Paul Hudnut AREC MECH 581 April 20, 2011
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Transcript of Paul Hudnut AREC MECH 581 April 20, 2011
Paul Hudnut AREC MECH 581 April 20, 2011
Building on BOPportunities: Strategies for Start-Ups
The Line Up2:00 On The Edge2:15 Becoming H.E.R.O.ic2:30 Swimming Lessons-
Envirofit3:00 Sam Baldwin at LSC
Ballrooms 4:00 Tim Bauer
ON THE EDGE (THEORY)
2:00- 2:15
My Pool
Business is about problem-solving, but it does not always have to be about maximizing profit..
Muhammad Yunus Business 2.0
“Most people look at a company like Apple and think, how could I ever make such a thing? Apple is an institution, and I'm just a person. But every institution was at one point just a handful of people in a room deciding to start something. Institutions are made up, and made up by people no different from you.”
Paul Graham, A Student’s Guide to Start Ups
Paul PolakDESIGN FOR THE OTHER 90%
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BASE OF PYRAMID
90% Population; <10% of Effort
1 billon <$1/day
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New Math for 2008-2020
1 Billion = 1.8 Billion
= BOPportunity?
4 Billion BOP1 US Consumer×
H.E.R.O.
BECOMING H.E.R.O.IC
2:15-2:30
Starting Up a “H.E.R.O.ic” Venture
• Pick 1 problem• Ask 2 questions• Solve for 3 S’s• Build on 4 foundations• Work 5 deals
1 Problem(BHAWG)
? ?
S S S
Goods & Services
Building a start-up: 4 Foundations
1) Market 3) Mgt. Team
2) Comp.Advantage
4) $$ Value
5 Deals in a Start Up
• Customer• Founders• Funders• Employees• Supply Chain
SWIMMING LESSONS-ENVIROFIT CASE
2:30-2:50
Envirofit Case
• What is the situation?• What sucks? What is EF going to do about it?• What is the opportunity?
– What challenges?• What does this team need to do to move this
venture adventure forward?
Envirofit: Technology Development
• In 2003, what stage of development was the DI retrofit?
• What were the major design constraints facing Envirofit?
• What are the 5 stages of product development they have planned? How long would this take?
• Any concerns? Suggestions?
Envirofit: Business Model• Who is the customer?
– Why would the customer buy the retrofit?– How did EF do market research?
• Would Paul Polak approve?
• Three S’s– Sustainable business model?
• What is the “triple bottom line” equation for EF?
– Scalable? How? When?– How significant an impact?
• For Profit or Non-profit?
Envirofit: Team and Network
Suppliers
Customer
Company-Founders
-Employees
Distributors
Investors
Customer Customer Customer
5 Deals
Envirofit Case: Final Thoughts• Start ups are messy.
– Lots of ambiguity– Many potential paths– Hard and soft issues– No heroes– Lots of work
• But to become a start up, you have to START UP. – Jump in the pool– Get going– Learn by doing
If you liked this…
• My blog is www.bopreneur.blogspot.com• Consider attending Jacqueline Novogratz
lecture tomorrow at 2 pm at LSC 228 – Non profit venture capital fund– Invests in start ups in India, Pakistan and East
Africa