This repo has all the contents of the Founder Academy course made by ALX Venture.
- Welcome to the Founder Academy
- Think
- Build
- Launch
- Bonus: Founder Stories
Welcome to Ventures Founder Academy
The Founder Academy is the first step with ALX Ventures, which helps entrepreneurs go from idea to impact. Whether this is your first startup, or you’ve already launched many before, the insights we’ll cover in this course is aimed to help you take your game to the next level.
You’ll hear from a number of amazing entrepreneurs who have built and launched their businesses across Africa and beyond. They’ve proven they can do hard things. Now it’s your turn.
The 3 themes of this course are: Think, Build, and Launch. You’ll hear stories, receive tips, and gain access to templates. From this you’ll need to submit 4 key deliverables to graduate from the Founder Academy and then move on to the next level.
We’ve also created specific videos that provide a deeper profile of each of the founders featured in the course, so that you can hear more about their stories. You can find them at the end in the bonus section.
The 4 key deliverables you will need to submit are:
- your business plan
- your prototype
- your pitch deck
- your video
We’ll share more specific guidelines on each of these deliverables later in this course.
Remember - becoming a startup founder can be one of the most exciting and rewarding experiences you’ll pursue in your life, but it can also be one of the most difficult tasks you’ll ever undertake.
We’re glad you’ve taken the first step towards enrolling in the Founder Academy, and we’ll be here with you along the way. Good luck!
Our Founder Academy features 9 inspiring founders, who will form the basis of the rest of the video course. You can find their individual founder story videos in the Bonus module at the end of the course. Here’s a summary of the founder introductions:
- Joseph Rutakangwa from Tanzania, based in Los Angeles, runs Rwazi, a market intelligence platform for emerging markets.
- Violet Amoabeng from Ghana is the founder and CEO of Skin Gourmet Limited, a company producing raw handmade skincare products.
- Dr. Ehoneah Obed, a pharmacist, founded Ngoane, a platform to help people with chronic diseases manage their conditions.
- Ife Dare-Johnson from Lagos, Nigeria, created Healthtracka, a digital health company focused on making medical diagnostics accessible in Africa.
- Caleb Ndunda from Kenya, currently studying in Mauritius, developed Moto, a service connecting people with medical emergencies to trained taxi drivers.
- Nadia Gamal El Din is the founder and CEO of Rahet Bally, an all-inclusive support platform for mothers in Egypt.
- Kidist Tesfaye is the CEO and founder of YeneHealth, an all-women's health platform addressing women's sexual and reproductive health.
- Kiiru Muhoya from Nairobi, Kenya, is the co-founder and CEO of Fingo Africa, a financial services app for Africa's youth.
- Crepin Kayisire from Rwanda is the CEO and co-founder of KAYKO, a cloud-based e-commerce platform for small businesses.
It is important to relate to other founders as a source of inspiration, motivation, and learning. Reflect on your own background, experiences, and entrepreneurial goals. Consider which of the introduced founders resonates most with you based on factors such as their background, industry, challenges faced, or their entrepreneurial journey.
Think about the founder you most relate to and why.Identify specific aspects of their story, challenges they have faced, or their goals that resonate with you. Consider how the connection you have identified with the chosen founder may help you stay motivated, learn from their experiences, or find encouragement in your own entrepreneurial journey.
Reflect on the insights gained from this exercise and how it has helped you better understand your own journey as a founder. Consider maintaining a network of peers or mentors who can provide support and guidance as you progress in your entrepreneurial journey.
Why is it important to relate to other founders?
Relating to other founders can provide inspiration, motivation, and learning opportunities. By understanding the challenges and successes others have experienced, participants can draw on these insights to overcome obstacles, stay motivated, and refine their own entrepreneurial strategies.
How can I find more founders to relate to and learn from?
Participants can expand their network by joining entrepreneur-focused online forums, attending local networking events, participating in startup incubators or accelerators, or engaging with industry-specific professional organizations. Social media platforms like LinkedIn and Twitter can also be valuable for connecting with other founders and industry leaders.
What if I can't find a founder in the video who closely resembles my background or entrepreneurial journey?
While it's helpful to find someone with a similar background or journey, the key is to identify aspects of their story that resonate with you, such as their challenges, goals, or motivations. Learning from a diverse range of founders can offer unique perspectives and insights that can still benefit your own journey.
How can I maintain connections with other founders?
Building and maintaining connections with other founders can be accomplished through regular communication, sharing resources, attending networking events, and offering support and encouragement. Foster a mutually beneficial relationship by exchanging ideas, learning from each other's experiences, and providing feedback.
Can I relate to more than one founder?
Yes, you can definitely relate to multiple founders. Each founder's story may offer different insights and lessons that can contribute to your own entrepreneurial journey. By connecting with various founders, you can gain a broader understanding of the diverse experiences and perspectives that exist in the entrepreneurial world.
1.1 An Entrepreneurial Mindset
The video highlights interviews from the nine startup founders who share their early journey in entrepreneurship and what motivated them along the way. Each founder had unique ambitions growing up, but eventually found their passion in running their own businesses and creating ideas. They discuss the importance of resilience in overcoming challenges faced by entrepreneurs and emphasize the need to have a clear purpose, target audience, and passion for their work. Many founders attribute their drive to a desire to help people, make an impact, and find innovative solutions to everyday problems. They also emphasize the value of learning from challenges, using them as opportunities for growth and development. Reflection, accountability, and staying focused on their passions play significant roles in their success as entrepreneurs.
In this learning module, you will explore the key driving factors behind your desire to become an entrepreneur and identify the support systems you have in place to help you succeed. By the end of this module, you should be able to articulate one key driving factor for your entrepreneurial journey and recognize the support systems that will aid you in overcoming challenges.
Identifying Your Key Driving Factor
- Reflect on your motivation: To identify your key driving factor, spend some time reflecting on why you want to become an entrepreneur. Consider the personal, professional, and social aspects that contribute to your motivation.
- Analyze your passion: Determine if your entrepreneurial drive stems from a passion for your product or service, the desire to solve a problem, or the aspiration to make a positive impact on society.
- Assess your goals: Examine your short-term and long-term goals as an entrepreneur. Consider how your key driving factor aligns with these goals and contributes to your overall vision.
Recognizing Your Support Systems
- Personal support: Identify the people in your life who support your entrepreneurial journey. This may include family members, friends, or mentors who provide emotional, financial, or professional support.
- Professional networks: Assess your professional connections and affiliations that can offer guidance, resources, and assistance in your entrepreneurial journey. This may include industry experts, business partners, or professional associations.
- Educational resources: Recognize the educational resources available to you that can help you develop the necessary skills and knowledge for your business. This may include online courses, workshops, books, or mentorship programs.
- Financial support: Evaluate your financial resources and support systems. Consider the funding options available to you, such as personal savings, loans, grants, or investments from friends and family.
Articulating Your Key Driving Factor and Support Systems
- Summarize your key driving factor: Develop a concise statement that encapsulates your primary motivation for becoming an entrepreneur. Be prepared to share this with others to gain valuable feedback and support.
- Outline your support systems: Create a list of the support systems you have identified and how they contribute to your entrepreneurial journey. This will help you recognize the resources available to you and reinforce your confidence in pursuing your goals.
By understanding your key driving factor and support systems, you are better equipped to face the challenges of entrepreneurship and stay focused on your goals. Remember that your motivation and support systems will evolve as your business grows, so continue to reflect on and adapt to these changes to ensure long-term success.
As you embark on your journey, here are some proven frameworks to consider adopting or referencing:
- The Lean Startup Methodology: This framework, developed by Eric Ries, focuses on creating a Minimum Viable Product (MVP) to test and validate business ideas quickly and with minimal resources. The Build-Measure-Learn loop helps entrepreneurs make data-driven decisions and pivot as needed based on customer feedback.
- Business Model Canvas: A visual template for developing and documenting your business model, the Business Model Canvas helps founders map out key components such as value proposition, customer segments, revenue streams, and cost structure. It is an effective tool for iterating and refining your business model over time
- SWOT Analysis: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. By analyzing these factors, founders can identify areas of competitive advantage and potential challenges, enabling them to develop strategies for growth and risk mitigation.
- SMART Goals: SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. This framework helps entrepreneurs set clear, actionable objectives that can be tracked and assessed over time. Establishing SMART goals can facilitate focus, motivation, and accountability throughout the entrepreneurial journey.
- The Five Whys: This problem-solving technique, developed by Sakichi Toyoda, encourages founders to ask "why" five times to identify the root cause of an issue. By understanding the core problem, entrepreneurs can develop targeted solutions and make more informed decisions.
