TV stands for Testing & Validation so we definitely won't be couch potatoes on TV Nights.
Do you have an aspect of your startup or business project/idea you'd like to test?
We'll test anything together except product testing and/or user testing (you can do that on your own). So let's make experiments together and run with it.
Visit www.meetup.com/leanstartupph for details on the next TV Night
4. WHERE ARE YOU?
Exploring Problem/Idea/Opportunity
- discovery, information hunt
Validating Idea
– targetted – potential customers
Validating Business Model
– extremely targetted – early adopters
StartUp
– establishing your operations – consistency of outcomes
5. ASSUMPTIONS
1. Problem (what you are trying to address,
reason for existence, etc.)
2. People (clients, users, markets partners,
stakeholders, etc.)
3. Proposition (Product or Service, it's
features, benefits, values, profitability etc.)
6. ASSUMPTION
l A thing that is accepted
l as true or certain to happen.
7. Problem People Proposition
Existence and
Reason for Pain
Clients / Customers Solution Format
Desire and Drive for
Pleasure
Users Features, Benefits
Partners / Suppliers Sales Pitch
Investors / Financers Price
Employees Quality
Segment
(demographics/
psychographics)
Product / Service
Delivery
8. Problem People Proposition
Alcoholic beverages
are limited to beer,
wine, hard liquor,
cocktails.
People are bored
with available drinks.
There's a new drink
in town.
Apple cider isn't
available in the
Philippines.
People know what
apple cider is and
want to drink it.
Make apple cider
readily available in
bars and the grocery.
People don't like the
beer taste and would
choose something
fruitier and sweeteer
if available.
People would drink
“Cali Shandy” if it
were alcoholic.
Apple cider is a fruity
– sweet, tangy
alcoholic beverage.
9. Problem People Proposition
Existence and
Reason for Pain
Clients / Customers Solution Format
Desire and Drive for
Pleasure
Users Features, Benefits
Partners / Suppliers Sales Pitch
Investors / Financers Price
Employees Quality
Market Segment
Mode of Delivery
(demographics/
psychographics)
11. HYPOTHESIS Assumption +
Response
TARGET
RESPONDENTS
Demographics
Psychographics
EXPERIMENTATION METHOD a. Exploration
b. Pitch
c. Concierge
SUCCESS CRITERIA Number
Percentage
RESULT a. Validated
b. Invalidated
LEARNINGS
ACTION a. Persevere
b. Iterate
c. Pivot
13. Hypothesis
l Independent Variable
l – what is “given”
→ Assumption
l Dependent Variable
l – what changes
→ The Response
14. CAUSE & EFFECT
l __assumption__
l SO
l __observable & measurable response___.
l IF ___assumption_____
l THEN ___observable & measurable response_____.
15. REMINDERS
Make your hypothesis straight forward
Make it simple – break it down if there are too
many variables.
16. l People are bored with the available alcohol
selection so they will be curious about apple
cider.
l People want to drink apple cider so if it is
available they will buy.
l People really want a fruity alcoholic drink so
they will be interested / buy / try apple cider.
17. HYPOTHESIS Assumption + Response
TARGET RESPONDENTS Demographics
Psychographics
EXPERIMENTATI
ON METHOD
a. Exploration
b. Pitch
c. Concierge
SUCCESS CRITERIA Number
Percentage
RESULT a. Validated
b. Invalidated
LEARNINGS
ACTION a. Persevere
b. Iterate
c. Pivot
18. EXPERIMENTATION METHOD
Exploration
- Validate whether what you think is really what is
- Learn more information about
the problem you are trying to solve
your target customers
- See the bigger picture or zoom into the details
19. EXPERIMENTATION METHOD
Process: Ask the right questions the right way
Qualifying Questions – determine if you are talking to the
right person
Ask Why & How
Clarify with who, where, when
Ask about past experiences/behaviors and not about
how they would respond in hypothetical and/or future
scenarios (i.e. would you...)
20. EXPERIMENTATION METHOD
Asking right
Avoid leading questions – feelings/thoughts
Do you feel tired after drinking cofee? - BAD
How do you feel after drinking cofee? - GOOD
Avoid questions answerable by yes / no or one-three
word answers (unless qualifying questions)
Ask for contact information & referrals.
21. EXPERIMENTATION METHOD
Pitch
Get customers to “pay” you (significant currency)
Validate whether you are offering something of value
and if you are able to communicate that value
Process
Sell your product/service
Collect – money, contact information, referrals, etc.
22. EXPERIMENTATION METHOD
Concierge
Validate whether you can deliver customers'
expectations (value you promised)
Process:
Sell your product/service
Collect payment
Deliver product/service
Collect customer feedback/response
23. HYPOTHESIS Assumption + Response
TARGET RESPONDENTS Demographics
Psychographics
EXPERIMENTATION METHOD a. Exploration
b. Pitch
c. Concierge
SUCCESS
CRITERIA
Number
Percentage
RESULT a. Validated
b. Invalidated
LEARNINGS
ACTION
24. SUCCESS CRITERIA
Observable & measurable response
Into a NUMERICAL FIGURE
What signal is strong enough to make you take
the next step?
existing data – your own
industry criteria/numbers
subjective (only if you don't have a baseline)
25. HYPOTHESIS Assumption + Response
TARGET RESPONDENTS Demographics
Psychographics
EXPERIMENTATION METHOD a. Exploration
b. Pitch
c. Concierge
SUCCESS CRITERIA Number
Percentage
RESULT a. Validated
b. Invalidated
LEARNINGS
ACTION a. Persevere
b. Iterate
c. Pivot
26. POSSIBLE OUTCOME
VALIDATED
- met or exceeded the criteria set
What to do? PERSEVERE
Review data gathered so far & list of
assumptions
Add any new learnings for future validation
Choose the next risky assumption
27. POSSIBLE OUTCOME
INVALIDATED
- failed to meet the criteria set
Why was the hypothesis invalidated?
What to do?
Review the new data gathered so far
Make a decision:
Pivot – change in strategy w/o a change in vision
Iterate – minor changes to enhance or clarify
28. HYPOTHESIS Assumption + Response
TARGET RESPONDENTS Demographics
Psychographics
EXPERIMENTATION METHOD a. Exploration
b. Pitch
c. Concierge
SUCCESS CRITERIA Number
Percentage
RESULT a. Validated
b. Invalidated
LEARNINGS
ACTION a. Persevere
b. Iterate
c. Pivot