This document discusses the importance of experimentation for startups. It recommends that startups (1) think big but start small by breaking down their grand vision into testable assumptions, (2) focus on testing the value and growth hypotheses through experiments with early adopters, and (3) treat experiments as products by designing them to answer key questions before full development. An example is provided of Village Laundry Services, which tested assumptions about delivering laundry services through experiments before developing its final product.

1. EXPERIMENT
PRESENTED BY:
PRITY SHAKYA(1512 2)
SHRUTI JOSHI( 1512 3)
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2. WHY EXPERIMENT?
• Startup is all about experiments
• The Lean Startup method reconceives a startup’s
efforts as experiments that test its strategy to see
what works
• A true experiment follows the scientific method
• If you cannot fail, you cannot learn.
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3. THINK BIG, START SMALL
• Startup experimentation is guided by the startup’s vision
• The goal of every startup experiment is to discover how to
build a sustainable business around that vision
• Example: Zappos
– Vision: to establish brand new retail experience
– Instead, he started by running an experiment
– Hypothesis: customers were ready and willing to buy shoes
online
• In the course of testing first assumption, many other
assumptions were tested as well
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4. BREAK IT DOWN
• break down the grand vision into component parts
• two most important assumptions entrepreneurs make are
• the value hypothesis
– tests whether a product or service really delivers to
customers once they are using it.
• the growth hypothesis
– tests how new customers will discover a product or service
• The point is not to find the average customer but to find
early adopters
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5. EXPERIMENT IS A PRODUCT
• If experiment is successful, it allows the manager to get
started with his or her campaign to build a product
• Traditionally, the product manager says, ‘I just want this.’
In response, the engineer says, ‘I’m going to build it.’
• Instead, try to push the team to first answer four
questions:
1. Do consumers recognize that they have the problem you
are trying to solve?
2. If there was a solution, would they buy it?
3. Would they buy it from us?
4. Can we build a solution for that problem?”
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6. THE VILLAGE LAUNDRY
SERVICE
• Akshay Mehra: the brand manager of the Tide and
Pantene brands for India and ASEAN countries
• thought he could make laundry services available to people
• Returning to India, Akshay joined the Village Laundry
Services (VLS), created by Innosight Ventures
• VLS began a series of experiments to test its business
assumptions.
• As a result of those experiments, VLS created an end
product
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7. CONCLUSION
• Need to set up real tests
• Not just survey people, as they often don’t know what
they want
• Iterating the product or service and testing key
metrics to determine if the hypothesis is true or false
• If we’ve discovered that one of our hypotheses is
false, it is time to make a major change to a new
strategic hypothesis.
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