The Lean Startup: Best course on Entrepreneurship

1. Introduction to The Lean Startup: If you go to the Internet and search for entrepreneurship or building your own startup, the content you'll find is very basic, and that content is not going to add any value to your life. And that's why I thought, I'm going to share my complete experience in building my own startup and scaling some other startup to reach millions of dollars of revenue. So this lean start up course is going to cover everything from basic to advanced level. So we're going to cover everything from generating your own business idea, to raising capital from venture capitalist and everything in between. So we have five different sections in this lean start up course. So the first section, we'll understand how exactly will generate startup ideas. So we'll be touching a couple of startup ideas, and then we'll validate those startup ideas based on the opportunity in future. And we will understand that how exactly you'll find out $1,000,000,000 ideas out of a couple of ideas you have in your list. In the second section, we will build a real MVP. MVP is also known as minimum viable product. And I'm going to develop a MVP of a social media app in this course. So we'll be covering a couple of ideas, and then I'm going to teach you how exactly you can also build a social media app MVP. And that MVP you can show it to investors or to your colleague, or to your friends, and you can take a little bit of feedback that this is what exactly I want to build and how exactly I can go around with that. So we'll also build a MVP of a social media app. We'll be using some wireframing and some UI tools for that. And in the third section, we will cover some business model. And I guess this is one of the most important part in the lean startup series, because in this section, we'll cover business model like subscription business model, premium business model, hook and Bait business model, network effect business model. We will cover all these different kind of start up business model in the third section. And in the fourth section, we will understand how exactly you're going to build your product, and your pitch tack, because if you are planning to raise some capital from investors, obviously, you need a pitch tack for that purpose. In the fifth section, we will understand a little about equity, dilution, valuation, and fund raising, because if you're raising some amount of capital from some investor, obviously, you have to understand how equity works, how equity dilutes, what is investing, what is cliff, what is founder agreement so that everybody can afford it. If you still have any doubt, I'm pretty much sure watch a couple of more videos, and you're going to love the content for sure. That's my guarantee. 2. Course Overview: We're going to start our course with some very basic concept because I feel some people are very smart over here while there are some people who know nothing about startup. So I always believe in building a strong foundation for everyone. And that's why we'll start this course by covering some very basic definition of startup. What are the different types of startups we have? We have b2b, b2c, B two kind of start ups, and then we'll try to understand some very basic definitions or terminologies which are very frequently used in startup ecosystem. So we'll understand some definitions like what is valuation, what do you mean by unicorn? What is product market fit? What is unit ecnomics and start So we'll understand and cover these very basic definition so that we can build a very strong foundation for everyone, because I feel if your basics are very strong, if your foundation is strong, we can learn a lot more than other people. So we'll cover these very basic concepts, and then we'll cover various cycles and stages which are there in startup. So you can have a bootstrap startup, angel funded startup, you can raise investment from Crowdsourcing platform, and then you will reach out to venture capitalists and all these hedge funds. So there are different layers to the startup investment. So we'll cover some very basic concept in the start basic module or section, and then we'll jump over to different other sections as well. Now, if you look at second section, second section is all about finding that billion dollar idea. And if you really want to build $1,000,000,000 business, then you have to understand there are three most important key pillars to that. Scalable technology oriented and high growth business model. You have to understand that you can only build $1,000,000,000 business, if you can scale that business very fast, achieving a growth rate of 300 400% year on year, and you can also have technology parameters so that you can build and sell the product cross borders. We'll understand these three important key pillars, scalable, high growth and technology integrated product. That's why we will try to find out some really good ideas from our problem journal. We'll find some product gap. If there are some existing product in the market, we'll see all possible gaps are there in those products, and then we'll try to solve those products in a much better way. Third one is the destructive innovation. Any any new technology that you feel, which is not there in the market, and you can develop that, we'll see how exactly you can build or think of a disruptive innovation. Then we'll talk about Delta for theory, and we will also understand how exactly you can solve a very complex problem using a high tech solution. Well, Third section or module is all about throwing multiple ideas on the table, having multiple hypothesis in your brain and then building few prototypes and MVP for your product just to test it whether this is going to work out or that's going to work out, and doing some random math and solving multiple puzzles to find out that which is the best thing you have to work on for the next three to four years. Well, in the fourth section, we will cover a couple of start up business model. I think I'm going to cover most important kind of business model, and I think I'll cover almost eight to ten types of business model in this course. Fifth module is all about pitch tack equity, split, funding, dilution, how exactly Cliff and resting works, what is founder's agreement, and all these complex financial terminologies that you have to understand if you really want to build your own start up. Let's quickly start this course with some very basic terminology, and I'm pretty much sure that as we go forward, I'm going to cover some very advanced concept. I'm damn sure if you are someone who is very much intellectual and who thinks a lot, you're going to love this course for sure. 3. 2.a.Types of Startup ?: So hi everyone. In this video we'll understand the different types of startup or different categories of startup. So before directly jumping into fundraising or finance, you first have to understand the different types of startups we have. So you have B2C startup, P2P, B2B, and B2C. So B2C is business to customer. So if you're selling a product to customer, then it's a B2C startup. All of these food tech company like Uber Eats, AAD, B2C startup. Then you have P2P. Now P2P is Peer-to-Peer. This can be a P2P lending platform or a P2P sales flag mom like OX, then you have B2B startup, also known as business to business. So if you're building any software company or if you're dealing directly with businesses, that it's a B2B stocked up all of your online software. All these are B2B startup, your CRM software and all these things. Then you have B2C startup, which is very rare, but they really exist in the market. Now B2C even have two different categories. You have aggregators and you have marketplace. Now inside aggregators, you also have service aggregators and so social aggregators. And inside Marketplace, you also have service marketplace and e-commerce marketplace. And in B2C, you also have subscription platform like Netflix. And in B2B you also have subscription. So companies like Shopify, all these up B2B SaaS subscription business model. And you also have solvus as a B2B model. Now within SAS, you also have horizontal SAS and particle size. Now let's quickly understand all these categories of startup with the help of some example. So in B2C, you have aggregators, you have marketplace, you have P2P, which is Peer-to-Peer, and you have all those service-based B2C companies. So in aggregators, They have a common brand and they maintain the service quality. So companies like Uber, Airbnb, all these other aggregators, that means all the cab drivers, all the property owners, they do not hold that individual branding value. If you book uber, any random XYZ gar will come at your doorstep without worrying about the name of the driver or the guard agency which is running the different cars and on. Then you have social aggregators, companies like Facebook, Instagram, Snapchat, or social aggregators, and that's a B2C segment. Then you have Marketplace, Marketplace. All the products have their different identity. So if you are purchasing an iPhone or any random XYZ product for your hair care or anything. You can go to marketplace and marketplace. In marketplace, all these different brands have that distinct identity. And all these quality standards are made by all these market, where we're going to understand marketplace and Uber alerting later in this course in the business model section. Then you have P2P platform like Oil X, where all these people can sell their product each other and they can also purchase this product. And then you have your solvus, B2C companies. So companies like Postmates or Gojek, all these are super apps. And super apps are the best example of B2C service kind of business model, where you can order your food online. You can book a spouse US alone. You can also send any sort of parcel to your, to your friend. And you can do a lot of things on these super apps, from payment to food delivery to anything that you can imagine. So these super apps are B2C services. Now let's quickly have a look at the B2B segment. So in B2B you have SAS software as a service and B2B commerce. Now SAS is nothing but all the software that you use online. So if you use Canva to design all of your graphics or images, you may be using Gmail. You might be using any CRM or customer relationship management software or Google Drive, all these up SAS Software as a Service. They're selling new software in the form of service. So SAS even have two different category, horizontals and verticals as in horizontal says You have companies like Slack, HubSpot, intercom, threshold, male chain, Zoho, Salesforce, horizontal SAS can be used by any company from any domain. That means, if you are a pharmacy startup or digital agency, or let's say a manufacturing start-up. Any of the startup can use all these software or horizontal cells, so they are not domain-specific. Any company of any size in any domain can use all these product. These are the best example of horizontal says like let's say you can use intercompany, a website, no matter URLS, pharmacy start-up or a manufacturing start-up or a digital agency. But when it comes to vertical says vertical says our industry specific, like let's say is NOT. So if you are the owner of a spar or salon or any form of a barber shop, you you can only use NOT so there's generally is purely for spa, salon, barber shop. If you are from other industry, you cannot use an Audi. I mean, they have very specific features. Then you have Capillary Technology, which is spatially for reading. So if you have a retail chain, you also have a website. You can use Capillary Technology. Then you have B2B commerce, which especially for businesses. So you have Amazon business, which means if you're a business owner, you have a small retail shop and you want a basic item for your business. You can use Amazon business and you can order those same items in bulk quantity. And you can also get an extraordinary found. And I think you are already aware of Alibaba. From Alibaba, you can order your business items in bulk quantity from China, also from other countries. You can also do that from Southeast Asian countries, India and from US and UK as well. So it is basically nothing but it will allow you to purchase your product for your business in bulk quantity. 4. Small business Vs Tech Startup: Hey everyone, let's understand the difference between a small business and IT x dot dot. Now if you're planning to open a small business like a bakery shop or a car wash? Well, these are small business. On the other side, you have tech startup like your amazon, Airbnb, Stripe, Uber, slag, and Facebook. Now, obviously these are not startup anymore. All these companies, or I would say majority of the companies are public. And that's why these started as a small business, but now they are big public giant. But what is the basic difference between a bakery shop and a car wash? If you started both these companies, like maybe a bakery shop or a car wash in 2007. And any of these companies, you can understand that all these tech companies are scalable. They can go from $0 in revenue to a billion dollars in revenue within four to five years. If they have proper business model, proper technology, product, and scalable business at least. But if you started any of these small business like a bakery shop or a car wash, it's really difficult to scale the business. So that's why we will understand boo qualities of startup. Now you can start a small business. Anytime you want. Small business are successful, they can make good profits. But startups are very different from small business. Let's understand the two important qualities of startup. Small businesses have their own audience. You can start a good bakery shop. You can start a car wash, you can generate profit, you can on money. But their business model is totally different from startup. Let's understand the two important qualities of startup. The number 1 is x scalable. Now, all these tech companies have a technology product if the product is good and that product is used by a lot of people, that startup tech scalable and that start-up have high growth potential. Now, if a startup have bought these qualities, that startup can go from $0 in revenue per billion dollars in revenue. Now let's understand why I'm so bullish about these two things, scalable and high growth potential. So these are your traditional businesses, beauty shop and car wash. Now you can make these businesses profitability. You can on good amount of money, not doubt about that, but these are your tech startup which are little unique. So let's understand why your tech startup are scalable, can expand very fast, and why your traditional businesses are not scalable. And let's understand this with the help of this characteristic. So let's say you wanted to open a store front. So for a small business, you have to pay a rent anywhere between 5000 to 10000 dollar depending on the location. But for all these businesses, once you end up building a mobile application, then you do not need to beer any cost, any additional cost for opening a new store because everything is on the internet. You just have to expand into a new city. And then you can some sort of advertisement and tell people to use your mobile application to order any specific team, or do you use any of the product? Let's look at the reach. So if you wanted to have additional five people in your store, whether it's car wash or bakery shop or any small business, you have to pay somewhere between 3000 to 5000 dollar to every single person. So five-person, you have to pay them 3000 to 5000 owner to every single person. Let's say you started your e-commerce store to a specific CD and now you are expanding to a different city. And that situation, you just need to maybe hire one new person for that specific city. And that personally manage some of the operation. In terms of inventory. In all of the small business, you have to maintain a separate inventory. But for e-commerce store like Amazon, you can maintain a centralized inventory. So in short, if Amazon wanted to expand in good density, they can quickly expanded, go 50 different city by just hiding couple of people and then they can start selling their product. Why don't other side, if this business wanted to expand in good defense city, for every single store, they have to set up a storefront. They have to hire people for every single store. They have to maintain a separate inventory for every single store and their operational cost is also very high. That means because these businesses are asset heavy business assets having means, they have a lot of Lang, lot of labor. They have a lot of real asset. It is really hard for these businesses to expand into different territory or different city or different location. But for tech companies, you just have to hire additional people. Let's save slack wanting to expand into a different country. He just have to hire one or two salespeople for our different concrete let's say if all the employees walking in Slack or knows English and they wanted to expand into Germany, ordinary front. So in that situation, they just need to hire two or three additional people who can sell their product in those two different countries. That's it. That's the power of all these technology company. They are scalable and they have a low-cost scalable structure. And if you ask me about some other constraint which Amazon and these businesses when phase is the time constraint, honestly, you can open our bakery shop maybe for eight or 10 hours. But on the other side, amazon is up and running 24, 7. Now this is the scalable pipe. Let's understand the growth potential. Why these tech companies have higher growth potential and bakery shop have a log-log production. So these tech companies can go from maybe 10 percent growth rate year on year to a 100 percent growth rate year on year, which is really difficult to achieve using these bakery shop. Let's understand this with the help of an example. So a bakery shop can clock maximum of maybe one hundred, ten hundred or those ugly. And after that you will find it difficult to process more than a thousand or those again, because now you have limited staff, limited space, and limited people to process that or low. But for all these tech product, whether you saying one message or you order 20 different product, or you do whatever you want there, it doesn't have any limit. They can quickly expand their operation. So you can do as many payment is we want using stripe. You can book as many cab as you want using Uber, because all of these are technology product and no one is manually processing does stuff. And you can send as many message as you want using Slack. Then space constraint. Obviously if you wanted to maybe let's say store 60, 70, 80 SKUs, so-called stock keeping units in that specific bakery shop, then you are done. You cannot store original totally 40 or stock if you have R. So Dean, space limit. While in all these tech products, they are running on Cloud and you can maybe store as many products as you want. You just have to list on your product and couple of pictures and your product is there on your e-commerce store. In terms of capital, in the previous video, we had a description that these are asset heavy business, which means you need a lot more capital to purchase land, to setup the store, to hire people, to buy some machines like maybe sorting stuff to cook the food or something like that. For all these tech companies, you just need to hire a couple of engineers who can build the product and then you can quickly scale these product and reach a sodium revenue might strong. So obviously the growth potential for these tech companies are high. And if you personally asked me, these tech companies have the potential to increase their growth rate by five x. They also have a very large dam, dot-dot-dot adjustable market. And we'll talk about damming of ion. And then they also have technology integration to solve billions of people at once. And some were also a marginal cost because they have technology integration do not have to be extra cost to expand into a new city or maybe to expand into a new concrete. They just have to hire couple of people and they just need to deploy original solver. And then they're ready to solve additional 1 million or 10 million or 100 million customer. That's it. 5. Introduction to lean startup: Before directly jumping into the complex terminology, Let's first understand what do you mean by the lean startup? So lean startup is a metrology of developing products with the short-term product life cycle. And you can also discover your business model. So lean startup is all about loan, Build and major. So you have couple of ideas in mind. Whenever you have some ideas, you will quickly build the product. Now to build the product, obviously you have to write some code, then you have to measure the product with the help of data. And based on that specific data, you will learn about the process and the product, and then you will generate new ideas. And then you again go back to the same process, loan value and major. That's the core thesis