Turning Products into Companies (MVS and SLIPPERY Frameworks) presented to the U First Studio on 7/18/19 by Michael Skok.

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2. Proprietary and Confidential
START UP
SECRETS
An insider’s guide to unfair competitive advantage
Hi
Turning Products into Companies
by Design & Architecture
twitter: @mjskok startupsecrets.com
Michael J Skok

3. Proprietary and Confidential
Agenda:
Closing the Product Company GAP by Design & Architecture
 Design
• Product Go To Market Fit
 PVP
 MVP
 MVS
 MRP
 Architecture
• Business Model
 SLIPPERY Products
 Russian Doll Pricing and Packaging
 Whole Product
 Services
@mjskok startupsecrets.comTurning Products Into Companies 9

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Design for
Product Go To Market fit
 MVP and introducing MVS, MRP
@mjskok startupsecrets.comTurning Products Into Companies 10

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The Product Market Fit
MarketProduct
Fit
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Adding to Lean Startup thinking…
Minimum Viable
Product (MVP) .
@mjskok startupsecrets.comTurning Products Into Companies 12
MarketProduct
Fit

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The Product Market Fit Question
here?
here?
here?
here?
MV
P here?
Market
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Product

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The Product Market Fit Problem
here?
here?
here?
here?
Fit ?
Stretch
?
MV
P
MVP
++
here?
Market
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Product

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Market
not here
not here
not here
not here
Fit
MV
P
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Product
The Product Market Fit Solution = MVS

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MV
S
MVP
Adding to Lean Startup thinking…
16
Minimum Viable Product (MVP)
+ Minimum Viable Segment (MVS)
Repeat?
@mjskok startupsecrets.comTurning Products Into Companies

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MV
S
MV
P
Adding to Lean Startup thinking…
17
Minimum Viable Product (MVP)
+ Minimum Viable Segment (MVS)
= Minimum Repeatable Product (MRP)
MR
P
Repeatable 
MR
P
= same NEEDS
@mjskok startupsecrets.comTurning Products Into Companies

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MV
S
MV
P
Adding to Lean Startup thinking…
18
Minimum Viable Product (MVP)
+ Minimum Viable Segment (MVS)
= Minimum Repeatable Product (MRP)
Smaller target to reference
lead, dominate
MR
P
Repeatable, Referenceable 
MR
P
= same NEEDS
@mjskok startupsecrets.comTurning Products Into Companies

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Minimum Viable Segment…
 Maintains MVProduct footprint
• Same functionality needed by all customers
 People reference according to the same NEEDS
• Customers can compare solutions
 Potential for leadership, domination
• At least initial Beachhead
Segment according to the same NEEDS
MV
S
MV
P
= same NEEDS
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MR
P
MR
P

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vs. Office Worker
vs. White Collar
vs. Sales
vs. Office Equipment
vs. Medical Clinics
vs. Diagnostics
+ Blatant Critical need if possible:
Mobile Professionals
Field Workers
Services
Hospitals
Critical Care
Medical Equipment
Targeting, Segmentation - example
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Targeting, Segmentation – Need Attribution
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To what do you attribute their need?
Brainstorm all the attributes you can think of…
Obvious examples
- Size / Stage
- Domain, sub domain, (eg Financial Services, Insurance,
- Sub sector (eg Property and Casualty)
What are your LESS obvious, and MORE specific examples?
- What kind of end customer they serve
- What problem that end customer is solving?
- etc

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No longer just Product Market Fit
 It’s about Product Go To Market Fit
• Narrow your target
• Segment it by need
• Focus your product
 Vital for
• Positioning, Messaging, Communication
• Packaging and Pricing
• Channels & Distribution, Partner Alignment, Support etc
 Enables
• Reference selling, network effects, virality
• Overall Business alignment
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NUMBER ONE Startup Secret?
#1
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FOCUS

