Name | Jim Shelton |
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Explain your Big Idea in one sentence. | Disrupt the Single-Family residential market with our unique competitive advantages and establish a foothold with large production home builders. |
1. Pain of the Customer | |
1. Who’s your target customer? | Large National and Regional Production Home Builders. |
2. What’s the job your customer is trying to perform? | Comply with the stringent new ventilation requirements found in the latest energy codes. |
3. What’s the pain your customer is experiencing while doing the job? | Their current ventilation installations will not meet code in the states that have adopted 2021 IECC. They need help designing a new cost-effective, high-performance system that will comply while keeping their homes affordable. |
4. How big is the pain the customer is feeling? | 4 Dog Bite |
5. How often are customers feeling the pain? | 3 Weekly |
6. What’s the pain score? | 12 |
7. How much market knowledge do you have to understand the pain? | Varsity |
2. Potential of the Market | |
1. How many customers are experiencing the pain? | 3 Thousands |
2. Sustainability? Can you provide the solution to customers profitably? | 4 Most Likely |
3. What’s the current overall size and growth of the market? | 4 Big & Fast |
4. Will your solution greatly affect the size and growth of the market? | 5 Yes |
5. What are the key growth drivers for the market? | The Inflation Reduction Act, 2021 IECC, ENERGY STAR for Homes v.3.1, 45L Federal Tax Credit, and COVID 19 |
6. What’s the financial potential of a business that solves the pain? | 16 High Growth |
3. Prescription for the Pain | |
1. What’s the name of your proposed solution to the pain? | AMPLIFY |
2. Describe your proposed solution to the pain and its key benefits. | We propose to work directly with Large Production Home Builders, their contractors, and energy raters to design ventilation systems meeting 2021 IECC and qualifying for the 45L Federal Tax Credit, leveraging our unique ventilation fans and advanced ERVs. Furthermore, we will provide a factory direct purchasing program to optimize cost efficiency and reduce delays throughout the process. |
3. How distinct is your solution from what already exits? | 4 Very Different |
4. What types of innovation are you using to differentiate yourself? |
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Other | |
5. What are the primary differentiators of your solution? | 1. Unique High-Performance Certified Products |
6. How much domain expertise do you have to solve the pain? | Varsity |
4. Positioning in the Market | |
1. What does the competitive landscape (jungle) look like? | Gorilla |
2. Name the current market gorilla. | Broan |
2.1 No Market Gorilla | |
3. Are you competing head on with a gorilla for the same customer? | Yes |
4. Who goes out of business if you win? | Maybe Air King. Broan is diversified and is currently focused up market. |
5. Based on the proposed solution, what’s your market-entry strategy? | Disruptive Strategy |
Face Punch | Compete head-to-head with market leaders for existing customers with a solution that is similar to existing offerings (i.e., no innovation). |
Greenfield | Create a brand new market category where competition is non-existent; create new customers and draw customers in from other markets. |
Bolt-on | Extend an existing market by adding a product or service onto the market’s current offerings; partner with market leader (i.e., incremental innovation) |
Geographic | Import proven business models and innovations from one country to another (i.e., geographic innovation). |
Breakthrough | Develop products that are 10x better than market leaders; competing for same customers with high “switching costs” (i.e., 10x innovation). |
Disruptive | Target unmet needs of underserved customers at the low end of an existing market; competitors flee up market rather than fight for the low end. |
5. Path to the Exit | |
1. How large is the universe of potential buyers for the company? | 5 A Hundred |
2. Who are the top likely potential buyers of the company? | VPs of Construction and Procurement for the Big Builder 100 |
3. Do you plan to engage in partnerships with them? If so, how? | Yes. Through Affiliate Marketing Programs and Commissioned Energy Rater Affiliates. |
4. Do you currently have access to relevant distribution channels? | Sort of |
5. What’s the overall likelihood of the company becoming acquired? | 2 Long Odds |