of the Lean Startup, which means to build a successful startup, you have to focus on design thinking, Lean Startup, a Giant methodology, prototyping and designing sprint. Obviously we got a fair understanding about Lean Startup. So you quickly have to learn braille and measure the stuff that you're doing right now. Let's talk about design thinking and a giant methodology. So this is the design thinking process. You will first learn about your audience, then you will sharpen the key questions that you have in mind. So let's say if you're solving a problem of hair loss, so you first have to understand the problem really well. Once you understand the problem, then you have to ask multiple questions to all of your target audience. That what kind of problem that you're facing. How exactly you expect some other startup to solve this problem. And then you have to ask yourself how exactly you can solve this problem at scale. Because now you have to reach to at least a million or user, or maybe 10 million user, then you obviously have to ideate the process. So what will be your startup idea? How can you execute things? How will you build a prototype? Let's say if you're building an e-commerce brand or a consumer-facing brand, how will you build an e-commerce store? Then you have to quickly test that specific product by running a couple of ad campaigns on Facebook and Google. So you'll first learn about your audience that if I'm solving a problem, what is my target customer? And then you have to talk to your target customer. Then you will come across your idea, and now you will start building a prototype. Let's say if you're building a B2B product or a software product, then you can also build a prototype with the help of bubble. If you're building a B2C product, obviously you can build an e-commerce store or any website. Then you will quickly tested by running couple of ad campaigns or maybe writing about it on cholera, on medium, on Linkedin, depending on the target audience. So if your product is consumer-facing product, then majority of your audiences, they are on Instagram, Facebook. If you are for, if your product is more towards B2B, then you have to focus more on Linkedin, Guido, medium. So different types of audiences, they are on different platform. You have to figure out which platform is right for you. And then you have to build the audience. So in the empathizing state, you will understand how human needs evolve. So if you are building a product of what exactly people want in that specific segment. In the defining stage, you have to redefine the problem that if already three competitors are there in the market, what kind of product you can launch so that people perceive your brand as a different company who has a different startup, then you have to ideate this stage. So when you have many competing ideas, how exactly you can choose one idea. And then you can probably brainstorm about that specific idea and create a solution around it. Obviously, you have to create a prototype. And prototyping is not a big deal. There are so many tools out there on the Internet. You can use Webflow Shopify, WooCommerce. If you wanted to build an e-commerce store, or if you wanted to build a website, obviously you can use WordPress. And if you wanted to be just a simple landing page, you can use in stoppage. So there are so many tools out there and we'll use all of those tools may be a little later in this course. But then you have to basically test your prototype with the real user. 6. Design thinking with lean startup: Now let's combine your Lean Startup and design thinking together in one specific diagram. So this is the amalgamation of your Lean Startup and design thinking process. When the design thinking process, you have to understand the problem really Valley. And in the lean startup process, you have to understand the customer feedback and how exactly you can build the product. So lean startup is all about product building and design thinking is all about understanding the problem really well. So you wanted to understand the perspective of your customer. So you first have to understand the demand. So on y-axis you have your direction and your concept. So you first have to understand the direction of your product. Let's see. You're a coffee lover and you wanted to launch a coffee brand. When there are so many options, you can choose, you can maybe launch of coffee, which have a value proposition of cold coffee. Or maybe you can launch a coffee which have some flavor as a value proposition. And there are multiple value proposition you can create. So let's say I'm a big coffee fan, but I want a coffee which have some flavor. So I want at least a coffee with 700 different types of flavor. So someone can send me a big packet which have seven different variant of, let's say maybe 100 gram. And I can cry every new flavor every single day. Well, that's a demand. How big the market is you have to understand. Now let's say you wanted to create a coffee brand which have some flavor. So let's say flavors like Chai latte flavor or maybe what, a scotch or mint flavor, or maybe any, any other flavor that you can imagine. You first have to understand what is the customer needs. So my need is to have coffee which have so many different flavor. Then you have to understand about the market size. So you have to research and absorbed the customer. So how big is the market? Am I the only customer who is looking for flavor coffee? Or there are other people who are also looking for that. So you have to understand the commutator first. So let's say there are five competitor into the market and the doors compensator have at least, let's say 30 percent market share. So you have to understand their contribution in the flavored category. Let's say you have five competitor into the market. And these five competitor have put depots in market share. And out of this 30 percent market share, 50 cent is your flavored coffee. So different flavors like Chai latte, butterscotch, on mint, and on multiple other flavor. That means the market is evolving. The market is small, but it is evolving. And let's say the growth rate is 16%. That means after 45 years the market will become huge. So now you have your research in your hand. Then you have to prioritize the order which all flavor you can launch, which is the best flavor that you can sell in the market. Let's say chocolate is the best flavor or butterscotch is the best flavor. Or if you're selling that flavored coffee in a country like India, maybe Chai latte is the best flavor, so you have to prioritize that specific flavor. Now your concept or Navier hypothesis is ready. Now, once your hypothesis is ready, then you basically have to launch the product. So now you first define the customer need. Then you researched about that specific category. Then you prioritize the auto, and now you have a good hypothesis. Now you will quickly go and build the product. Take more feedback from customer, and then you will generate new ideas. What kind of flavor you can launch. So once you have your hypothesis in hand, now you will focus on start building the product. So obviously, we will foster a small lending page. So we'll go to in stoppage or we will go to some, a page builder like Unbounce. And we will just be a simple product where we can collect the number of customers, the mobile number of the customer, and then Nim, that's it. And we will create a couple of interesting product binders of coffee. And then we will done some Facebook ad campaigns or Google ad campaigns, or maybe you do campaigns just to let couple of people fill in the details. And then we talked with those customer and understand what kind of flavors they are looking for. And if we launch the flavor, how much they are willing to be than a normal coffee. Because obviously we have to select premium. We can't really compete with them hand in hand because obviously they are producing the normal coffee at a very large-scale. So obviously data prices are very, very less. We have to sell coffee at a premium price because of flavor. Flavor is our value proposition. You will build the product, which is your lending piece, your website, your e-commerce store. If you don't want to try out with lending page, you can build an e-commerce store with Shopify, WooCommerce with anything. And then you can maybe quickly make prototype or sketches of your product using Photoshop. And then you will run campaign, take feedback, generate some new ideas. Again, build the product. Design thinking is all about understanding human behavior and doing some qualitative research. So what kind of product people want? What is the market size? How big the market will become in the future? What is the growth rate of that specific market? So understanding human needs and maybe doing some qualitative research, then you have to think about design. Well, what kind of design you can make if you're launching a flavored coffee, what kind of background you have to have. So let's say for butterscotch, you have to look for some graphic designer or maybe some interesting photographs of maybe having, like for butterscotch, you need that mesmerizing kind of photographs for defend Shylock flavor. You also need those interesting photographs. So happy to think visually about that specific brand. Then you have to build prototype. So you can easily do that with some sort of base we'll learn or website below. Then you have to obviously build the product itself. So you have to learn about your customer and you have to build it. And then you have to measure. So you have to measure things like your conversion rate, your bounce rate. So if 100 people are coming to your website, how many of those customers are purchasing your product? How many of those customer clicking on multiple pages. So you have to measure things like a bounce rate, your conversion rate, your engagement rate, your session duration, and all these different types of parameters. You can measure all these things in Google Analytics. So if you're breathing any website, you can quickly integrate the JavaScript snippet of Google Analytics on your website. And it will start showing you all of these metrics. Not a big deal, you can always do that. 7. Design thinking + Lean startup + Agile methodology: So now we are done with design thinking and lean startup. Now, there is one more unique process which will help you to build your product super-fast. And that is your age child development. So agile is a product development process. And specifically it's a software development process which will help you to develop your product in smaller increment, so-called sprints or hydration that minimize the amount of upfront planning and design. So basically, a child development is most probably used by companies who are developing some sort of software so that they can build small feature, quickly launch it, and then focus on building other small feature in the next few weeks. So a normal sprint or iteration process last for somewhere between two to three week. So let's say in my current company, we used to have a spring of two to three week and we will list down all the feature or all the tasks that we have to close in these two to three week, then we'll have a small meeting. For simple example, let's say in our e-commerce website, we wanted to improve on three things. Number one is your payment flexibility. So you wanted to add 34 new payment gateway providers. So that is our one task that we have to close. And this specific sprint, maybe one more task is to add two new pop-ups to the website. And third task is to add some product analytics tool to our website. Now these are three small tasks that we have to close on this specific sprint by the end of this specific week. So instead of developing all the feature at once, or maybe building all the features at once in the spring. So we will divide the feature and the deadline of DOD specific feature so that you can build the product in small sprint or iteration, and then you can quickly launch it showing two different stakeholder. They can see all those feature Gail feedback to you and then you can again work on that. So agile development are these short cycle. I can quickly show you that with the help of this diagram. So you will quickly plan about a feature. Then you design it, then you build that specific feature, then you will test it, then you will review it. Then you will go to the next sprint, and then you will launch it. So there are three sprints, sprint one sprint to sprint 3. In Sprint 1, you will plan about something. So let's say you blend about three different feature that you can have in your product after two weeks, then you will design all those three feature. Then you will bury those three feature with the help of your product development team. Then you will test those feature. Then you can review those feature with all of the stake holder you have. And finally, you will launch those feature within two to three week. So this is your Sprint 1. Then you will again have a spring too with maybe two additional feature or maybe some scope of improvement which is which is required in the feature number 1 that was there in Sprint 1. And then you will again launch all of those feature. Then you will again have to do three new task in the spring number three, and that's your agility developed. So agile development process have so many iteration or sprint and these are short timeframe process that will last somewhere from one week to four beak. And this is a cross-functional process because obviously your product team have to plan about the product than your design team or your engineering team have to build the product. And then you're maybe QA team or quality analyst team have protest about that specific feature. All of your CXO people have to review that specific product and they will finally give you a green signal to launch that feature in the product. And finally, you will go to the spring number to send the first video. We had a discussion about lean start-up. Then we had some discussion about design thinking and now the agile development. Now let's club all these three process together. And this is the master plan for your startup. So you have your design thinking. You'll lean startup methodology, and your Agile process development. So once you combine all these three process, this is the master plan. And then you have to execute things properly. So you have your design thinking, the lean startup methodology, and agile product development. And once you have all these three processes together, well that's your startup masterplan. So remember, startup idea doesn't hold any value. It's all about execution. You have some idea in mind. You will quickly do all the research that you need for that specific idea. So you will understand the customer problem first. You will understand what kind of solution customer won't, how much they can be us to solve that specific problem. Then you have to understand the market share, the growth of the market. And once you have all of the research in your hand, then you can ideate. Then you can launch a specific product. So once you have a proper idea or a good idea in mind, then you will quickly launch it. You can run your experiment. You have to quickly measure it, then you have to build it. Then you have to, again, learn from the customer feedback. And this is an iterative process. You have to move so many times in the same loop. This is your Lean Startup process. You have to learn major and then you have to build. You have to again loan major and build. So this is the ongoing process. Obviously you can always some sort of pivot. So let's say you're told that you have the launch three different coffee flavor. But things turned out that this one flavor is not working. We're not getting good feedback from customers. These customers only want to flavor as of now. And maybe if you become successful in the future, then we can think about launching a new flavor of the coffee. So once your landing page, your e-commerce stories ready, then you will start selling your product or different customer. So once you launch your product, your fast 50 or a 100 customer comes from your own personal connection. So maybe those people are your family friends. And then you started running couple of ad campaigns on Facebook, on Instagram, you started building a brand. You are going to different platform like medium color on Linkedin puedo, you started writing about the product. And then you will do maybe some make some videos, some fancy videos like how to make this. All the interesting stuff you can make with coffee. And once you have a proper product ready and you're up and running and generating good amount of revenue. Well then you can look at the agile development because now you have to hire a team. You have to build a good brand. And then you have to maybe execute a new strategy planning and you have to build new product feature. And then comes your agile development. When you have a good team and they have some product backlogs, they wanted to build new feature or maybe new catalog of your product, or maybe they wanted to design a new customer experience. Then you will design a sprint for them. And then they will have some product feature. They have some sort of planning, and then they will move in this sprint review. So you will do to those people may have some product backlog, they need some sprint review. They will ship all these feature and they will execute all of these features. But remember, a successful startup, always start the process with design thinking. Then he will move to lean startup. And finally, if everything is up and running, then probably you will focus on a giant product development. 8. How to generate startup idea: Hey everyone, In this specific section we'll talk about how exactly you can think about new ideas. So whenever people ask me that, how can we generate new ideas? And we can build our own technology company based on DOD specific ideas. But my only response to those people who always focus on solving a problem and it gives you a personal problem, you can solve it much better than other people. And that's where I always recommend people saw your post on problem because you have a much deeper insight for that specific problem. If they did something that you are facing right now. And if that is a postman problem and you know that you can solve that specific postman problem with the help of a startup. Well, that's the best opportunity you can get in your life. Start working on it. There is a proper framework by which you can start that business. You can go step-by-step. You have internet. I am also there for you and you can set up your business. Now I'm going to show you how exactly you can vary the business by solving a postman problem. So always keep a problem journal. So from the time you wake up to the time you sleep, you will face more than hundreds, if not thousands of problem. So always more done those problems on a piece of paper or maybe in a small diary so that you can revise on specific problems. And maybe if you understand those problems really well, you can start solving all of those problems. Let's understand this with the help of an example. Let's say you hate scraping your windows. Well, one of the solution is that you can maybe outsource a single piece or a single unit of this cleaner from Alibaba, and then you can start selling this product on Amazon in your country. So if you are in US, you can import the specific product from China using Alibaba and then you can start selling this product on Amazon. Well, if you hate waiting for taxis, you can build a mobile app like Uber. Obviously, this market is saturated right now, so you can't really do much albedo, but there is always a new way to travel. There is always a new way to build something like Uber Berliner different segment that is always an opportunity. And if you hate her dance, you can build companies like Airbnb. The next way you can look for problems and not ideas is by finding a product gap. But you can only get product gap if you are walking for any specific industry. So if you're already working in a software company, maybe you understand the software domain much better than me, or maybe other people. If you're walking and supply chain industry, well you will have a much deeper insight than me and then other people. So when you're working for one specific industry, you understand the strength of all the products which are outdated in the market. And then you also need the strain couple of functions, which are a couple of things that those products can not do. Well. All those things that doors product cannot do is your product cap. You have to find a good product gap or are good short of problem, which is not sold by the existing product. So let's say you love using Excel, but you can't really automate. Excellent. So let's say if you're filling all the details of 10 different students, and as soon as the exam is done, just go to browser, put their enrollment number, and just try to fill all of their details in this specific Excel sheet. That's a hard problem. You can't really automate Excel sheet, and that's why you have startups like IR table. So with air table, you can quickly integrate the API. Api is your application programming interface, which will do the function that you want that specific APA to do. So it will fetch data from some other application. It will go somewhere, take the data and then compiling a specific format, also known as you'll see JSON. So it will give you a response, then you can put that responds, show it in a different format. And you can do so many different types of things. If you're working for a tech company and you're really finding it difficult to manage your team. Well, you have different products like ClickUp. So let's say you have a task where you need coordination of five different people, and that does count five different element or paths to it. Let's see the part a of that specific tasks will be done by post and wand and post and then post and three. So that specific tasks will move from one person to another person Valley for that specific purpose, you can use product left-click up if you're finding it hard to be using your credit card every single time you shop somewhere on an e-commerce store or maybe in a grocery store? Well, you can use for recollect Paytm, which will allow you to pay quickly using a smartphone. Then you have your disruptive innovation. Disruptive innovation always need massive amount of capital because now we are going after a big industry or a big problem. Obviously you can't solve this specific problem, but I'm just covering you so that you will have a good understanding about how exactly you will go around problems. So self-driving car, if you are facing this problem and you do not have time to drive your car, or if you are someone who don't really enjoy driving, or if you need someone who can help you reach to a different place automatically. That's why you have your self-driving car. Companies like Tesla, even Google and Uber Eats solving the same problem. Then maybe taking people to the Mars. This might not be a problem to a lot of people, but that's an ambition. You can also solve our ambition if people have that ambition that they wanted to travel, or maybe live on a different planet altogether? Well, that's also an ambition or a problem. Have Mr. Moscow solving this problem with SpaceX? So the main idea is you can solve any problem you want from any specific industry, but you need to have a good insight in that specific industry if you understand the problem really well. And if that problem belongs to you personally, when you will have a much deeper insight in that specific problem and you can solve it much better than other people. But remember, when you're solving any problem, just try to build a strong team. 9. 