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Product order of magnitude

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Apply 10x framework to your business idea, and recognize that for the right choice of craft-based business, there is an accelerating return on your efforts, not diminishing

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Product order of magnitude

  1. 1. Product Offering Order of Magnitude Chris Sita and David Kim Subscribe to growth blog (http://goo.gl/lpVrK7) Product Offering 1
  2. 2. Why Talk About This? Don’t get lost in the details. • Take a look at where your offering fits in • Take a look at adjacent possibilities • This is a companion presentation to Craft of Business Product Offering 2
  3. 3. 10x Analysis Was popularized by Andy Grove of Intel – as ways of thinking about disruptive technology. Used by Pine and Gilmore in Experience Economy to illustrate the value of experience-based offerings. Product Offering 3 Source: http://www.service-innovation.org/ Extract -> A commodity -> make it into -> A good -> customize it into -> A service/experience
  4. 4. 10x: Apply to PM Fast Track Example: Apply the analysis to PM Fast Track, an on- line and meetup community for product managers. At each point, what creates the 10x steps? Product Offering 4
  5. 5. 10x: Quantity and Price To generate $1M in revenues Note that online channel magically solves a portion of the quantity relationship, if you have a repeatable product. Product Offering 5 Offering Price Quantity Revenues Meetup event (commodity) $ 10 100,000 $ 1,000,000 Day workshop (service) $ 100 10,000 $ 1,000,000 Conference (experience) $ 1,000 1,000 $ 1,000,000 Education (transform) $ 10,000 100 $ 1,000,000
  6. 6. Exercise: What Can You Offer? Product Offering 6 • If you had to pick one thing you’d like to teach someone (or build for someone), what would it be? This is your product. • Who would you first teach it to? Who would be your first customer? • How much would he or she pay for your product?
  7. 7. Ideas a la Ramit • Ramit has a cool 2x2 to chart possibilities • It need not be an educational product • But, low cost and high profit would be good • Make sure it’s you, though – what can you do and for whom? Product Offering 7 Source: www.iwillteachyoutoberich.com
  8. 8. Test Fast a la Tim Ferriss • Watch this video of Tim Ferriss interviewing Noah Kagan. • One (of many) key insight is you should give yourself a constraint of time. If you didn’t have a year to test your idea – if you had to validate it by tomorrow, by tonight, within the hour, what would you do??? • http://youtu.be/v47WEyeSMSA Product Offering 8
  9. 9. Test Cheap a la Noah Kagan • You don’t want to spend a lot of money, don’t worry about hiring designers or scaling. Just go out and see if there is a market. • Noah Kagan talks about how he built the multi-million dollar AppSumo for $50: • http://www.appsumo.com/how-appsumo-was-built-for-50/ Product Offering 9
  10. 10. Test Right a la Amy Hoy • Amy Hoy, product guru, talks about going on a sales safari. The point is to get inside the head of the customer. • Click the link to watch her video: • http://unicornfree.com/2013/video-sales-safari-in-action Product Offering 10
  11. 11. Take a Long-Term View • Remember the craft? • Start small, dream big • Time is your friend, not your enemy Product Offering 11 Img source: Wikipedia Chartres Cathedral – North Rose Window
  12. 12. How is Time Your Friend? • It does not mean be slow (test fast, remember)? • If you take a craft-based view, then there is an accelerating return on your investment, not diminishing returns. • Beethoven’s music later in his life was far better than it was in his youth. Product Offering 12 Img source: Wikimedia
  13. 13. For more Feedback? Suggestion? Tell us, or send us $19 bills via email. Product Offering 13 Chris Sita David Kim @findinbay dklounge.github.io

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