
 Which Channel did SpaceX pursue?

Professionally Produced Public Appearances by Government Competitions

Promotional Videos CEO Elon Musk and Political Lobbyists
Where is the customer, and how do I get to them?
What is a realistic Revenue Stream for SpaceX?

Sell Rockets Outright to Sell Launch Services to Sell Seats to International

Govenrment Agencies Government Agencies Space Station
Formula Given, follow the letters in the box.
Durable Competitive Advantage
Value Proposition
Mission Statement
Industry Strategy and Analysis
Porters 5 Forces
Pitch Your Park
Mckinsey
Peter Drucker
Theory of the business[edit]
Peter Drucker wrote in 1994 about the Theory of the Business, which represents the key assumptions
underlying a firm's strategy.

These assumptions are in three categories:

a) the external environment, including society, market, customer, and technology;
b) the mission of the organization; and
c) the core competencies needed to accomplish the mission.

He continued that a valid theory of the business has four specifications:

1) assumptions about the environment, mission, and core competencies must fit reality;
2) the assumptions in all three areas have to fit one another;
3) the theory of the business must be known and understood throughout the organization; and
4) the theory of the business has to be tested constantly.
He wrote that organizations get into trouble when the assumptions representing the theory of the business no
longer fit reality.
 Winner!
World's Most
Boring Slide!
Yo. I want to throw the biggest, baddest,
most raging party our high school has
ever seen. But, I just heard some students
from our rival school are throwing a
party the same night. I want the most
people at our party. Will you help me?

WE NEED A STRATEGY!
 Write out a Profile of the type of guests you want to invite to
your amusement park. Be specific.

What unique thing about your amusement park will attract

lots of guests?
Park Opens
in
5 minutes! What does your park do, that no other park can copy?

What creative methods are you going to use to invite guests

to your amusement park. How are you going to promote your
amusement park?

What types of data can you measure at your amusement park,

to monitor its amusingness?
 Activity # 1:
Choose Your Own Adventure
The Space Race
 Strategy
A plan of action
designed to achieve a major goal
 Ok, so then what is a good...

Startup Strategy?
1 2 3
Create Deliver Value
Value to Customers $$$$
 Startup Strategy
Value Creation Map Customer Profile

A map of how you A map of which

will Create Value
for the customer
FIT values your
customer
is seeking