EXPLORING BUSINESS MODELS OF COFFEE ROASTERIES LEAN Startup

EXPLORING BUSINESS MODELS OF COFFEE ROASTERIES LEAN Startup & Business Model Canvas

Agenda 1) Introduction 2) Research design • Traditional vs. Lean startup methodology • Business Model Canvas 3) Main findings

INTRODUCTION Education h rc ea cy an ult ns Co Re s DESIGN MAIN FINDINGS

INTRODUCTION DESIGN MAIN FINDINGS

INTRODUCTION HOW IS THE RESEARCH DESIGNED? DESIGN MAIN FINDINGS

INTRODUCTION Research objectives Purpose Investigating business models of roasteries worldwide • Lean startup methodology and BMC framework • Delivering practical tools for SCAE roasteries to use in their business Research period February 2015 – December 2015 Partners DESIGN MAIN FINDINGS

INTRODUCTION DESIGN MAIN FINDINGS The research process Phase 1 Preliminary survey: • 312 alumni students of London School of Coffee. Questions: • Demography. • Facesheet information. Phase 2 Preliminary survey: • 91 respondents answered. Sampling criteria: • Roastery owner. Result: • 62 respondents fulfilled the criteria are were contacted. Phase 3 Phase 4 Semi-structured interviews: • 19 interviews has been conducted out of 20. Research survey • Contact +1000 roasteries worldwide

INTRODUCTION DESIGN A new perspective on your business Traditional business plan LEAN startup MAIN FINDINGS

INTRODUCTION DESIGN MAIN FINDINGS

INTRODUCTION DESIGN MAIN FINDINGS

INTRODUCTION DESIGN WHAT ARE THE MAIN FINDINGS SO FAR? MAIN FINDINGS

INTRODUCTION Value proposition “Why do your customers prefer your products? ” Flavor Value for money Quality Localism Unique concept Trust Branding Customization Service Personalized experiences DESIGN MAIN FINDINGS

INTRODUCTION Customer segment “Who do you sell your products to? ” B 2 C: • Privates B 2 B: • Coffee shops • Cafés • Restaurants • Coffee bars • Supermarkets • Offices • Canteens • Coffee cart owners • Other (Delis, e-commerce, charity cafés) DESIGN MAIN FINDINGS

INTRODUCTION Channels “How do you sell your products? ” DESIGN MAIN FINDINGS

INTRODUCTION DESIGN Customer relationships “How do you acquire new customers? ” Samples Networking Meetings Market research Wo. M Cuppings Promotion Discounts Provide info development Product Discounts “How do you retain your existing customers? ” Service Staff training Quality Loyalty Customer feedback MAIN FINDINGS

INTRODUCTION Key activities “What would you define as your key activity? ” Sampling the right beans Nurturing brand Storytelling Uniquely roasting Building relationships DESIGN MAIN FINDINGS

INTRODUCTION DESIGN MAIN FINDINGS Key resources “What are the key elements enabling you to deliver your product to the customers? ” Expertise Synergy Green bean suppliers Staff Facilities Delivery of product

INTRODUCTION Key partners “Who are your key partners? ” Green bean suppliers Coffee houses Other roasteries DESIGN MAIN FINDINGS

INTRODUCTION Revenue streams “Which types of transactions do you engage in? ” B 2 B: • One-time payments • Subscriptions • Invoices • Up to 30 day credit • Bank transfers • Checks • Prepayments B 2 C: • One-time payments • E-commerce • Subscriptions • Mobile payments “Why do you work with these types of transactions? ” Flexibility Convenience Familiarity Trust & loyalty DESIGN MAIN FINDINGS

INTRODUCTION DESIGN MAIN FINDINGS Cost structure “Is keeping costs low a main concern in relation to your product? Why? ” Avoid waste High quality “What is your most expensive input to the production process? ” Roaster equipment Raw materials Salaries Premium products

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