*notes to self*
>> Why are start ups hard?
Because the product market fit takes multiple iterations. Most learning happens after the product is released, so get to that point soon.
Know HOW to listen to customers, not just what they say. Customers might not know what they need, but there will be a recurring theme of pain points. Don't Pitch in customer interviews, listen.
Iterate enough on the idea and product before running out of resources (not just $$, but time!)
Get out of the building for Customer Development.
When you bootstrap, it is important to pick the right actions at the right time.
Don't have to be stealth. Not everyone will have the same amount of interest and passion for your problem. Release early and release often to speed up learnings from customers.
Document your Plan A otherwise easy to convince yourself you are doing fine and continue along. This keeps you honest to your original vision. It should contain the principles (why) and tactics (how).
No need for elaborate business plan, a 1 page Lean Canvas is sufficient.
You product is NOT the product, your business model IS the product.
Identify the riskiest parts of your idea first.
If customers are NOT solving the problem that your idea fixes, BAD sign. They won't buy your "nice to have" product.
Find early adopters, if you have to convince them to use your product they are not early adopters. Leverage them for learning from.
Problem/Solution fit --------> Product/Market fit --------------> Scale
Focus: during Prob/Sol fit and Prod/Mkt fit is Validate Learning, during scale phase is growth.
Experiment: during Prob/Sol fit and Prod/Mkt fit with Pivots, during scale with optimization.
Terrain: during Prob/Sol fit and Prod/Mkt fit is qualitative (A/B test may not give enough signal), during scale is quantitative.
Systematically test your plan:
Idea (Noun) -> Build (Verb) -> Product (Noun) -> Measure (Verb) -> Data (Noun) -> Learn (Verb) -> Idea again.
3 keys: Speed, Focus, Learning.
Speed INTERSECTION Focus -> chasing your tail
Focus INTERSECTION Learning -> will run out of resources
Learning INTERSECTION Speed -> Premature optimization
Ideally, be at the intersection of all 3.
Try to test your business model on different cases (at least analytically). Search and narrow down the risk after looking in detail instead of picking off the bat.
Brainstorm possible customers (besides the expected usual segments). Customers give you $$$, users don't! Learn to differentiate.
Segment customers into smaller buckets and sketch multiple canvases.
A lean canvas can be sketched in one sitting, okay to leave some parts blank, think in the present, and always have a CUSTOMER CENTRIC approach.
A Lean Canvas contains:
1. Problem: top 1-3 problems, existing alternatives
2. Customer Segment: identify user roles and early adopters
3. Unique Value Proposition: what is different that is worth paying attention? Target early adopters for crafting the correct message. Have a high concept pitch. When # is low, qualitative >> quantitative feedback.
4. Solution: top 1-3 problems and their features
5. Channels: path to customers, start outbound (seek) but work on inbound (someway to get customers to you). Initial prospects -> branch out. Outbound - ads etc. Remember that you should go after retention before referral.
6. Revenue stream: high risk area. Test pricing early. Pricing is part of the product and determines your customers ;)
7. Cost structure: don't ask customers how much they are willing to pay. Relative to alternatives? Keep it simple, no tiered system to start with.
8. Key metrics:
acquisition - how do users fine you?
activation - do users have a great 1st experience using your product?
retention - do users come back?
revenue - how do you make $?
referral - do users tell others?
9. Unfair advantage: something that cannot be easily bought or copied.
Types of risk:
Product risk: getting the product right
Customer risk: building a path to customers
Market risk: building a viable business
Prioritize where to start. For this score all customer segments on the following and target the top ones (since they will most likely buy)
customer pain level
ease of reach
price / gross margin
market size
technical feasibility
Advice: seek external advice and APPLY it, don't just blindly FOLLOW it.
Test your plan with experiments.
1. Formulate a falsifiable hypothesis, specific enough and can be proven wrong
specific repeatable action ----> expected measurable action
that way you know your hypothesis failed if it does not happen.
2. create accessible dashboards
3. communicate learnings early and often - what we thought / expected? what happened? insights? what next?
A problem solution fit is complete (almost!) when we (finish problem interviews) and
1. identify demographics of an early adopter
2. have a must have problem
3. can define an MVP
4. have a customer willing to pay $