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 Narrow as possible to start!
• Think small targets to dominate
 Which would you rather…
• Expand on success?
• Contract on failure?
 Balance Vision vs. Execution
• See post on startupsecrets.com
NUMBER ONE Startup Secret =
FOCUS!
Don’t be afraid to pick one thing and focus on it!
#1
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• Simple
• Low to no initial cost
• Installs easily
• Proves value quickly
• Plays well with others
• Easy to use
• ROI is obvious
• Your customers can’t live without it – it’s stickY
Friction Free, SLIPPERY products
@mjskok startupsecrets.comTurning Products Into Companies 25

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• Simple
• Low to no initial cost
• Installs easily
• Proves value quickly
• Plays well with others
• Easy to use
• ROI is obvious
• Your customers can’t live without it – it’s stickY
Friction Free, SLIPPERY products
@mjskok startupsecrets.comTurning Products Into Companies 26
Think of how this
improves the Gain/Pain
Ratio in our Value
Proposition Workshop
Gain
Pain

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Simple
Complexity
Simplicity
FIRST PRINCIPLES
Advantage
Disadvantage
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Simple
Advantage = Innovation * Simplicity
Disadvantage = Innovation * Complexity
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Even Simpler = Less is More!
Microsoft APPLE
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Example
Knowledge Management vs. Note Taking
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Simple
 Simplify to your C.O.R.E. value [link on startupsecrets.com]
• Create a whole product with partnerships
• And or Open Source etc
Capabilities
Of
Really
Exceptional
Value
Focus on it!
C.O.R.E.
Value
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Low to no initial cost
 Potential for
• Frictionless trials
• Lower initial CARC
• Self identifying Freemium prospects

http://www.wired.com/techbiz/it/magazine/16-03/ff_free
@mjskok startupsecrets.comTurning Products Into Companies
“Freeconomics"
32

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Low to no initial cost
 Potential for
• Frictionless trials
• Lower initial CARC
• Self identifying Freemium prospects
 Free-fall, free-fail ?
• It’s worth what people are paying for it = nothing
= no proof of value
• And perceived value can also be zero
• Ultimately have to upsell
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Low to no initial cost
• Value
• Network
• Monetization
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Installs easily, integrates well
 Slippery not Trip-up-ery!
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Installs easily, integrates well
 Reducing the Pain for customers to try, adopt, deploy
Inertia,
RISK
Gain
Pain
>10
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• Integrates well
– “Embrace & Extend”
Open & Extensible…
• Assume
– Change = risky, painful, time consuming & costly
Incumbents far and wide
Applications
Operating environments
Business processes
Human skills
Installs easily, integrates well
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Products that integrate, play well with others…
Encourage others to
play with them…
®
LINK Technology
Partners
@mjskok startupsecrets.comTurning Products Into Companies
LINK program
39

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Proves value quickly
 Consumer
• Instant gratification
 Enterprise,
• Rapid payback
 ≤3 months is great
 >12 months is bad
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 For example
• If your product is about improving a process…
 Provide proof as part of the product!
• Baseline current before the product usage
• Provide key metrics, visibility into progress
• Integrate analytics, dashboards
• Clearly surface reports that prove the value
Self proving value
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Package and progressively disclose value
VS.
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Package and progressively disclose value
Examples?
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Package and progressively disclose value
Examples?
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Easy to use and apply
 “OOBE!”
• Out Of the Box Experience
• Delight & entrance users
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 Example Salesforce vs SIEBEL
VS.
Easy to use and apply
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ROI is Obvious
 Quantifiable
• Increase revenue
• Reduce time, resources, costs
 Or
• Reduce risk
• Drives competitive advantage
(ties to fast payback)
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ROI is Obvious
(Supported by Self Proving Value)
 Example: Unidesk
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StickY
 Your customers can’t live
without it!
• Avoids Churn
 Leaves customers
wanting more !
• Encourages Upsell
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• Simple
• Low to no initial cost
• Installs easily
• Proves value quickly
• Plays well with others
• Easy to use
• ROI is obvious
• Your customers can’t live without it – it’s stickY
Friction Free, SLIPPERY products
@mjskok startupsecrets.comTurning Products Into Companies 51
Think of how this
improves the Gain/Pain
Ratio in our Value
Proposition Workshop
Gain
Pain

44. Proprietary and Confidential
Thank you!
@underscorevc #startupsecrets