- The Eisenhower Matrix: This time management tool helps founders prioritize tasks based on their urgency and importance. By categorizing tasks into four quadrants (urgent and important, important but not urgent, urgent but not important, and neither urgent nor important), founders can allocate their time and resources more effectively.
- GROW Model: This coaching framework, which stands for Goal, Reality, Options, and Way forward, can be applied to personal and professional development. It helps entrepreneurs set goals, assess their current situation, explore possible solutions, and create action plans for achieving their objectives.
Remember that each founder's journey is unique, and the relevance of these frameworks and visuals may vary depending on your specific goals and circumstances. However, they can serve as useful starting points for early-stage founders seeking structure and guidance in their entrepreneurial pursuits.
Why is it important to identify my key driving factor as an entrepreneur?
Understanding your key driving factor helps you stay focused, motivated, and resilient during the ups and downs of entrepreneurship. It can serve as a guiding force in decision-making and help you maintain a clear vision of your goals.
Can I have more than one key driving factor?
Yes, you can have multiple driving factors in your entrepreneurial journey. It's common for entrepreneurs to be motivated by various factors, such as personal passion, financial gain, or social impact. Recognizing and balancing these factors can contribute to a more fulfilling and successful venture.
How can I determine my key driving factor?
Reflect on your motivations, interests, and values to help identify your key driving factor. Consider why you want to pursue entrepreneurship and what aspects of it are most important to you. You can also seek feedback from others, such as mentors, friends, or family members, to help gain clarity on your motivations.
Why is it essential to have a support system in place as an entrepreneur?
A support system can provide emotional, financial, and practical assistance throughout your entrepreneurial journey. Having a network of individuals who understand your goals and challenges can offer encouragement, advice, and resources to help you navigate the ups and downs of entrepreneurship.
How can I build a support system?
Start by reaching out to friends, family, and existing professional connections. Join networking events, industry groups, and online communities to expand your network. You can also seek mentorship from experienced entrepreneurs or professionals in your field to gain valuable insights and guidance.
What if my existing support system doesn't understand my entrepreneurial goals or challenges?
In such cases, it's essential to seek out additional support from individuals who can better understand and relate to your entrepreneurial journey. Connect with fellow entrepreneurs, mentors, and industry professionals through networking events, online forums, and entrepreneur-focused organizations to build a more aligned support system.
The video is all about early-stage entrepreneurs who are in the process of identifying the problem they want to solve. In this video, different founders share their experiences of how they came up with their business ideas, which include personal experiences and market research.
The entrepreneurs highlight the importance of understanding customer needs and finding a problem that people are willing to pay for. They emphasize that a business idea should center around the customer and how they want the problem to be solved.
They also discuss the importance of solving a real problem that customers want solved, rather than simply pursuing a grand idea.
The businesses discussed in this video include a healthcare platform, a skin care company, a financial services provider, a taxi service, and a motherhood support network. Each founder has their own unique story and approach to identifying their business idea.
To identify customer demand, the entrepreneurs use a variety of methods, such as surveys, data mining, and talking to patients directly. They also discuss the challenges they faced, such as the lack of financial accountability for small businesses in Africa and the difficulty of accessing high-quality financial services for young Africans.
This video highlights the importance of identifying a real problem that customers want solved and using various methods to assess customer demand. It also emphasizes that entrepreneurs should be customer-centric and focus on understanding the needs of their target audience.
To go deeper, in this section we will explore three different methods of identifying problems that founders can use to select the specific problem they want to solve through technology and entrepreneurship.
- Method 1: Personal experiences
- Many founders develop their business ideas based on their personal experiences or a tragedy they have faced. For instance, one founder in the video started a health tracking business after her father died from untreated diabetes. Founders can reflect on their personal experiences and identify the problems they faced or witnessed others facing. By doing this, they can come up with unique business ideas that solve real-world problems.
- Method 2: Market research
- Market research is another method for identifying problems that entrepreneurs can solve. By analyzing market trends and consumer behavior, founders can identify gaps in the market and areas where they can provide a solution. Founders can conduct market research by talking to potential customers, analyzing competitors' products, and identifying unmet needs in the market. This method can help founders come up with ideas that are in demand and have the potential to generate revenue.
- Method 3: Observing and empathizing with others
- Founders can also identify problems by observing and empathizing with others. By paying attention to the challenges that people around them face, founders can come up with solutions to address those challenges. This method requires founders to be empathetic and have a deep understanding of their target audience's needs. Founders can observe people in their daily lives, conduct interviews, and listen to feedback from their target audience to identify problems that they can solve.
Once founders have identified potential problems, they need to evaluate them and select the specific problem they want to solve. Founders can use the following criteria to select the right problem to solve:
- The problem should have a significant impact on people's lives.
- The problem should be something that the founder is passionate about solving.
- The problem should have a market demand, indicating that people are willing to pay for a solution.
In conclusion, identifying a problem is the first step in starting a successful business. By using personal experiences, market research, and empathy, founders can identify problems that they can solve. Once founders have identified potential problems, they need to evaluate them based on specific criteria to select the right problem to solve. With the right problem identified, founders can then move on to developing a solution that addresses the problem and meets the needs of their target audience.
There are several common frameworks or visuals that early-stage founders can keep in mind related to problem identification:
- Problem-solution framework: This framework involves identifying a problem and then developing a solution to address that problem. The solution should be tailored to the needs of the target audience and should be feasible and financially viable.
- Empathy map: This visual tool helps founders identify the needs and wants of their target audience. The empathy map is divided into four quadrants: think, feel, see, and do. By filling in each quadrant with information about their target audience, founders can gain a better understanding of their needs and come up with solutions that address those needs.
- SWOT analysis: A SWOT analysis is a tool that helps founders identify their business's strengths, weaknesses, opportunities, and threats. By conducting a SWOT analysis, founders can identify areas where they can capitalize on their strengths, address their weaknesses, take advantage of opportunities, and mitigate threats.
- Value proposition canvas: This visual tool helps founders identify their target audience's needs and come up with a value proposition that addresses those needs. The canvas is divided into two sections: customer profile and value map. By filling in each section, founders can develop a value proposition that meets their target audience's needs.
By keeping these frameworks and visuals in mind, early-stage founders can better identify problems, develop solutions, and create value for their target audience.
What is problem identification, and why is it important for founders?
Problem identification is the process of identifying a real-world problem that can be solved through technology and entrepreneurship. It is important for founders because identifying a problem is the first step in starting a successful business. Without identifying a problem, there is no clear direction for the business.
What are the three methods of problem identification discussed in this training?
The three methods of problem identification discussed in this training are personal experiences, market research, and observing and empathizing with others.
How can founders use personal experiences to identify a problem?
Founders can reflect on their personal experiences or a tragedy they have faced and identify the problems they faced or witnessed others facing. This can help them come up with unique business ideas that solve real-world problems.
What is market research, and how can it help founders identify a problem?
Market research is the process of analyzing market trends and consumer behavior. By conducting market research, founders can identify gaps in the market and areas where they can provide a solution. This can help them come up with ideas that are in demand and have the potential to generate revenue.
How can founders use empathy to identify a problem?
Founders can observe people in their daily lives, conduct interviews, and listen to feedback from their target audience to identify problems that they can solve. This method requires founders to be empathetic and have a deep understanding of their target audience's needs.
What criteria should founders use to select the right problem to solve?
Founders should select a problem that has a significant impact on people's lives, is something they are passionate about solving, and has a market demand, indicating that people are willing to pay for a solution.
What is the next step after identifying a problem?
The next step after identifying a problem is to develop a solution that addresses the problem and meets the needs of the target audience. This solution can be in the form of a product, service, or technology.
In this video, the founders discuss their experiences in identifying and establishing their business models. One key takeaway is the importance of customer feedback in determining a company's unique value proposition. The founders explain that listening to customer needs and using their feedback to drive product development and financial modeling is crucial for success.
The speakers also discuss various methods they used to develop their cost and revenue models. Some relied on free tools and spreadsheets, while others deconstructed the financials of established companies in their industry to identify high-margin revenue streams. They emphasized the importance of understanding the costs associated with running a tech startup, including hosting and product development.
Additionally, the speakers highlight the value of testing and iterating products with customers. They discuss how iterating based on customer feedback helped them create more effective and profitable business models. They also emphasize the importance of hiring a proper accountant to manage finances and create a financial model that guides decision-making towards profitability.
Overall, this video provides valuable insights into the process of identifying and establishing a successful business model, with a strong emphasis on the importance of customer feedback and financial modeling.
But that’s not all - this learning module is designed to help you identify and articulate different types of business models, based on insights from startup founders in a video on establishing successful business models. By the end of this module, you should be able to identify which business model to pursue for your tech product or service.
