Open Office: Validating a business idea - The Social Distancing Edition - britewrx
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
The Social Distancing Edition Open Office: Validating a business idea Neville Chamberlain neville@britewrx.com 17 June 2020
Validate a business idea Revenue Engine Marketing Lead Nurturing Sales Delivery Follow Up Back Office: Systems, Processes, Admin & Money Management Building Blocks Business Model Brand Product Ladder stuff done Strategy & Structure Getting Team, Culture & Personal Effectiveness
There’s lots of information out there Most information on validating business ideas are aimed at startups who: • have funding, • want to grow fast, and • want to grow big. I’m going to look at what you can do: • on your own (mostly), • with limited resources, • and little or no funding. Even so, check out the resources at the end for more information.
Innovator’s bias It’s our idea, so we like to believe that everyone must want it. In an ideal world: • Test it before you spend a lot of time & money building it • Test the riskiest assumptions first • Test scientifically (hypothesis, test, findings)
Everything is an assumption…until we get out there Until we test it in the Jake Fleas helps dog owners get rid of fleas on their dogs though his info products and workshops. Here’s what his real world, everything is assumptions may look like as he starts his business: an assumption. For this to work, I’m assuming that: Get out of the building. • Dog owners want to get rid of fleas on their dogs • They are searching the Internet for solutions • They want to join a community of like- The riskiest assumption is the one that is minded dog owners most likely to cause your business to fail. —> Test your riskiest assumptions first. • …
From idea to testing I have an Informal Are they Do they buy? idea testing interested? Hurdle #2: get them to buy something: Often generated by our • Trial or test program own or others’ frustrations, • Reserve your seat fears or difficulties, or our • First payment / deposit skills / expertise. Hurdle #1: get them to take an action: • Letter of intent • Sign up for information Discussions & brainstorming • Download a freebie with friends, colleagues, • Contact you professional network.
Hurdle #1: Are they interested? To determine if they’re interested, you need to show Mockup, them something. Build the least you can, for example: Are they prototype or MVP interested? • Landing page • Brochure • Prototype, mockup or MVP (Minimum Viable Product) Test with: Build just enough so 1. Friends, mentors, peers to see if it makes sense you can demonstrate 2. Ideal clients: “will you help me understand if this is of what you have in mind value to you?” It helps to: Hurdle #1: get them to take an action: • Run this like a scientific experiment (hypothesis, • Sign up for information experiment, findings) to reduce Innovator’s Bias • Download a freebie • Test your riskiest assumptions first. • Contact you
Hurdle #2: Do they buy? My preferred method: Offer a low-cost trial or “dry run” of your product or service: There is a BIG difference • They pay - proof there’s at least some value in Do they buy? between liking something this. and buying it. • Make it clear you’re looking for feedback. • You get to test your value proposition, material and delivery all in one. For example: Hurdle #2: get them to buy something: • Trial or test program • Workshop Ninja, November 2019 • Reserve your seat • $100 for a full-day workshop • First payment / deposit • Letter of intent • 12 participants (oversubscribed) What I learnt here was invaluable in shaping my marketing, material and delivery – and I got video testimonials as well.
Where do you find them? Finding test subjects for high-value services can So how do you engage them? be tricky. • Network: get introductions from someone who For example, I sell Tornado Method knows someone. (Warm outreach.) Make sure Implementation workshops to owners of Small- your contact is excited about what you do Medium Businesses, typically $500K-$5M in before they make the introduction. revenue. • Find out where they hang out, and see if you It took me almost 2 years to become a speaker at can get in there. TEC Canada. Now I speak to a “captive” audience • Public speaking: a great way to create market of 10-12 CEO’s in my target market 6-8 times per awareness and build authority as an expert. year. • Target an influencer (rather than the key person). Ask them if they would like to participate in a study or blog series on businesses like theirs.
Summary: Validating a service business 1. Build a prototype or mockup. Remember: • The sooner you get out there, the sooner you 2. Test it with friends, mentors & will start learning. peers to make sure it makes • Innovator’s Bias is our blindspot. The more sense. objective you can be, the better. 3. Test it with potential ideal clients – ask them to tell you if this will be of value to them. 4. Run a low-cost trial to see if people will actually buy.
Resources strategyzer.com Create a free account, then go to Resources and look for: • Testing your business model: A Reference Guide • Test Card • Learning Card Note: Strategyzer is primarily designed for large businesses – but there is a lot of value in their tools and methodologies. leanstack.com • Sign up for a free trial. • Use the Lean Canvas to design your business model. • Look at their training and resources (including the Validation Plan). Note: Leanstack is primarily designed for startups who want to grow fast and big – even so, there is value in their tools and methodologies.
Thank you!
You can also read