1.b.Startup Road Map: So here we want in this video, let's quickly talk about startup execution roadmap. Obviously, if you're building a startup on the answers of your startup, getting fail is very high. And that's why you have to walk really hard and make a complete roadmap so that at least you have something to achieve down the line in the future. So the first thing that will come to your roadmap is the validation stage. Obviously this is the very early stage of imagine. You only have idea in your mind and you did not have any startup or any real business at this stage, you have to make sure that you first have to validate the hypothesis that you have in your mind. Let's say you just have a startup idea. You do not know how to build products or you do not know how to even God, When you first have to build the MVP of your product, MVP is nothing but minimum version of your product, AKA minimum viable product. Now you can easily build MVP on a piece of paper or maybe in any sort of online tools like Figma or Canva. And once you have an MVP in your hand, then you can show that MVP to your founder, to your friends, to your family members, or even to some investors, just to ask about their feedback. Once you show this MVP to some co-founders are some team members, they will have a good understanding of what's, what's there in your mind because you first have to omit out the information from your brain to a piece of paper or to any online software or good, then you have to quickly validate or I3, the MVP, or maybe build a better version of MVB. Let's say if you are building the MVP on a piece of paper, transferred that MVP from a piece of paper who may be in Figma. Or maybe if you're building it and Figma transfer the Figma file into a webpage or any sort of lending page so that you have at least some form of iteration or validation. And then you will build a business model around it. How exactly you want to make money, what all bodies you have in your business. So let's say you have consumer, you have distributor, you have manufacturer, and all those people who are there in your business. And you have to bring strong all these things with your co-founders of Ethiopian members. If you have the second stages, deformation stage, which is the legal formation structure of your company. So right now you might be registered as a sole proprietorship company or an LLC, but now you have to change your legal structure in the form of corporation. If you're living in the United States, then it's a Delaware C-corporation kind of legal structure. Living in India. It's a Private Limited kind of legal structure. In UK, it's different. In Indonesia main Mar, its PTE limited. So the legal structure is very complex. You have to talk to a lawyer or to someone who can understand your requirement and it can help you, or maybe make some form of legal structure for your startup or for your company. But make sure you have all the founders, equity holders in your company. One of the reason we are doing, or we are separating you with the legal structure is the liability. So you will not be liable in the future. If something goes from, the company will be liable. Obviously, you hoard majority of the equity share, but you're still not liable for any shut off Ms. Happening or wrong thing that happens in the company. And the top stage of execution roadmap is the growth. Obviously, once you have a legal structure in place, once we are building products for your company, and once you read some amount of capital for investors, now you have two phosphine, your seed investors, that can be some form of accelerators or incubators or family members or any angel investor. So that comes under pre-seed seed category and then you have to make sure that your startup is growing and you're selling product to customers. Now that's a very short roadmap you have in front of you. But we can also go, and we can also learn a very complex toward men. So remember, you first gulf from a minus2 stage to a three-stage, which means you'll first have a problem or solution, review, or let's say a startup idea. Then basically you go from a problem or a solution startup idea to a vision and founders fit, which is choosing your co-founders, hiding some initial people in your team. And then you always look for incorporation and then you try to find a product-market fit. We will understand how will you define product market fit. And then from product market fit, you will try to go into business model or a market fit or fundraising or growth stage. That's the overall roadmap you can follow. Now that's of any shorter version of the Lord map. We're going to go in and understand the very complex roadmap in the next video. 10. 1.c.Product execution road map: Now this is the formulation of a startup and how exactly we will go from 0 to maybe Stage 1. And then you will go from stage one to Dan. So kind of 0 to one and 12, ten kind of strategy. So whenever you have an idea in your mind, you always live in the future. You will see the future trend or you will have a gut feeling inside you, which makes you feel like this is the problem and that's how someone can solve this problem. So you always think about future and you sold your problem in your brain for us, then you comment out that information on a piece of paper. Build MVP, find someone who is also really excited about the problem. And then just do a lot of prototyping, dot-dot-dot different people doing iteration and you'll finally found a, find the founder, then you register your company. Once you are done with the legal registration and all these things, then you always look for fundraising options. So in fundraising you have different incubators, you have different accelerators. Once you're done with fundraising, then you will launch your product. You will do some newsletter, e-mail sign-ups only product launch. So many different things. Let's say if you have a hardware product, you will launch in Kickstarter Indiegogo. And if you think that people are coming back, then you will try to get your foster a 100 users or let's say phos 1000 users. And then you will set a target for your team members that how can we grow anymore than 5% week on week, which will translate into around, which will translate into around 250 percent growth rate year on year. And that's the minimal growth rate you have to have in your startup if you're not growing 5% week on week, you are in a very bad situation. And then you will basically grow at the same rate for next four years to reach 25 million users. But let's say if you're not getting enough traction for your startup, if people are not really excited about your company. In that situation, you will again come back and do the same level of hydration changes. You will again do brainstorming, find a better problem for yourself, or let's say find a better solution for your startup and then reach out to people again. So that's the basic startup strategy from idea generation to prototyping, to finding a co-founder, to registering and legal entity or a structure to getting only email sign-ups, to getting your FASFA 100 users or 1000 users to maintain the growth rate. And maybe if these things are not happening, then again come back and do the same thing an hour. So that's the basic setup roadmap that you have to follow. If I give you a roadmap in the form of an arrow, that's how the arrow will bones on your screen. So you have to validate your idea. And if you want to validate your idea and you do not have any short of money in your pocket, you have to bootstrap your company. So whatever savings, whatever fun funds you have in your pocket, you have to invest in your own startup. I know it's a very risky investment, but you have to do it. In case if you want to make these things a reality, then you have your traction stage. So you will go to different incubators, different accelerators, who will incubate your startup will give you some amount of capital. Now some of these incubators and accelerators will give you capital for free. And because they are run by different state government. But majority of the incubators or accelerators always take 57, 10 percent of equity and then give you some amount of capital in your startup. We will talk about equity structure incubation and all these things are later in this course. Then I'll be going to talk about how exactly you will raise capital for your company. So once you are done with your incubation or incubators and accelerators, then you will go and Dr. different angel investors and venture capitalists to raise your pre-seed seed round. Cds ACTs be kind of rounds. And then in the end, once you grow or to a very large scale level, or you have millions of customers, then all these investors always look for either modulus and acquisition or any sort of exit. That can be IPOs, mergers and acquisition, a form of dividends. But usually all the investors favor Moses mergers and acquisition or either IPO because they willing to exit from that startup and wanting to put their money into some different companies. 11. Delta four technique for idea validation: Hey everyone. In the past couple of videos we had a discussion about idea generation on how exactly you can generate multiple ideas by solving a one specific problem. Now once you have some sort of idea and NEW started working in your startup, how will you exactly validate that specific idea? Because obviously, if you have some ideas in mind and if you feel that idea is going to work in the future, how will you know that this is the right idea? Because running a startup may need few years of your life and a lot more capital because you have to hire people. So there is a simple framework to validate any startup idea that you have in your mind. And that's the delta for framework. Now the steady DOT for framework was given by canal Shia, who is the founder and CEO of gradient free charge. And this delta for framework will simply help you understand how will you create a product which will have a delta for efficiency score. If your startup have efficiency score of more than Delta 4, you will create valid for all your employees, investor, and for yourself. Now let's quickly understand this delta for efficiency score with the help of an example. Now let's understand the stereotype for framework with the help of simple example. Let's compare two different situation. Let's compare the situation on how we order food online right now. So right now, we all are using a mobile app and with the help of that specific lab, you can quickly place our order. But if you go almost 45 years back, Then we use to order food by calling a specific restaurant, and then we use to place the order. And that specific restaurant will send one delivery boy, and then we use to paint him in cash and so many different offline process. Let's understand the basic difference. If you wanted to order using old traditional method, then we first have to find the contact number of that specific restaurant. Then we used to call them, ask about the price of the food, then how much delivery charge they're going to take for that specific food to deliver at our doorstep. So we used to wait for ours and then we will end up being them in cash. That was the old classical traditional approach of ordering food. Now let's look at the way by which we order food online. So right now I think you might be using any food tech platform like Uber Eats or DoorDash. And you're using these platforms to order your food online. But if you compare this all situation with the current situation, I think we're currently we are using any of these food tech platform like Uber Eats, DoorDash. And we just need to maybe choose between couple of products we have inside the mobile application, we use to add them inside a card and boom, will place the order and there is very little delivery fees. And only to pain gas you can pay online. Now Let's quickly compare both of the situation in terms of efficiency score. Efficiency score of ordering food online was this efficiency score of ordering food by calling a restaurant. Now let's compare their efficiency score on a scale of one to ten, where one is the rare one means the process is not efficient. And 10 means the process is very much efficient and there is no room to optimize the process. Now if you look at the efficiency score of ordering food by calling a restaurant, the efficiency score is three because the process is not efficient at all. You have to find a number, then you have to call that specific restaurant. You have to ask about the catalog, then you have to ask about the delivery fees. Let's look at the efficiency score of ordering food using on my lap, the efficiency score is around eight. And if you look at the difference between the efficiency score of ordering food by calling a restaurant versus ordering food online using any mobile app, you will find that there is a difference of more than four. Now this is your data for, so if Delta E or your efficiency score is more than four, then the new process is very efficient. That means ordering food online is very efficient. And your startup will unlock a port of call if enough people are using your product. Now when I'm saying unlock a pot of gold, that means your startup have some investor, your start-up also have some employees which hold equity in your company. Your start-up also have some CEO and CFO, or maybe let say you are the founder. In that situation, you will create wealth for everyone. Bought your investor, your employees, and your CXO people. But you need to have this efficiency score between the old process and the new process of more than four. But one of the very unique characteristic of having this efficiency score of more than four is that you will never go back to the previous behavior. Once you started ordering food online using on why lab, you will never go back and call a specific restaurant, then order food online. That's an irreversible behavior. You will always open that mobile lab and you will always order the food no matter how expensive or cheap the pool is. Now let's understand the same process with the help of one more example, booking tickets online versus booking tickets offline. So if you look at the efficiency score of booking tickets online versus offline, then obviously, let's assign efficiency score of booking tickets own lane, and efficiency score is around two or maybe three. Now let's compare this with the efficiency score of booking tickets online, somewhere between 7, 8, 9. If you're gloriously have a look at the difference between the efficiency score of booking tickets online versus offline. Well, the Delta E research on efficiency score is always more than four or maybe equal to 4. And in this situation, you will also unlock the border of God. Because if you look at the situation, when you use to book tickets offline, you have to stand on that specific counter. You have to wait for a certain period of time and then only you will get your ticket. Well, that's a very inefficient process. That's why we're going to get so online is always an efficient process. And the reason I'm covering this delta for artillery is because if you build a product in the future, you have to compare your efficient product with the previous product. What kind of experience you had by using one of your competitor. So you will always try to create some sort of differentiation which will allow your audience or your customer to love your product much better than other people. That's how you will create monopoly. I think you can understand about this specific topic about creating monopoly in the market in 0 to one by Peter Thiel. 