Thanks everyone that joined this discussion for small business owners who want to innovate their business model to shield their business and protect it against competitors. View: http://bit.ly/bizign528 Download: http://bit.ly/bizigd528 Description When the market changes, you have to change your business strategy and take control of your company’s success. A business model helps you understand why certain tactics may not be working for your business and identify options to overcome specific challenges. In a global market that is constantly evolving, business owners need to take an active role in reviewing and retooling their strategies. This session challenges small business owners to re-evaluate their methods, rethink their options, and reignite their organization. About the Speaker Hector Del Castillo Hector helps executives, senior managers and entrepreneurs transform ideas into a great business. He has launched over 30 global products resulting in over $200M in achieved sales revenue. He has over 15 years of experience aligning business + marketing + product strategies and creating new revenue streams to thrust companies to the next level of growth. Click here to connect with Hector via LinkedIn: http://linkd.in/hdelcastillo. Hosted by WeWork at WeWork.com. About Business Ignite A thought-provoking series for small and mid-market business owners, executives, managers and leaders to ignite business growth in the DMV area.  About Startups Central A collaborative community that allows motivated makers, shakers, creatives, advisers and funders to connect, share and learn from each other to launch new successful companies and thrust a few companies into hyper growth in the DMV area. Register for the Startups Central on Meetup to stay tuned about upcoming activities near you. Visit: http://bit.ly/startupscentral. Interested in creating an entrepreneur-friendly community in your coworking space? Contact Hector Del Castillo to schedule a brief call.

2. Sponsors

3. A collaborative community for motivated
entrepreneurs, creatives, makers and
collaborators who are hungry for
success.
bit.ly/startupscentral

4. A thought-provoking series for business
owners, executives, managers and
leaders of small and mid-market
businesses to ignite growth in the DMV
area.

5. Agenda
6:30 – 7:00 - Check-In/Networking
7:00 – 7:10 - Introduction / Announcements
7:10 – 8:00 - Program and Q&A
8:00 – 8:30 - Wrap Up / Networking

6. Follow: @lstartupcentral
@hmdelcastillo
Use: #BizIgnite
Tweet!

7. .@WeWorkDC I’m excited to attend the
#BizIgnite #BusinessModel Innovation for
#SmallBiz @Meetup w/ @hmdelcastillo
http://bit.ly/bizign528
Tweet The Following

8. Upcoming Activities
Women's Business Plan Competition
Entry Deadline: Friday, May 29th
StartRight! will award more than $13,000 in cash and prizes to local
entrepreneurs with winning business plans. Visit:
http://bit.ly/bpcompetition
Femme Founders: OvercomingWomen-Owned
Business Challenges
Thursday, June 4th,WeWork, DC
This session helps women founders and business owners find options to
overcome business challenges. RSVP: http://bit.ly/ffmup604
Business Ignite: Growth Hacking for Small Business
Thursday, June,TBD
This session helps small business owners understand alternative
marketing techniques to grow their business. RSVP: http://bit.ly/bizig618
Follow the short links for more information.

10. Key Takeaways
• Why you need an innovation strategy
• What is business model innovation
• Innovating your business model

11. What We Will Discuss
• The State of Small Businesses
• Why Innovate Your Business Model
• What is Business Model Innovation
• Keys to Innovating Your Business Model
• Q & A

12. THE STATE OF SMALL BUSINESSES

13. Small Business Facts
Source: Bureau of Labor Statistics

14. Employment by Firm Size
U.S. small businesses employ
56.1 million (2012)
Enterprise sector (500+ employees)
employs 51.6 million (2012)
Firms with less than 100
employees have largest
share of small business
employment.
Source: The State of Small Business in America, Business.com Media Inc.

15. Types of Small Businesses
Types of Firms Number of Firms* Description
Non-Employee 23 Million Sole proprietorships
Main Street 4 Million
Local businesses serving
consumers and other local
businesses
Suppliers 1 Million
Suppliers to other businesses in
the traded sector
High Growth 200,000
Fast-growing innovation-driven
businesses
Source: Harvard Business Review, April 2015
* Note that an estimated 500,000 businesses are non-suppliers in the traded sector and do not
fall into any of the above categories. Source: analysis of data from the Census Bureau by Karen
Mills and Mercedes Delgado (hbr.org).

16. Survival Rates
About half of all new establishments survive five years
or more and about one-third survive 10 years or more.
Source: Small Business Bureau, Office of Advocacy FAQs March 2014

17. WHY INNOVATE YOUR BUSINESS
MODEL

18. In a fast changing competitive environment, a
company’s long-term success depends upon its
ability to innovate its business model.

