10 Steps to Product/Market Fit

1. 10 STEPS TOPRODUCT/MARKET FIT hashtag: #startupfest ASH MAURYA @ashmaurya http://www.ashmaurya.com

2. products9/10 startups fail

3. 66% drastically change their original plans

4. Not a better Plan A but a path to a plan that works.

5. Lean Startup is a systematic process for iterating from Plan A to a plan that works before running out of resources.

6. Plan that works = Scalable, repeatable, business model

7. Product/Market Fit is the first thing that matters.

8. via Tara Hunt (@missrogue)

9. Agenda: 10 Steps to Product/Market Fit1. Document your Plan A2. Tackle the riskiest parts first3. Maximize for speed, learning, and focus

11. Reasonably smart people can rationalize anything but entrepreneurs are especially gifted at this.

12. Business Model versus Business Plan

13. Business Model versus Business Plan A document investors make you write that they don’t read

14. Business Model versus Business PlanA single diagram of your business

15. Problem Solution Unique Value Unfair Customer Proposition Advantage SegmentsTop 3 problems Top 3 features Single, clear, Can’t be easily Target compelling copied or customers message that bought states why you are different and Key Metrics worth buying Channels Key activities Path to you measure customersCost Structure Revenue StreamsCustomer Acquisition Costs Revenue ModelDistribution Costs Life Time ValueHosting RevenuePeople, etc. Gross Margin PRODUCT MARKETLean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under theCreative Commons Attribution-Share Alike 3.0 Un-ported License.

16. 1 Your product is NOT “the product”.

17. Your “product” is NOT the productProblem Solution Unique Unfair Customer Value Advantage Segments Proposition Key Metrics ChannelsCost Structure Revenue Streams

18. Your “business model” IS the productProblem Solution Unique Unfair Customer Value Advantage Segments Proposition Key Metrics ChannelsCost Structure Revenue Streams

19. 2 Brainstorm multiple models and prioritize where to start.

20. Brainstorm possible models Time

21. Prioritize where to start 1. Customer Pain Level 2. Ease of Reach 3. Price/Gross Margin 4. Market Size Time

23. Identify the riskiest parts of your model Time

24. 3 Understand the three stages of a startup.

25. 3 Stages of a Startup Problem/Solution Product/Market Scale Fit Fit Stage 1 Stage 2 Stage 3

26. 3 Stages of a Startup Problem/Solution Product/Market Scale Fit Fit Do I have a problem worth solving?

27. 3 Stages of a Startup Problem/Solution Product/Market Scale Fit Fit Have I built something people want?

28. 3 Stages of a Startup Problem/Solution Product/Market Scale Fit Fit How do I accelerate growth?

29. Before Product/Market Fit Problem/Solution Product/Market Scale Fit Fit Focus: Validated Learning Experiments: Pivots Terrain: Qualitative

30. After Product/Market Fit Problem/Solution Product/Market Scale Fit Fit Focus: Validated Learning Focus: Growth Experiments: Pivots Experiments: Optimizations Terrain: Qualitative Terrain: Quantitative

31. 4 Focus on the right macro metrics.

32. Key Metrics Acquisition How do users find you? Activation Do users have a great first experience? Retention Do users come back? Revenue How do you make money? Referral Do users tell others?

33. Before Product/Market Fit Acquisition How do users find you? Activation Do users have a great first experience? Retention Do users come back? Revenue How do you make money? Referral Do users tell others? Value metrics

34. After Product/Market Fit Acquisition Activation Retention Growth metrics Revenue Referral

36. Speed

37. Learning Speed

38. FocusLearning Speed

39. The optimal learning loop Premature SpeedOptimization Chasing your tail Learning Focus Run out of resources

40. 5 Formulate falsifiable hypotheses.

41. Too Vague: Being known as an “expert” will drive early adoptersSpecific and Testable: Blog post will drive >100 early sign-ups

42. 6 Architect for learning.

43. Landing Page > Pricing > Signup

46. 7 Architect for speed.

47. Most learning happensSome learning here Requirements Development QA Release Very little learning

48. Most learning happensSome learning here Continuous Requirements Release Deployment Shorten cycle time

49. 8 Go only as fast as you can learn.

50. BACKLOG IN-PROGRESS (1) DONE

53. VALIDATED LEARNINGBACKLOG IN-PROGRESS (1) DONE

54. 9 Validate Qualitatively, Verify Quantitatively.

55. Qualitative Quantitative Start here Verify with data

56. The ideal conversion dashboard is part analytics and part customer relationship management.

57. 10 Systematically test your model.

58. Systematically test your model Time

63. Systematically test your model ... Time

64. Systematically test your model ... Time

65. Questions? RUNNING LEAN http://RunningLeanHQ.com Buy PDF: $19 Save 20% - Discount Code: STARTUPFESTAsh Mauryatwitter: ashmauryablog: http://www.ashmaurya.com