Start Up Idea Process

Over the last 40 to 50 years the standard start up process was considered to be having a strong business plan with a forecast. Entrepreneurs and higher education are learning this model does not work. The new focus is on the Search. This includes the search for consumer needs and wants for the product. To do this though you do still have to plan to plan. The process I would use would be to answer the questions for the Business Model using a 9 component model.

1. Value Proposition – What problem or need are solving for the customer and who is that customer?
2. Customer Segments – Who are my customers? Why would they buy?
3. Channels – How does your product get to your customer?
4. Customer Relationships – How do I get, keep and grow my customers?
5. Revenue Streams – How do you make money? What value is the customer paying for? What is the strategy to capture the revenue?
6. Resources – What are the most Import Assets required to make the model work?
7. Partners – Who are the Key Partners and Suppliers?
8. Key Activities – What are the most important things the company must do to make the business work?
9. Cost – What are the entire costs and expenses that are required to operated the business model?

Having experience working with and living with people who have allergic reactions to nuts and shellfish one of the challenges is having products that are available that do not induce an allergic reaction. Also having three dogs it is a challenge to find off the self do treats that do not contain these items. For an example Start Up Idea using this process let us make new non allergenic dog treats.

1. Value Proposition – We are creating healthy alternatives to standard dog treats that are specially designed for those who have nut or shellfish allergies.
2. Customer Segments – Our customers are any age group or gender or who own or wish to own dogs that are also allergic to nuts and shellfish.
3. Channels – Our products are available through direct shipment from our website, distributed through major Pet Supply stores, grocery chains, and other retailers such as Walmart and Target, and through other online market places.
4. Customer Relationships – would be through building initial brand awareness and proven success. Offer a brand loyalty program that incentivizes additional purchases. Offer a brand referral program that incentivized current customers to refer new customers. Also use outreach and marketing through Social Media to build a brand culture and community.
5. Revenue Streams – would be a mix of direct purchases and through resellers. The value would be the ability to provide healthy non allergenic treats to their pets leading to the ability to build stronger pet/owner relationships.
6. Resources – would be the ingredients, cooking equipment, packaging supplies, quality testing equipment, distribution and delivery equipment and employees.
7. Partners – would be the initial brand advocates that would help drive the brand forward and into the market place. In this instance veterinarians, dog trainers, dog handlers (Police/Military/Search and Rescue) would be key partners to bring legitimacy to the brand. Other partners would include ingredient suppliers, regulatory officials, and marketing professionals.
8. Key Activities – The business must produce the quality product, meet delivery expectations, and be able to scale production to meet demand.
9. Cost – the cost would include the resources such as ingredients, equipment, packaging, employees, license/certification fees, marketing and distribution cost.

Though not a true start up or detailed model the example above would be a good start when crafting a new Dog Treat company. The key take away is to ensure you are considering these 9 components when preplanning to design your Business Model. A careful search for the business model will help you set the stage for a successful start.