12. Characteristics of Delta four behavior: Let's look at the behavior characteristics of this delta for product. If your product have the efficiency score of more than delta four, then your product will have these many characteristics. Number one is irreversible. This kind of behavior is always irreversible. Once you started ordering food online, it is nearly impossible to go back to the previous process by calling all the different restaurant, asking for the Prius, then you have to ask them about the delivery fees, the waiting time. That's a very inefficient process. Once you started using a product which have the efficiency score or the efficiency gap of more than four, you will never go back to the previous process. Second is your UVB is always greater than the USB. Now you first have to understand what do you mean by UVB and USB. Usb we all know is unique selling proposition. Ableist single product have some form of unique selling proposition which will differentiate them. The competitors. For your iPhone, the unique selling proposition is your product and your brand value. For Tesla, the unique selling proposition is it's electric car and it is also autonomous. That's the unique selling proposition for these delta for product. They have unique breadboard, the position. And let me explain this unique breadboard, the position with the help of one simple example. How many of you install grew color after watching an ad? Probably no one. Let me tell you how you exactly installed blue-collar. Probably one of your friend came up to you and he was saying that just tell me any number. Just tell me any number and I will exactly tell you the name of the person and that's how you get to know about true color. If you have a really nice product, people will love to brag about new and exciting product that they are using and you are not using as a common friend. So good and unique product, always have some bread with the proposition. And true color is one of the product which have a good blackbody position. If you are using this product, you will always recommend this product for your friends. Third one is high tolerance. So even if Uber app is done for, let's say ten minutes, you still don't call a specific restaurant and order your food. You will wait for XA 1015 minutes, then you will take some decision. Now if I summarize the complete video, if the delta for the efficiency score of your product is more than the previous product, then you will always open the port of goal and you will create wealth for all of your investor. You're founder and employs, which have Aesop's of your company, which is your employee stock options. Now let's understand the more powerful combination. When you combine Delta 4 with network effect. And it is so strong that it is nearly impossible to break this effect almost a year back. What surplus having some privacy controversy and a lot of people were speculating that we will start using Signal WhatsApp doesn't roll back all of their privacy policy. Now guess what? We are still using WhatsApp and rebuild still use WhatsApp, no matter what kind of changes Facebook make inside the app. Well, don't get me wrong. Let me explain why. Because privacy is a concern for only a limited person days of user, while majority of the chunk of WhatsApp user don't really care about the data. And the network effect is so powerful that it is nearly impossible to replace the app. Now, imagine a 55 year old housewife or a 50 year old vegetable rainbow living never migrate to a new platform because now they have to learn a new black foam scratch. And every single person you know, is using WhatsApp. And that's why it is super difficult to replace WhatsApp until if the government is not banning that specific app in your country. Let's understand how some companies are successful in inflating this data for concept. Let's understand this with the help of one more example, buying shirts online versus offline. If you look at the efficiency score of buying shirts online versus offline, while the efficiency score of buying source offline is eight and mine Shots Online is three. Obviously the efficiency score is less than three. But somehow companies are successful in selling all of these sharps. Online. Reason is these companies are just inflating this delta four because these companies are giving you a huge gash record discounts and they are artificially increasing the new data. Because obviously, if you're purchasing any clots online, It's really difficult to decide whether the clot is good for you or not, because you have to post knowledge, check the quality of the clot and the size of the globe. So buying clots offline is always better than online. These companies are somehow inflating the study doc or by giving you more discount or cashback or artificially increasing the new Delta. Let's see, somehow you are successful in creating some sort of product, which is really nice, which is much better than the industry product. Even if you have created an amazing product, the friction will still be there for moving to delta H4, one of the friction is an option. Now let's imagine a company's using a legacy software like SAP, or maybe sales force or daily. It's really difficult to replace all these legacy software because people are so well adopted, they are using these kind of legacy software from last 10, 15, 20 years. And everyone had to learn a new software from scratch. So the adoption cost or the switching cost is so high then those companies may not accept the new product. So if those people have learned some software from past five, 10 years and they are using it right now. It's really difficult to replace that specific product with a new product, even if the new product is much better than the existing product. Because of adoption and switching costs. Because now the company have to train every single employee for a new product. The switching cost is very high, then it's really difficult to switch all the people suddenly to a new product if everyone is using WhatsApp, that's why via using WhatsApp, because our friends are using WhatsApp. Our mom is using WhatsApp or complete families using WhatsApp. So it's really difficult to replace every single person at the same time from WhatsApp to a new app until and unless if government is not banning that specific mobile app and tarragon is obviously the brand. And brand is a very subjective concept. 13. Solving Million dollar problem part 1: Everyone in this video, we're going to talk about some $1 million ideas and how exactly you can go around with dot specific $1 million ideas. Obviously, I only understand my postman problem. And in this video, I'm going to tell you if I have one specific problem, how will I go around solving that specific problem with the startup? So from past few years I was losing a lot of here. So in the previous few months I was thinking about solving this hair loss problem. So let's say if I'm losing some here and I wanted to solve this problem, I first have to understand this hair loss market. Now if I wanted to build a startup around the sphere loss problem, I first have to understand this problem really value now to solve this problem or to build a good startup idea based on this hair loss industry, I first have to ask one simple question. How many people are facing this problem? If there are so many people who are facing this problem, this market is big enough to maybe start a business or start a startup. Then I have to go for a treatment to understand how exactly different doctors or different people are solving this specific headloss problem, then I have to understand the target market. How much I can grow if I start my startup and what is the current competitive landscape? So how many companies are solving this problem? How big is the market, how fast the market is going? And what is that unique startup that can come out of hair loss? And in the end, I have to answer how exactly I can solve this problem at scale. Because obviously if I'm starting a startup, then I have to solve a specific problem of maybe thousands of people, or maybe millions of people in one single day or maybe in one single month. That's how I will build a scalable technology business, which is the real definition of startup. Because if you're planning to raise capital, you have to scale very fast. You have to build a billion-dollar business really fast. That's the real definition of startup. You can always build a traditional business. But for that, you may not get a gourd capital from all of these investor. So I started doing research on this specific topic. And I came across to a point where I was having enough D, D2 go wrong with this specific Stata? Well, more than two people isn't. And that too, by the age of 35, is a big number. That means the market is very big and I can quickly build a solution, or maybe e-commerce store with a doctor consultation. And then people can come book a consultation and the doctor will advice than the product. And then we can ship the product with the help of some logistic partner. Well, that's the main idea behind building this brand. Then, before building a specific brand, I have to understand what are the products that those doctors are giving to all of their patient. And when I mean doctors, those are dermatologist or psychologists who are exploiting hair, skin, and all of these problems. So I went to a psychologist and I explained the problem. And now I saw a trend that almost 90 percent psychologist will giving the same product to almost 80 percent of the customer. So there were giving these three broad minoxidil 5% topical solution, ketoconazole shampoo, and finasteride tablet. Now, all these three products are proven to stop your hair loss and they will also grow your hair by almost five to 10 percent. Then I did some research and order these product from ten different brands. And then I got a specific pattern that all these three products are made by couple of manufacturers only. That means now we got a common manufacturing point. These 40 different products from different rents are made by common manufacturers. So now we've got some manufacturers, and those manufacturers were doing a private label outsourcing. That means if you wanted to start a brand and if you wanted to launch a product, you just have to visit a specific manufacturer who is manufacturing those product. And then you can tell them to piece the label of your brand on a specific bottle of the product. So let's say if you have a ketoconazole shampoo, you can tell those manufacturer that you have to paste my label on your product. And then I will sell all of these product from my marketing strategy, from my e-commerce store. And that's how you can do outsourcing, also known as your private label outsourcing. So I contacted all of these manufacturers and they gave me a minimum order quantity. So they told me that you have to order n 1000 quantity of all these three products. So now I got the solution on how to solve this problem for others. Where will I sell this product? Well, if I wanted to build an e-commerce store, I can use Shopify, WooCommerce, Magento, or maybe weeks, and then add soon as people placed the order of these three products, I can hire a couple of doctors and then those doctors will have a video call or a video conferencing call with the patient. And then they can advise all these three product to their customer or patient. And then I can ship these product with the help of some logistic partners. So in US you have FedEx, in other countries you have blue dark. So you can ship these productive customer and then you can be shipping fees of around one or $2. Now there are a couple of companies who is solving this specific problem in different market. So you have hymns and hosing us. So this is your minoxidil, this is your shampoo and decision by protein tablet so that solving this specific problem in US. Then you also have one brand in India. You have man matters who is a brand in India, and then you also have Roman. So if I summarize the video, you can scale this problem. Yes, by building an e-commerce store and buy hiding couple of doctors who can scale this problem without opening a hospital or a psychologist center or a dermatologist central, this market is growing at the rate of 9.73%. Compound annual growth rate, also known as 9.73% CAGR. Will investor would be interested? Yes, because the market is big, it is also growing and you're also solving this problem with the help of technology. So investor might be interested. Well, the dam is also very high. You have a TAM of 2.51, $1 billion by 2025. But obviously, you do not always highlight bam. You will also understand Sam and sum. And we have covered am Salmon song in the market size We during this course. So this is a good problem to solve and I think goes some investor has also invested maybe some amount of capital in these companies. So in hymns, investor, investor more than 100, $1 million companies like Man Mattos, the gourd, the funding of 10, $1 million from different investor. So there is a good investment flowing this specific market. But remember, you always solve the problem which you are facing right now. Because if I increasingly hair loss problem and if I'm using some product from past 3456 months or a year, I exactly understand what kind of products are day and from there I can get all these rhotic and how exactly can sell these four different customer. I have a much deeper insight than other people because I am personally facing the problem. That's why I always suggest people solved the problem that you are facing post-money because then you will have a much deeper insight than other people and always split a problem into multiple paths. What is the problem? How people are solving this problem right now? How can I differentiate myself in terms of solving this problem from fear? I can get this product. And once I can, once I got these product, how exactly I can sell this product for different customer using multiple channels. I have. 14. Solving Million dollar problem part 2: Hey everyone, This is the second video in solving a $1 million problem and how exactly you can build a startup by solving this specific problem. In the first video, we have solved the problem of hair loss. Let's say if I'm facing one more problem. So remember, with these videos, I'm solving my own personal problem. You guys can have a different problem. You guys can have a different understanding about solving this problem. But I, I'm having a different level of problem and they might or might not correlate with you. So you have to find your own postman problem and then you have to build a strategy around that specific problem on how exactly you console dot specific problem with the help of a. Now imagine myself as a digital marketing person. I wanted to run some ad campaigns on Facebook, on YouTube, on Instagram. And I wanted to edit some promotional videos. Now let's say a small posture where our goal is there. She's using some product or a boy is there who is using some product. And I wanted to write some sort of get 50 percent off villages this. And I want a simple transition or a simple posture. Now it's really difficult to make those promotional videos without knowing video editing. Because if you wanted to make those promotional videos, you have to use these complex video editing software like Adobe Premier Pro, iMovie after the fact, Final Cut Pro. And it's really difficult to learn all of these complex video editing software. Well, That's why can you start a startup and solve this specific problem? Well, you have to ask all of these caution and you have to ask how many people are facing this problem? Well, there are a lot more digital marketing consultant who wanted to run ad campaign for their specific brand. And they have 0 idea about video editing. Well, they can use our product if we can build a really drag-and-drop kind of product with some existing template. Well then you have to talk to those people that if I will build a product where you can quickly make a promotional video by just writing couple of text. And our system or our back-end engine will do the work for you by choosing some existing template, by choosing a model, by choosing different animation, by choosing different colors. You just have to write the text. And that's a good idea. Then you have to understand how exactly you can solve this problem early and at scale. Because if you already have competition in the market, then that competition may not allow you to acquire more number of customers and generate some revenue. So you have to understand competition, how early you can solve this problem and that do it at scale with the help of technology. So obviously these are our existing product. Now, all of these video editing software are really powerful, but they are very complex. If you wanted to make a small video for, let's say one minute using Adobe After Effects. It's gonna take almost five to six are just to make a one-minute animation video. Well, that's a big problem you have to solve the problem of making quick promotional videos. You can use all these, correct? So right now in the market you have in-video, which is the most powerful product, and I'm posting it using this product. This product is so powerful that you can quickly make a promotional video within five minutes. You just have to write couple of X and you will have some existing templates. And you just need to write some texts on those specific template and it will automatically give you a promotional video. It's really powerful. Then you have byte able render forest and can walk with you. I think a lot more people know about Canva. So can wait spatially for graphic designing or maybe designing posture. But they also have one more product, ten WTO, which is not that powerful, but involute super powerful. You can find lighting 10, 20 thousand templates, and then you can quickly make a video. So I hope you got a point that how exactly you can solve this problem by building a SaaS product. Sas is also known as your Software as a Service. So people will pay a $5 every single month to meet these interesting promotional videos using your software, which is online. Obviously, you need a person who is good at technology, who is good at building software. And for that specific problem, you can maybe build a startup. You need a good team. So if you are someone who is purely from business domain, well, you need to look for some technology guy who can write cord and who can build a product. And if you are a technology guy, if you know exactly how to write a code, then you need one person who can sell these four different customer. So you have to understand the three at strategy to build a successful startup, you need a hustler, a hacker, and the hips turn in your company. Haslett is someone who will sell the product. Hip studied someone who understand the technology, who understand the user expedience and hack that in someone, right though, God, for the product, because you also need someone who can build the product and the phosphorus. So you need these three each element in your startup, hustler, hacker and hipster. So let's check all of the points that we had in mind. So obviously, if you're building a startup, you have to understand scalability facto. So can you scale this product with the help of technology? Yes, you can build an online software and then you can scale this product to reach millions of user. Is this market growing? Yes, this market is growing really fast. And a lot of people who do not know about video editing, they can use these online tool by just writing couple of xt and they can generate the videos for them. Our investor ready to invest in this specific domain? Yes, because investors are already investing in startups like this. Is this product solving a real pain point of the customer? Yes. Because people like me who are non-technical, people who do not understand video editing, they can use these drag-and-drop product and they can maybe make a good interesting promotional video for the product to run on specific social media campaigns like on Facebook ads or Google ads, et cetera. Do I have only more advantage? Well, right now I don't have because they're already 34 products which are out there in the market. 15. 1.d.Reasons Why Startup fail - Research Study : So here we won. I think almost do we expect someone was asking me that, what is the single biggest reason why startups succeed? And my response to that question was, well, timings and this is not Midas bones. There was a research study that was conducted just to analyze more than one hundred, ten hundred startup, both successful and failed startup. And they found out that one of the most important reason why if startup succeed was timing. And I explained the situation with the help of an example. Let's say today if you wanted to start Uber Eats, DoorDash, or any sort of food tech company which deliver food to the customer's doorstep. Now I'm not saying it's impossible to succeed in that specific domain, but the market is over competitive right now. You already have players in the market. So no matter how brilliant idea you have, how good your team is, of how good business more you have, or whatever amount of capital you have read so far. You are not timing the market. Well, you cannot succeed. And that's the single most important factor behind the startup success. Today, if you start, let's say, a new search engine and you hire all the people from Google, including the CEO and CXO, you still cannot succeed. Reason being you are starting late. Timing is not correct. So even if you hire sooner PHI or all the CXO people from the Google, you still cannot succeed in the search engine market because the market is hypercompetitive. Now, you already have monopoly in the market and it's really difficult to succeed now. Now, that doesn't mean that timing is the only single biggest factor. Obviously, theme is also very important. If you do not have a very strong beam. If you do not have the 38 strategy, we're going to talk about 38 strategy a little later in this course. But you need a hustler, a hipster, and a hacker in your beam, at least in early stage of your startup. So you have to have a very good team who can execute things ready foster. Obviously idea is somewhat very important. If you do not have a good idea and your startup, you may not succeed. And the idea should be unique. It should have a scalable technology or growth or bought or a runway. You have to have a very good business model which will support you. Because if you have a business mortar which will help you on Foster and your gross margins are very high. So answers of your startup on getting successful are very high. And funding is the least effective pedometers for majority of the people they always rely on funding. Obviously funding is important, but all the successful business are not grown out of funding. The mean success factors lies in their timings that deem their idea and their execution. Funding is just a supporting factor in desktop. So remember, if you're building your startup, just make sure you have a really strong team. You are timing the market with some wartime northern your hand obviously, but you have to have very unique insight. Or you have to have an understanding of how the future is going to look like. So remember, if you wanted to start your own business, you have to have a very strong team. You need a hustler, a hacker, and a hip store in your team. Obviously you cannot time the market. It's really hard to do that. But if you are following the technology very well, if you understand the technology, you can always predict the future. Remember, startups are always built ten years ahead. So you have to think almost 10 years ahead to build a startup right now. And apart from that idea is important, business model is important and funding in the end is the least important factor. But in your mind, this can be the most important factor right now. But remember, theme is the most important factor. Timing is important, but you cannot pay in the market. 