Types of Business Models: There are several types of business models, and we will cover the following:
- Advertising Model:
- This model involves generating revenue by displaying ads to customers. Examples of companies that use this model include Google and Facebook.
- Subscription Model:
- This model involves offering customers access to a product or service on a recurring basis for a fixed price. Examples of companies that use this model include Netflix and Microsoft Office 365.
- Freemium Model:
- This model offers a basic version of a product or service for free, with additional features available for a fee. Examples of companies that use this model include Dropbox and LinkedIn.
- E-commerce Model:
- This model involves selling physical or digital products directly to customers through an online platform. Examples of companies that use this model include Amazon and Etsy.
- Marketplace Model:
- This model involves connecting buyers and sellers on a platform and charging a commission on each transaction. Examples of companies that use this model include Uber and Airbnb.
- SaaS (Software as a Service) Model:
- This model involves delivering software as a service over the internet, with customers paying a subscription fee. Examples of companies that use this model include Salesforce and HubSpot.
- Platform as a Service Model:
- This model involves providing a platform for developers to build, run, and manage their own applications. Examples of companies that use this model include Heroku and AWS Elastic Beanstalk.
Identifying Your Business Model: To identify which business model to pursue, consider the following questions:
- What is the problem you are trying to solve?
- Who are your customers?
- How will you generate revenue?
- What is your unique value proposition?
Consider the costs associated with running your business, including hosting and product development. It is also important to test and iterate your product with customers to create a more effective and profitable business model.
Identifying and establishing a successful business model is crucial to the success of your tech product or service startup. By considering the types of business models available and answering key questions about your business, you can identify which business model to pursue. Remember to listen to customer feedback, iterate your product, and hire a proper accountant to manage finances and create a financial model that guides decision-making towards profitability.
Here are three additional frameworks that early-stage founders can keep in mind related to the topic of business models:
-
Revenue Streams Framework: This is a visual framework that helps founders identify and evaluate different revenue streams based on their business model. It involves categorizing revenue streams into primary, secondary, and complementary sources. Primary sources are the main sources of revenue, while secondary sources are additional sources of revenue that complement the primary sources. Complementary sources are revenue streams that do not generate significant revenue but enhance the value proposition of the product or service.
-
Blue Ocean Strategy Canvas: This is a visual tool that helps founders identify new market opportunities and create a unique value proposition. It involves mapping out the key factors that drive customer demand in a particular market, such as price, convenience, quality, and customer experience. By identifying areas where the competition is weak or nonexistent, founders can create a new market space, or a "blue ocean," where they can differentiate their product or service and capture significant market share.
-
Business Model Archetypes: This is a framework that helps founders identify and evaluate different business model archetypes based on their industry and market segment. It involves categorizing business models into four main archetypes: transaction-based, platform-based, innovation-based, and efficiency-based. Transaction-based models involve one-time transactions between buyers and sellers, while platform-based models involve connecting multiple buyers and sellers on a platform. Innovation-based models involve creating new products or services, while efficiency-based models involve optimizing existing products or services to reduce costs.
-
Porter's Five Forces: This is a framework for analyzing the competitive landscape of an industry. It involves assessing the bargaining power of customers and suppliers, the threat of new entrants and substitutes, and the intensity of competitive rivalry. By understanding these forces, founders can identify potential threats to their business model and develop strategies to mitigate them.
- Bargaining Power of Customers: This force evaluates how much power customers have to negotiate prices and demand higher quality products or services. Early-stage founders should analyze their target market to determine if customers have a lot of bargaining power or if there are only a few customers who can dictate terms.
- Bargaining Power of Suppliers: This force evaluates how much power suppliers have to negotiate prices and demand better payment terms. Early-stage founders should analyze their suppliers to determine if they have a lot of bargaining power or if there are only a few suppliers who can dictate terms.
- Threat of New Entrants: This force evaluates how easy or difficult it is for new competitors to enter the market. Early-stage founders should analyze their market to determine if there are high barriers to entry, such as regulatory barriers or significant capital requirements, or if it is easy for new competitors to enter the market.
- Threat of Substitutes: This force evaluates the availability of alternative products or services that can replace the product or service offered by the startup. Early-stage founders should analyze their market to determine if there are many substitutes available or if their product or service has unique features that make it difficult to substitute.
- Competitive Rivalry: This force evaluates the intensity of competition among existing competitors. Early-stage founders should analyze their competition to determine if there are many competitors with similar products or services, or if they have a unique value proposition that differentiates them from the competition. By understanding these five forces and their impact on the business model, early-stage founders can develop strategies to create a sustainable competitive advantage and succeed in their industry.
By using these frameworks, early-stage founders can better understand their market opportunities, evaluate different revenue streams and business model archetypes, and create a unique value proposition that differentiates their product or service from the competition.
What is a business model?
A business model is a framework that describes how a company creates, delivers, and captures value for its customers. It involves identifying customer needs, developing a unique value proposition, generating revenue streams, and managing costs.
Why is it important to identify a business model?
Identifying a business model is important because it helps early-stage founders understand how they will create and capture value for their customers. It provides a roadmap for product development, revenue generation, and cost management.
What are some common types of business models?
Common types of business models include advertising, subscription, freemium, e-commerce, marketplace, SaaS, and platform as a service models. Each model has its own unique characteristics and revenue streams.
How do I identify the right business model for my startup?
To identify the right business model for your startup, you need to answer key questions about your target market, customer needs, revenue streams, and cost structure. You should also consider the competitive landscape and industry trends. The Business Model Canvas and Lean Startup Methodology are useful tools for brainstorming and refining your business model.
What are some common mistakes to avoid when identifying a business
model?
Common mistakes to avoid when identifying a business model include relying too heavily on a single revenue stream, failing to consider the cost structure, not testing and iterating the product with customers, and underestimating the competitive landscape. It is important to consider all aspects of the business model and be open to feedback and changes.
Can I change my business model over time?
Yes, it is common for startups to change their business model over time as they learn more about their target market and customer needs. It is important to be flexible and adapt to changing circumstances while staying true to the overall vision of the company.
As an early-stage entrepreneur, the Lean Canvas model can be a valuable tool for helping you to plan and develop your business idea. The model is split into 9 components. We’ve described them below, along with a practical example for each:
- Problem: Describe the main pain point or challenge that the target customers are facing.
- Customer Segments: Define the specific groups of customers that the solution will target, based on their characteristics, location, needs and behaviors.
- Unique Value Proposition: Articulate the key benefits and advantages that the proposed solution offers to the target customers. How is it different from other solutions that are available?
- Solution: Outline the features, functions and technologies that will solve the identified problem.
- Channels: Identify the key ways that you will use to reach and engage your target customers, such as advertising, partnerships or social media.
- Revenue Streams: Describe the ways in which the proposed solution will generate revenue, such as subscription fees, commission on sales, or advertising revenue.
- Cost Structures: Outline the main expenses and investments required to develop, launch and operate the proposed solution, such as product development, marketing and staffing.
- Key Metrics: Identify the most important indicators that will be used to tackle the progress and success of your solution, such as customer acquisition, retention or revenue growth.
- Unfair Advantage: Describe the unique strengths that your solution has over competitors, such as intellectual property, expertise or strategic partnerships.
Next, here is a real-world example of how the tool can be filled by an entrepreneur.
- Problem: Lack of access to affordable and reliable transportation options in urban areas, leading to frustration and inefficiency for commuters and small business owners.
- Customer Segments: Commuters in urban areas: People who need to travel within the city for work, school, or leisure. They are looking for reliable, affordable, and convenient transportation options. Small business owners who need to transport goods within the city: Entrepreneurs who need to move goods within the city to run their businesses. They are looking for affordable and efficient transportation options.
- Unique Value Proposition: Our tech-enabled ride-sharing platform provides affordable and reliable transportation options for commuters and small business owners in urban areas, with flexible pricing options and a convenient mobile app.
- Solution: A mobile app that connects drivers with passengers or businesses in need of transportation services. Flexible pricing options that make it more affordable for customers.
- Channels: Social media advertising, Customer referral program, Taxi association partnership
- Revenue Streams: Commission on ride fares: We will earn a commission on each ride fare paid through our platform, with rates that vary depending on the type of ride and the driver's performance. Advertising partnerships with relevant brands: We will explore partnerships with relevant brands that want to reach our target customers, such as mobile phone companies or financial institutions.
- Cost Structures: Development and maintenance of mobile app; Marketing and advertising expenses: We will allocate funds for marketing and advertising expenses, including social media ads, referral rewards, and partnership fees. Staff salaries and benefits: We will hire a team of skilled professionals to manage our operations, customer service, and marketing activities
- Key Metrics: Number of active users, Average ride cost and length, and Customer retention rate
- Unfair Advantage: Strong relationships with local taxi associations, In-depth knowledge of the local market and culture
Here are some best practices to consider when filling out the Lean Canvas model:
- Start with a problem: The Lean Canvas is designed to help you solve a specific problem so begin by defining what need you are addressing.
