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Testing Your MVP
The document discusses testing minimum viable products (MVPs) for startups. It begins by providing examples of products that failed despite large investments and outlines common reasons for failure. It then defines the context of a startup as experimentation to validate business models through frequent customer feedback. The document describes the three stages of a startup and emphasizes that learning is progress. It advocates for building an MVP, which is the fastest way to test business hypotheses with minimum effort. The rest of the document provides examples of how to test MVPs to validate problems, solutions, and product-market fit with low-cost experiments like landing pages, surveys, prototypes, and pre-orders.
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Testing Your MVP
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- 2. BUILD AND THEYWILL COME…REALLY? • Apple Newton, 1993-98, Invested $100m • Webvan, 1999-01, Lost $800m • Microsoft Zune, 2006-11, • Amazon Fire, 2014, $170m written-off • Target Canada, 2013-15, Over $7b lost • …and many, many more!!!
- 3. WHY DID THEY“FAIL”? Bad idea? Incompetent team? Lack of funding? Dated technology? Wrong market? …?
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- 7. SO, WHAT’S ASTARTUP’S CONTEXT ? • A bold experiment to the question “should this business be built?” • Startups search for their repeatable and scalable business model. • Early and frequent feedbacks allow course correction and realignment with the vision.
- 8. 3 STAGES OFA STARTUP Problem Solution Fit Stage1 Product Market FitStage2 Scaling Up Stage3 “Do I have a problem worth solving?” “Have I built something people want?” “How do I accelerate growth?”
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- 10. A STARTUP’S MOST SCARCERESOURCE… TIME
- 11. BUILDING “100% PRODUCT” ISTOO… • Time-consuming • Costly • Risky • …even boring :) • So, what’s the alternative???
- 12. “MINIMUM VIABLE PRODUCT” Coined byFrank Robinson in 2001 as “that unique product that maximizes return on risk for both the vendor and the customer.” “MVP is a mindset of the management and development-team. It says, think big for the long term but small for the short term.”
- 13. MVP… “A(n) MVP helpsentrepreneurs start the process of learning as quickly as possible. It is not necessarily the smallest product imaginable, though; it is simply the fastest way to get through the Build-Measure-Learn feedback loop with minimum effort. Unlike a prototype or concept test, an MVP is designed not just to answer product design or technical questions. Its goal is to test fundamental business hypotheses” - Eric Ries
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- 15. MVP MYTHS… • Tech= MVP • Code = MVP • Prototype = MVP • Beta = MVP • Half-baked = MVP • MVP = Faster TTM / Revenue • MVP = One MVP
- 16. MVP IS… • TheMindset that we don’t have all the answers, but the market does know them, and if we can involve the market, we can learn the answers. • The Process of identifying riskiest assumptions, designing the smallest and cheapest experiments to acquire validated learning, and correct the course, as often as required.
- 17. WHY TEST THEMVP? • Not so much to validate what we already know, but to learn what we don’t really know! • There’s no such thing as the expected output. We seek learning, not validation. • Whatever you get is the right output!
- 18. OK, SHOW MYHOW! • Let’s deconstruct the startup process • Our interest is to get to Product / Market Fit (Stage 2) • What kind of MVPs might help? • How do we “test” them?
- 19. #1 IS THERE APROBLEM WORTH SOLVING?
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- 24. LANDING PAGE • “Sellfirst, build later” • Joel Gascoigne had an idea for service to queue up social media / twitter updates. • Before building it, he wanted to see if people would need or use it?
- 25. AUDIENCE BUILDING • Choosea low-cost mechanism to build a virtual community tied to your product. • Ryan Hoover started newsletter “Product Hunt” in 20 minutes. After two weeks, he had 130 subscribers. Today, it is valued $22m • Simplilearn started as blog, then grew into video content for PMP aspirants…had over 300 courses, trained over 200,000 students…raised over $28m till now…
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- 30. #2 WHAT IS THEPAIN POINT?
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- 33. CUSTOMER INTERVIEWS • SteveBlank - There are no facts inside the building…get out of the building! • Exploratory conversations that allow you to learn and understand about customer problems • Be an ethnographer, not a salesman!
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- 36. #3 WHO HAS THEPAIN POINT?
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- 39. #4 HOW ARE THEY DEALINGTODAY?
