NYU Startup School_Getting To Product-Market Fit Part I

1. @NYUEntrepreneur Startup School: Getting to Product- Market Fit - Part I Lindsey Gray Senior Director, NYU Entrepreneurial Institute Adjunct Faculty, Tandon School of Engineering Instructor, NSF Innovation Corps (I-Corps) September 20, 2016

2. @NYUEntrepreneur2

3. @NYUEntrepreneur 75% of startups fail to return investors capital Shikhar Ghosh Harvard Business School

4. @NYUEntrepreneur So why do so many startups fail?

5. @NYUEntrepreneur Top 12 Reasons Startups Fail

6. @NYUEntrepreneur Top 12 Reasons Startups Fail 42% #nyuef cite lack of market need

7. @NYUEntrepreneur Need to do this before ﬁnishing designing and/or building your product/service

8. @NYUEntrepreneur What makes for a successful startup?

9. @NYUEntrepreneur (At least) Three Parts to Building a Successful Startup 1.  Advancing the product/service 2.  Beginning to build a team 3.  Finding a repeatable business model u  Most focus on #1 and/or #2 u  Successful eﬀorts require all three 9

10. @NYUEntrepreneur Evidence-based Entrepreneurship (aka the Lean Startup) 10

11. @NYUEntrepreneur

12. @NYUEntrepreneur All I Need to Do is Make the Forecast

13. @NYUEntrepreneur “For every one of our failures, ! we had spreadsheets that looked awesome!”

15. @NYUEntrepreneur “Everyone has a plan until they get punched in the face!”

17. @NYUEntrepreneur Planning comes before the plan

18. @NYUEntrepreneur18 “In preparing for battle I have always found that plans are useless, but planning is indispensable.”

19. @NYUEntrepreneur Business Model Canvas The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? is your business more Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) sample characteristics Fixed Costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? channel phases 1. Awareness How do we raise awareness about our company’s products and services? 2. Evaluation How do we help customers evaluate our organization’s Value Proposition? 3. Purchase How do we allow customers to purchase specific products and services? 4. Delivery How do we deliver a Value Proposition to customers? 5. After sales How do we provide post-purchase customer support? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? For whom are we creating value? Who are our most important customers? Mass Market Niche Market Segmented Diversified Multi-sided Platform What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? examples Personal assistance Dedicated Personal Assistance Self-Service Automated Services Communities Co-creation What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? categories Production Problem Solving Platform/Network What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? types of resources Physical Intellectual (brand patents, copyrights, data) Human Financial Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? motivations for partnerships Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? characteristics Newness Performance Customization “Getting the Job Done” Design Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability types Asset sale Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising fixed pricing List Price Product feature dependent Customer segment dependent Volume dependent dynamic pricing Negotiation (bargaining) Yield Management Real-time-Market

20. @NYUEntrepreneur20 So what do we do?

21. @NYUEntrepreneur What’s a Startup?

22. @NYUEntrepreneur A temporary organization designed to search for a repeatable and scalable business model

26. @NYUEntrepreneur What is a business model?

27. @NYUEntrepreneur What is a Business Model? How a company creates value for itself while delivering products or services for customers

29. @NYUEntrepreneur The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? is your business more Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) sample characteristics Fixed Costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? channel phases 1. Awareness How do we raise awareness about our company’s products and services? 2. Evaluation How do we help customers evaluate our organization’s Value Proposition? 3. Purchase How do we allow customers to purchase specific products and services? 4. Delivery How do we deliver a Value Proposition to customers? 5. After sales How do we provide post-purchase customer support? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? For whom are we creating value? Who are our most important customers? Mass Market Niche Market Segmented Diversified Multi-sided Platform What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? examples Personal assistance Dedicated Personal Assistance Self-Service Automated Services Communities Co-creation What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? categories Production Problem Solving Platform/Network What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? types of resources Physical Intellectual (brand patents, copyrights, data) Human Financial Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? motivations for partnerships Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? characteristics Newness Performance Customization “Getting the Job Done” Design Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability types Asset sale Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising fixed pricing List Price Product feature dependent Customer segment dependent Volume dependent dynamic pricing Negotiation (bargaining) Yield Management Real-time-Market The Business Model Canvas Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis

30. @NYUEntrepreneur More than half of your assumptions are wrong! 30

31. @NYUEntrepreneur Customer Development How you search for the business model Test assumptions about customer needs/problem & develop MVPs Seek validation that people are interested in your product/ solution Begins to build demand & improve eﬃciency of customer acquisition Drive growth aggressively   & execute business model

32. @NYUEntrepreneur “You can’t just ask customers what they want and then try to give that to them.”