16. 2.b.Origin of a startup: Hey everyone. In this video we're going to talk about the legal structure of a startup. Now I know legal structure can be very confusing and a boring topic. And that's why to make it interesting, I'm going to take an example of two different people and I'm going to explain legal structure with the help of a interesting story. Let's say two people, not even Sophia, they wanted to start a startup and they are solving a real life problem with the help of technology. Now know the pallor good experience at seals. He's an MBA graduate, He's a hustler, but he have very less idea about coding. And that's why not deep instinct help from Sofia. Sofia is walking in IT company. Now Sophia have a good experience in IT domain, or she's walking in multiple companies. You have multiple startups, technology startups. And she had a good understanding about how to write code, how to build scalable technology product. So now if you have a hustler and hacker in your team, now you have hustler and hacker in your team. Now it's a good combination to solve a problem. So they started working on this startup and now they have five customer and $10 thousand in revenue. Now they have customers and revenue in place. Now they are planning to raise some capital, but obviously they have some problem in front of them. They have all these four option and they wanted to register themselves in these kinds of legal entities. So they are confused. We should register ourself as a sole proprietorship or a partnership phone, or as a legal liability company, or as a corporation. They do not have any idea about all these four different types of legal structure. And that's why they were talking to different lawyers, to different people to understand all these four different type of legal structure which is used by all the businesses or the startup. Let's quickly understand all these four different types of legal structure that you can use if you are starting your own business or your own startup. Let's start our journey by understanding sole proprietorship. But before that, this is not a legal advice. Please talk to your lawyer in case of any legal help. The main purpose of this course is to make you aware about all these basic terminologies that you have to understand if you're starting your own business or a startup. 17. 2.c.Sole proprietorship for Small Business: Let's start our journey by sole proprietorship. Sole proprietorship is basically our business entity, which is owned and run by a single person. That means there is no legal distinction between an owner and a business. A business and the owner are combined together in a sole proprietorship, which means tomorrow, if you take some loan for your business or some deck for your business from some bank or from someone. You have to pay the debt. Which means if you become a default are in the directory. If you are not able to pay the debt, you are personally liable for that specific type or business loan that you take. All the small businesses like your bakery shop, your car wash, your retail store. All these businesses were destroyed themself as a sole proprietorship, which means one single person on the complete business. He put all his capital, all his effort or everything in this business, and he's running this business by himself. Now let's look at the features of sole proprietorship. Obviously, this is your business. You own this business, so you will receive all the profits that you make. You do not have to share the profits with anyone because you are someone who own this business, because this is opposed to that business. Next is legal compliances because it is a sole proprietorship. You own this business completely. So there is very less legal book. You just have to submit your basic identity proof and a couple of pictures and that's it. Third one is unlimited liability because this is your personal business, because you own this business, which means tomorrow, if you take any loan for your business, you will have unlimited liabilities, which means somehow, if you're not able to pay the loan for your business, the bank will recover your personal asset to make sure that they have enough money back in their account in case if you are not able to pay the loan for your business, which means you will have unlimited liability for all the losses and debts in your business. You'll be mostly responsible for each and every small thing. Obviously, you can not have any business partner in sole proprietorship. This is a one-person business and you're the only one who own this business. If you want some business partner in your business, then you have to register yourself as a partnership from instead of sole proprietorship. So in the next video, let's quickly understand partnership fun. 18. 2.d.Partnership firm for medium business: So hi everyone. In this video we will understand the partnership firm. Now this is one of the most common legal structure, which is found if you are starting a legal business or a digital marketing agency or a consulting business. So all these small businesses, usually the district themself as a partnership firm. Obviously in partnership form you will have more than two or at least to business partner. So in partnership fund, pool parties, also known as business partner, agrees to cooperate on their mutual interest. And that's how this year profit. Let's say if you and your friend decided to start a digital marketing agency or let's say a consulting agency, you will bought, put at least let say 50, $50 thousand in that business. And that's how you will receive profits in the future. So let's say if you are putting $50 thousand and your friend is also putting $50 thousand and bought off. You are starting a partnership firm in future after one or two years, you will also receive the profit in that specific ratio. Because you own 50, 50% of the business, it will also receive your profit in 50, 50% percent way. So if you're making $10 thousand and future, both of you will receive $5 thousand every single month. That is the basic proposition of your partnership from which means you bought will decide dot profit sharing percentage index Pacific Partnership from now this can be 50, 50 or 60, 40, or 2017, depends on how much capital you have put in to setup this specific business. If you look at the features of partnership phone, obviously, this partnership farm is owned by both of you. So there's a very low cost of formation because you bought own this business and you also have unlimited liability. Because tomorrow if you and your friend will take any loan for this specific digital marketing agency or for this legal phone. You are liable for any debt or losses you make in this company. In this partnership from some countries will have a partner limit of around 22, 20 people, which means you can have a minimum of two people in the partnership phone, but you cannot go beyond 20 people in the partnership form. So if I continue this video in partnership form, you will have two different business partner who will put in some amount of capital to start this business. And they will decide their profit sharing percentage in the partnership agreement that they will make while establishing this business. And then we also have unlimited liability if the firm will make any losses and debts or in future. 19. 2.e.Corporation legal Structure for the Startup: Hey everyone, This is one of the most important type of legal entity, all legal structure, and this is exclusively for startups. So if you wanted to start a business or a scalable technology startup, you have to register yourself as a corporation. Now in different countries you have different types of corporation. If you look at companies in US or startups in US, you will have Delaware C Corp, or an S corporation. In India, you will have Private Limited for startup. In Singapore. If you wanted to start a startup, then you have to register yourself as a PT Limited. If you wanted to start up in South Africa, you have to register yourself as a PTE limited. If you wanted to start up in UK, you have to register yourself as Ltd. So in different countries you have different form of legal structure for startups. And obviously I can't really cover all these different types of startup legal structure across different countries. But for this, you have to consult your lawyer or someone in this specific domain who have good expertise in registering your legal stuff. Now let's quickly understand C cooperation, which is one of the most famous legal structure which is there in us. Us, a lot of startup register themself as Delaware C Corp. And in this kind of legal structure, which is the most prevalent kind of legal structure. The owner, which is your startup founder, the shareholder, which is your investor, our text separately from the entity, which means tomorrow if your business is making $10 thousand in profit. So you have to pay some amount of taxes where business, and if you are also pulling out the profits for yourself, you also have to pay taxes for that specific amount. Obviously, it's a double taxation problem. We're going to discuss about that soon. But normally in C Corp, which is found in US, you will have all these different features. In C corporation, your personal assets are different from your startup acid. That means if you take any loan for your startup and if you're not able to repay the loan back to the bank, then you're not personally liable for that. Your startup is liable for that specific problem. That means your personal liability is different and your startup liabilities are different. We all know that more than 95 percent startup field and they do not make any money in the future. And that's why they have to register them self as a corporation where the startup founder is very much different and do not have any shorter unlimited liability in the company. In all these different startups, you have stockholders or equity holders. So you'll found those are equity holders in your company. Your investors also hold equity in your company, and then you also have board members and all of them combined together and make board of directors. And all these board of directors will have enrolled general meeting and this end will gender meeting. They will discuss about all of their annual sales figure, all of their sales forecast, the future plans, their mission, the vision, and all these different kind of stuff for the future. And one of the most flexible thing about cooperation is board of director can decide who will be the CEO of the company, how much of spending they wanted to have it in the next financial year? What is the expansion strategy? How much they want to invest, when will they go for IPO and all these different kind of strategy. In short, the corporations are designed in such a way that the startup founders do not have any link with a company and they just hold the equity share of the company. Whatever happens in the company will be decided by board of directors. And in this board of directors, you will have startup founders, you will have investors who will have board of directors or any board members. All of these people will decide about their future forecasts, their sales, their strategy, and that's how they also pull in money from different bands, from different private equity. And if somehow the startup is not able to make money or the startup will diet, then the startup founders do not have any liability. They can shut down the company, they can file for bankruptcy, and then they can start a new business. Because obviously more than 95 percent startup somehow fail and less than 45 percent startup succeed in the Joanie. So all these 95 percent startup will have to file for bankruptcy. And that's how this is the normal structure for all of the startup. So if you wanted to start their own business or you're starting up, you have to register yourself as a corporation. And if you're in us that it's a Delaware C-corporation in India, it's Private Limited in Singapore, main Mar, Indonesia. It's PTI limited in South Africa at this PD limited. And if I summarize this complete video, you will be studying our startup by registering yourself as a corporation. If you are in US, then it's a Delaware C and S corporation. If you are living in some other part of the water, then that can be limited liability company. In India, it's Private Limited in Indonesia, main Mar, and Singapore. It's pretty limited. In Australia, it's PDE limited. And you have different types of legal structure for startup in different countries. So you can just talk to one of your lawyer or someone in this domain. So in the end, you were having four different choices with you. And finally, you end up registering your company as a corporation in your specific country. And once you are done registering your company as a corporation, you will have all these different people and a proper corporate structure. Now you have shareholders in your company. Now, obviously initially you and your founder are the only shareholder in your company. Add soon as you raise capital, you will have investors in your company. You will also have board of directors. You can also have officers. You can also have employees and all these different people. And every single person have a specific set of rules regulation to follow. And they also have someone whom they have to report. So as, as, as a startup founder, you have board of directors or your investors to report. Investor also have their liability partner or LPs are to report. Obviously your employees report to use. So you always help people who walk with each other and they also have someone above them. And that's how the normal startup or corporate structure Book. 20. 2.f.Small business Vs tech startup: Let's understand the difference between a small business and a tech start up. So if you look around, you'll see so many small businesses like bakery shop, like car wash, like grocery store. These kind of businesses will never get funding from investors. But on the other side, if you'll see companies like Amazon, AirBnB, Stripe, OberlaC and Facebook, these businesses will easily get funding from investors. And if you can find out the track record, you can see that these tech start up will go millions of billions of funding. But what is the basic reason behind that? And the two very basic reason which we have also discussed in the last couple of videos is tech scalable and high growth potential. And there are so many micro factors as well, like low fixed cost, positive unit economics, tech expansion, high tan, T is also called total addressable market, and cross border expansion. Now, let's define tech scalable and high growth potential with a very simple example. For example, you are the founder of a bakery shop, and I have founded a company like Strike. So you both started these two companies, maybe in California or Texas, and you are selling a lot of cookies, cakes in this bakery shop, and I have started this type with almost two developer and me also working with them. So, let's consider a situation where we both want to expand into different location. So if you want to expand your bakery shop, then you have to pay huge rent, which can vary from $5,000 to $10,000 to a different location. You also have to pay to the people who are managing the operation, day to day operation in your bakery shop, and you also have to pay a salary or a page of $3,000 to $5,000 to them. And obviously, you also need to invest a lot more amount of money in furniture, in lighting, in establishing the inner view of your bakery shop. So you have to put a lot of capital if you really want to expand that bakery shop business. But on the other side, if I want to expand into a different location, so if I also want to expand into those locations, I can simply recruit one or two more people who can run some sort of campaigns, who can onboard businesses or people from that area, and boom, there is no high upfront cost for me. There is no labor cost or time constraint, and I can do old things with automation and control. But on the other side, in bakery shop, you need to put a lot of upfront cost. You need to have a lot of labor cost, and you can only run your bakery business for 12 hours, and you can't have any sort of automation and control in that bakery business. I mean, you manually need to control that bakery business. So you can clearly see that a bakery shop will require a lot of upfront capital, a lot of cost, a lot of manual operation work, a lot of furniture, lighting, and so many hassle if you really want to expand the bakery business. I mean, that's something where investors will never put their money. But on the other side, if you start a tech company, you can easily expand into different geographies. You can scale that business because you have technology in place and at a very low cost as well. So these companies are always a good attraction from the investors side. So if you look at the operation after two to three years in these big tech companies, they will have 20 to 50 developers in their business, whom they are paying average salary of 70,000 to $80,000, and they can easily have a revenue of 10 million to 100 million ARR. ARR is nothing but ennual reoccurring revenue. MRR is monthly reoccurring revenue. We will look into these concepts in a very detailed way in this full len data course, but a tech company can easily have lot much amount of revenue and profit with a very small team because they know how to expand globally with a tech integration. But on the other side, if you look at businesses like bakery shop or car wash or grocery store, they need to have a lot of people to get that much amount of revenue. So, they need to hire five people and they can easily end up with revenue like 100,000 to $200,000 per year, and because these offline businesses have very low margins. So if you look at the margins in a bakery shop or car carwh, they will have 15% or 20% of maximum margin. But on the other side, these tech companies have 70 to 80% of the margin from the revenue. So if both the companies are getting $100,000 of revenue, a car wash or a bakery shop will make, uh, maybe 20,000 profit or 15,000 profit. But on the other side, these tech companies will end up making 70,000 or $80,000 of profit out of $100,000 of revenue. So you can easily say that, uh, The companies are scalable. The companies require low setup cost. They do not need to put a lot of money while expansion, and they also have high margins because of technology. I mean, you do not need to deploy a lot of people. That's why your margins are always 60, 70, 80%. But while in the traditional businesses, you always have 15%, 10%, 20% margins. So investors will also see five x growth per year in these startup. I mean, if they have invested $1 million, they want these startup to make at least $5 million by the end of year and $50 million by the end of two years. Those investors will also look at high tam, which is also called a total addressile market. So all the start up have high total addressable market. They can address a huge audience with the technology stack, and they can easily onboard a lot of people. If you look at companies like Uber, Uber can expand easily into different geographies by onboarding different cab drivers, different customers using different sort of online campaigns, and they just need to take 2% to 5% of the complete transection. I mean, company like Uber, if they really want to expand into India, they just need to run a lot of campaigns to onboard, few hundred people and few hundred drivers, and then the network effect will kicks in, and these companies will start on boarding drivers, customers, driver, customers, and they can easily get 5% of the revenue out of the complete trajection. I mean, they don't have their own fleet, they don't have their own people to onboard those people. So these companies can easily onboard drivers and customers and boom. Their business model is there. They can easily get 5% of the margin from their business. And same thing goes with Facebook, Sra being in Amazon. Although Amazon have a little set up cost like unit to set up aware housing, supply chain or a logistic operation. I will understand about the Amazon business model in a detailed way in this module only. 21. Business Model Canvas: So hi everyone, My name is now deep in this video we're going to understand business model canvas. Now business model canvas is made up of these different types of boxes and it will help you give a high-level overview about your business. So no matter you're talking to, are there for the investor or one of your employees, or even do your best friend. You can show this business model canvas to them and they can easily understand about your business. And a lot of entrepreneurs make this business model canvas for different investor. Now before talking about all these different element, Let's discuss the benefits of Business Model Canvas and then we'll start filling in the data into this specific business model canvas. Let's understand why we are making this business model canvas at the Foster, please. The first reason is focus. It will strip