20. Emergence of ExOs
Source: Exponential Organizations, by Salim Ismail, Michael S. Malone, Yuri van Geest,
Diversion Books, Oct 2014

21. Linear vs. Exponential Growth
Source: Exponential Organizations, by Salim Ismail, Michael S. Malone, Yuri van Geest,
Diversion Books, Oct 2014

23. Achieving Higher Potential
Source: Gassmann, Oliver; Frankenberger, Karolin; Csik, Michaela The Business Model Navigator: 55 Models That Will
Revolutionise Your Business, Pearson Education Limited, Nov 2014

24. Growth Happens In Spurts
Small
Business
Growth
Phase 1
Growth
Phase 2
Growth
Phase 3
Time
Revenue/MarketShare
Nonlinear growth requires the
right market conditions +
innovation + funding.

25. Impact of Disruption
Source: Gretchen Gavett, “The Myth of the High Growth Software Company,” Harvard Business Review, May 2015

26. Grow Fast or Die Slow
• How much growth do we need, and how quickly do
we need it?
• How much growth is left in our core markets?
• How secure are we in our core markets?
• What opportunities do we have to expand our
current businesses and to generate more cash to
invest in growth?
• What new opportunities do we see that might
present us with a great next act, and when do we
move?
Source: McKinsey, “Grow Fast or Die Slow,” April 2014

28. WHAT IS BUSINESS MODEL
INNOVATION

29. It’s part of an effective
innovation/growth strategy
You Need an Innovation Strategy, by @motogp61 via @HarvardBiz, June 2015, http://s.hbr.org/1LhELzW

30. • Describes how your business
makes money and why it’s
profitable
• Allows executives to understand
the value proposition, target
customers and revenue streams
• Empowers managers to visualize
the value chain and business
strategy
• Allows funders to assess present
and future business valuation
Why Business Model Innovation

31. Innovation Landscape Map
Source: Gary P. Pisano, Corning, “You Need an Innovation Strategy,” Harvard Business Review, June 2015

32. Focuses on Four Dimensions
1. Who are
our ideal
customers?
2. What do
we offer to
customers?
3. How do
we
produce
our
offerings?
4. Why
does it
generate
profit?

33. KEYS TO INNOVATING YOUR
BUSINESS MODEL

34. Set Up a Crossfunctional Team

35. Focus on The Right Target
Why buy?
What to buy?
What price?
How often?
Target Customer

36. Assess Your Value Proposition
Source: Value Proposition Canvas by Alexander Osterwalder, Yves Pigneur, Gregory Bernarda, Alan Smith

37. Leverage Your Value Chain
Customers
Your BusinessCollaborators
Unique Value
Proposition
Source: Alexander Chernev, Strategic Marketing Management, 2012, 6th Edition

38. Test Your Hypotheses
Source: Business Model Canvas by Alexander Osterwalder & Yves Pigneur, 2009

39. Iterate With Many Loops
Lean Startup Feedback Loop

40. Engage Prospects Early & Often
ProductTarget Customer
Core
Actual
Whole

41. SAMPLE BUSINESS MODELS

42. www.businessmodelgeneration.com
Apple iPod/iTunes
Seamless Music
Experience
Mac Users
Retailers
HW DesignRecord
Companies
Customer
Service
Marketing /
Sales
iPod Hardware
iTunes Software
Music Content
Manufacturing
/ Distribution
Marketing /
Sales
Hardware
Revenue
iTunes Store
Brand
Awareness
Mobile App
Developers
OEMs
Digital Music
Listeners
Apple.com
Software
Development
Apple Stores
Music Revenue
Switching Costs

43. www.businessmodelgeneration.com
Facebook
Social Network
Platform
Internet Users
Website &
Mobile Apps
Platform
Development &
Support
Content
Providers
Platform
Developers
Infrastructure
Data Center
Operations
Marketing /
Sales Free User
Access
Advertising
(CPM & CPC)
Direct Network
Referrals
Advertisers
Ads & Vendor
Pages
Platform Support
Developer Tools
& APIs
Payment
Revenues
Indirect Network
Referrals Developers
Internet Users
Advertisers
Developers
Data Center
Operations
Management
Content
Distributors
Audience for
Ads
Audience for
Apps

44. www.businessmodelgeneration.com
Mint.com
Personal
Financial
Management
(mCommerce)
Quickbook
Users
eCommerce
Sites
Design /
Development
Cloud Services
Customer
Service
Marketing /
Sales
Architects
Developers
IT Support
Product
Development
Marketing /
Public Relations
SaaS
(Freemium)
Advertisement
Brand
AwarenessMobile App
Developers
FinServ
Providers
Advertisers
Intuit
(Exit)
Social Media
Brand
Development
Digital Marketing
Service
Providers
FinServ Referral
Partners
mCommerce
Media Partners
Referral Partner
Program
Website / Mobile
Apps
Financial
Planning
Services
Service
Delivery