33. @NYUEntrepreneur “New ideas come from watching something, talk(ing) to people, experimenting, " asking questions ! and getting out of " the ofﬁce!”

35. @NYUEntrepreneur “Great founders never put anyone between themselves and their users.”

36. @NYUEntrepreneur The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? is your business more Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) sample characteristics Fixed Costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? channel phases 1. Awareness How do we raise awareness about our company’s products and services? 2. Evaluation How do we help customers evaluate our organization’s Value Proposition? 3. Purchase How do we allow customers to purchase specific products and services? 4. Delivery How do we deliver a Value Proposition to customers? 5. After sales How do we provide post-purchase customer support? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? For whom are we creating value? Who are our most important customers? Mass Market Niche Market Segmented Diversified Multi-sided Platform What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? examples Personal assistance Dedicated Personal Assistance Self-Service Automated Services Communities Co-creation What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? categories Production Problem Solving Platform/Network What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? types of resources Physical Intellectual (brand patents, copyrights, data) Human Financial Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? motivations for partnerships Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? characteristics Newness Performance Customization “Getting the Job Done” Design Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability types Asset sale Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising fixed pricing List Price Product feature dependent Customer segment dependent Volume dependent dynamic pricing Negotiation (bargaining) Yield Management Real-time-Market The Business Model Canvas Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis

39. @NYUEntrepreneur Customer Discovery u Apply the scientiﬁc method to business model development Modify hypothesis Observe phenomena Formulate hypothesis Test hypothesis via rigorous experiments Establish theory based on repeated validation of results PIVOT!

40. @NYUEntrepreneur First test the problem, then test the solution Customer Development 40

41. @NYUEntrepreneur Value Proposition What Problem Are You Solving?

42. @NYUEntrepreneur Value Proposition u  describes the beneﬁts customers can expect from a bundle of products and services

43. @NYUEntrepreneur Customer Segment Who Cares?

44. @NYUEntrepreneur Customer Proﬁle u  Who are they and why would they buy?

45. @NYUEntrepreneur Problem-Solution Fit Fit

46. @NYUEntrepreneur www.youtube.com/watch?v=LkdJwYQIR2o But Facebook…

47. @NYUEntrepreneur Value Proposition What Problem Are You Solving?

48. @NYUEntrepreneur Key Questions for Value Prop u  Problem Statement: What is the problem? u  Technology / Market Insight: Why is the problem so hard to solve? u  Product: How do you solve it today? u  Competition: Who is delivering that solution? u  Utility: What level of improvement in eﬃcacy/safety/cost/etc. is needed? u  Market Size: How big is this problem?

49. @NYUEntrepreneur Customer Segment Who Cares?

50. @NYUEntrepreneur Deﬁne Customer Archetype u  Who are they? o  Position / title / age / sex / role u  How/where do they buy? o  Discretionary budget (name of budget and amount) u  What matters to them? o  What motivates them? u  Who inﬂuences them? o  What do they read/who do they listen to?

51. @NYUEntrepreneur Customer Proﬁles Describe the person: name, age, relevant personal infoImage Jobs To Be Done Existing Solutions How They Buy Pains Gains Inﬂuencers Barriers

52. @NYUEntrepreneur put yourself in the customers’ shoes

53. @NYUEntrepreneur What is your potential customer trying to get done? Jobs to be Done 53

54. @NYUEntrepreneur …they want a quarter-inch hole!" People don't want to buy a quarter-inch drill… SOLUTION (WHAT) JOB (WHY) Innosight LLC

55. @NYUEntrepreneur “Make me efficient at my work” FUNCTIONAL “Convey my professional status” SOCIAL “Make me confident that I can get the job done” EMOTIONAL “Help me perform like a professional” JOB •  Valueà demonstrate my ability to recognize value •  Prestigeà show others that I focus on quality starting with my equipment •  Confidenceà ensure me that I can count on my equipment •  Versatilityà give me the ability to work in different environments •  Powerà give me the ability to cut through thick/dense material •  Speedà help me get the project done quickly Innosight LLC

