Proof of Concept By Peter Baskerville 20/07/2019

Proof of concept just as important as product development.

Where to go for help? Lean Startups - 'How can we learn more quickly what works, and discard what doesn't? http://theleanstartup.com/ Customer development process – Experiment, run tests, get data, change model. https://www.udacity.com/course/viewer#!/c-ep245/l-48726358/m-48713720 Eric Ries Steve Blank

Test 1 - Primary target market For who are you creating value and why should they care? Customer profile storyboard Find your initial niche.

Your ONE person Male or female? Dreams & aspirations? Single, married? What age? Educated? What level? Working? Where? Goals now 5yrs Dreams & aspirations? What’s their strongest desire? What’s their biggest worry? What do they truly value? What’s their name ………?

The proof You have a hypothesis (best guess) about who your earliest adopters (evangelists) will be You have talked to enough of them to know they really need what you're building You have spent time discovering their needs & priorities They have enthusiastically agreed that your product solves their problem They have made a hard commitment to pay for it when you build it

Customer development process SEARCH EXECUTE Iterations Vision Business model Existence Discovery Test Repeat & Scale Minimum Viable Product Validation Start Build users Sales channel Creation Validated model Company management Building Pivot Overarching Startup Goal – To turn a set of founding hypotheses (best guess) into a moneymaking venture. To discover the repeatable, scalable, and ultimately profitable business before running out of cash.

Customer Development Includes the customer Deals with unpredictability Failure integral to learning Iterations and pivots Dynamic planning Scientific testing Preserve cash in search Minimises risk – affordable loss Escape velocity via steps 20/07/2019

Customer Discovery Vision into Business model Engage customers Build for the few EarlyEvangelists Identified same problem, $ spent on interim solution Believe what your believe - WHY Minimum Viable Product (MVP) minimum set attributes - barely satisfy your "early evangelists". AIM = Proof of concept. Update model 20/07/2019

Online tests Sites: Kickofflabs, Launchrock or Unbounce Website - Basic value proposition – Problem + potential solution benefits summary a call to action to learn more short survey or pre-order. Tweet, forward, share Measure conversion rates Views to actions 20/07/2019

Face-to-face tests 50 target customers Get the customers to talk, discuss Taste solution (big idea) - watch the reactions … "If you could do that, all my problems would be solved?" or "What do you mean?" Be "one of them" - Learn 20/07/2019

Proof of Concept You can't develop your idea in a vacuum It is the process of finding your niche. Budget for proof-of-concept marketing Key metric = quantity of users + growth rate + conversion rate (interest to action) + contact information collected “Minimal Viable Product" MVP = the minimum set of product attributes that will just barely satisfy your earliest adopters "earlyvangelists". Build a landing page - create a website 20/07/2019

Proof of Concept Operational practicality: Can do the technology, people, law, politics. Show it works and demonstrate it can be done, Scalability: Ok so it works, but can it scale? Will costs grow slower than revenue as you grow? Demonstrate economies of scale. Usability: Will people use it? Commercial viability: Will enough people pay enough for it. 20/07/2019

Business = Products + Person

Leverage your networks Awareness Get a reaction Connect Engage $