Lean Start-up Business Model Canvas Competition
Background on Lean Start-up and the Business Model Canvas Tool:
An existing business executes a new idea, product, or service using already established infrastructure, resources, and business models. Conversely, the start-up does not have any of that; they must build everything from scratch. Thus, the concept of Lean Start-up is based on searching and discovering a business model that works versus executing a previously defined model. The Lean Start-up process is an iterative (step by step) process where the entrepreneur:
1. establishes an assumption of what they think some part of the business model should be (value proposition, customer segment, etc.),
2. develops a test for validating the assumption,
3. gets out of the building and implements the test with real people in real places,
4. evaluates the findings and either confirms the assumption or pivots to a new assumption based on the findings, and
5. tests again until an assumption is validated by the incoming information
The Business Model Canvas is a tool that tracks the process of making assumptions, testing, pivoting, and eventually validating a business model. The canvas takes the user through a search and discovery process culminating in a business model based in evidence and proof.
The Business Model Competition – Judging/Scoring
Judging of the Business Model competition is in two major parts. The first is whether the student or team of students has put due diligence and effort into following the steps of the lean start-up method using the Business Model canvas tool. While there is a quality aspect, the first part is much more objective in its judging, that is, the student or team of students either did or did not due the required steps of the business model process.
The second overall area is the real-life viability of the idea and the ability to communicate it to others. To be a successful entrepreneur, it is important to follow a logical and sound process of searching and discovering an optimal business model. However, doing all the right steps might not be enough if the product/service is not viable in the end. The second part is much more subjective based on the judge’s expertise and life experience.
What will score well?
- Following the process, testing assumptions especially priority ones, following the evidence, documenting and making needed changes (pivoting), and proven validation
- Getting out of the building & talking to customers (how many, what type of interaction)
What will not score well?
- Sales pitch with no validation, un-validated claims, no interaction with potential customers, no testing of assumptions
Competition Process
A full search and discovery of the business model by establishing assumptions, testing, and validating each area of the business model canvas is beyond the scope of this competition. Therefore this competition is based on the right-hand side of the Business Model canvas only (see figure 1).
Flow of the Competition
- Students can present as individuals or as teams.
- Students will have approximately two minutes to set up any props, electronic audio-visuals, and/or poster of the Business Model Canvas.
- Students will have up to ten minutes for presentation followed by three minutes of questions from the judges.
- Judges will then have up to two minutes to tabulate their scores while the next person is setting up.
Notes
- Depending on the number of competitors, there may be two rounds where the second round is a playoff of top scores from an initial round.
- Student competitors should note that not placing in this competition is not a final answer of the viability of their idea. It is information, but the final judge, whether profit or non-profit, is the marketplace. Remember, Thomas Edison’s light bulb did not work the first 10,000 times!
- Students who have gone further than just the right-hand side will still only be judged on the right-hand side. However, the score for the question of how well next steps have been mapped out will certainly have the probability of a higher score.
- The scoring rubric is shown on the following page.
References
- Many materials on how to use the Business Canvas Model are available on the Entrepreneurship website (http://www3.uwplatt.edu/entrepreneurship)
- Top four presentations from past national competitions. Note that this competition was for the full canvas, not just the right-hand side. (http://www.businessmodelcompetition.com/past-winner-videos.html)
Judges’ Scoring Rubric
Student or Team:______Title:______
Part I: Due Diligence/Appropriate Effort by Individual or Team / SCOREUse of Business Model Canvas Process
1. Was there evidence that the business model canvas was used to identify and track assumptions? / /10
2. Were assumptions clearly stated? / /10
3. Were high priority or crucial assumptions identified, explained and acted on first (the ones most likely to kill the idea)? / /10
Testing, Validation, and Customer Interaction
4. Were low cost, rapid, but reliable tests of assumptions developed? / /10
5. Were tests implemented in a reasonable and reliable way
· did the student or team get out of the building
· who and how many people were interviewed/surveyed
· depth and quality of testing / /10
6. Did the individual/team clearly state what they learned, whether it validated an assumption, or what changes or pivots seem appropriate? / /10
Student/Team Business Model Judgment
7. Did the individual or team follow the data and evidence to the most logical conclusions and did they explain that well? / /10
8. Did the individual/team clearly map out their next action steps including any resources needed to implement those steps? / /10
Part II: In The Judges’ Expert Opinion
9. Ability to communicate: Did the individual or team present well? Were they clear? Did they present a logical flow? / /10
10. Real Life: Based on the persuasiveness of the evidence presented and your own real-life experience, how viable is this product or service? / /10
GRAND TOTAL / ______/100
Figure 1