- Be specific: For your customer segments and value proposition, be clear and specific about what makes your approach unique.
- Test your assumptions: Use the Lean Canvas as a framework for evaluating your hypotheses about your business idea and strategies.
- Keep it simple: The Lean Canvas is a simplified version of a business plan so keep it concise to help focus on the most critical aspects.
- Iterate and adapt: Continue to use the Lean Canvas as your business model evolves based on feedback from customers and investors.
- Be realistic: Identify the resources you need to test your business ideas and be realistic about the time and money available.
What is the Lean Canvas model?
The Lean Canvas model is a visual tool that helps entrepreneurs to plan and develop their business idea by breaking it down into 9 key components. It is a simplified version of a traditional business plan that focuses on the most critical aspects of the business.
What are the 9 components of the Lean Canvas model?
The 9 components of the Lean Canvas model are Problem, Customer Segments, Unique Value Proposition, Solution, Channels, Revenue Streams, Cost Structures, Key Metrics, and Unfair Advantage.
How can I use the Lean Canvas model to develop my business idea?
Start by defining the problem you are trying to solve, then identify your target customer segments and the unique value proposition of your solution. Next, outline the features and functions of your solution, and identify the channels and revenue streams you will use to reach your target customers. Finally, define the cost structures, key metrics, and unfair advantage of your business.
Why is it important to start with a problem when using the Lean Canvas model?
Starting with a problem helps to ensure that your business idea is grounded in a real need or pain point that customers are experiencing. This approach helps you to focus on creating a solution that is relevant and valuable to your target customers.
How can I test my assumptions using the Lean Canvas model?
The Lean Canvas model can be used to evaluate your hypotheses about your business idea and strategies. By identifying your key metrics and regularly measuring your progress against them, you can test whether your assumptions are accurate and adjust your approach as needed.
How can I keep my Lean Canvas model concise and focused?
To keep your Lean Canvas model concise, focus on the most critical aspects of your business idea and avoid getting bogged down in unnecessary details. Use clear and specific language to describe your customer segments and value proposition, and be realistic about the resources you have available to test your business ideas.
How can I use the Lean Canvas model to iterate and adapt my business model?
The Lean Canvas model is designed to be flexible and adaptable, so use it as a framework for ongoing evaluation and adjustment as your business model evolves. Regularly review your key metrics and customer feedback to identify areas where you can make improvements or pivot your strategy if necessary.
How can I be realistic about the resources I need to test my business ideas?
To be realistic about the resources you need, start by identifying the minimum viable product (MVP) that you can create to test your assumptions. This approach allows you to test your ideas with minimal investment and risk, and to adjust your approach based on feedback from customers and investors.
Please make a copy of our Founder Academy Guide: Lean Canvas Model, which includes:
- Summary: 6 best practices for using the Lean Canvas Model
- Guide: provides a summary of what each section means and should include.
- Template: this is the version that you will use to fill and submit as a deliverable.
- Example: provides a real-world example of how the tool can be filled by an entrepreneur.
Or download the PowerPoint file here:
Founder Academy Guide_ Lean Canvas Model.pptx
2.1 Conducting Market Research
The video features a discussion with several founders who share their experiences and insights on conducting market research. Each founder has their unique approach and techniques to gather data and identify gaps within the market.
One founder used phone calls, focus groups, and data gathering to validate the need for their services in both B2C and B2B models. This approach allowed them to gain valuable insights into the market and make data-driven decisions.
Another founder intentionally avoided market research to build something unique. Instead, they conducted primary and secondary research in the sector before starting to build any solution. This allowed them to gain a deeper understanding of the industry, its challenges and opportunities, and come up with a unique solution to fill a gap in the market.
A third founder conducted competitor analysis to identify gaps within the existing market and came up with a platform to fill those gaps. By analyzing the competition, this founder was able to spot potential opportunities and create a unique offering that differentiated their platform from others.
The fourth founder conducted primary research through one-on-one conversations with SME owners and secondary research by reading government statistics and learning from development partners. This approach allowed them to gain a comprehensive understanding of the market, its challenges, and the needs of their potential customers.
Finally, the last founder carried out services based on their needs as a mother and identified other mothers' needs through focus groups. This approach allowed them to get first-hand information from their potential customers and design solutions that catered to their needs.
Overall, the video highlights the importance of market research in identifying gaps and opportunities for new businesses. The founders' experiences and insights offer valuable lessons on the various techniques and approaches to gather data and make informed decisions. The video serves as a valuable resource for entrepreneurs and business owners looking to start a new venture or expand their existing business.
Market research is a crucial step in the development of any business. It allows entrepreneurs to identify gaps in the market and make informed decisions about the direction of their ventures. However, it can be challenging to know where to start when it comes to conducting market research. That's why understanding the different types of market research can help entrepreneurs determine which method they should pursue to inform the development of their minimum viable product (MVP).
The first type of market research is primary research. This involves gathering data directly from potential customers through surveys, focus groups, or one-on-one conversations. Primary research allows entrepreneurs to get first-hand information from their target market and gain a deeper understanding of their needs, preferences, and pain points.
For example, if an entrepreneur is developing a new software solution for small business owners, they can conduct primary research by reaching out to small business owners in their network and conducting one-on-one conversations or surveys about their current software usage and pain points. This can help the entrepreneur identify gaps in the market and determine what features their software solution should prioritize to meet the needs of their target market.
The second type of market research is secondary research. This involves gathering data from existing sources such as industry reports, government statistics, and competitor analysis. Secondary research provides entrepreneurs with valuable insights into the market, including industry trends, market size, and potential opportunities.
Continuing with the previous example, an entrepreneur developing a software solution for small business owners can conduct secondary research by analyzing industry reports on software usage in small businesses, government statistics on small business growth, and competitor analysis to see what features their competitors are offering. This can help the entrepreneur identify areas where their software solution can differentiate itself and fill gaps in the market.
The third type of market research is exploratory research. This involves gathering data to gain a general understanding of the market and identify potential opportunities. Exploratory research can include conducting interviews with experts in the industry or reading articles and publications related to the market.
In our previous example, an entrepreneur can conduct exploratory research by interviewing experts in the small business software industry or reading articles and publications related to small business software trends. This can help the entrepreneur gain a deeper understanding of the market and identify potential opportunities to innovate and differentiate their software solution.
When deciding which type of market research to pursue, entrepreneurs should consider their business goals, the stage of development of their venture, and the resources available to them. For example, if an entrepreneur is just starting and has limited resources, primary research can be a cost-effective way to gain valuable insights into the market. However, if an entrepreneur is further along in the development of their venture, secondary research can provide valuable insights into the industry and competitors.
Ultimately, the type of market research an entrepreneur pursues will depend on the unique needs and goals of their venture. By conducting market research, entrepreneurs can identify gaps in the market and make informed decisions about the direction of their business.
Here are some examples of frameworks and tools for each type of research:
Primary Research
- Surveys: Surveys are a great way for early-stage founders to gather data from potential customers. There are several online survey tools available, such as SurveyMonkey, Google Forms, and Typeform, which allow founders to create surveys that ask questions about customer needs, preferences and pain points. These surveys can be distributed to potential customers through social media, email, or other online channels.
- Focus Groups: Focus groups are another effective way for early-stage founders to gain first-hand information from potential customers. By bringing together a group of people to discuss a specific topic, founders can gain insights into their target market's needs and preferences. Founders can conduct focus groups remotely or in-person, depending on their preferences and resources.
- One-on-one Interviews: One-on-one interviews involve speaking directly with potential customers to gain insights into their needs and preferences. Early-stage founders can use one-on-one interviews to ask open-ended questions and get in-depth information about their target market. These interviews can be conducted remotely or in-person, depending on the founder's preferences.
Secondary Research
- Industry Reports: Industry reports provide valuable insights into market trends, industry growth, and potential opportunities. Early-stage founders can use industry reports to gain a general understanding of the market landscape and identify potential gaps and opportunities. Some examples of industry reports include IBISWorld, Gartner, and Forrester.
- Competitor Analysis: By analyzing competitors, early-stage founders can gain insights into what features and solutions are already in the market. This can help them identify gaps in the market and determine how they can differentiate their own solution. There are several tools available for conducting competitor analysis, including SEMrush, Ahrefs, and SpyFu.
