[TEXT: Young African Leaders Initiative Online Training Series]
[TEXT: Mandela Washington Fellowship Institute Course]
[TEXT: Design-Driven Entrepreneurship]
[Rich Nadworny:] Welcome back. I’m Rich Nadworny
and you’re at the halfway point of the Design-Driven Entrepreneurship course.
Hopefully you’ve been busy writing your quick pitch.
Now we’ll start talking about how you’re going to bring your big idea to life.
In this lesson we’re going to be working on the left side of the Business Model Canvas.
What resources, activities and partners does your startup need to actually launch?
Can you build most of it yourself?
Or will you need to hire people or join forces with others?
Figuring this out can be a challenge for many new entrepreneurs.
Try to remember that when you are starting out,
you should try and do as much as possible yourself.
Some people have capabilities to do this right away;
they can code or they can sew or they can build.
Sooner or later, though,
even the most talented entrepreneur needs help.
We have two approaches for you to use
to design the left side of your canvas.
You can use these in any order you like
and you might reuse them after doing this once.
The first tool we recommend
for designing this part of the business is called a Stakeholder Map.
The Stakeholder Map allows you to diagram the network of people
who have a stake in your system.
In essence, when you create a startup
you’re creating a network of people.
The interrelationships within this network might ultimately determine
how successful your venture is.
It may also help you uncover other opportunities.
It’s a visual tool. It’s something you want to keep on your wall when you’re done.
Here’s how to use this.
List out all of the people involved in your new, big idea.
Start with your customers,
since you just created that list in the previous section.
Now list all of the stakeholder groups you’ll need
to help you make, distribute or sell your product or service.
Be as specific as possible.
Generate a good sized list of all of the imaginable stakeholders.
When you’ve done this, take a piece of paper
and start mapping out the stakeholders and the relationships between them.
Draw an image of each stakeholder
and make a little talk bubble next to them to capture their mindset.
Then, arrange and connect them in a logical order.
For example, typically you’ll draw a great distance
between the people building your product and your end customer.
But if you’re creating a product that is very customizable
and unique each time you produce it,
there might be a tighter relationship between them.
The stakeholders provide you with a list of key partners.
Now, you want to connect your people by putting lines between them
and describe the resources required and activities that need to happen in your venture.
For example, the line from a marketing person to a salesperson may have an arrow
with the words “website & photos” to show
that the marketing person needs to create these tools for the salespeople to use.
Lines can connect people within a group like sales to outside groups like strategic partners.
For example, the line from your tech department to a customer segment may say “tech support.”
Try to get as much description in the lines as possible.
The lines show your key activities on your Business Model Canvas.
If the stakeholders are internal, they are your key resources on the canvas.
If the stakeholders are external, they are the key partners on the canvas.
Fill these in.
Now, take a step back.
With your Stakeholder Map, you’ve just created a picture of your business ecosystem.
Congratulations! But is it the right picture?
In order to find that out, we’re going to use some more observational techniques.
One of our guest speakers at our institute was Paul Budnitz,
a serial entrepreneur who created a high-end bike company called Budnitz Bikes.
Paul decided he wanted to create a high-end bike but he didn’t know how.
So, he spent a lot of time at bike shops watching how they worked and, as he put it,
asking a lot of stupid questions.
Those questions allowed him to figure out a new way
to build a completely unique, high-end bicycle.
That’s your next task.
Use your network to ask questions and observe.
Here are some ways to do that.
Is there some company doing something similar?
Find them and watch them or ask questions.
Are there other entrepreneurs you can find
who have launched businesses in a similar category?
Talk to them and ask how they produced and launched their product.
Go online and find as much information as you can about your key partners.
Use social media channels to connect with both category leaders and entrepreneurs.
What you’re doing is validating your Stakeholder Map
and the activities and resources you need.
In the human-centered design process,
you’re making assumptions and revising your ideas.
When you go out and talk to people about your partners, activities
and resource suppliers, you’re actually performing a test.
That test will help make your startup better.
When you’re done, take what you’ve found
and fill in the left side of your Business Model Canvas.
Hopefully you’ll discover something you hadn’t thought of, or even think of new, helpful relationships.
See you soon.
Go to www.yali.state.gov for more information [TEXT: Test your knowledge YALI.STATE.GOV]
and resources related to this course. [TEXT: YALI Network]
[TEXT: Produced by the U.S. Department of State]