seminar 2: testing the water: market research and validation
DESCRIPTION
Seminar 2: Testing The Water: Market Research and Validation Date: Thursday 15 March 2012 Time: 5.30pm-7.00pm Venue: Cambridge campus (LAB026) - Chelmsford campus (MAB221) You have a great idea but will anyone actually want to buy it. Understanding the market you're in, what your customers actually want and who you're going to be up against is key if you want to be a success. Guest speaker: Stewart McTavish, Innovation Director, IdeaSpace Stewart McTavish is the Innovation and Support Director at the University of Cambridge ideaSpace. Before joining the ideaSpace he founded three ventures in web and media. At ideaSpace Stew helps advise and connect entrepreneurs.TRANSCRIPT
market research & validation
Presented by:Stewart McTavishDirector, ideaSpace
there is no right answer
a startup is not a small version of a
big company waiting to grow up
a startup is a business in search
of a business model
you don’t find a business model
by writing a business plan
you need to get out the building
and talk to potential customers
an invention
something you sell
productvalue > productprice > productcost
Well understood product management process
productvalue > productprice > productcost
someone to sell it to
customerltv > customerac + customerrc
productvalue > productprice > productcost
Customer Development - Steven Blank
customerltv > customerac + customerrc
productvalue > productprice > productcost
“Inside the building”
“Outside the building”
Build-Measure-Learn Loop - Eric Reis
validatedlearning
testable hypothesis
minimum viableproduct
test with
customers
documentresults
design experiment to reduce biggest risk
start here
Business Model Canvas
Key Partners Value Proposition
Customer Segments
Key Activities
Key Resources
Unfair Advantage
Channels
Cost Structure Revenue Streams
by Alex Osterwalder and Yves Pigneur
www.businessmodelgeneration.com
Lean Startup Canvas
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
by Ash Maurya
www.leancanvas.com
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
do it in one go
approach it from the customers pov
be concise
be precise
stay in the present
it’s ok to say “I don’t know”
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
Product Risk
Customer Risk
Market Risk
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
Product Risk
Customer Risk
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
Market Risk
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
customerltv > customerac + customerrc
“Outside the building”
Start UpsYoung
Enterprise
Product MarketFit
Start UpsYoung
Enterprise
http://pmarca-archive.posterous.com/the-pmarca-guide-to-startups-part-4-the-only
Domain knowledgeThe market
Lifecycles and trendsYour competitors
The expertsResearchInterviews
Who are you after?Turning data into results
Sales and marketingFast to market
Early CustomersLaunch
Problem / SolutionFit
Product / Market Fit
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
Get out the building and talk to people
Start with people you know but quickly move beyond
Talking to people is hard
Pay attention to what people do, more than what they say
The first thing to learn is what questions you should be asking
Then you move on to trying to find the answers
Remember to document for your team, communicate with your prospects
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
www.leancanvas.com
WELCOME2 min - Set the Stage
TELL A STORY2 min - Set Problem Context
PROBLEM RANKING4 min - Test Problem
EXPLORE CUSTOMER’S WORLDVIEW15 min - Test Problem
WRAPPING UP2 min - Hook and ask
DOCUMENT RESULTS5 min
COLLECT SEGMENT DATA2 min - Test customer segment
Problem Interview Outline
Segment Data
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
?
?
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
price is a feature
WELCOME2 min - Set the Stage
TELL A STORY2 min - Set problem context
TEST PRICING3 min - Revenue Streams
DEMO SOLUTION15 min - Test Solution
WRAPPING UP2 min - The Ask
DOCUMENT RESULTS5 min
COLLECT SEGMENT DATA2 min - Test customer segment
Segment Data
Solution Interview Outline
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
?
?
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
UVP
MVP
visual mock up
wizard of oz
a story
functional
working (just)
WELCOME2 min - Set the Stage
DO THE PITCH2 min - Test UVP
SHOW THE PRICE2 min - Set the Stage
DEMO15 min - Test Solution
WRAPPING UP2 min - Open Feedback Loop
DOCUMENT RESULTS5 min
MVP
MVP Interview Outline
MVP
MVP
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
?
?
?
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
Dave McClure - Startup Metrics for Pirates
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
?
?
?
Start UpsYoung
Enterprise
Start UpsYoung
Enterprise
you need to get out the building
and talk to potential customers
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
Start with people you know but quickly move beyond
Talking to people is hard
Pay attention to what people do, more than what they say
The first thing to learn is what questions you should be asking
Then you move on to trying to find the answers
Remember to document for your team, communicate with your prospects
Build-Measure-Learn Loop - Eric Reis
Lean Startup Canvas
Problem Unique Value Proposition
Customer Segments
Solution
Key metrics
Unfair Advantage
Channels
Cost Structure Revenue Streams
by Ash Maurya
www.leancanvas.com
Problem / SolutionFit
Product / Market Fit
Understand Problem Define Solution Validate Qualitatively Verify Quantitatively
Start UpsYoung
Enterprise