- Government Statistics: Government statistics can provide valuable insights into market size, growth, and demographics. Early-stage founders can use this data to gain a better understanding of their target market and identify potential opportunities. Some examples of government statistics include data from the Bureau of Labor Statistics, the Census Bureau, and the Small Business Administration.
Exploratory Research
- Expert Interviews: Early-stage founders can conduct interviews with industry experts to gain a deeper understanding of the market and identify potential opportunities. These interviews can be conducted remotely or in-person, depending on the founder's preferences. Experts can include analysts, consultants, and academics working in the industry.
- Online Research: By conducting research online, founders can gain insights into the latest trends and developments in the market. They can read articles and publications related to the industry to gain a general understanding of the landscape. Some examples of online research tools include Google Scholar, ResearchGate, and JSTOR.
In conclusion, early-stage founders can use a variety of frameworks and tools to conduct market research and make informed decisions about their ventures. By utilizing these tools and techniques, founders can gain valuable insights into their target market and identify potential gaps and opportunities.
What is market research, and why is it important?
Market research is the process of gathering data about a particular market to better understand its characteristics, trends, and needs. It is an essential step in building a successful business because it helps entrepreneurs identify gaps in the market and make informed decisions about the direction of their venture.
What are the different types of market research?
There are three main types of market research: primary research, secondary research, and exploratory research. Primary research involves gathering data directly from potential customers through surveys, focus groups, or one-on-one conversations. Secondary research involves gathering data from existing sources such as industry reports, government statistics, and competitor analysis. Exploratory research involves gathering data to gain a general understanding of the market and identify potential opportunities.
How do I know which type of market research to pursue?
The type of market research an entrepreneur pursues will depend on the unique needs and goals of their venture. Factors to consider when deciding which type of research to pursue include business goals, the stage of development of the venture, and the resources available.
What are some tools and frameworks for conducting market research?
There are several frameworks and tools that early-stage founders can use to help them gather data and make informed decisions about their venture. For primary research, examples include surveys, focus groups, and one-on-one interviews. For secondary research, examples include industry reports, competitor analysis, and government statistics. For exploratory research, examples include expert interviews and online research tools.
How can I conduct market research on a budget?
Entrepreneurs can conduct market research on a budget by utilizing free or low-cost tools and techniques. For example, they can conduct primary research by reaching out to potential customers in their network, using online survey tools, or conducting focus groups remotely. For secondary research, they can access free reports and statistics from government websites and other sources.
How can market research help me differentiate my business?
By conducting market research, entrepreneurs can identify gaps in the market and determine how to differentiate their solution from competitors. For example, by analyzing competitor solutions, entrepreneurs can identify areas where their solution can differentiate itself and fill gaps in the market.
How can market research help me better understand my target market?
Market research can help entrepreneurs gain a better understanding of their target market by providing insights into their needs, preferences, and pain points. By conducting primary research, entrepreneurs can get first-hand information from potential customers, while secondary research can provide valuable insights into industry trends and demographics.
What are some common mistakes to avoid when conducting market
research?
Common mistakes to avoid when conducting market research include not understanding the unique needs and preferences of the target market, not using a diverse sample of participants, and not considering the limitations of the research methods used. It is essential to be aware of these potential pitfalls and take steps to mitigate them when conducting market research.
How can I use market research to inform my business decisions?
Entrepreneurs can use market research to inform their business decisions by using the insights gained from the research to make data-driven decisions about their venture. For example, they can use the data to determine which features to prioritize in their minimum viable product (MVP) or which marketing channels to focus on to reach their target market.
What are some best practices for conducting market research?
Best practices for conducting market research include clearly defining the research objectives, using a diverse sample of participants, using a combination of research methods, ensuring the data collected is reliable and valid, and using the insights gained from the research to inform business decisions.
Building a minimum viable product (MVP) is a critical step in launching a successful startup. The MVP is the first version of your product that you put out to the market to test its viability. It is not the final product, but rather a starting point that you can use to gather feedback from your target audience and make necessary tweaks and adjustments.
The video provides insights from various startup founders who share their experiences building their MVP. The main takeaway from the video is that the MVP should be minimally valuable, not perfect. There is a common misconception that the first version of a product should be perfect, but this is not the case. It is more important to focus on execution and getting your customers to try your product as fast as possible.
The startup founders interviewed in the video highlight the importance of starting with the simplest version of your product as possible. This is because the early stages of a startup are typically bootstrapping stages, where the founders may not yet have the resources to hire the best developers in the world or build the grand mobile app they envision. In such cases, founders can use simple tools such as Excel or Google Sheets to develop their cost models and get creative in building their MVP.
Identifying the right frameworks to use in the different stages of your project is also crucial. It is important to talk to end users and get their feedback to identify whether the product you are building has value. Social media can be an effective way to engage with potential users and get feedback. By sharing your brand and ideas early on, you can get valuable input from your target audience and adjust your product accordingly.
The video also emphasizes the importance of using basic tools such as Excel and Google Sheets to develop your cost model. This can help you list all the inputs that go into creating your product and identify any inputs that you might have missed. It is also crucial to get a good accountant to help with your finances, as they can help you avoid costly mistakes later on.
Overall, the video highlights the importance of starting small and being willing to pivot and adapt as needed. By creating a minimally valuable product and getting feedback from end users, startup founders can create a product that addresses the needs of their target audience and has the potential to grow and scale. The video provides valuable insights for anyone looking to build an MVP and launch a successful startup.
Building an MVP (Minimum Viable Product) is a critical step in launching a startup, whether it's a software or hardware-based tech business. The goal of an MVP is to create a basic version of your product that can be tested in the market to validate your idea and get feedback from potential customers. Here are some tips and tools to help you build an MVP for both software and hardware-based tech business models:
Tips for software-based tech business models:
- Identify the core features and prioritize them: Start by identifying the core features of your software product that are essential for solving the problem you're trying to address. These should be the features that add the most value to your customers. Prioritize these features based on their importance and complexity. This will help you focus on building the essential components first and gradually add more features as you get feedback from users.
- Use no-code tools to build your MVP: No-code tools have made it easier for founders to build their MVP without any coding knowledge. Platforms like Bubble, Webflow, and Glide allow founders to create web and mobile applications using drag-and-drop interfaces. These tools also offer integrations with other software tools, making it easy to create prototypes and test the product in the market quickly.
- Get feedback and iterate: Once your MVP is built, it's essential to get feedback from your target audience and iterate based on that feedback. Use various tools like Google Analytics, Hotjar, and Intercom to track user behavior and gather feedback. This feedback should be used to improve the product and create a better user experience.
Tips for hardware-based tech business models:
- Start with a proof of concept: Before investing a lot of time and money in building a prototype, start with a proof of concept (POC). A POC is a small-scale demonstration of your product's core functionality. This will help you test your idea and make sure it's feasible before investing in a full-scale prototype.
- Use rapid prototyping tools: Once you've validated your idea with a POC, use rapid prototyping tools to build a prototype of your product quickly. These tools include 3D printers, laser cutters, and CNC machines. This will help you test your product's form and function before investing in manufacturing.
- Get feedback and iterate: As with software-based MVPs, it's crucial to get feedback from your target audience and iterate based on that feedback. Use tools like surveys, focus groups, and user testing to gather feedback. This feedback should be used to improve the product and create a better user experience.
Tools for software-based tech business models:
- Bubble: Bubble is a no-code platform that allows you to build web and mobile applications without any coding knowledge. It offers a drag-and-drop interface and integrations with various software tools.
- Webflow: Webflow is a visual web design tool that allows you to create responsive websites without any coding knowledge. It offers a drag-and-drop interface and integrations with various software tools.
- Google Analytics: Google Analytics is a web analytics tool that allows you to track user behavior on your website or mobile application. It provides insights into user demographics, behavior, and engagement.
Tools for hardware-based tech business models:
- 3D printers: 3D printers allow you to create physical prototypes quickly and easily. You can print your designs in plastic, metal, or other materials.
- Laser cutters: Laser cutters allow you to cut and engrave materials like wood, plastic, and metal. They're useful for creating precise and intricate designs.
- SolidWorks: SolidWorks is a 3D CAD software that allows you to design and simulate
There are several common frameworks and visuals that early-stage founders can use to approach building their MVP or prototype. These frameworks help founders to organize their thinking and identify the critical elements needed to create a successful MVP. Here are some examples:
- Lean Startup: The Lean Startup framework is a popular approach to building a startup. It emphasizes the importance of building a Minimum Viable Product (MVP) as quickly as possible, testing it with customers, and iterating based on customer feedback. The framework includes a Build-Measure-Learn feedback loop that helps startups to quickly validate their assumptions and improve their product. The Lean Startup canvas is a useful tool for visualizing the framework and organizing your thinking.
