Validating Your Startup Idea
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Transcript of Validating Your Startup Idea
Validating Your Startup Ideas
Sathish Vaidyanathant: @sathivaid | in: sathishvaidyanathan
Image credits : pixabay, google images
As of 2020, there will be a huge requirement of skilled workforce all over the world
India has less than 3% skilled work-force and should answer this call for skilled labour, by the formation of the new skill expansion initiatives that can leverage it’s 1.2b population.
A sample problem and the opportunity it presents
Your idea is not isolated !
FEW OTHER KNOWNS
Problem
THE SYMPTOMS
THE MANIFESTATIONS AND SIDE EFFECTS
THE MANY ASPECTS OF
THE SOLUTION
CUSTOMERS
COMPETITORS
A rich ecosystem surrounds it.
Consider all aspects of the ecosystem while validating your idea
MANY OTHER UNKNOWNSTHE IDEAS THAT LEAD TO
THE SOLUTIONS
PROBLEM ZONE
IDEATION ZONE
SOLUTION ZONE
IMPLEMENTATION ZONE
THE IDEATION ECOSYSTEM
Diverge
DIVERGE CONVERGE
Consider ALL problems &
opportunities
Consider ALL solutions
Pick THE CORE
problems
Identify THE CHOSEN solutions
to Converge
The Problem Zone
Start With The “Why?”
Know if you are solving for a
symptom or the actual problem
“Ask FIVE Iterative Whys “
Know if you are solving for a
symptom or the actual problem
“Ask FIVE Iterative Whys “
Problem: One of the monuments in Washington D.C. is deteriorating
Why #1 – Why is the monument deteriorating? Harsh chemicals are frequently used to clean the monument.
Why #2 – Why are harsh chemicals needed?To clean off the large number of bird droppings on the monument.
Why #3 – Why are there a large number of bird droppings?A large population of spiders on monument are a food to birds
Why #4 – Why is there a large population of spiders?Swarms of insects on which the spiders feed, are drawn to the monument at dusk.
Why #5 – Why are insects drawn to the monument at dusk?The lighting of the monument in the evening attracts the local insects.
Solution: Change how the monument is illuminated in the evening to prevent attraction of swarming insects.
Understand how the problem manifests itself
THE PEN AND PAPER STEPPen Down
The problem you are trying to solve
The ways the problem manifests itself
The root cause(s) of the problem
The Solution Zone
NEEDS WANTS DEMANDS
Know what your solution solves for
BASIC NEEDS TO LIVE LIFE
NEEDS + DESIRE
WANTS + AFFORDABILITY
So that you can better identify who you are solving it for, and how they can access your solution
Identify all aspects of your solution
So that you can think of an experience, not just benefits
What assumptions are you making ?
THE PEN AND PAPER STEPPen Down
The positioning of your solution All individual elements of your
solutionAll assumptions you have made
The Ideation Zone
Respect the market. Test multiple ideas.
Have the courage to REJECT ideas that don’t work
Market’s Uncertainty > Entrepreneur's Smartness
The Best Idea ≠ The Best Idea for YOU
Do you have the resources to pursue the idea and building a solution ?
Are there other ideas that could solve the same problem ?
Idea → Idea → Idea → Idea → WINNING IDEA
Idea Breeds Ideas
When you share your ideas and seek feedback, they will breed, grow and
evolve into winning ideas
Idea + Idea + Idea + Idea = SOLUTION
Believe in “Innovation by Combination”
Pick and choose several relevant ideas to build one grand solution
It’s a GREAT Idea ≠ I’ll pay for your product
Just because you have a great idea, does not mean that someone will pay
for it.
Idea should bring value
Value > Features ; Value ≠ Price
Focus on the value you will create, not the features you will build.
Your feature sets do not determine either the value or the price.
THE PEN AND PAPER STEPPen Down
All ideas, their merits and demerits
Which ideas can work together?How does the idea make the
problem and solution meet?
The Implementation Zone
KYC – Know Your Customers
Who are my customers ? How many types of customers will I have to
serve? What value will my solution provide each
customer type? Can I quantify the value? What channels can I pursue to deliver the
solution ? How will my idea bring me my 1st, 10th and
100th customer ?
Good way to convince yourself that you have a market
Will help you assess market size for your idea
Visualize WHY they will use the product Write down names of 5 people who WILL
use your product
Build Customer Personas
Listen : Voice of the Customer is powerful TALK to potential customers Know their motivations and values Empathize with their problem/ situation Find out how they are solving the problem
today Ask open ended questions Listen to their feedback - even critical
ones Know that customers can give you ideas -
Look for that “AHA” moment Assess if they will pay and how much ?
Equip yourself with rapid validation techniques
Paper Prototypes of your screenshots Landing pages of your websites Models Combined with a good story to tell
about your product Talk about competitor products
Other Knowns and Unknowns
What are the critical dependencies What channel will I deliver my solution ? –
Web/ Mobile/ Offline etc. What risks do I foresee in my idea ? What other opportunities can I pursue with
this idea ?
When you know that you have the right idea, go and make it happen !