45. www.businessmodelgeneration.com
Netflix
Quick
Convenience
Movies & Shows
Streamed Video
Viewers
Netflix.com
Content
Licensing
Movie & TV
Studios
Software for Set
Top Boxes
Shipping
Content Hosting
DVD Inventory
Digital Content
Servers
Manufacturing
/ Distribution
Marketing /
Sales
Hardware
Revenue
iTunes Store
Self Service
USPS
ISPs
Blockbuster
Fans
Mobile App
Software
Development
Set Top Boxes
Music Revenue
Service
Automation
Set Top Box
Manufacturers
Price
Competitive
Postal Service
Cable / Satellite
Service
Replacers
DVD Rentals
Streaming Video
Both

46. www.businessmodelgeneration.com
Nestlé Nespresso
Coffee and
Chocolate on
Demand
(Machine &
Pods)
Coffee Drinkers
Retailers
Marketing /
Branding
Machine
Manufacturers
Marketing
Patents
Production Marketing /
Branding
Machine Sales Pod Sales
(Recurring)
Acquisition
Mail Order &
Call Center
B2C Distribution
Retention
Nespresso
Machines
Nespresso Pods
Production
Coffee Growers
Chocolate
Drinkers
Nespresso.com
Nespresso
Stores
Distribution
Coffee
Producers Production
Facilities
Source: Why the Lean Startup Changes Everything by Steve Blank, Harvard Business Review Magazine, May 2013

47. Key Takeaways
• Set up a crossfunctional team1
• Focus on buyer behavior2
• Assess your value proposition3
• Leverage your value chain4
• Test your hypotheses5
• Iterate with many loops6
• Engage prospects early and often7

48. Books
• Value Proposition Design, Alexander Osterwalder
and Yves Pigneur, (Strategyzer) Oct 2014
• Business Model Generation, Alexander
Osterwalder and Yves Pigneur, Jul 2010
• The Guide to the Product Management and
Marketing Body of Knowledge (ProdBOK® Guide),
Greg Geracie and Steven Eppinger, Aug 2013
• The Lean Startup, Eric Ries, September 2011

49. References
• State of Small Business in America (2015),
http://bit.ly/sosb2015
• Strategyzer Blog, http://blog.strategyzer.com/
• Value Proposition Canvas Template Download
• Business Model Canvas Template Download

50. Business Model Web Apps
• BMFiddle
Free and based directly from Osterwalder. This has a very
attractive UI, pretty colors, good prompts for the section
data, excellent highlighting/diff viewer and markdown
support.
• Canvanizer
Free, only requires email. Offers multiple canvas templates
(business model, lean, SWOT, customer journey) to choose
from. A very awesome and unique canvas history replay tool.

51. RoundTable
Overcoming Women-Owned
Business Challenges
This session helps women founders and business owners identify specific business
challenges and find options to overcome them. Bring plenty of business cards for
networking and a chance to win door prizes. Light food and drinks will be served.
Thursday, 4 June 2015 from 6:30 to 8:30 p.m.
WeWork DC - Chinatown
Register: http://bit.ly/ffmup604

52. Turn your ideas into a great business!
Business Model Deep Dive
Thursday, June 11th
5:30 - 9:30 p.m.
Tysons,VA
Earn 4 PDU’s.
Sign up by June 1st to take
advantage of early bird discount.
http://bit.ly/bmdive611

53. Find your next opportunity!
Make a great first impression!
Improve your relationships!
Personal Brand Deep Dive
Saturday, June 20th
5:30 – 9:30 p.m.
Tysons,VA
Earn 4 PDU’s.
Sign up by June 1st to take
advantage of early bird discount.
http://bit.ly/branddive609

54. Want to turn your ideas into a great business?
Business Model Innovation Challenge
Hosted by Hector Del Castillo
Visit: http://play.make.me/ibmc611

55. Looking to strengthen your personal brand?
CraftYour Personal Brand Challenge
Hosted by Hector Del Castillo
Visit: http://play.make.me/pbc620

56. .@WeWorkDC I had a blast at #BizIgnite
#BusinessModel Innovation for #SmallBiz
@Meetup w/ @hmdelcastillo
http://bit.ly/bizign528
Tweet The Following

57. Thank You!
Stay tuned for upcoming activities. Connect with
me for weekly updates.