- Business Model Canvas: The Business Model Canvas is a strategic management and lean startup template for developing new or documenting existing business models. It provides a visual representation of the key elements of a business model, including customer segments, value propositions, revenue streams, and cost structure. This canvas helps startups to understand the interdependencies between the different parts of their business and identify areas that need improvement.
- User Story Mapping: User story mapping is a technique that helps startups to organize their MVP around the needs of the user. It involves creating a visual representation of the user journey and mapping out the different tasks and activities that the user will perform. User story mapping helps startups to prioritize the features and functionalities that are most important to the user and build a product that solves their problem.
- Design Thinking: Design thinking is a problem-solving framework that emphasizes empathy, experimentation, and iteration. It involves understanding the user's needs, defining the problem, ideating solutions, prototyping, and testing. Design thinking helps startups to create products that are user-centered, innovative, and effective. The Double Diamond framework is a visual representation of the design thinking process and helps startups to organize their thinking and approach to problem-solving.
- Value Proposition Canvas: The Value Proposition Canvas is a tool that helps startups to understand the needs of their customers and design products that meet those needs. It includes two sections: the customer profile and the value proposition. The customer profile describes the customer's jobs, pains, and gains, while the value proposition describes how the product addresses those needs. The Value Proposition Canvas helps startups to identify the unique value they offer to customers and build a product that meets their needs.
In conclusion, there are several common frameworks and visuals that early-stage founders can use to approach building their MVP or prototype. These frameworks help founders to organize their thinking, prioritize features, and create a product that meets the needs of their customers. Founders should choose the framework that best suits their needs and adapt it to their specific situation.
What is an MVP?
An MVP, or Minimum Viable Product, is the earliest version of a product that focuses on the core features and functionalities that solve the main problem of the target audience. The goal of an MVP is to validate the product idea and test assumptions in the market.
How do I build an MVP for a software-based tech business?
To build an MVP for a software-based tech business, you should start by identifying the core features and prioritize them. Then, use no-code tools to build your MVP, and get feedback from your target audience to iterate and improve the product.
How do I build an MVP for a hardware-based tech business?
To build an MVP for a hardware-based tech business, start with a proof of concept to test your idea and make sure it's feasible. Then, use rapid prototyping tools like 3D printers and laser cutters to build a prototype, and get feedback from your target audience to iterate and improve the product.
How do I know if I need to build an MVP?
You should build an MVP if you have an idea for a product or service, but you're not sure if it will work in the market. An MVP allows you to test your idea and validate assumptions before investing a lot of time and money in a full-scale product.
How much should I invest in building an MVP?
You should invest enough to create a working prototype that solves the main problem of your target audience. This could range from a few hundred to a few thousand dollars, depending on the complexity of your product.
How do I get feedback on my MVP?
You can get feedback on your MVP by talking to your target audience, conducting surveys or focus groups, and tracking user behavior with tools like Google Analytics or Hotjar.
What if my MVP doesn't work in the market?
If your MVP doesn't work in the market, don't give up. Use the feedback you've received to iterate and improve your product. Consider pivoting to a different market or addressing a different problem.
How do I choose the right no-code tool to build my MVP?
Choose a no-code tool that meets your specific needs and budget. Consider the tool's features, integrations, and ease of use. You can also read reviews and compare different tools to make an informed decision.
How do I know if my MVP is ready to launch?
Your MVP is ready to launch when it solves the main problem of your target audience and provides a valuable solution. It should be easy to use, bug-free, and meet the basic needs of your users.
How do I protect my MVP from competitors or copycats?
You can protect your MVP by filing for patents, trademarks, or copyrights. You can also use non-disclosure agreements (NDAs) or trade secret protection to keep your idea confidential. However, it's essential to balance protection with the need to share your idea with potential investors, customers, and partners.
How do I scale my MVP into a full-scale product?
To scale your MVP into a full-scale product, you need to identify the key features and functionalities that are essential to your users and improve them. You'll also need to invest in marketing, sales, and customer support to attract and retain customers. Finally, you may need to hire additional team members or seek investment to support growth.
What's the difference between a prototype and an MVP?
A prototype is a basic version of a product that is used to test the feasibility of an idea, experiment with different designs, and identify potential issues. It's typically used for internal testing and not shown to customers. An MVP, on the other hand, is the earliest version of a product that is released to customers and focuses on the core features and functionalities that solve the main problem of the target audience. The goal of an MVP is to validate the product idea and test assumptions in the market.
How do I know whether to build a prototype or an MVP?
You should build a prototype if you're not sure whether your idea is feasible or if you want to experiment with different designs before investing in a full-scale product. A prototype is typically used for internal testing and not shown to customers. You should build an MVP if you want to test your idea in the market and validate assumptions with customers. An MVP is the earliest version of a product that focuses on the core features and functionalities that solve the main problem of the target audience.
Can a prototype become an MVP?
Yes, a prototype can become an MVP if it's refined and developed into a product that solves the main problem of the target audience. The prototype can be used to test the feasibility of the idea and experiment with different designs, and the feedback received can be used to develop the MVP. The MVP will need to focus on the core features and functionalities that solve the main problem of the target audience and be tested in the market to validate the product idea.
How do I differentiate between a prototype and an MVP?
The main difference between a prototype and an MVP is the stage of development and the purpose of the product. A prototype is a basic version of a product that is used for internal testing and experimentation with different designs. An MVP, on the other hand, is the earliest version of a product that is released to customers and focuses on the core features and functionalities that solve the main problem of the target audience.
Can an MVP be a prototype?
Yes, an MVP can be a prototype if it's the earliest version of a product that focuses on the core features and functionalities that solve the main problem of the target audience. An MVP may include some basic design elements, but it's primarily focused on solving the user's problem and validating the product idea in the market.
The importance of having the right co-founders cannot be overstated when it comes to the success of a business. The process of finding the right co-founder should not be rushed, and it is crucial to take the time to identify the necessary skill sets and work style compatibility that align with the company's vision. Rushing the process can lead to a mismatched team that can be detrimental to the project.
The speaker in the video suggests that working with potential co-founders first is a great way to evaluate their conflict resolution skills and work style before assigning them a leadership position. This way, it is possible to get a sense of how they handle team building activities, conflicts, and other challenges that may arise in the course of the business. It is also essential to find co-founders who share the same vision and complement each other's skills. This alignment is crucial to avoid confusion, loss of interest, and disengagement.
Identifying the necessary skill sets is another crucial aspect of finding the right co-founders. Companies should recruit talented individuals who can complement the existing team and help to achieve the company's goals. The speaker advises that aggressively recruiting smart and talented individuals who are engaged in other high-paying jobs is a great way to build a strong team. It is important to sell them the dream of joining a shared opportunity that will have a higher payoff, either emotionally, financially or in terms of working on something enjoyable.
In conclusion, finding the right co-founders is critical for the success of any business. The process requires a careful evaluation of potential co-founder's compatibility, identifying necessary skill sets, and complementing existing ones. A strong team with complementary skills and shared vision will create a successful and long-lasting partnership that fosters growth and success. Taking time to find the right co-founders is a worthwhile investment in the future of any business.
Common Frameworks for Picking and Working with Co-Founders
- SWOT Analysis: SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a widely used strategic planning tool that can help you assess the compatibility of potential co-founders. By analyzing your strengths and weaknesses alongside those of your prospective co-founder, you can identify areas of complementarity and potential challenges in the partnership.
- Skill Matrix: A skill matrix is a visual tool that helps map the skills and expertise of potential co-founders. By creating a matrix that lists essential skills for your startup and assessing each candidate's proficiency in those areas, you can identify co-founders who can fill gaps in your skill set and contribute valuable knowledge to the team.
- The Founder's Dilemma Framework: Developed by Noam Wasserman, this framework focuses on the trade-offs founders face when choosing co-founders, such as control versus growth, and wealth versus control. This model encourages founders to prioritize long-term success over short-term gains, guiding them in making more informed decisions when selecting and working with co-founders.
- The Trust Equation: The Trust Equation is a model developed by The Trusted Advisor Associates, emphasizing the importance of trust in professional relationships. The equation (Trustworthiness = (Credibility + Reliability + Intimacy) / Self-Orientation) can help assess potential co-founders' trustworthiness by evaluating their credibility, reliability, intimacy, and self-orientation. High trust levels between co-founders are essential for effective collaboration.
- The Five Dysfunctions of a Team Model: Developed by Patrick Lencioni, this framework identifies five common dysfunctions that can hinder team performance: absence of trust, fear of conflict, lack of commitment, avoidance of accountability, and inattention to results. By understanding and addressing these potential dysfunctions, co-founders can create a stronger and more productive working relationship.