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- 41. CONCIERGE MVP • Humanssubstitute for systems AND are visible! • When you want to learn deeply about how potential users solve a problem
- 42. WIZARD OF OZMVP • Problem: In 1999, selling shoes online wasn’t so obvious. Nick Swinmurm wanted to prove that the idea was feasible without spending thousands of dollars of inventory. • Approach: Nick took pictures of shoes and created visual catalog. When customers placed order, he bought those shoes from stores. • Results: He could prove the concept. After an unsuccessful attempt to launch a competitive product, Amazon bought Zappos for US$ 1.2 Billion in 2009. Today Zappos annual revenues are ~US$ 2 Billion.
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- 44. PAPER & PHYSICALPROTOTYPES, STORYBOARDS, BODYSTORMING
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- 51. #6 WHAT WOULD THEY PAYFOR IT?
- 52. LANDING PAGE • Afterthe initial experiment with landing page worked, Joel experimented with payment options • Some people clicked on paid plans! • First paying customers in 4 days of launch of a version with rough edges!
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- 55. PAY WHAT YOULIKE
- 56. SOFTWARE TESTING • FiveSecondTest,QuickMVP, OpenHallway • Keynotopia • bootstrap.js • Google forms, wordpress, Google Analytics, KISSmetrics,
- 57. PITFALLS OF MVP TESTING •Confirmation bias • Starting too late • Expedite time-to-market • Accelerate revenues • “Selling” the solution • Consider “Fail Fast” as “failure” • Ignore the feedback!
- 58. CHOOSING THE RIGHT KINDOF MVP • Validating MVPs use a worse product than what the final version will be, so success proves your model but failure is inconclusive. E.g. Dropbox • Invalidating MVPs, however, have a better product than the final business, so failure means the business model is doomed but success is inconclusive. E.g. RentThe Runway • Unfortunately, we usually pick the wrong kind of MVP: we tend to choose validating MVPs, even though most businesses fail because they persist too long in solving the wrong problem — what invalidating MVPs are designed to prevent. https://hbr.org/2013/09/building-a-minimum-viable-prod
- 59. RECAP • Startups existto search for business model. • Building 100% product based simply on assumptions is fatal! • MVPs as a process allow systematic validation of riskiest hypothesis. • Testing the MVPs allows validated learning to drive further decisions.
- 60. REFERENCES • https://www.inc.com/steve-blank/how-test-prototype-minimum-viable-product.html • https://www.sitepoint.com/7-new-ways-to-test-your-minimum-viable-product/ •https://envato.com/blog/straightforward-tactics-testing-minimum-viable-products/ • https://thenextweb.com/dd/2014/11/12/15-ways-test-minimum-viable-product/ #.tnw_1njw4EHg • https://blog.ycombinator.com/minimum-viable-product-process/ • https://blog.kissmetrics.com/abcs-of-mvps/ • http://customerdevlabs.com/2016/04/06/what-does-minimum-viable-product-mean/ • https://spin.atomicobject.com/2017/02/14/mvp-minimal-enough/ • https://hackerchick.com/5-mvp-examples/ • https://productcoalition.com/using-data-from-an-mvp-c3bdcc2df72b • https://www.typeform.com/blog/guides/minimum-viable-product/ • http://fresco.vc/build-an-mvp-not-a-beta/ • http://www.allencheng.com/concierge-mvp/ • https://design.org/blog/the-wrong-and-right-way-to-build-an-mvp/ • http://www.syncdev.com/minimum-viable-product/
- 61. REFERENCES… • https://www.sitepoint.com/7-new-ways-to-test-your-minimum-viable-product/ • https://envato.com/blog/straightforward-tactics-testing-minimum-viable-products/ •https://www.kickstarter.com/projects/getpebble/pebble-e-paper-watch-for-iphone-and-android • https://techcrunch.com/2011/10/19/dropbox-minimal-viable-product/ • https://hackerchick.com/how-to-build-an-mvp/ • https://medium.com/@joelgascoigne/how-to-successfully-validate-your-idea-with-a-landing-page-mvp- ef3c2d02dc51 • https://blog.bufferapp.com/idea-to-paying-customers-in-7-weeks-how-we-did-it • https://hbr.org/2013/09/building-a-minimum-viable-prod • https://blog.kissmetrics.com/abcs-of-mvps/ • http://original.livestream.com/nytechmeetup/video?clipId=pla_df402e6b-fcb6-4ea0-9223-ed516884ea34 • https://vimeo.com/24749599 • https://vimeo.com/24744647 • https://techcrunch.com/2011/10/19/dropbox-minimal-viable-product/
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