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Idea creation & evaluation with Gagan Biyani

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During the lecture, Gagan will walk you through his process for evaluating business ideas and getting initial traction using real-life examples from his own experiences.

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Idea creation & evaluation with Gagan Biyani

  1. 1. Creating and Evaluating Ideas lessons from the trenches TheHustle Trends April 2020
  2. 2. My Background Co-founder and CEO, Sprig Growth Advisor, Lyft Co-founder and President, Udemy at least 4 other non-profits + businesses
  3. 3. Ideas Come from Anywhere Everywhere
  4. 4. On the Shoulders of Giants
  5. 5. Quiet your ego
  6. 6. Opportunity Bootstrap Small ($0-$2M) Bootstrap Medium ($2M-$10M) Bootstrap Big ($10M-$500M) Startup ($1B+) Capital Requirements Quit job; earn right away Invest a bit; earn in 6 months Invest a lot; earn in 6-18 months Own very little; quit job; raise in 6-18 months Likelihood of Success Very high 60%+ Reasonably high 45%+ Moderate 25%+ Low 10%+ Competition / Market Landscape Very Crowded OK Small, Underserved Market or Unique biz in Large Market Large, Underserved Market or Long game / lead time Disrupt a large existing market or Create an extremely large market Business Types
  7. 7. Key Questions Why are customers in this market under-served? How does new technology provide an inherent competitive advantage against existing options? What’s the “bet the company” thesis that creates long- term advantage over other upstarts?
  8. 8. Key Questions Why are customers in this market under-served? How does new technology provide an inherent competitive advantage against existing options? What’s the “bet the company” thesis that creates long- term advantage over other upstarts?
  9. 9. Selection Price Quality It’s hard to find specific skills training that is current and high quality Skills training is expensive due to the high costs of in-person education The top 1% of instructors are much better than the other 99%
  10. 10. Selection Price Quality An Open Marketplace can create a larger selection than any bookstore Recorded video enables an affordable to get education from the best instructors Financial incentives will attract the best instructors
  11. 11. Key insight: The largest marketplace for online courses will win this market Core Competency: Growth Marketing, Instructor Acquisition
  12. 12. Growth Marketing: Learn to sell courses on hot topics Instructor Acquisition: Show me the money!
  13. 13. Convenience Price Quality Public transportation (taxis, buses) are incredibly inconvenient Convenient options are insanely expensive Most transportation options are unpleasant and unsafe
  14. 14. Convenience Price Quality On-demand is the most convenient way to get from A to B Ridesharing enables the lowest price due to open competition Community builds a safe, pleasant customer experience
  15. 15. Key insight: An open community of drivers can make on-demand transportation ubiquitous Bonus: Uber is going to crush us if we don’t differentiate Core Competency: Real-time Operations, Regulatory, Brand
  16. 16. Operations: Driver scale leads to growth Regulatory: Don’t be an asshole Brand: Real people drive these cars
  17. 17. Quality Convenience Price Mass market food generally sucks Cooking is insanely inconvenient but is the only way to eat well Customers are willing to spend a bit more for higher quality
  18. 18. Quality Convenience Price Making our own food ensures product quality at scale On-demand enables dramatic improvements in convenience Organic is worth the increase in cost
  19. 19. You can’t know if you’re right until its too late. Quality Convenience Price Selection ended up being more important
  20. 20. There is a Process It’s Art, not Science
  21. 21. Business/Startups/Ideas before Lean Startup shut-down. no traction for 2 years. wasted effort.
  22. 22. Minimum Viable Test Step 1: Write down all hypotheses your idea is reliant on to succeed Step 2: Rank them by likeliest to kill the idea Step 3: Try to disprove it through a minimum viable test
  23. 23. Example: Sprig People will not want our food People will not like the price People don’t order delivery We can’t find chefs Delivering profitably is hard Operations are too difficult Market size is too small
  24. 24. Example: Sprig Operations are too difficult Delivering profitably is hard We can’t find chefs Market size is too small People will not want our food People will not like the price People don’t order delivery Can we do it? Will it be worth the effort? Will people want it?
  25. 25. Example Concerns you should have 1. You build something nobody wants. 2. You build something nobody wants. 3. The juice isn’t worth the squeeze. 4. You can’t build the thing people want. 5. You fail to execute.
  26. 26. Background Research Then, get on the phone and call them!!!
  27. 27. First Test
  28. 28. An entire logistics platform with no code
  29. 29. Bonus

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