56. @NYUEntrepreneur Guess the product from the job I want to feel conﬁdent when having a close conversation I want my mouth to feel refreshed I want to kill the germs that cause bad breath I want to show that I have the latest gadget I want to be able to get information easily when on the go I want to kill small snippets of time productively I want feel ‘in-the-know’ about things happening in my social circle I want an eﬃcient way to share my pictures with all my friends and family I want a way to reconnect with friends I haven’t talked to in a while I want to feel like I’m buying the best for my family I want to be socially conscious I want access to high- quality grocery products I want the convenience of shopping online I want to be able to decide how much I will pay for a product I want an easy way to sell things I no longer need Innosight LLC

57. @NYUEntrepreneur Guess the product from the job I want to feel conﬁdent when having a close conversation I want my mouth to feel refreshed I want to kill the germs that cause bad breath I want to show that I have the latest gadget I want to be able to get information easily when on the go I want to kill small snippets of time productively I want feel ‘in-the-know’ about things happening in my social circle I want an eﬃcient way to share my pictures with all my friends and family I want a way to reconnect with friends I haven’t talked to in a while I want to feel like I’m buying the best for my family I want to be socially conscious I want access to high- quality grocery products I want the convenience of shopping online I want to be able to decide how much I will pay for a product I want an easy way to sell things I no longer need Innosight LLC

58. @NYUEntrepreneur Who’s the Customer? User

59. @NYUEntrepreneur Who’s the Customer? User Economic Buyer

60. @NYUEntrepreneur Who’s the Customer? User Influencer Recommender Decision Maker SaboteurEconomic Buyer

61. @NYUEntrepreneur How Do They Interact to Buy? u  Organization Chart u  Inﬂuence Map u  Sales Road Map

63. @NYUEntrepreneur “Customer” Ecosystem of people you need to understand, satisfy and appeal to in order to get them to buy your product

64. @NYUEntrepreneur Technology Lifecycle Adoption Curve 64

65. @NYUEntrepreneur Who wants… u A combined phone, internet browsing & mail device with o No copy & paste o No physical keyboard o Only 2G data speeds o No corporate email o No 3rd party apps o Only works on one carrier

67. @NYUEntrepreneur Look familiar? 0 20 40 60 80 100 120 140 160 180 Year 1 (2007-08) Year 2 (2008-09) Year 3 (2009-10) Year 4 (2010-11) Year 5 (2011-12) Year 6 (2012-13) Year 7 (2013-14) UnitSales(millions) Apple iPhone Sales Since Introduction Enthusiasts Visionaries Pragmatists

68. @NYUEntrepreneur What’s your point? I have two! 68

69. @NYUEntrepreneur 1. As a startup, you are not capable of serving the mainstream market With your half-baked product, small staﬀ & non-existent sales & market budget 69

70. @NYUEntrepreneur 2. There is no point in building the features you will need when you have a million users Optimize your product for the immediate stage of growth 70

71. @NYUEntrepreneur “Even though you target just those few potential customers today there is no law that says you are limited to those customers for eternity.”

72. @NYUEntrepreneur Product / Solution Fit

73. @NYUEntrepreneur I’ve ﬁgured out who I’m selling to and what pain point I’m solving! I’m ready to start building and selling… Right?!

74. @NYUEntrepreneur ? ✔ ✔ ? ? ? ? ? ? Not so fast! You can’t have a valid business until you test both sides of the canvas!

75. @NYUEntrepreneur Channels How does your product get to customers?

76. @NYUEntrepreneur Customer Relationships How do you Get, Keep and Grow Customers?

77. @NYUEntrepreneur Revenue Streams How do you make money?

78. @NYUEntrepreneur Key Activities What’s Most Important for the Business?

79. @NYUEntrepreneur Key Resources What are your most important assets?

80. @NYUEntrepreneur Key Partners Who are your Partners and Suppliers?

81. @NYUEntrepreneur Cost Structure What are the Costs and Expenses?

82. @NYUEntrepreneur The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? is your business more Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) sample characteristics Fixed Costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? channel phases 1. Awareness How do we raise awareness about our company’s products and services? 2. Evaluation How do we help customers evaluate our organization’s Value Proposition? 3. Purchase How do we allow customers to purchase specific products and services? 4. Delivery How do we deliver a Value Proposition to customers? 5. After sales How do we provide post-purchase customer support? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? For whom are we creating value? Who are our most important customers? Mass Market Niche Market Segmented Diversified Multi-sided Platform What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? examples Personal assistance Dedicated Personal Assistance Self-Service Automated Services Communities Co-creation What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? categories Production Problem Solving Platform/Network What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? types of resources Physical Intellectual (brand patents, copyrights, data) Human Financial Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? motivations for partnerships Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? characteristics Newness Performance Customization “Getting the Job Done” Design Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability types Asset sale Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising fixed pricing List Price Product feature dependent Customer segment dependent Volume dependent dynamic pricing Negotiation (bargaining) Yield Management Real-time-Market 9 Guesses Guess Guess Guess Guess Guess Guess Guess Guess Guess

