Paul Hudnut
AREC MECH 581
April 20, 2011
Building on BOPportunities:
Strategies for Start-Ups
The Line Up
2:00 On The Edge
2:15 Becoming H.E.R.O.ic
2:30 Swimming LessonsEnvirofit
3:00 Sam Baldwin at LSC
Ballrooms
4:00 Tim Bauer
2:00- 2:15
ON THE EDGE (THEORY)
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 Polak
DESIGN FOR THE OTHER 90%
1
2
90% Population;
<10% of Effort
3
1 billon <$1/day
BASE OF PYRAMID
New Math for
2008-2020
1 Billion = 1.8 Billion
= BOPportunity?
1 US Consumer
× 4 Billion BOP
H.E.R.O.
2:15-2:30
BECOMING H.E.R.O.IC
Starting Up a “H.E.R.O.ic” Venture
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Pick 1 problem
Ask 2 questions
Solve for 3 S’s
Build on 4 foundations
Work 5 deals
1 Problem
(BHAWG)
??
SSS
Goods & Services
Building a start-up: 4 Foundations
4) $$ Value
1) Market
3) Mgt.
Team
2) Comp.
Advantage
5 Deals in a Start Up
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•
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Customer
Founders
Funders
Employees
Supply Chain
2:30-2:50
SWIMMING LESSONSENVIROFIT CASE
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
Customer
Customer
Customer
Customer
Distributors
Suppliers
Investors
Company
-Founders
-Employees
5 Deals
Envirofit Case: Final Thoughts
• Start ups are messy.
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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