Brian Shields discusses pressure testing a business idea by talking to potential customers. He provides a formula to determine if an idea is worth pursuing: Market x Business Model = is it worth your time? The market is defined by the size of the problem and number of affected people. The business model considers the potential revenue and costs. Shields encourages attendees to talk to people in the hotel to see if they have the problem and would pay for a solution, to pressure test the idea before fully pursuing it.

1. Pressure Test Your Idea
SXSW 2013

2. Who am I?
Brian L. Shields
@BrianLeeShields
Investor Entrepreneur Movie Addict
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3. IncubateNYC is…
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4. Before we Begin
• Say hello to the person on your left and your right
• Get out a pen and paper to do some work
• Follow me @brianleeshields and tweet anything
awesome I say with #SXSW
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5. The Formula
Market x Business Model = is it
worth your Time?
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6. The Market
x
A real problem # of people with that
problem
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7. The Business Model
-
The money you can The cost to make the
bring in with this product and find
product customers
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8. The Formula
Market x Business Model = is it
worth your Time
(a real problem x # of people
with that problem) X (revenue –
costs)
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9. The Market is Outside!
Time to “Get Out of the
Building”!
Let’s see if the problem is real
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10. Let’s Pressure Test!
Stand up
Talk to people in the hotel and ask if they have
experience or opinions on the problem you are
trying to solve
Keep track of how many people have the problem
Ask them how much they’d be willing to pay (if
applicable)
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11. Let’s Discuss
Did you find people with the problem?
Were they willing to pay?
What are your next steps with the business?
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12. A Reminder
Market x Business Model = is it
worth your Time
(a real problem x # of people
with that problem) X (revenue –
costs)
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13. Thank You
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