away all the 40 plus pages that on Oracle entrepreneurs make if they wanted to show that person's mortar or their business plan to someone, uh, just a single base business model canvas, which will help you understand all most, all the different area or aspect of your business. Second reason is flexibly be. Second reason is flexibility. Because this is a single page business plan. You can quickly week something or you can change a couple of business mortar. Or you can try new things from planning perspective. And it's a single page of business plans. So it's really easy for you to Jane something or filling some additional details if you want them, then you have transparency. Now because we are not writing taught d plus page business plan or you're not making a complex PPD, just a single beach business model canvas. It's really transparent. Which means if you give this page 21 of your employees or one of your colleague or given to a different investor, they can easily understand about your business. Now let's understand this business model canvas in a much easier way. So we will audit startup business mortar from the customer segment box. Then we will move from customer segment two, value proposition. And from value proposition, then we will move to Janet's. So what are the different channels we have for our business? From channels, we will fill the customer relationship. Then you will move without revenue stream. Revenue stream we have. Then we'll go to Resources, the resources that we need. Then we will fill in all the details of all our partners. So let's say if we have some courier partners, we have some logistic partner or some contract manufacturers. We will fill all of their details in the key partners, then we have key activities. So what all major activities that we do on day-to-day basis, we fill all those details into that specific column. And then we have cost structure. Now let's quickly start filling in all these details in a simple business model canvas. And probably in the next video, I'm going to show you a couple of business model of different startups and different companies as well. So let's start our video by understanding your customer segment. So startup can target specific customer segment. Your startup can target a mass market. So let's say if you look at companies like Coca-Cola or Pepsi, or any food brand, they have a mass market because no matter what a three-year or good or a 55-year or die annually can consume Coca-Cola irrespective of your gender or age. That means Coca-Cola is targeting a mass market. That's their customer segment, then you have your niche. So there are so many companies who are selling their product to just one specific niche. So let's say if you look at all these lipstick or beauty brands, they only sell their product specifically to a customer segment of 20 years or I think 45 years older. Then you have your diversified customer segments. So if you look at companies like Amazon, amazon is targeting anyone and everyone. So you have to identify your specific customer segment. What is that customer segment you wanted to plug in? So let's say if you are starting our supplement brand of for all the people who are actively involved in fitness, then your customer segment is from 20 years or two for P here or people specially the ones who are really active. And then you can just divide that specific segment. And you can target using Facebook ads, google ads. So even when you do a campaign on a DV or any media, then we have a customer relationship. How exactly accompanies maintaining relationship with customer? So how you're acquiring your customer. So let's say if you have offline acquisition channels like retail store or do you have online acquisition channels like Facebook ads or Instagram ads or whatever, how exactly you are acquiring the customer. You will also mention that how you got retaining the customer. So let's say you can fill in the details like we will organize a thickness event every single year. That's a retention strategy. Then how you hover, you boost your seeds. One all the way by which companies can boost their sales is by tying up with different influencers, also known as influencer marketing. Then you have your Janice, what are the channels that you are using? So let's say you can fill in the details like we have 20 offline store or VR, or acquiring these many customers every single day from all these different online mediums like Facebook, Pinterest, any, any medium that you have. Then you have our value proposition. And the value proposition box, you will fill in all the details like what is something that is new to your product? What is the set special stuff that you have in your product? You can see that our Florida scored, our quality of product is scored whatever one special thing that you have good in your product. What is that value proposition? Or let's say. Now obviously that can be a performance or a design or a quantity of product that can be anything. So you have to mention about that specific detail. Let's say if you're a smartphone manufacturer, we will mention details like our smartphone are super-fast, got amazing design. Or if you're selling any B2C product, you can mention that we have high-quality or maybe let's say organic product, whatever, that unique value proposition that you have. You have to mention that in this specific box. Then we have our key partners. What all key partners who have. So if you are selling any sub-domain or any details or anything on online, then probably you have to have one logistic partner who will ship all of your products to different customer. So that's your key partner. So what are the suppliers, strategic alliances, joint venture, or acquisition channels that you have? Then you have all of your PD sources. So let's say if you have 3, 4 very smart people in the product side. So you have to mention that we have for product managers, engineers, or let's say toward the marketing or sales or whatever strength you have. You have to mention all of these details into ketone. Now that give you sources can be human, intellectual or financial TV sources. Let's say you have raised some capital. You can mention that we have a strength of 30 employees. We have raised a million dollars from these disease in restaurant. That's your key resource. Then you have your key activities. What is the one thing? Or let's say a couple of things that you do on day-to-day basis that will really decide a business. Let's say maybe shipping your product is what are the key activities that you do? Packaging those product is one, are doing marketing and sales is one. So you can mention all those details. What is the problem you're solving on day-to-day basis and how you're building your network or let's say selling the products, then you have your revenue stream. And this revenue stream will help everyone understand what is your usage. So let's say if you're building a social media app, well, then your revenue stream is based on the usage. Let's say if you're building a SaaS product or a software product, then your revenue stream comes from how many people are purchasing the product. Or let's say you're in a brokerage business. So your revenue stream will be decided by the type of business you do. So let's say if you're building a D to see your consumer brand, you have a different business. On the other side, if you are a software company or a brokerage firm, then you haven't different revenue stream. And finally, you will mention all of your cost structure. So let's say if you are manufacturing some product, you always have high fixed cost because then you have to purchase all of those machines, all of that raw material, and then you have to sell it. So if you are manufacturing something which have the high cost or high fixed cost, then you also have to mention all that details and swelling. And obviously then even also mentioned the variable cost and other details. So you have to mention all of these details or in your cost structure. 22. Business Model Canvas Examples: Now let's look at the business model canvas of one of the company, let's say Uber. So let's look at the business model canvas or Uber. Now this is a super simplified version of Business Model Canvas, which I'm showing you. But you can make it a little more complex if you want to. But this is the much more simplified version. You can maybe write few bullet points that we have these many customers, this much of revenue, these many partners you can mention their names has really, but still, it's up to you because this is the idea stage business model canvas. If your company already have some revenue, then you can make it a little more complex. Do not. I'm overlord this business model canvas with a lot of information, but just try to make a few bullet points, a few points or something. So if you look at customer segment for Uber, so they are targeting two different segment, God owner who have the car. Obviously, these are nothing but their driver or partner. And they are also looking for customer who wanted to travel from one place to another, please. Now the way they're maintaining customer relationships is by rating and review. So if a customer is giving you one start reading, obviously the experience was not good. But on the other side, if he's giving a five-star rating, the experience was amazing. Then you have channels. What are the channels that you're using to solve your customer? When one is using mobile lab, Android, iOS, and the rabbit website. Then let's look at the value proposition. Obviously they are reliable transport company. They are convenient. You can book a cabinet DHAP, and people can generate additional income. Then you have they have key activities. So they have a platform development. So they had to develop and modify the platform. They have to write code every single day. And they also have to make sure that they are solving all the support tickets that people are generating somehow because of safety or expedience. If you look at the key, your sources, they haven't backed Platform. So they also need to maintain that deck platform to make sure that it's not getting crashed because of more and more user. And then they have the news or they have to 0 meeting, and then they have brand as a key source. If you look at key partners, obviously they need a payment gateway or a payment processor to process all these payments. So anytime you've been on Uber, they might be using Stripe and they have to be, I think 0.5 to one person condition to Stripe. And that's how they settled all of their money from Stripe to their own account. Then they also have EPA providers. So let's say Google Map is one of their API provider. And they also have a couple of more providers or MI, also machine learning and AI algorithm. Then if you look at the revenue stream of Uber, they are charging or sodium commission on every single ray. And if you look at the cost structure, they have to maintain the spec platform. They have to spend some amount of money in marketing and personal. Now let's look at the Netflix business model. I'm going to speed it up because I think video is already very long. So for customer segment, all the people who are watching movies in us, obviously they started their journey from us. So that was their customer segment over here. Now this is the business model canvas of Netflix. It's a baby or business modern template. I'm not going to explain everything. You can pause the video and read through it. Iv. And this is the super simplified version of Business Model Canvas. If you want to make it complex, judge, just put a couple of more bullet points. Now I'm not going to cover this because otherwise this video will become very long. Similarly, you can have are ready like business mortar. So you have to mention what is your customer segments. So all the internet users are our customer segment. They have also named these internet users as ready doors. Then they also had advertiser because they also have to generate some revenue. In terms of customer relationship. They have self go on communities. They respect all the people and their privacy, and they collect as discreet as possible in terms of channels, they have a mobile app and a website. In terms of value proposition, people can speak whatever they want openly on the platform. And they can also create subreddit and they have a good number of 330 million users. Back then. Obviously now the number is little higher, but this is all business model canvas template. In terms of key activities, they are moderating all of their engagement. And they are maintaining and developing a platform as when in terms of good resources, they have 330 million active users and they have a platform and data about interaction. These are the key resources in terms of key partners. They also need some moderators to make sure that whatever content that is going to the platform that can then doesn't have any bad photos or bad pictures or some hate speech kind of content. So they somehow do some web scraping or some sort of filtration using their own algorithm. Then they also have all these different brands who advertise on platform and some of the news and publishers or all of those houses in terms of cost structure, if you are building a website or if you are maintaining a website, you also need solver. So they might be using AWS or Google Cloud Platform or Azur in that purpose. They also have some platform maintenance. So our staff, because they have a team of developers and other things, and they have their own stuff because they have to pay them salary. Some of them are in marketing, HR, finance, all that tough stuff. And they also have some revenue stream. And I think this business model changes over time. 23. 3.b.Billion dollar Ideas Module overview: So here, everyone, welcome to the lean startup, and now we are heading towards the second module, which is the billion dollar ideas. Now, this module will give you an idea or a different perspective to think about opportunities, new ideas, and what are the new ways by which you can solve those problems. So let's understand the course overview. Now, we'll go back to module number one and then we'll try to understand a little about how to validate your ideas. So you have three different factors, scalability, market growth, and investors. And if you have any idea in your mind, how can you validate that idea with the help of these three important factors? Now, topic number two in this module will help you to generate new ideas. We'll try to use three different approach to generate new ideas. So from the time you wake up in the morning to the time you sleep, you will face a lot of problems. So we'll understand how you keep a journal of all the problems and then how you will build a business around those problems, how you can solve those problems, effectively, how you will raise funding, and what are the efficient ways by which you can solve the problem, which is around you? Then we'll also try to find out the product gap. So there are multiple products in the market. We will discuss about all those products, and we will understand that what are the possible gaps which are there in these products and how we can solve those possible gaps. Now, in the third chapter, we will understand what are the destructive innovation and how destructive innovation is creating a new market by itself. Now, in topic number three, we will understand Delta four theory to validata idea. Now, this Delta four theory was given by Kunal Sha, who is the founder of cred and free charge. He's one of the most intelligent entrepreneur in the Indian start up community. Now, using the Delta four concept, we will try to unlock our ideas. We'll try to validate those ideas using a Delta four concept, and we will understand that if you have a couple of ideas in your mind, how will you validate that which idea is going to become a big success or a big company down the line in five or ten years? Now, in topic number four, we will understand very simple day to day problems, which we all are facing and how you can solve all those problems and you can really build $1,000,000 business out of those problems. Now, in Topic five, we will think almost five, ten years ahead, and we will see how the future trend is going to look like. And for all those people who really want to build $1,000,000,000 business, or let me tell you a very simple thing. If you really want to build $1,000,000,000 business, you have to think almost five, ten years ahead. Then That's how you get to know that what are the possible problems people are going to face down the line in five or ten years? If you start solving those problems now onwards, that's how you build our business, which is going to be $1,000,000,000 opportunities in next five or seven years. So in this, we will try to solve very complex problem using artificial intelligence, machine learning, data science, cryptocurrency. We are going to use all these concepts to solve very complex problem. So let's start our first topic. How will you validate your idea with the help of these three important factors, scalability, market growth, and investors. So in module number one, we had a discussion on two different types of startup ideas. One is the traditional bakery shop, and another one is a tech company. We had a discussion that why a bakery shop is not able to raise an amount of funding while a tech start up end up praising almost millions of dollars. Now, that simply means that anything which you can't scale with the minimum cost and the least time possible, that's not a good start up opportunity for investors. You have to look for something which can be scaled in multiple cities or even in multiple countries with the help of minimum cost and lease time. And that can only be done if your startup is using technology as way or a medium to spread your product. Then you have market growth. So no matter what you are doing, you have to tap a big market. So we had a discussion on total addressable market, which is also called TAM. So if you have a tam of around five, ten, $20 billion, then it's a good start up opportunities. That simply means that investors are going to put some amount of capital if your TAM is at least ten or $20 billion down the line, because investor will always look at five or ten X or 30 X return from your company. So if they're putting even $100,000, they're expecting at least $1 million or at least $10 million down the line in five or ten years. That is the growth they will see. So they always look for those start up ideas which have a big time and obviously a high growth percentage. So if your startup is going 5666 down the line, that's a very good opportunities for investors. And obviously, investor will always invest in a startup, which have a capital light business model. Some people also call this as a lean business model. So if your startup require very less capital and if your startup can invest, I mean, expand very fast, that's a good start up in terms of investment from investor side. So in the last video, we have taken the example of a bakery shop and tech companies. I've told you that a bakery shop require a large amount of capital for storefront to pay wages to the people who are working in the bakery shop. They also have to maintain a separate inventory. They also have a high operational cost, and that's why it is very difficult for a bakery shop to expand into different location in the lease time and minimum capital because bakery shop always require high capital and more time. While in a tech company, there is no storefront. You just have a e commerce platform website or application. You do not have to pay that much amount of wages. I mean, if you really want to expand into a different city, you just need to employ one more people, and that person is going to pack your product and ship it to that particular city. Also, in tech company, you have a centralized inventory, and operational cost will always less because you can automate so many things like order taking, order processing, and you just need to fulfill the order by the help of people. Okay. Also, if you look at the market growth. The bakery have a limited footfall constraint. I mean, maximum 1,000 people can come in the bakery shop. They also have a space constraint, which simply means that only limited number of people can come in the bakery shop and purchase it. Now, long story short, this simply means that a tech company can easily be scaled up with the help of technology in the least time with the most efficient way. While it's very difficult for a bakery shop to expand into a different location. You need to have a lot of capital and a lot of expenditure in place. And same goes with the market growth. If you're not expanding into different cities, you have a low market growth rate. While in tech companies, you have a high market growth rate. 24. Billion dollar ideas: So I think we're done with section number one, and this section, which is section number two or module number two, we're going to talk about some billion dollar ideas. Believe me, this section is going to be a little fun for you because now we're going to explore a couple of unique, interesting ideas, and we'll see how exactly you can solve some very basic problem around you and you can build a real business out of that problem. Uh, so we will but before that, you will understand that what do you mean by billion dollar business? Because if you really want to build $1,000,000,000 business, you really have to build a scalable, a technology oriented, and a high growth business. Any business that you really want to expand cross border, you have to make sure that the business is built on technology. The business is growing very rapidly, and obviously, you should have a good product, which people are ready to pay for. And you should also need to achieve scalability in that product. And then we'll try to find out some very basic ideas from our day to day problems from our day to day product gaps that we see, this product is not that good. This product is having that kind of problem, how exactly we'll pull out those product gaps. And we'll also try to solve or do some disruptive innovation that in the disruptive innovation, we'll think almost ten years ahead and we'll see what exactly how exactly the world is going to look like after ten years. And then we'll try to come back to the present time and we'll see how exactly we can build this kind of product or problem. Um, so yeah. And then we'll understand about the Delta four theory, which is given by unalsa. This is one of the most interesting theory you will ever get to know, and we're going to talk about that. Then we'll see some couple of million dollar ideas because if you do not really want to build $1,000,000,000 business, you can still build $1,000,000 business. So we're going to talk about some really basic million dollar ideas. And then we're going to solve some very complex problem which will be there ten years ahead and we'll see how exactly 25. 