Remember that “customers are what make paydays possible”
There are typically passionate, early users of a new technology or product who understand its value before mainstream markets1) Seek out new technology or products to solve their (or their companies’) problems, not just for the sake of owning the newest thing2) Are not inclined to rely on references from others to make buying decisions – while they may be influenced by other early adopters, their main concern is solving a known problem or satisfying a known need3) Are willing and interested in helping you and want you to be successful – early adopters enjoy opportunities to be heroes, especially by solving real problems
… Start by focusing on only one audience to create a beachhead…A segment is made up oflike people, who share a common interest, who have access to each other, and who look to one another as a trusted reference - The point isn’t that individuals within a segment actually communicate with each other, but rather that they “have access” to do soWhy segment?… Word-of-mouth works best among those who share a need and have at hand a means to communicate a solution… “Access to each other” indicates a common methodology to reach them… Knowledge of like individuals buying a product, such as through PR, testimonials, etc, is a powerful influence
This is the “tipping point” in the start-up life cycle where your venture becomes “investable”
We don’t all wear size 8 ½ brown shoes. Each audience segment you identify will have different needs, desires, and perceptions. You need to understand and cater to each of these individually.Positioning – some additional points:… Forms the basis for all communications with customers, investors, partners, employees, etc.… For customers, the goal is to have them understand what benefit they will receive from you and why you are better than everyone else… Your differentiator is the benefit your offering provides, not the offering itself
This is the “tipping point” in the start-up life cycle where your venture becomes “investable”
Experience suggests that ‘fitness’ requires at least 40% to 50% of your customers saying they would be “very disappointed” without your offering
From Eric Reis: “that version of a new product which allows the team to collect the maximum amount of validated learning about customers with the least effort”… Intermediate MVPs are useful to validate learning and minimize risk along the path to the correct business model… To be a true test of viability, all MVPs require a trade of some scarce resource such as time, money, or attention… maximize your use of prototypes: “If a word is worth 10 to the minus 3 pictures, then a picture is worth 10 to the minus three prototypes.” or in plain English, If a picture is worth a thousand words, then a prototype is worth a thousand pictures.”
… The Customer Development Team works on testing assumptions about who the customer is, the problem they hope to solve, and what the solution should be, while the product development team focuses on building the solution… The Product Development process receives input from customers indirectly through customer development, and when possible, by measuring product use directly… Product Development iterates on the product continuously, releasing new or changed functionality directly to the customer as quickly as possible… The Customer Development process receives input from customers indirectly through Product Development reports about feature usage, and directly via Customer Development processes and analytics… Customer Development iterates on core business assumptions, product functionality, and customer acquisition and conversion assumptions, resulting in updated hypotheses and honed messaging, positioning, feature requirements, and marketing and sales tactics
… Use open-source technologies… Use “agile” development methods… Engage in ferocious customer-centric rapid iteration… Use powerful, low-cost, easy-to-use analytics tools
“Failure” is inevitable when you’re starting up – it’s what you do next that makes the difference
… But take care not to throw out the baby with the bathwater... From Eric Reis:“Each failed hypothesis leads to a new pivot where we change one element of the business plan – we don’t abandon everything we learned”… The sooner you realize your hypothesis is flawed, the faster you can update it and retest… Remember, the aim is to get you to one of two desired outcomes as quickly and efficiently as possible:1)A thriving successful company, or2) The realization that there is no market, or that the market is too small to support the business you want to build
… do this the same way you would like to vote or to get paid: “early and often”… The intent is to minimize both the real and opportunity costs of building your business… Analytics, surveys, and other automated user-facing test tools complement but are not substitutes for “getting out of the building”
Consider alliances, lease-backs, etc.
Entrepreneur’s need to be skilled in “pattern language” aka “chaos-speak”Where order is about repetition, chaos is about “one-offness”… consider a universe that’s a “one-off”, a wholly singular and unique event or “thing”, or as Lee Smolin calls it, “a work of art”.