When selecting and working with a co-founder, using these frameworks and models can help you make more informed decisions and lay the foundation for a successful partnership.
What if I can't find a co-founder with the necessary skills?
If you are having difficulty finding a co-founder with the necessary skills, you may need to broaden your search. Consider attending networking events, joining professional organizations, or even posting job listings to find the right candidate.
How do I know if a potential co-founder is a good fit for my
business?
It is important to take the time to get to know a potential co-founder before bringing them on board. Work on a small project together first to get a sense of their work style, conflict resolution skills, and overall compatibility with you and your team.
What if my co-founder and I disagree on the direction of the
business?
Disagreements are a natural part of any partnership, but it is important to have a plan in place for resolving conflicts. Consider creating a written agreement that outlines how disagreements will be handled and what steps will be taken to resolve them.
How can I make sure my co-founder is committed to the long-term
success of the business?
Make sure you have a shared vision for the business and that your co-founder understands the goals and objectives. Regularly check in with your co-founder to make sure they are still committed to the project, and address any concerns or issues that arise in a timely manner.
What if my co-founder and I have different work styles?
It is important to have open and honest communication with your co-founder about your work styles and to find a way to work together that is mutually beneficial. Consider dividing tasks based on each other's strengths or finding a compromise that works for both parties.
What if my co-founder is not pulling their weight?
If your co-founder is not contributing equally to the business, it is important to address the issue as soon as possible. Have a discussion about each other's responsibilities and how you can work together to ensure everyone is doing their fair share. If the issue persists, it may be necessary to reevaluate the partnership.
When you have your prototype ready, even if you’re a little embarrassed by it, please submit it on this page. This is a core requirement of graduating from the Founder Academy and moving on to the next stage. Keep in mind that your prototype or MVP should be a link to a live product or at least a demo that a user can engage with in some way. Let’s see what sort of hard things you and your team have been up to!
Here are the guidelines for developing and submitting your prototype for Phase 1:
- Functionality: The prototype should demonstrate basic functionality and usability of the product or service. The functionalities do not have to be fully developed nor polished.
- Design: The prototype interface does not need to be perfectly designed at this stage, but should present a clear purpose and call to action for a potential beta user.
- Scalability: The prototype should have the future potential to be scaled up to initial beta users or larger user base during Phase 2 (incubator) of the competition this year between May through August.
- Innovation: The prototype should demonstrate unique features that differentiate it from existing products or services in the market.
Types of products and services to consider:
- Tech Product, i.e. mobile app, chrome extension, online marketplace, etc.
- Tech Service, i.e. web development, business intelligence, cybersecurity, etc.
- Non-Tech Product, i.e. food, fashion, wellness, etc.
- Non-Tech Service, i.e. consulting, tutoring, marketing, cleaning services, etc.
- Hybrid Product, i.e. IoT devices, offline + online marketplaces, meal kit delivery brand, etc
Examples of prototypes that would pass Phase 1:
- Landing page that indicates potential features and the problem you are solving.
- App available for testing with initial features, or prototype using Figma or no-code platform. It should demonstrate basic functionality, even if it is not fully developed or polished.
- Video of demonstrating initial features as well as platform front and back-end stack.
- Initial non-tech product line for sale via social media account
- Initial non-tech product line design mock-up ready for either manufacturing and/or crowdfunding
The video featured several interviews with founders who shared their insights on the process of launching a startup.
One common theme emphasized by the founders was the importance of launching quickly and not waiting for a perfect product. They emphasized the need to get feedback from customers early on, which would help them build the right product. The founders recognized that as a startup, it was essential to get something out there for the first time and see how customers reacted to it.
The founders shared their different methods of launching their products. Some launched internally to test the product, while others launched organically through social media and word of mouth. They recognized that getting the financial model right was crucial, and that revenue is what ultimately makes a business model work. Therefore, it was important to launch earlier to interact with users and iterate faster.
The process of building a brand was another significant aspect highlighted by the founders. They noted that at the early stages, it was vital to make a clear, compelling brand story that would help solidify their place in the market. They recognized that building a community online was essential these days and that they had to be a bold brand that people could trust.
The founders also discussed how their brand evolved over time. Some had multiple names before settling on the final one, while others used an artificial intelligence website to generate names. The founders recognized that building a unique logo that speaks to the target audience was essential for attracting customers off the shelf.
Furthermore, the founders shared their experiences with launching a beta version of their product. They noted that it was crucial to have a restricted number of users during the beta launch to test the product and fix any issues. The feedback received from the beta users helped the founders iterate quickly and build a better product.
The founders also shared their experiences with building a team, which they noted was crucial to the success of their startup. They emphasized the importance of hiring the right people who believed in the company's vision and were passionate about the product. The founders also noted that it was crucial to build a diverse team that brought different perspectives and ideas to the company.
In conclusion, the video featured interviews with startup founders who shared their experiences with launching their products. They emphasized the importance of launching quickly, engaging with customers early on, building a brand, iterating faster, launching a beta version, and building a diverse team. The founders recognized that there was no perfect time to start something and advised other entrepreneurs to launch as soon as possible.
Launching a startup can be an extremely challenging process, and one of the most critical decisions you will make is how to go to market. There are several go-to-market strategies that you can use to introduce your product or service to your target audience, and the following are some of the most common ones.
- Soft Launch: A soft launch strategy involves releasing your product to a small group of users before launching it to a larger audience. This approach allows you to test your product with a limited number of users and make any necessary changes before launching it more widely. It can also help you build buzz and excitement around your product. Soft launches are particularly useful for startups that want to test their product with real users without the risk of a full-scale launch.
- Influencer Marketing: Influencer marketing involves partnering with influencers in your industry to promote your product. This approach can be effective if you're targeting a specific audience and want to build credibility and trust with that audience. Influencer marketing can also help you reach a wider audience and build brand awareness. Influencers can help to drive traffic to your website, increase social media engagement and lead generation, and ultimately drive sales.
- Content Marketing: Content marketing involves creating valuable content, such as blog posts, videos, or infographics, that educates and informs your target audience. This approach can help you build a relationship with your audience and establish your brand as a thought leader in your industry. Content marketing can also help you attract inbound traffic to your website and generate leads. This approach requires a long-term commitment and investment in time and resources, but it can be incredibly effective in building a loyal audience and driving sales over time.
- Paid Advertising: Paid advertising involves using platforms such as Google Ads or social media advertising to promote your product or service. This approach can be effective for startups that want to generate leads and sales quickly. Paid advertising can be targeted to specific audiences, and it can be optimized for maximum return on investment. However, this approach requires a significant investment in advertising spend, and it can be challenging to compete with established brands in the market.
- Product Hunt Launch: Product Hunt is a platform where startups can launch their products and get feedback from the community. This approach can be effective for startups that want to gain early traction and build a following around their product. A successful Product Hunt launch can generate significant buzz and attention, and it can help startups to attract early adopters and investors.
Choosing the right go-to-market strategy for your startup depends on several factors, including your target audience, your budget, and your goals. Each strategy has its own strengths and weaknesses, and it's important to choose the one that aligns with your overall marketing strategy and business objectives. By carefully considering your options and investing in the right approach, you can successfully launch your startup and build a loyal customer base over time.
When is the right time to launch my startup?
There is no perfect time to launch your startup. Many entrepreneurs spend a lot of time trying to perfect their product before launching it, but this is not always the best approach. It's essential to launch as soon as possible to get feedback from your customers and iterate faster. Launching early allows you to interact with users earlier, iterate faster, and get the product that you need to be in the market quickly.
How do I choose the right go-to-market strategy for my startup?
Choosing the right go-to-market strategy for your startup depends on several factors, including your target audience, your budget, and your goals. It's important to choose the strategy that aligns with your overall marketing strategy and business objectives. Before choosing a strategy, you should consider the following questions:
- Who is my target audience?
- What is my budget?
- What are my goals?
- What is my overall marketing strategy?
- What are the strengths and weaknesses of each strategy?
- Which strategy aligns with my business objectives?
By carefully considering your options and investing in the right approach, you can successfully launch your startup and build a loyal customer base over time.
3.2 Landing Your First Customers
In the video, the speakers provide practical insights on how to acquire your first customers for a new business. They highlight three key client acquisition strategies that can help entrepreneurs to build a loyal customer base for their new business.
The first strategy is to retain early adopters and turn them into loyal customers. Early adopters are crucial for any new business as they can play an instrumental role in promoting the product to their friends and family. To retain early adopters, entrepreneurs should focus on delivering value to them, listening to their feedback, and adjusting the product accordingly. This approach can help entrepreneurs to build a loyal customer base that will recommend their business to others.
