sodapdf-converted.pdf

What is a problem? A problem is a gap between the current state and a desired state that affects a specific group of people. It’s something that causes frustration, inefficiency, or dissatisfaction, and serves as an opportunity for solutions or improvements. What is “job-to-be-done” (JTBD)? "Job-to...

What is a problem? A problem is a gap between the current state and a desired state that affects a specific group of people. It’s something that causes frustration, inefficiency, or dissatisfaction, and serves as an opportunity for solutions or improvements. What is “job-to-be-done” (JTBD)? "Job-to-be-done" is a framework for understanding customer needs. It focuses on what customers are trying to achieve when they use a product or service, rather than the product itself. It’s the underlying problem or goal that customers hire a product to help them achieve. When does a problem become an opportunity? A problem becomes an opportunity when it can be solved in a way that creates value for the target audience. When the solution to the problem meets a need or improves upon an existing solution, it creates potential for business value. What is a problem worth solving? A problem worth solving is one that significantly affects a group of people, has a potential market, and can be addressed with a viable solution that provides value, making it financially and practically feasible. What other job does the customer want to get done? Besides the primary job, customers may want to address related jobs that improve their overall experience, such as increasing convenience, reducing cost, or saving time while fulfilling the primary need. How do you validate that you have identified a problem worth solving? You can validate a problem by talking to potential customers, conducting surveys, and assessing demand. If the target audience is willing to pay for a solution or is actively looking for alternatives, it indicates that the problem is worth solving. Who is a consumer? A consumer is the end-user of a product or service. They are the individuals who ultimately benefit from the product’s use, regardless of who purchases it. How is a consumer different from a customer? A customer is the person who buys the product, while a consumer is the one who uses it. In some cases, they may be the same person, but they can also be different (e.g., a parent buying a toy for their child). What is Bootstrapping? Bootstrapping is a method of starting a business without external funding. Instead of seeking investors, the entrepreneur uses personal savings or the revenue generated from the business to fund growth. What is design thinking process? What are the steps to apply design thinking in practice? Design thinking is a human-centered approach to innovation, emphasizing empathy, ideation, and experimentation. The steps are: Empathize: Understand users’ needs. Define: Clearly articulate the problem. Ideate: Brainstorm possible solutions. Prototype: Build a representation of one or more ideas. Test: Test solutions with users and iterate as needed. What are the major market types? Why do you need to know them? Market types include: Mass Market: Products for a broad audience with similar needs. Niche Market: A focused subset of a larger market. Segmented Market: Distinct customer groups with specific needs. Diversified Market: Serving two unrelated customer segments. Multi-Sided Market: Bringing together two interdependent groups (e.g., buyers and sellers). Understanding market types helps in targeting the right audience, developing effective marketing strategies, and positioning the product properly. What is Segmentation and targeting? Segmentation is the process of dividing a market into smaller groups based on similar characteristics. Targeting involves selecting one or more segments to focus on with tailored marketing efforts. What is Niche Market? A niche market is a small, specialized market for a particular product or service. It focuses on a specific segment of customers with unique needs. Who are the early adopters? Early adopters are the first group of customers to use a new product or technology. They are often willing to try new things and provide valuable feedback. What is a customer persona and why do you need to create one? A customer persona is a detailed description of a typical customer in your target market. It helps in understanding their needs, preferences, and behavior, allowing you to tailor your product and marketing strategies accordingly. What is the Value Proposition Canvas? The Value Proposition Canvas is a tool used to ensure that a product or service meets customer needs by mapping out value creation. It consists of two parts: the customer profile (needs, pain points, and gains) and the value map (features, pain relievers, and gain creators). How to craft your value proposition using the VPC? Use the customer profile to identify pains and gains, then match them with features of your product that alleviate those pains or enhance gains. This creates a compelling reason for customers to choose your solution. What is an MVP? Why is it important? A Minimum Viable Product (MVP) is a product with the most basic features necessary to satisfy early customers and gather feedback. It helps validate a business idea without large-scale investment. What are the various types of Prototypes? Prototypes can include: Paper Prototypes: Simple sketches or drawings. Digital Prototypes: Mockups created with design software. 3D Printed Prototypes: Physical models of a product. Working Prototypes: Functional models demonstrating features. How to build the final product out of your MVP? Use feedback from MVP users to make incremental improvements. Develop additional features, refine the design, and enhance the product until it meets market needs and can be launched at scale. What are the types of costs? Types of costs include: Fixed Costs: Costs that don’t change with production volume (e.g., rent, salaries). Variable Costs: Costs that vary with production volume (e.g., raw materials). Direct Costs: Directly tied to product creation. Indirect Costs: Overhead or administrative costs. How do you determine revenue? Revenue is determined by multiplying the price of a product by the number of units sold. It also includes additional sources like subscription fees or service charges. What is the right pricing strategy for a startup? Common pricing strategies for startups include cost-plus pricing, value-based pricing, and penetration pricing. The right strategy depends on market research, competitor analysis, and value perception. How do you determine the profitability of your business idea? Calculate profitability by subtracting all expenses from total revenue. A positive result means the business is profitable, while a negative result indicates a loss. What is your Burn Rate and Runway period? The Burn Rate is the rate at which a company is spending its cash reserves. The Runway period is the amount of time a company can operate before running out of cash. What is your CAC and CLV? Customer Acquisition Cost (CAC): The cost of acquiring a new customer. Customer Lifetime Value (CLV): The total revenue expected from a customer throughout their relationship with the company. Importance of Identifying the competitors Identifying competitors helps in understanding market positioning, strengths, and weaknesses, allowing you to differentiate your product effectively. Understanding the importance of analyzing competition Analyzing competition helps in recognizing gaps in the market, adapting best practices, and staying ahead by providing better value to customers. Benefits of Competition Analysis Identifies strengths and weaknesses. Uncovers market opportunities. Informs strategic decisions. Understanding Sustainable Differentiation by Applying Blue Ocean Strategy Blue Ocean Strategy focuses on creating uncontested market space and making competition irrelevant by differentiating in ways that add unique value to customers. What is a Business Model? A business model describes how a company creates, delivers, and captures value. It includes revenue streams, customer segments, cost structure, and key activities. What are the stages of the Entrepreneurial life cycle? Stages of the entrepreneurial life cycle include: Development stage Start-up stage Growth stage Maturity stage Exit stage What is the Lean Canvas? The Lean Canvas is a one-page business model template that helps startups deconstruct their idea into key assumptions. It includes problem, solution, key metrics, unique value proposition, and more. How to fill up the Lean Canvas to come up with your own business model? Fill in each block systematically: Define the problem, target customers, and possible solutions. State your unique value proposition, channels, and key metrics. Address cost structure and revenue streams. How to align the various blocks of the Lean Canvas with each other? Ensure the solution directly addresses the problem, the unique value proposition resonates with the customer segments, and the cost structure is balanced with the revenue streams. This alignment creates a cohesive, viable business model.