3.c.How to Think of Startup ideas: So let's start this module with our first chapter. How to think of new ideas. So for those people who are looking for ideas, this one suggestion from side. Never look for ideas, always try to solve the problems. If you are someone who is trying to solve the problems which are already there in the market, you end up generating new ideas. But if you only focus on ideas and do not focus on problems, then you are solving something which people don't really care. Now, I will tell you three different ways by which you can think about ideas. The first way is keeping a problem journal. So from the time you wake up to the time you sleep, you will encounter with almost hundreds of ideas every single day. Now, that simply means that if you look on these problems and if you try to solve those problems by yourself, you end up generating some good business opportunities. I'll give you a couple of examples. If you hate scrapping your windows, there are so many companies like Robot. These companies are really successful in the United States. I mean, these companies are scrapping windows for big corporate offices or houses. Also, if you hate waiting for taxis, we have companies like Uber who just built out of the basic problem of waiting for taxis, negotiating with them, and, you know, people don't really have that much amount of time. And that's how these companies are built. I'll take one more example. You hate hotels. And that's why you don't like the experience of going to a hotel. It's not hygienic. It's not you know, a place where you can spend some time. That's why companies like AirBNB in maybe North America and OO in Southeast Asia. These companies are growing very fast because they provide a standardized experience to the customer so that they will feel happy on their holiday or maybe on their vacation. Now, this simply means that you have to keep a problem journal. So whatever problem you are facing on your day to day life, you have to write all those problems on a diary or on a piece of paper, and you have to think that, hey, man, how can I solve this problem more efficiently, and how can I create a better product to solve this problem. Second is finding a product gap You already have so many products in the market, and sometimes you feel that and I don't really like this product. I really want to build something new, but I don't know how. Now, to find a product cap, you first have to understand what is the basic problem this product is solving and how efficiently this problem can be solved, and that's how you think about a business idea. I'll give you a couple of examples. There are so many people who do not like MSXL I'm talking about. Because they can't really automate the task. For example, you have a meeting date and a meeting column in your MSXL you really want to automate those tasks. For example, if you have meeting on 15th, then book a Zoom call for me and deliver this message to this client or customer. But you can't really do those things in MSX. That's why companies like Airtable are there. Now, Airtable is a space where you can really automate all the function. If I have a meeting on this date, then book an appointment, book a Zoom call, and deliver this message. So they have multiple plug ins which you can attach and you can put if else, what if all these kind of functions. Now, that thing is not really possible in Amsxel or in Google Street. That's how companies like Airtable came in. So I know a couple of people who can't really manage their team well. The basic problem is they don't know how to track down the process, how to assign a proper task to them, and that's why software like clickup will come handy. I mean, I click up, you can simply assign a task. You can track down the process of the task. You can see whom you have assigned this task to, and what is the deadline? What are the LS functions? You can really do some amazing stuff in click. That's why it's very useful. Let's take one more example. A lot of people find it very difficult to pay through card every time they shop online or maybe in a restaurant or maybe in a grocery store. And that's why companies like PTM is solving these kind of problems. Now, with the help of PTM, you just need to scan a QR code, or you just need to pay other person with the help of UPI. It's just a one click process. You do not need to give your card every time you shop, buy, or purchase anything, you do not need to put pin and so many kind of stuff every time you are purchasing something from a grocery store or something online. That's a very handy tool. And that's how people end up creating good product, just by looking at the problem which are faced by people in the current scenario, and then they will think that, how can I create a better version of the existing product or the existing problem. Now, third, we have disruptive innovation. Now, all these start up do not have any market right now, but you are doing these innovative things just to create a market in next five or ten years. I'll give you an example, self driving car. Currently, there is very less market for self driving cars. But a lot of companies are putting huge amount of capital because they know that down the line in five, six, or ten years, this technology is going to be very helpful for a lot of people. That's why they are putting billions of dollars in creating self driving technology. Google is there. Toyota is also doing it. Ford is also doing it. Tesla is already the market leader in the self driving technology, and there are so many other companies which are still working. Then we have companies like SpaceX, who is taking people on mass. Now, this approach sound a little funny in the can scenario, but if you look down the line for ten, 15 or 20 years, this will become a possible thing. 26. 3.d.Delta four theory to validate ideas: Now, let's jump into the Delta four theory. Now, Delta four theory was given by a famous Indian entrepreneur called Kunalsa. Now, Kunalha is the founder and C of CredenFre charge, and he's one of the smartest or I'll say a brilliant entrepreneur who have created two very successful companies. He told if you really have multiple ideas in your mind and if you really want to validate those ideas, use this Delta four theory. I really like this theory because this theory will give you a clear picture he gave a Delta four framework to validate those business ideas. If you're confused that, Hey, man, should I go with this idea or with this idea? These two ideas are looking good. How should I go on with these two ideas or whether I need to invest money in these two ideas or not. He gave a Delta four framework with the help of that framework, you can simply tell yourself whether this idea is going to work in future or not. So he took two different situations and gave efficiency score in those situations. And he simply asked one simple question. Give efficiency score 1-10, where ten is the most efficient state, and one is the least efficient state. So imagine booking tickets offline versus online. I'll ask you to give efficiency score to these two different situations. Take a couple of seconds and tell me the efficiency score 1-10 for booking tickets online, was his booking tickets offline? So I will feel a lot of people will give two efficiency score to booking tickets offline and eight while booking tickets online. That simply means that booking tickets online is more efficient than offline. Then you simply have to find the difference. If the difference is coming out to be greater than four, then it's a good idea to solve. The difference between these two is six. That simply means that a Delta value is more than four. So that is the Delta four concept which is given by Konsa. The difference between these two values is coming out to be greater than four. That simply means that this is the Delta four problem that you can solve, and this will really unlock the pot of gold. Now, this simply means that if you're creating something which have a Delta value of more than four, then you are going to create something very exponential, and you will succeed for sure. Now, let's understand the behavior characteristics of Delta for product. So Delta four product are always irreversible. That simply means that once you start booking tickets online, no matter how many problems are you facing with the online booking process, you still end up booking those tickets online. You can't really go back to the offline mode and you'll wait in line for 1 hour and then you have a ticket. You will always end up booking tickets online because that's the most efficient stage. So Delta four product are always irreversible because they are so good that people will never go to the previous media to the previous product. Second is the UPP is greater than USP. Now, USP we all know unique selling proposition, UPP is unique Bragworthy position. Now, I'll explain UVP with the help of an example. How many of you install tricolor after watching an ad, and I'll find no one who installed tricolor after watching an ad. So I'll tell you how you installed tricolor. One of your friend came up to you and he told you that, Hey, man, give me any number, and I'll tell you that number belongs to which person, and that's how you end up installing tricolor. That simply means that unique Bragworthy position or UBP of tricolor was so much that people start installing this app automatically by themselves. That simply means that all the product or all the Delta for product have UBP that simply help them to grow very fast. So if people are communicating between them very efficiently that him and why you are using this technology or this service, there is a more efficient way to do that. That's how organic growth will come in, and that's how companies end up creating a really good product because in those product with Delta f value, UVP is there and UVP will always greater than USP. Third characteristics of Teltah behavior is high tolerance. So no matter how many problems you will face with online ticket booking process, you still end up booking those tickets online because you're not really happy with the offline process. That simply means that Delta four product have high tolerance. No matter how many problem you will face with the online ticket booking process, you still end up booking those tickets online. You will never go back to the offline mode. Okay. Now, now we will understand how companies are faking Delta four or how they are inflating the Delta four number. I'll try to explain that thing with the help of an example. For example, buying shirts online versus offline. I'll ask you to give your efficiency score. Some people will give efficiency score of eight to four, eight offline, and four online. They find offline medium more efficient while some people go in the other direction. They'll say four and six. They'll find online medium a little less efficient, but still very efficient. Which simply means that Delta value can be three, four, or zero or sometimes negative. Now, that simply means that some people are very happy with the online purchase while some are not. Now, this simply means that companies started giving lots and lots of discount in buying shirts online, and that's why people think that and that's why people think that, Hey, man, I'm getting almost 40% discount on this tissue. I think I should try buying it online. And they started buying those stations online, they return it back, and then again and that's how they end up getting a good T shirt at their doorstep. That simply means that these companies have to give a lot of discounts, a lot of maybe they have to burn a lot of cash to really inflate that Delta four value. That simply means that these companies are faking or inflating the Delta four number, either by giving more discount or more cash back. Or by using celebrity endorsement or influencers. If you look back almost 50 years back, no one was really bothered about fairness cream or wrinkle cream. But nowadays, these companies are literally selling these products with the help of influencers or celebrity. And if you ask me at that time, we didn't really need anything for our body or for our posture or for our skin. But nowadays, our brain is subconsciously trained in such a way that we need these kind of products. Now, what is the key learning from Delta for theory? The first key learning is take customer feedback before you start building a product. Now, I have seen a lot of tech people who started building product even before taking the customer feedback or even before building a minimum viable product. The main reason behind it, if you take customer feedback from a simple prototype or from a minimum viable product, or if you write anything on a piece of paper and you start taking feedback from people or from customer, you will guide a different perspective towards things. And if you're getting 70, 80% positive feedback towards the product, which you are trying to build from customer, then you'll start end up creating that product in a perfect way. Otherwise, you end up creating something which people don't really need. So before building anything, build the minimum wire product or a prototype or basically a simple PowerPoint presentation or a simple Excel sheet, show it to the people, show it to your mentors, to your classmates, to your batchmts once you get a good validation from their side, then you come home and start building that product. Second thing is build products which have a brag worthy power. There are so many companies which are doing lots of marketing campaigns, Facebook ad, Instagram ads, and that's perfectly okay. But if you built out something which have a good brag worthy position, your product will go faster than you can think or you can imagine, because a lot of people are doing word of mouth for your product, and that's how you end up building something really awesome or really great. You have to think, if I build this or if I build that, will that have a brag worthy power or a brag worthy element in that? You have to ask yourself. Third thing is your product should have a low switching cost. That simply means that there are so many products which became industry standard. For example, MSL or PowerPoint, these software industry standard. People are using the software from class fifth or class six onwards. That simply means that you can't really build a product who can compete with MSface or MSL. Even that product is five, ten times more efficient, still people are not going to use it because that became the industry standard, and those people are going to use and those people are using the software from fifth or sixth class onwards. So they became the industry standard. 27. Idea to product Intro : Third section is all about idea to product journey. So if you really have multiple ideas in your mind and you, remove almost all of them and you just have one idea. Now, how exactly we'll build product out of that idea. You'll have to take multiple hypothesis in your brain. You have to build a couple of prototypes, and then you're going to build MVP, a functional MVP, and then how exactly you end up building a good product out of it. We'll understand out all these things in this topic. So we'll understand how exactly these wireframing tools work. What do you mean by hypothesis or MVP? How will you build rapid product development and all these kind things in this section, which is section number three, idea to product. 28. 4.a.Idea to Product overview: So, hey, everyone, welcome to the lean startup. So far, we've got a good understanding of how things really works. So, in the first module, we had a discussion on the startup terminologies like who are incubators, who are accelerators. What are the different types of legal entity? In the second module called the billion dollar ideas, we had a discussion on two different types of approach to go on with ideas. For example, you can look up to a small idea. Which have a very less time, and you can easily become a millionaire. Or you can look up to a big problem, which is going to be a very big market, maybe in next five and ten years, and then you can solve all those problems related with automation, artificial intelligence, machine learning, and robotics, maybe cryptocurrency. All these market and opportunities are going to be $1,000,000,000 opportunities in next five and ten years. Now, in this module, whatever idea you have in your mind, I've also given you multiple approach to go around with ideas, how to explore different ideas, how to choose ideas, So I assume that so far you have multiple ideas in your mind, and now in this module, we will discuss that how you can go around with those ideas. So in this module, we will understand three most important stage of a startup. First one is the ideation stage. Second one is the prototyping stage, and third one is the MVP stage, which is also called as minimum viable product. From idea, we will first build a prototype, and then from prototype, we will end up building a MVP, and then we'll take feedback to multiplieration, and then we can build the real product. Let's quickly start our journey with the module overview and we'll see what are we going to learn in this module. We'll start off with a journey with three H strategy, and three H is very important if you're trying to find a founder market fit. There are two kind of things, product market fit and founder market fit. We'll understand about those things, but you have to choose people from different domain and with different background so that you can build a real product. Then we'll understand about building a prototype from an idea. Whatever idea you have in your brain so far, I'll tell you different tools, different ways, and different techniques by which you can build a prototype from that idea. In the third chapter, we will understand how you can develop a MVP from that prototype. So for example, if you have an idea of something, then you end up building a rough sketch, so cold as a prototype, and then you end up building a real MVP on different tools. You'll see in this module, I'm also going to build a social media app. MVP of a social media app just to show you that how things can move around in different stages of startup, and we'll see. I'm pretty much sure that you can enjoy it for sure. In the fourth topic, we will understand how you can test multiple hypothesis. So when you have a prototype, you have multiple hypothesis on your brain. So you have to test all these hypothesis, whether this thing will work or this thing will work, whether people will like this color or that color. So you have to do multiple AB testing, and you have to test multiple hypothesis. We'll understand that how companies will test hypothesis, and then they'll end up getting a final result with the help of a feedback loop. 29. 