Product/Market Fit  Twists and Turns
Upcoming SlideShare
Loading in...5
×
 

Product/Market Fit Twists and Turns

on

  • 322 views

Based on 2 successful startups and one in-progress startup. Some axioms and lessons are shared about getting a product that people want.

Based on 2 successful startups and one in-progress startup. Some axioms and lessons are shared about getting a product that people want.

Statistics

Views

Total Views
322
Views on SlideShare
321
Embed Views
1

Actions

Likes
0
Downloads
6
Comments
0

1 Embed 1

https://twitter.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Maybe I need a random comment on slide #1 to get slideshare to see slidenotes 05/14/13
  • Agility vs schizophrenic
  • The most important thing to focus on is finding the core ‘nugget’ that your prospective customers are going to die without.
  • Agility vs schizophrenic

Product/Market Fit  Twists and Turns Product/Market Fit Twists and Turns Presentation Transcript

  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozProduct/Market FitTwists and TurnsDavid JonesFounder StreetHawk, Mentor StartMateFounder ThreatMetrixFounder/CEO EmUTech->SurfcontrolFOUNDERSINSTITUTEMAY 13
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozThis talk is “Pivot”-free
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozFocus or FailIn Australian you have limited resources and cash reservesthen focus is your most valuable disciplineif your hypothesis wrong at least you “fail fast”(picture credit: Mick Liubinskas/Pollenizer)Don’t letPerfect be theEnemy of theGoodDon’t letPerfect be theEnemy of theGood
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozGET TO THE CORE!!!DON’T GET HYPOTHESIS BACKLOGThe mistake we all make is to generate product ideas withoutproving they are so valuable that your customer “must haveit”.Have a look at Lean Canvas:- Method is to break out biggest risk hypothesis- Test first to prove/disprove
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozRevenue is a deodorant
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozValidation Tip of the day:Look them deeply in the eye and ask for money
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozCaveatI really don’t know “Consumer” – observation isbased on experience in enterprise.What I do know is nobody in Australia has baked aconsumer success without a revenue model.i.e “Twitter”The funding just isn’t there (typically)
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozValidation Tip of the day:Look them deeply in the eye and ask for moneyBecause if you can’t get to product/market fityou will never get to sustained ARPU1.You will never get initial purchases2.If you do, the leaky bucket has a big hole.Average Revenue Per User. Also LTV = Lifetime Value
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozTalk to the right people1. Incumbent rejection/deferral is actually a strong positive signal2. But make sure you have 10x differentiation in your core.3. Find the core because there are many conflicting signals4. Don’t validate with your mum
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozYour Product is not your product(Ash Muraya)CustomerAcquisition&MonetizationCustomerAcquisition&MonetizationTheActualProduct(Code)TheActualProduct(Code)
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozCase 1: Benefit of Knowing Your SectorIteration/Evolution Hind-sight AxiomEmail Filtering for corporate Client asked for 1stiteration anddeveloped to.I knew the problem, worked witha customerIn ENTERPRISE, “Get out ofthe building” works.Spam Detection CEOs secretary gets a porn spam.Trial immediately approved andinvoice paid.Be a pain-killer not avitamin.Melissa/Lovebug virusreleasedWe were well-positioned for anunforseen event.Catch the wave as itsbreaking.Exit to Surfcontrol Acquirers make build, buydecisions to catch up1 year later Major AV vendorsdeliver email productsCatch the wave as itsbreaking4 years later IronPort exits toCisco to >$800MRide the wave requires bigrevenue or big VC
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozCase 2: A History of “Twists”Iteration/Evolution Hind-sight AxiomSpamMATTERS forensic toolsfor enforcement“early adopters have sameaffliction as entrepreneurs”Don’t validate with yourMumBotnet tracking/IP Reputationfor securityOEM Model not a scalablerevenue model in securityKnow your investor. “Beginwith the end in mind”IP Reputation for fraudpreventionIP addresses not enoughgranularityBe 10x betterValidate with target marketearly and often“Markets Shift”Device Intelligence foreCommerceListening to Gorilla’s tell youabout the future. Respond tocustomers needs“Get TO the conversation”Real-time fraud preventionand enabling ECommerceVirtual GoodsVirtual CurrenciesSocial/FB GamingMassive transaction scaleMachine LearningBe aware of “tectonic”shifts(US Gov stops gambling)(New Commerce models)(Privacy Laws)
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozNon Vanity Metrics – keep yourself honest• See “Revenue is a deodorant” slide• Especially useful in “Consumer”• Startup Metrics for Pirates (McClure)– Its about the pipeline to revenue baby• Assert(LTV > CPA)• Retention/Churn• Install/Visit->Login->Engagement->Transaction• “Vanity Metrics” debate
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozReading/Repeating startup tips is easy -Internalising is hard• “Enterprise” startups– Measurement is not easy– No large base of consumer feedback– Solution: Solve a big problem– Ask for money when MVP feature-set agreed– Grind out the case studies and references• “Consumer web/mobile” startups– Is it in your DNA?– ***Your product includes user acquisition***– Don’t believe end-user conversations– Measure everything – use the key things– Pivot (company is “built to learn”)
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozGreat Tools for Enterprise
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozDelusion: Picking the wrong metrics
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozAxiom: “Be aware of tectonic Shifts”Mega-vendors:- Apple vs Google- Microsoft vs Google- Social vs Search (FB vs Google)Revenue Models:-Licence vs Monthly-Credit Card vs Virtual GoodsDeployments Models:-SaaS vs Enterprise install- Desktop vs MobileForm Factor:- Mobile vs Web vs Tablet- No easy acquisition on mobile- No easy “Wallet” on mobile
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozOz related challenges/opportunities• Cons– If you are not a “subject matter expert” then get them or get out– Often OZ startups say “No money to validate”?– Get advisors in the target market (don’t underestimate this value)– To overcome isolation – get TO the conversation. You MUST use:• Adwords->Analytics to learn what matters/resonates• Leadlander (or some origin based analytics) – What companies are on your site?• Surveys/Feedback (Google Docs, Wufoo forms, SurveyMonkey)• Social data mining (If enterprise product LinkedIn groups for segment is valuable and leadgen)• Tradeshows (enterprise). Spend the money that gets you into the conversation• Gorillas (talk to eBay etc). Spend the money that gets you into the conversation• Pros– Aussie companies are good early adopters (has pros/cons)– Leverage Gov Grant Funding to get target market validation
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozhttp://www.google.com/profiles/david.jones@djinozSlides at http://slideshare.net/djinoz
  • david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozdavid DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinozProduct vs Sales MatrixProduct needs selling, strong sales piece.This is a sales-driven company.Product sells itself, strong sales piece.This is ideal.Product sells itself, no sales effort.Does not exist.Product needs selling, no sales effort.You have no revenue.Credit: Thielhttp://blakemasters.tumblr.com/post/22405055017/peter-thiels-cs183-startup-class-9-notes-essay