83. @NYUEntrepreneur But, Realize They’re Hypotheses

84. @NYUEntrepreneur Customer Development How you search for the business model Test assumptions about customer needs/problem & develop MVPs Seek validation that people are interested in your product/ solution Begins to build demand & improve eﬃciency of customer acquisition Drive growth aggressively   & execute business model

85. @NYUEntrepreneur Customer Discovery The search for Problem-Solution Fit Test assumptions about customer needs/problem & develop MVPs Seek validation that people are interested in your product/ solution Begins to build demand & improve eﬃciency of customer acquisition Drive growth aggressively   & execute business model PSF

86. @NYUEntrepreneur Problem-Solution Fit “Can you identify and validate a problem or need in the market that enough people care about?” 86 “Do you have a feasible solution (innovation) for meeting this problem or need?”

87. @NYUEntrepreneur Customer Validation The search for Product-Market Fit Test assumptions about customer needs/problem & develop MVPs Seek validation that people are interested in your product/ solution Begins to build demand & improve eﬃciency of customer acquisition Drive growth aggressively   & execute business model PSF PMF

88. @NYUEntrepreneur Product-Market Fit “Can you build and deliver a product/ service that satisﬁes the customer problem or need?” 88 “Do the product / service features deliver value (alleviate pain, create gain) to the customer?”

89. @NYUEntrepreneur Customer Creation The validation of Business Model Fit Test assumptions about customer needs/problem & develop MVPs Seek validation that people are interested in your product/ solution Begins to build demand & improve eﬃciency of customer acquisition Drive growth aggressively   & execute business model PSF PMF BMF

90. @NYUEntrepreneur Business Model Fit “Can you build and validate a repeatable and scalable business model?” 90

91. @NYUEntrepreneur Company Building The execution of Business Model Fit Test assumptions about customer needs/problem & develop MVPs Seek validation that people are interested in your product/ solution Begins to build demand & improve eﬃciency of customer acquisition Drive growth aggressively   & execute business model PSF PMF BMF

92. @NYUEntrepreneur Case Study Exercises

93. @NYUEntrepreneur The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? is your business more Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value Driven (focused on value creation, premium value proposition) sample characteristics Fixed Costs (salaries, rents, utilities) Variable costs Economies of scale Economies of scope Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? channel phases 1. Awareness How do we raise awareness about our company’s products and services? 2. Evaluation How do we help customers evaluate our organization’s Value Proposition? 3. Purchase How do we allow customers to purchase specific products and services? 4. Delivery How do we deliver a Value Proposition to customers? 5. After sales How do we provide post-purchase customer support? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? For whom are we creating value? Who are our most important customers? Mass Market Niche Market Segmented Diversified Multi-sided Platform What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? examples Personal assistance Dedicated Personal Assistance Self-Service Automated Services Communities Co-creation What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? categories Production Problem Solving Platform/Network What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? types of resources Physical Intellectual (brand patents, copyrights, data) Human Financial Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? motivations for partnerships Optimization and economy Reduction of risk and uncertainty Acquisition of particular resources and activities What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? characteristics Newness Performance Customization “Getting the Job Done” Design Brand/Status Price Cost Reduction Risk Reduction Accessibility Convenience/Usability types Asset sale Usage fee Subscription Fees Lending/Renting/Leasing Licensing Brokerage fees Advertising fixed pricing List Price Product feature dependent Customer segment dependent Volume dependent dynamic pricing Negotiation (bargaining) Yield Management Real-time-Market 9 Guesses Guess Guess Guess Guess Guess Guess Guess Guess Guess

96. @NYUEntrepreneur www.youtube.com/watch?v=Zd0Utfu_4MM

97. @NYUEntrepreneur Define Hypotheses 97 1 What must be true about for this venture to succeed? What are the ‘deal-killing’ assumptions? Hint: initially they should focus on VP and CSs ü  Recording attendance today is tedious and inefficient for teachers ü  Teachers want two-way communication with parents, and are dissatisfied with existing tools ü  Teachers bear the burden of tracking and reporting on student tardiness and absenteeism

