MAKE SOME NEW INNOVATIONTHING But if its new, howPEOPLE do I know people want it?WANT
ORIGINALITY, PLEASE• Make something people didn’t want until now• Make something that people have always wanted, but that couldn’t be made until now• Or both.• Are you the kind of person who makes things?
IM SCRATCHING MY OWN ITCH• Hey, at least I want it• Linux• Apache• Firefox• MySQL
COMPETITIVE RESEARCH• Crunchbase.com. ListIO.com. LMGTFY.com.• Don’tskate to where the puck is. Skate to where the puck will be.• Aninvention must make sense in the world in which it is completed, not the world in which it was begun.
DO IT BACKWARDS Traditional Model The Epiphany• Build the Product, v1• Sell the Product, v1. No sales. • Sell the Product, v1. No sales.• Back to the Drawing Board • Back to the Drawing Board• Build the Product, v2. • Sell the Product, v2 • Build the Product, v2• Fail. • Win.
CUSTOMER DEVELOPMENT• See also Eric Ries, www.startuplessonslearned.com
IF I HAD ASKED MY CUSTOMERSWHAT THEY WANTED,THEY WOULD HAVE SAIDA FASTERHORSE HENRY FORD
SOMETIMES YOU DO HAVE TO BUILD IT• Show, Don’t Tell; Paper Prototyping only goes so far• Business as Science Experiment• Does a Market Exist?• To Build the Minimum Viable Product,• Follow Lean Startup Methodology
CUSTOMER DEVELOPMENT != PRODUCT DEVELOPMENT != BUSINESS DEVELOPMENT• Businesses build products.• Entrepreneurs build businesses.•A business is a machine that creates value.• Do you really want to build a business?
FINDING FITI have an idea. How can I find funding? idea × team = solution × problem = product × market = revenue model × distribution channels = income × expenses = business model × exit strategy = investment proposition × pitch = deal × investor = funding Why Investors Look At So Many Deals & Make So Few Investments = Meng’s Drake Equation for Startups
ONE LAST THING•! ∀ User = Customer• Users use• Customers pay• If you’re not the customer, you might be the product