4.b.How to build prototype: The first module, I told you that how you can validate your billion dollar ideas. And I've given you three important pillars to validate your billion dollar ideas, scalability, market growth and investors. Any start up ideas which can be scaled with the help of technology, which have a high growth rate, and high growth rate will always come when you have an open market with high growth rate and very less competitors. And Third one is the investors. Any start up idea where investor can back you up. So scalability simply means that you have technology integration, and you require less human to involve in your company. Market growth simply means that the market growth percentage is very high. You're growing at the rate of 300 400% to year on year, and obviously, when the PIE is expanding. So if you have a high M or a large M, then your startup end up getting high valuation and high growth rate. Tim is nothing but total addressible market. So if you have a very big market to solve, you end up becoming a very big player in that market. And third, one is the investors. Investor will always invest in the asset light business. So if your company require very less amount of funding for expansion, that's the best choice for investors. So let's start off our journey of this module with prototype. What exactly is prototype? So prototype is nothing but an early sample of a product, which is built to test a concept or a process. So whatever you have in your mind, you always try to omit out your thought process, your functions, your initial ideas on a piece of paper. And that piece of paper or that piece of plastic box or cardboard box will work as a prototype for you. Remember, prototype is not the real product. It is used to test a concept or a process. And that's the first stage of an idea. You always have to build a prototype before you start jumping and start building MVP for that simple product. But you might ask me that Why do we really need a prototype? I mean, we can directly jump on building a start up and then we can take the feedback, and then we can start asking from people that him and we have built this, do you love this or not? And the real idea is, even you are not very sure about your idea. I mean, you first have to put your thoughts on a piece of paper, and then you are able to churn out the things that can we include this or we need to include that or how we have to assemble these things up. What are the different approaches we need to use, and you have to do multiple thought process, you have to go through multiple stages, and then you end up getting something which really works. So if you ask me about the cycles which are there in the prototype, then you have requirements based on those requirements, whatever you want to build, you have to quickly design that specific thing. And once you are able to design that thing on a piece of paper or maybe on a not book anywhere, then you can build a prototype, and then you can basically evaluate the users or maybe refine your prototype, and then you can implement and execute towards MVP. So, for example, if you want to build a specific toy or specific car, then you start off with a pen and a piece of paper, and you'll start writing all the requirements, how many components are there, how the model is going to look like, and then you can cut a cardboard box or a piece of paper or anything, and then you can stick all those things, and then you can see that whether this is looking good or not, and Then you can take feedback from your friends, from your family members, and you can ask that, this is what I want to build at a very large scale. Tell me what else I can improve in this. And then you can refine the thing, do a little bit of yration and then you can start implementing those things on a software, or if you're trying to develop an app, then you can start building a MVP of that app. Now, MVP is something which really woks. This prototype is static. This will not work until unless you do not move by yourself. MVP will always work. If you're designing an app, click click click, MVP will show you the complete process flow, how things are connected. I'm going to develop a prototype as well and MVP as well in this video, so stick with me. But this is all about the prototype. So prototype and MVP have a very thin line, and there are multiple tools by which you can develop a prototype, and there are different types of prototype which are out there in the market. I'll try to cover all those The first one is three D printing, and you might not have three D printers at your home, so you can talk to some people, or maybe you can go somewhere and maybe print your design or object on a cardboard box, and then you can take that back home and then you can see that whether this is looking good or not, what else I can do? What are the different things which I need to add on this prototype and all of that. Then we have wireframing. Wireframing is nothing but you design multiple windows of your product, and then you will connect those windows with the help of a simple res. That's why this is also called wire framing. So for example, if you have five different layout of your product, you will connect wires of different layout with each other. So, for example, you'll connect this to this, then this to this, and this to this, and then you have all the process flow of your product. If you don't put this, then it will go to this. If not, then this. If yes, then this. So all the process flow will be there in wireframing. Then you have mak ups. Now, Mk ups are the real product. For example, if you want to build real windows of the app or real images or real photographs of the app, that is nothing but a mokp. Soup is a visual product, a real product, which is going to be built in the end stage. So all these three are the prototyping stage. Now, you can build all these prototype in a computerized form, That can also be called as a MVP using platforms like AB XT, Webflow, Marvel, Figma. There are multiple tools out there, by which you can build a prototype, you can test the hypothesis. You can build MVP for that as well. Only the front end you can build, you have to build your back end to get the data and process the data into a different way. But that's how you can do your stuff if you really feel motivated to do something in your life. So we start of our journey by designing a very simple window of a mobile lap this first window will have some very basic element like putting a logo at the middle, then putting a sign of button or a login button where you can just get the OTP by putting in mobile number. And that's a very simple window first window, which is there in our social media app. Then we'll make a second window where we will be putting some very important features or things we want in our social media app. For example, if you are developing a social media app for college student, then you have to hyper connect the people within the college. For example, if you are there in the college, you might find Instagram and Facebook is giving you all the feeds which are happening outside college. So maybe your childhood friend or maybe your friend, which was there in high school, you end up getting all those notification feeds which you are not really interested with. But you really want a localized or hyper localized app, which is Darko college, and all the people in your college are using it, putting photographs of food, playground, playing shocker, cricket, all that kind of stuff. So you want features like maybe, resource section where you can download different sort of resource file, maybe recent year papers, PPT files, important documents, and then you also have a chat option where you can chat to people. And then you also have stories option where you can look for stories, what people are posting on their parachute app, where people are going, what they are doing, how they're studying all these kind of stories people can post, and then you have a explore option where people can explore the feeds, put their opinions, everything. So once you click on stories, you end up opening stories and the stories will start playing, and then you can scroll right for next story. And if you click on resource option, then you'll end up getting different stream in your college, for example, you might have different stream like MBA, BSC, BC and BA. Uh, so if you open the resource section, you'll jump into different sections, and then you can download notes, slides, PPTs, resource file documents related with these specific, uh, uh, I mean, um, stream. That is the basic overview of social media app. That's a very basic framework. This is like 1% of the complete app, but still we are doing it just to omit out all the information we have in our bin. You might have two, three extra windows in your brain. You can also draw that. But just for simplicity, I've just drawn the four simple window just to show you that these are things which I have in my mind, and maybe I'll end up getting more and more windows, maybe in the real MVP. This is the prototype. We will also build a MVP using Marvel dot app, and we will see that how these things will be connected and how these things will really work in future. We will name this app as a parachute app. I'll also add an extension of parachute Dotao. That's all about the social media app. I'm pretty much sure that you have a good understanding of how things are working. 30. 3H strategy for Building Dream Team: Hey everyone, my name is not VIP. And in this video we're going to talk about the 38 strategy of a startup. And one of the most important characteristic of a good startup is having a very strong team. And usually investor define that as a dream team or found a market fit. That means you must have these three most important people, hipster, hacker, and Hustler. Let's start our journey with a hacker. Now hacker is the CTO of your startup. Now CTO, it's someone who will take care of your complete tech stack. That means from your consumer app to your dashboard, to all of your product development, to all of your deployment. Cto is taking care of each and every small thing that goes inside your code or inside your technology. That means you have to have a hacker in your company or in your startup. Then comes hipster. Now hipsterness, someone who understand the customer very Valley. Hipster is a UX UI designer or disposing can be a product expedience person who have a good understanding of product, who understand the pinpoint of different users. And you have to have hipster in your company. Because obviously hacker, it's someone who can build scalable technology product, encode who can do a lot more pins, but you also need hipster because now I'm getting one person who can understand the customer demand, who can understand how exactly customer are going to use your product and so many different types of thing. And obviously, you also need one hustler. Now Haslett, it's someone who is a business savvy person, will can take care of all of your sales and marketing campaigns. How many sales representative you have to hire? What is your sales team? What is your go-to-market strategy? Now, obviously, you also need one hustler. Now hostilely is a business savvy person who will take care of all your marketing, spend all of your sales hiding, new VP of sales, hiring, business development representative, and all these different types of sales marketing and performance marketing campaigns. Now you need all these three different people in your company. You're Hacker U or hipster and you Hustler. If you are a hacker, you have to find a hipster in hospital for your startup. If you are a hustler who understand the business domain very valuable, can sell product to different people and enterprise. Then you have to find the hips, turn a hacker for your company. Now you have to make sure that you will have all these three people in your team so that you can make a perfect founder market fit kind of stop. And if you haven't looked at the most successful startup, you will find all these three different kinds of people and you will find all hacker. Let's take an example of DoorDash. You will have one hustler, Johnny x2 is the hustler AND or DoorDash. He was a Stanford graduate who was walking in multiple companies and building a very strong Muslim for sales, for business, to plan for customer expedience. And you also have Stanley Banks, who was the co-founder and DoorDash, and he was the hipster. So he was taking care of all of the o costumer experience, that different kind of dashboard that you need in a startup although, or thing that goes into design and experience, into product uses, into stickiness, and obviously a little bit of technology. And then you have a core technology person. So in DoorDash, that was AND Feng, who is the CTO of DoorDash. So he was taking care of all the technology products. So he makes sure that they are building scalable technology product which are used by millions of user within a second. So this was the perfect 3H2 him for DoorDash. Let's take one more example for companies like Airbnb. So you have brain Chomsky who was the CEO of Airbnb. You have lunch. It's hard to pronounce. I don't know how to pronounce this name, but he was the CSO or keep Strategy Officer. And then you have Joseph Gambia, who was the CEO, Chief Product Officer. So he was the hipster. Joseph caveat was the obscure of brain. Jet ski was the CEO or the hustler. And probably, I think obviously it's not mandatory to have all these three different kinds of people. But investors will always look for all people who have all the complimentary skills and who can take care of their individual domain. And that's why I feel that if you have these three different kinds of people in your startup who can take care of their own domain. Chances of your startup being successful is very, very high because now you have three people who is heading their own particular domain. And then they can aggressively recruit more and more people. They can build a very strong pipeline of very strong army of engineers, salespeople, and customer experience people. 31. 5.a.Introduction to Platform Business: Hey everyone, In this video we're gonna talk about platform business model. And I think this is used by almost all tech companies or e-commerce companies, you know. So from companies like Amazon, Uber, AirBnB, DoorDash, Tinder, almost all the companies use platform business model. So in this business model, you have consumer on one side, and then you have producer on one side. And then you have a platform who is connecting all the different parties. So let's say we look at companies like Amazon. You have customer or consumer on one side, then you have resellers on other side. Then you have a platform like Amazon app on an Amazon website, which is connecting both the customers with the reseller. And then Amazon is handling the payment, the logistic, and all these different types of things that is going on in the process. If you look at companies like Uber, you have customer or consumer on so-called writer on one side and drivers on other side. And then you have Uber as a mobile application who is connecting Bordeaux writer and the driver, or maybe a cable. And so that means your producer and consumer are connected to each other with the help of platform. And then your platform is providing value to both the consumer and the producer. Because obviously, it's really difficult for a producer to acquire customer because they have to do a lot more marketing. They have to build all these technology. And also it's very difficult for consumer to look around different options that they can have. And it's really easy for a platform to provide that technology or that option both for producer and consumer. And then the platform is adding value to both the consumer side or on the producer side. And because platform is adding value to both these party, that's why they are charging a specific fees or so-called margin. The main purpose of having a platform business is to help both of these parties in having a matchmaking process, tools and services, audience building and rules and standard. Let's start with matchmaking. Obviously, if you're using apps like Tinder board, the people can connect to each other. That's a good match making process. Not only that, let's look at Amazon. You can easily search product that you like from all different types of suppliers that Amazon have. Well, that's also imagemaking process. You can book a gap. Let's say you have three options or three varieties of gap. And you can book any gap that you want. Well, that's also imagemaking process. Now let's quickly understand tools and services. Now, all the resellers which are using Amazon, they can always look for the keyword volume, which is the arena Amazon, based on that, they can develop new product or maybe they can make new products or whatever they want. And even they can also track their sales revenue. They can also run advertisement campaign. Amazon provide all these tools and services to all of the resellers and seem to us as well. They also provide us a mobile app and a website to browse through different product catalogs and everything. Then you have audience building process. Obviously platform will help all these producer or a reseller in giving them a lot of customers and obviously increasing their sales by the end of the day. And that's why platform is charging a specific commission or a margin because they are constantly acquiring new and new customer for all these producer or reseller or cab driver so that they can also make money. Then you have rules and standards. All these black foam have very strict rules and standards. If you're violating the rules and standards of the platform, no matter you are a consumer, customer, or maybe our reseller or a driver or anyone, chances are that they're going to throw you out of the platform because you are violating the rules and standard, let's say tomorrow if a driver is misbehaving with all of the customer, or let's say salary, say selling something unethical than platform have the authority and they can be released, although resellers or all the drivers from their specific mobile app or platform. Well, that's the basic platform of overview. We're going to dig deep and understand all the specific startup and companies in a very detailed way. 32. 5.b.Uber business model: Now let's start a platform business journey by understanding Uber business model. And we're going to start with very specific business model that we have in our last video. So you have buyer on one side, a sailor on another side, and then you have a platform who is connecting these buyers and the sellers. In case of Uber, your Bible virus are your writers and your sellers are basically your driver. And then Uber is there in between and they are making 57, 10 percent of margin on every single writing. That's the business model. And obviously they create value and ended on off that they will make money from all these producer, consumer or rider or driver. Now let's quickly understand one of the most interesting and important concept in Uber business mortar and that is network effect. Now, I need a little bit off your attention to understand network effect because this concept might take a little more time to absorb. Now let's quickly understand one of the most important part or element of Uber business model, that is network effect. But before directly jumping into the network effect, let me quickly cover the growth loops. So these are the three growth loops. Let me quickly explain what these three broad group means. So if you have more number of driver in a specific area, you can have more number of writers because of waiting time is less. So let's say imagine two different scenario. In one scenario you have a driver and eight riders. In another scenario you have 16 drivers and just ate writers. In scenario number 2, the waiting time will be less because the number of drivers are more on the platform in a specific area. That means if you have more drivers, you can have more riders because the waiting time is less, not because you have more riders on the platform that drivers can meet more money. And because the drivers are making more money, Uber can always squeezed on the margin of the drivers. So if they're paying, let's say 17 percent, they can also pay 5% to those drivers. Just a hypothetical scenario. I'm not really in favor of the kind of policies all of these companies have, but I'm just giving you all these kind of strategy you can think about. So if you have more number of drivers on the platform, you can have more riders. If you have more writers on platform, you have less reading time. If you have more riders, your driver can make more money. And if you're a driver can make more money. They can squeeze down the margin of driver, and they can also charge less from customer because now network effect is there on the platform. So all these things are so well-connected that you will see something called as network effect. All these are growth loops. These are individual growth loops. Now let's combine all these individual growth loops and understanding network effect. Now this is the super powerful business strategy that you can see anywhere on the Internet. This is known as Uber virtuous cycle, and this is the perfect example of network effect. And in the middle of this growth loop there is something called as clot. Now what exactly will drive growth in your business? Well, local structure. Local structure will always give you growth. Well, if you have a local structure, you need to have low prices. Well, if you need to have a low prices, you have to have a good customer experience. Well, if you nee