The Big Idea Hypothesis | The output of this worksheet is to create a hypothesis that you can go out and test. Writing down a Big Idea Hypothesis forces you to focus and clarify what you believe before you talk to potential customers or build prototypes (see Nail It Then Scale It, p. 69-73). The best tool we have found for formulating your Big Idea Hypothesis is found in Geoffrey Moore’s book, Crossing the Chasm. Moore calls it the “elevator message,” but we use it for the Big Idea Hypothesis. The steps of the Big Idea Hypothesis are:
EXAMPLE 1 – Using this format, let’s take a look at a potential Big Idea Hypothesis for Surf Air, a subscription-based airline startup headquartered in Santa Monica, CA. “(1) For the frequent, wealthy business traveler (2) who dislikes the airport experience, specifically checking in, going through security, waiting at the terminal, and picking up luggage, yet doesn’t have enough wealth to buy a private jet, (3) Surf Air is an airline that (4) allows the traveler to skip all the hassle of the airport experience and have access to a private jet experience without the cost. (5) Unlike traditional airlines, Surf Air (6) is a subscription-based airline, which employs small, luxury planes that can be used by customers like private jets.” EXAMPLE 2 – As an another example, the following is the Big Idea Hypothesis Paul Ahlstrom created for his software company, Knowlix. “(1) For the Internal IT Help Desk managers of large corporations who (2) have dissatisfied customers and are out of compliance with their Customers’ Service Level Agreements because each front-line support representative is unable to capture and share knowledge so they can answer customers’ technical questions and problems in a timely manner, (3) Knowlix is an IT Knowledge Management Solution that (4) allows the front-line IT Customer Support Reps to capture issues within their existing workflow and provide accurate answers in real-time to their corporate customers. (5) Unlike Inference, Knowlix (6) integrates large amounts of unstructured data into the existing workflow of Remedy, Peregrine, and other leading IT Help Desk systems, thus allowing the frontline support rep to answer the question on the first call.” |
Your Big Idea Hypothesis | Now that you have a foundational understanding of the Big Idea Hypothesis, let’s create one for your big idea (see Nail It Then Scale It, p. 71). By using the answers you provided on the other side of this Canvas, you can piece together a Big Idea Hypothesis that will help focus your efforts and share a clear message as you talk about your big idea with others. So let’s go retrieve each step of the Big Idea Hypothesis. |
1. For (target customer): | Large National and Regional Production Home Builders. |
2. Who (statement of monetizable pain): | are struggling to cost-effectively comply with the stringent new ventilation requirements found in the latest energy codes |
3. The (product name) is a (product category): | AMPLIFY has high-performance ventilation solutions |
4. That (statement of key benefit): | can help design cost-effective ventilation systems that meets 2021 IECC and qualifies for the 45L Federal Tax Credit by utilizing proprietary ventilation fans, ERVs, and a factory direct purchasing program. |
5. Unlike (primary competitive alternative): | Broan |
6. Our Solution (solution and primary differentiation): | Unique High-Performance Certified Products and a U.S. Based Factory-Direct Business Model along with exclusive Affiliate Marketing Partners, Commissioned Energy Rater Affiliates, and Strategic Alliances |
With all the steps identified and written down, you can now stitch them together to create one, unified Big Idea Hypothesis. Give it a try below. | Large National and Regional Production Home Builders are struggling to cost-effectively comply with the stringent new ventilation requirements found in the latest energy codes. AMPLIFY can help them design cost-effective ventilation systems that meets 2021 IECC and qualifies for the 45L Federal Tax Credit by utilizing proprietary ventilation fans, ERVs, and a factory direct purchasing program. Unlike Broan, AMPLIFY offers unique high-performance certified products and a U.S. based factory-direct business model along with exclusive Affiliate Marketing Partners, Commissioned Energy Rater Affiliates, and Strategic Alliances with industry innovation leaders. |
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