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So on the interesting things about thinking a start-up is how is your company going to be organized and what we now know is the most efficient way to think about all the pieces just all the parts is by a business model and so the next question is okay Steve you just told me to think about a business model but what is a business model what areal the pieces well let's take a look the business model is how a company creates value for itself while delivering products or services for its customers now if you think about it in the old days we think about how to organize a company around functional organizations we think know a company is about its sales department or its engineering department, and you would draw an org chart, but now we're going to draw a very different diagram we'redoing to draw a diagram how to think about all the pieces of a business and so let×39’s take a look at these nine boxes to describe any company from the world's largest to a two-personstartup starting in your parents×39’garage later's take a look at the first piece called the value proposition the value proposition answers the question of what are you building and for whom the valuepropositionsays hey it×39’s not about your idea product it's about solving a problem Ora need for a customer that is what pain are you solving what gain are you×39;recreating and more importantly who are your customers now value proposition ISA fancy word for what product or service are you building this is where you normally would list all your feature sand here's all the speeds and feeds and benefits and whatever, but we're really going to be asking a different question than might have been used to it's not tall about your technology is just part of the value proposition customers really done×39’t marabout your technology the customers retrying to solve a problem or fulfill need by the way we×39’ll be talking about this through multiple lectures the difference between a problem and a needs a problem is I have an accounting problem, or I want to use a word processor and those types of products solve a problem, but there are another things that human beings do like Want to be entertained, or I want to have date those are some basic hardwired social needs, or I want to communicate with my friends like Facebook or Twitter those are needs are different from problems and by the way if you could find products that solve needs your total available market as you×39’ll see later is huge compared to I solve specific problems, so the next thing is who are my customers who are they and why would they buy and as you'll hear a number ofttimes your customers do not exist to buy you exist for them and what you×39’re going to do by getting out of the building disfiguring out all their geographic social characteristics demographics such that you actually could draw and put up picture of on your wall of whom the archetype is or who the persona is of your customer, and it turns out that inmost startups you might...
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