Apply 10x framework to your business idea, and recognize that for the right choice of craft-based business, there is an accelerating return on your efforts, not diminishing

1. Product Offering
Order of Magnitude
Chris Sita and David Kim
Subscribe to growth blog (http://goo.gl/lpVrK7)
Product Offering 1

2. Why Talk About This?
Don’t get lost in the details.
• Take a look at where your offering fits in
• Take a look at adjacent possibilities
• This is a companion presentation to Craft of
Business
Product Offering 2

3. 10x Analysis
Was popularized by Andy Grove of Intel – as ways of
thinking about disruptive technology. Used by Pine and
Gilmore in Experience Economy to illustrate the value
of experience-based offerings.
Product Offering 3
Source: http://www.service-innovation.org/
Extract ->
A commodity
-> make it into ->
A good
-> customize it into ->
A service/experience

4. 10x: Apply to PM Fast Track
Example: Apply the analysis to PM Fast Track, an on-
line and meetup community for product managers.
At each point, what creates the 10x steps?
Product Offering 4

5. 10x: Quantity and Price
To generate $1M in revenues
Note that online channel magically solves a portion of the
quantity relationship, if you have a repeatable product.
Product Offering 5
Offering Price Quantity Revenues
Meetup event (commodity) $ 10 100,000 $ 1,000,000
Day workshop (service) $ 100 10,000 $ 1,000,000
Conference (experience) $ 1,000 1,000 $ 1,000,000
Education (transform) $ 10,000 100 $ 1,000,000

6. Exercise: What Can You Offer?
Product Offering 6
• If you had to pick one thing you’d like to teach
someone (or build for someone), what would
it be? This is your product.
• Who would you first teach it to? Who would
be your first customer?
• How much would he or she pay for your
product?

7. Ideas a la Ramit
• Ramit has a cool 2x2
to chart possibilities
• It need not be an
educational product
• But, low cost and high
profit would be good
• Make sure it’s you,
though – what can you
do and for whom?
Product Offering 7
Source: www.iwillteachyoutoberich.com

8. Test Fast a la Tim Ferriss
• Watch this video of Tim Ferriss interviewing
Noah Kagan.
• One (of many) key insight is you should give
yourself a constraint of time. If you didn’t have
a year to test your idea – if you had to validate
it by tomorrow, by tonight, within the hour,
what would you do???
• http://youtu.be/v47WEyeSMSA
Product Offering 8

9. Test Cheap a la Noah Kagan
• You don’t want to spend a lot of money, don’t
worry about hiring designers or scaling. Just
go out and see if there is a market.
• Noah Kagan talks about how he built the
multi-million dollar AppSumo for $50:
• http://www.appsumo.com/how-appsumo-was-built-for-50/
Product Offering 9

10. Test Right a la Amy Hoy
• Amy Hoy, product guru, talks about going on a
sales safari. The point is to get inside the head
of the customer.
• Click the link to watch her video:
• http://unicornfree.com/2013/video-sales-safari-in-action
Product Offering 10

11. Take a Long-Term View
• Remember the craft?
• Start small, dream big
• Time is your friend, not
your enemy
Product Offering 11
Img source: Wikipedia
Chartres Cathedral – North Rose Window

12. How is Time Your Friend?
• It does not mean be slow (test fast,
remember)?
• If you take a craft-based view, then there is an
accelerating return on your investment, not
diminishing returns.
• Beethoven’s music later in his life was far
better than it was in his youth.
Product Offering 12
Img source: Wikimedia

13. For more
Feedback? Suggestion?
Tell us, or send us $19 bills via email.
Product Offering 13
Chris Sita David Kim
@findinbay
dklounge.github.io