measuring VIABILITY of a business idea by @bernatfarrero
THE ideaﬁght the MYTHS We need to sign an NDA It’s unique, no one did it before Hello, these are Funding won’t be a problem my two friends EGO and DOGMA! Technology isn’t the key Our product will take X time to build and launch No need for planning, we’ll ﬁgure it out on the way We’ll get a loan / subsidy We are a very united team, we’ll always get along Failing isn’t a problem, at least we’ll learn a lot!
First things ﬁrst: measure interest Make sure you solve a real problem! • Create a coming soon page or presentation page • Conduct polls, research substitute products on the same or similar markets, make viable assumptions • Find and ask your target in specialized forums and blogs • Gather compromise to buy from you as soon it’s running“Market matters most; neither a stellar team nor fantasticproduct will redeem a bad market. Markets that don’t exist don’t care how smart you are.” — Marc Andreesen
Get yourself a friend• Include people who you trust to be GOOD at what you aren’t, and CAPABLE of helping you to start getting something done• Write down how your relationship towards the product/business will be in the future and it will save you many woes
Prototyping, creating MVPs • Don’t wait any longer! Build your ﬁrst Minimum Viable Product. The smallest feature set customers will pay for. ...and LAUNCH! • Establish a currency with which to measure every success Demand for FREE >>>> Demand for very low price "If you are not embarrassed by the ﬁrst version of yourproduct, youve launched too late" - Reid Hoffman of LinkedIn.
Intermediate MVPs and METRICS • Get obsessed on MEASURING EVERYTHING meaningful and “get out of the building” Following the Value Path:vision MVP1 -> MVP2 -> MVP3 -> Product / Market FIT Test assumptions, risks and hypothesis Now you’ve got a BUSINESS MODEL and fail fast, if necessary it’s time to scale! changing pivot (features, segment, positioning or others) The product is showing strong demand by passionate users representing a sizable market "A business is a repeatable process that makes money, everything else is a hobby" - Paul Freet
The Startup Experts in reinventing wheelsHuman institution designed to create products/services under conditionsof extreme uncertainty. Its special ecosystem favor disruptiveinnovation. The tough truth: Most startups fail (less than 10% aresuccessful) The Entrepreneurs Vision, focus and guts- Individual with great sense of vision- Prepared to assume bold risks- Strong sense of commitment.- Good at getting people aligned- Passionate about what she does- Ready to question her assumptions- Any sort of market experience- Aligned personal principles (IPOs, growth, valuation, funding, ethics, environment, exit, etc.)
The ﬁve parts of every business 1. Value Creation Discovering what your market wants and building it 2. Marketing Building demand for what you’ve created 3. Sales Turning prospect customers into paying customers 4. Value delivery Ensuring your customers receive what was promised and they are satisﬁed by it 5. FinanceBring in enough money to keep going and make the effort worthwhile
Draw a Business Canvas by Osterwalder
Negotiation + Generate expectation Suppliers: Custom production, special quality or special pricing. Partners: Strong collaborations that help the initial growth. Carriers: Bulk prices without bulk demand. Banks: Get commissions and fees go away. “You are fortunate, when we’ll be big you willgreatly beneﬁt from being the the visionary who collaborated with us now.” the chicken or the egg dilemma
Thanks!You got an idea? @bernatfarrero email@example.com