The second strategy is to understand your target customers and build a product that meets their needs. The speakers emphasized the importance of understanding your target customers and their specific needs to build a product that caters to their preferences. By listening to customer feedback and adjusting the product accordingly, entrepreneurs can ensure that it delivers value and meets customer needs. This approach can help entrepreneurs to build a product that speaks to their target customers' needs and preferences.
The third strategy is effective pitching and selling of products. Entrepreneurs should be creative in their approach to pitching and selling products. They should be aware of the biases that can come from pitching to family and friends and should pitch to people who are a little distant but can still provide good feedback. Entrepreneurs should also focus on delivering value to customers first and building a product that speaks to their needs. This approach can help entrepreneurs to build a product that meets customer needs and preferences, and to pitch it effectively to their target customers.
After selecting at least one of these strategies for their minimum viable product (MVP), founders can implement a brief plan to secure their first user. Founders should research and identify their target customer, including their demographics, interests, and pain points. They should reach out to their network and find early adopters who would be interested in trying out their MVP. Founders should focus on delivering value to their early adopters by listening to their feedback and adjusting the product accordingly. Finally, founders should encourage their early adopters to refer their friends and family to the business, thereby expanding the customer base.
In conclusion, the video provides valuable insights on how to acquire your first customers for a new business. By understanding your target customers, delivering value, and effective pitching and selling, entrepreneurs can increase their chances of success in the competitive world of business. By selecting at least one of the three client acquisition strategies and implementing a brief plan to secure their first user, founders can take their first step towards building a successful business.
How can I acquire my first customers for my new business?
- Acquiring the first customers can be a challenging task for any new business. However, the speakers in the video provide valuable insights on three key client acquisition strategies that can help entrepreneurs to acquire their first customers. These strategies include retaining early adopters and turning them into loyal customers, understanding your target customers and building a product that meets their needs, and effective pitching and selling of products.
- Retaining early adopters and turning them into loyal customers is crucial for any new business. Early adopters can play an instrumental role in promoting the product to their friends and family. By retaining early adopters and turning them into loyal customers, entrepreneurs can build a customer base that will recommend their business to others.
- Understanding your target customers and building a product that meets their needs is also essential for acquiring the first customers. Entrepreneurs should research and identify their target customer, including their demographics, interests, and pain points. By understanding their target customers, entrepreneurs can build a product that caters to their preferences and meets their needs.
- Effective pitching and selling of products is the third key client acquisition strategy highlighted in the video. Entrepreneurs should be creative in their approach to pitching and selling products. They should pitch to people who are a little distant but can still provide good feedback. Entrepreneurs should also focus on delivering value to customers first and building a product that speaks to their needs.
Why are early adopters important for a new business?
Early adopters are crucial for any new business as they can play an instrumental role in promoting the product to their friends and family. By retaining early adopters and turning them into loyal customers, entrepreneurs can build a customer base that will recommend their business to others. Early adopters can provide valuable feedback that can help entrepreneurs to improve the product and cater to the needs of their target customers.
How can I understand my target customers?
Understanding your target customers is essential for building a product that meets their needs and preferences. Entrepreneurs should research and identify their target customer, including their demographics, interests, and pain points. They should also listen to customer feedback and adjust the product accordingly. By understanding their target customers, entrepreneurs can build a product that caters to their preferences and meets their needs.
How can I pitch my product effectively?
Effective pitching and selling of products are essential for acquiring the first customers. Entrepreneurs should be creative in their approach to pitching and selling products. They should pitch to people who are a little distant but can still provide good feedback. Entrepreneurs should also focus on delivering value to customers first and building a product that speaks to their needs. By understanding the needs and preferences of their target customers, entrepreneurs can effectively pitch and sell their products to potential customers.
How can I encourage my early adopters to refer their friends and family to my business?
Early adopters can play a crucial role in promoting the product to their friends and family. By delivering value to early adopters and listening to their feedback, entrepreneurs can encourage them to refer their friends and family to the business. Entrepreneurs should also focus on building a product that meets customer needs and preferences, which can help to expand the customer base.
The video features several founders, each providing valuable insights into the art of pitching to investors. The founders emphasize the importance of building a product and securing initial traction before approaching investors. A solid financial model is crucial when talking to investors, and showing real numbers and projected figures based on current metrics can positively influence the business.
The founders also stress the need to understand what differentiates a project from others. They explain that investors receive numerous pitches that are similar, but only a few have unique value propositions and differentiators that stand out. Therefore, having a unique value proposition and differentiators that make a project stand out from the rest is vital.
Building confidence is another critical aspect of pitching to investors. The founders advise founders to be authentic and truthful in their pitch. Being able to communicate ideas concisely and easily can increase confidence. The founders encourage founders to practice pitching and not worry about rejection, as it is not necessarily a definitive answer. Rather than being discouraged, founders should use rejection as an opportunity to improve their pitch.
Finally, the founders emphasize the importance of building relationships with investors. Investors are not just there for the money; they are also there for the support network and professional mentorship that founders need to develop their projects. Therefore, founders need to vet VCs before pitching and ensure that they can provide smart money, which means they will be involved in the founder's journey post-investment. Building relationships with investors involves showing their personality and passion for their work.
In conclusion, the founders provide a comprehensive guide for founders who want to pitch their ideas to investors successfully. By following these tips, founders can increase their chances of success and build long-lasting relationships with investors. Ultimately, it is important for founders to remember that rejection is not necessarily a definitive answer and to keep practicing and improving their pitch until they achieve their goals.
When is the best time to approach investors?
The best time to approach investors is when you have already secured initial traction by building a solid product and securing initial revenue. Investors prefer to see real numbers and projected figures based on current metrics that can positively influence the business.
What should you focus on when pitching to investors?
When pitching to investors, it is important to understand what differentiates your project from others. Investors receive numerous pitches that are similar, so only a few have unique value propositions and differentiators that stand out. Having a unique value proposition and differentiators that make your project stand out from the rest is vital.
How can you build confidence when pitching to investors?
Being authentic and truthful in your pitch can increase confidence. Being able to communicate ideas concisely and easily is also beneficial. Practicing pitching and not worrying about rejection is important, as it is not necessarily a definitive answer. Rather than being discouraged, use rejection as an opportunity to improve your pitch.
Why is building relationships with investors important?
Investors are not just there for the money; they are also there for the support network and professional mentorship that founders need to develop their projects. Therefore, it is important to vet VCs before pitching and ensure that they can provide smart money, which means they will be involved in the founder's journey post-investment. Building relationships with investors involves showing their personality and passion for their work.
What should founders focus on before pitching to investors?
Before pitching to investors, founders should focus on building a solid product and securing initial revenue. They should also understand what differentiates their project from others and be able to communicate their value proposition and differentiators concisely and easily. Finally, founders should practice pitching and not worry about rejection, using it as an opportunity to improve their pitch.
3.4 Pitch Deck & Video Deliverables
Your pitch deck should include slides such as outlining the Problem you're trying to solve, the Solution you have begun to develop, the Technologies you’re leveraging, a basic business and Financial Model, and about you and your Team.
We suggest you read and make a copy of the following guide, template and example here. by clicking File > Make a Copy > Entire Presentation.
You can also download the same here:
Founder Academy Guide_ Pitch Deck.pptx
You can use the video submission as you see best fit to showcase how you and your co-founders are leveraging technology with your prototype to do hard things. This could potentially include a run-through of your pitch, a product demo and/or user stories.
Remember, you’ll be able to continue to work on these as we move forward to the next stage, so we’re not looking for perfection quite yet. Once you’ve submitted the pitch deck and video - assuming you’ve already also submitted your Lean Canvas Model and prototype, your submissions will be reviewed to confirm whether you’re ready to graduate. We can’t wait to see what you’ve put together! And don’t forget to tap into the power of peer support in helping you put together your first round of submissions.
Joseph Rutakangwa | Co-Founder & CEO | Rwazi | Follow Your Dreams
Ifeoluwa Dare-Johnson | Founder & CEO | Healthtracka | Believe In Yourself
Crepin Kayisire | Founder & CEO | KAYKO | Know Your Vision
Kiiru Muhoya | Co-Founder & CEO | Fingo Africa | Remember The Mission
Kidist Tesfaye | Founder & CEO | YeneHealth | Solve Big Problems
Caleb Ndunda | Co-Founder & CTO | Moto | Work Towards Your Passion
Violet Amoabeng | Founder & CEO | Skin Gourmet | Growth Through Hardship
Dr. Ehoneah Obed | Founder | Ngoane | Embrace Your Journey
Nadia Gamal El Din | Founder & CEO | Rahet Bally Co. | Nothing Is Impossible
If you reached so far, you’ve done it! You're amazing! and now you have what you need to get started, and be that entrepreneur you want to be and make your dreams come true.