98. @NYUEntrepreneur Design an experiment 98 2 Who should I talk with to validate/invalidate that my ‘deal-killing’ assumptions are correct? Where can I ﬁnd these people? WHO? ü  Teachers – public school ü  Teachers – private schools ü  Principals (private/public) ü  Grade school teachers ü  High school teachers WHERE? ü  Urban schools ü  Suburban schools ü  Your kids’ teachers ü  Your teacher friends 98

99. @NYUEntrepreneur Conduct a test 99 3 What can I ask during customer interviews to test my assumptions? ü  How do you record attendance currently? ü  How long does it take you to record attendance? What works well about this? What doesn’t? ü  How often do you communicate with your students’ parents? What is typically the reason for this communication? ü  How do you keep track of how many days a student has been late or absent? What do you do with this information? 99

100. @NYUEntrepreneur Extract insights4 What did you learn from your interviews that will inform your business model? ü  Teachers currently record attendance with pencil and paper. They do it once to turn into their administrator, and then a second time for their own records. It doesn’t take long to do, but it’s annoying to have to do it twice. ü  The main way teachers communicate with parents is at parent-teacher conferences, which happens for the ﬁrst time a couple months into the school year. When there’s a severe problem they try to get their phone number so they can call, which sometimes is eﬀective and sometimes not. 10 0

101. @NYUEntrepreneur Extract insights4 What did you learn from your interviews that will inform your business model? ü  Teachers would like to be able to communicate with parents more frequently about issues they see, but they’d need easier access to the right contact information. ü  Some teachers have access to an iPad in their classroom, but not all. Many use their own personal smart phone for communications with parents. We got a mixed response when we asked teachers if they’d be comfortable giving parents their personal cell phone number. 101

102. @NYUEntrepreneur Key questions to ask u  What are your riskiest assumptions? u  How can you best test them? u  Do these tests validate or invalidate what you thought? What needs further discovery? u  What new questions arose from these discussions? 10 2

103. @NYUEntrepreneur Increase Likelihood of Success u  Get customer feedback before building & launching your product u  Launch products that customers actually want, more quickly & cheaply u  Secrets of success: §  Experimentation over elaborate planning §  Customer feedback over intuition §  Iterative design over sequential design 10 3

104. @NYUEntrepreneur Getting Started Cheat Sheets 104

105. @NYUEntrepreneur TOTAL Selecting Your Initial Target Customer Segment How to use this guide: Identify ≧3 potential customer segments that you believe are most likely to be your early adopters/ enthusiasts, and list them across the top of each column. Identify ≧5 criteria (excluding market size) that you believe will determine your success, and list these on the left most column of each row. Honestly rate how you believe you can serve each segment today on a scale of 1 to 3, where 3 is best. Sum up your ratings at the bottom of each column. Put the segment with the highest score in the Customer Segments box on your Business Model Canvas. Segment Criteria

106. Draw your Customer Ecosystem

107. Customer Archetype Proﬁle Describe the person: name, age, relevant personal infoImage Jobs To Be Done Existing Solutions How They Buy Pains Gains Inﬂuencers Barriers

108. @NYUEntrepreneur Who are your customers? Jobs To Be Done:Gains: Pains:

109. @NYUEntrepreneur What value do you provide? Gains: Pains:

110. @NYUEntrepreneur What product or service? Solution:

111. @NYUEntrepreneur Helping startups start up

112. @NYUEntrepreneur Tuesday 9/27, 4pm Getting to Product-Market Fit Part II 112 1 Next week’s Startup School: bit.ly/nyustartupschool

113. @NYUEntrepreneur113 2 Blackstone Launchpad coaching session Say you went to Startup School! entrepreneur.nyu.edu

114. @NYUEntrepreneur114 3 NYU Prototyping Fund Free $$$ to build your prototypes! bit.ly/PrototypingFall16

115. @NYUEntrepreneur115 4 $300k Entrepreneurs Challenge Team Hunt Meet a teammate! bit.ly/300KTeamHunt

116. @NYUEntrepreneur Questions? entrepreneur@nyu.edu @nyuentrepreneur entrepreneur.nyu.edu 16 Washington Place 116

NYU Startup School_Getting To Product-Market Fit Part I

You are reading a preview.

Check these out next

NYU Startup School_Getting To Product-Market Fit Part I

More Related Content

Slideshows for you (20)

Viewers also liked (20)

Similar to NYU Startup School_Getting To Product-Market Fit Part I (20)

Recently uploaded (20)