They need to understand the external environment and they need to come in.

Again the only way to figure this out is being able to interact with tens or hundreds or thousands of customers so you finally understand what the right revenue streams and revenue model is.

In an existing market, if customers react to your hypothesis that what they needed was higher performance and you are correct, this is your revenue curve.

Well, if you think about it, in a new market on year 1 you have no customers, and so your revenue is essentially flat.

This was a startup killer for decades.

The next thing is revenue streams.

What you've already put together is a business model canvas with your hypothesis that says, Look, we're really passionate about this product or service, and we think there's a set of customers out there, and we've put together a revenue model, our first hypotheses and saying we're going to make a lot of money, and that's great, but there's really kind of a method to this madness, and there's not only one way to do this, but this is the way we kind of think of it.

So archetypes really helped us understand our customers, they value prop, the revenue and some of our pricing tactics.

More than likely we'll make money from royalties and commercial licensing, etc.

Our new contacts will give us access to bluechip clients, national governments...

And now they started to get a better understanding of what customer relationships were, about getting customers, keeping them and growing them.

How do they currently buy and what's the revenue stream that's associated with these kind of pricing tactics?

And in value proposition, the goal of this is to find out that minimum viable product.

Just as a reminder, what the teams will be starting with in Week 1 is filling out the business model canvas and getting out of the building and testing their hypotheses about the value proposition, customer segments, and channel.

By now, you're intimately familiar with the business model canvass.

We care how we make our profit.

In customer relationships all the get keep grow metrics, some of which we talked about, some of which you'll discover, what were the customer acquistion costs?

So on day one, these were their initial hypothesis coming into the class.

In particular, because the idea is that if you analyze the data, that data will tell you something about your customers and then you can better serve your customers and then your profits will go higher.

So a plus b have to be equal to 50.

Now if you remember we started here on the left. We didn't earn and paid media.

We've already talked about value propositions, customer segments, distribution channels, customer relationships, and revenue streams.

Profitable.

Many companies have huge databases of customer information.

Now we finally come to the last part of the business model canvas.

Instead of pricing based on cost,

You cater an event where the cost to you was 200

I have no idea where my husband is.

So in our last lectures we talked about value proposition, customer segments, distribution channels, customer relationships get, keeping and growing customers.

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

Apple is one of the few, truly cares.

Maybe Abby made 50 and Ben earned 0.

As was simulated, the value proposition includes all the features of your product but also the pains and gains you're solving for the customer segment and that's where the market goes.

Because when someone says earnings, are those the earnings last year?

And what's left over for the equity?

You want to test the ability of some portion of your product and meet minimal customer needs and that might change over time but as the MVP slowly grows as your confidence in what the customer archetype is.

Let me be clear, you could use the business model canvas and customer development to go through the process for nonprofit but actually having some goals that are fairly concrete revenue and profit allows us to measure whether we're succeeding and failing in very clear ways and then we adjust to the question.

So in the last lecture, you remember the business model canvas, all the 9 components of a startup.

They could tell you that I want bigger, faster, cheaper status quo.

Next, they got out of the building again.

Here's your client list.

I wouldn't give up, I would just be going back and looking at the customer segments you are targeting and understand whether you want to build the business or have a hobby.

The earnings I just said, this is actually what happened to the company.

This is what I called the you should be so lucky to have this problem part of the funnel, and that's how you grow the customers you have.