Before your idea can grow into a startup, it has to pass a few sniff tests. Is there a demand for what you’re creating? What resources will you need to make your idea come to life? Boundless co-founder and CTO Aaron White will be on hand to give you all the info you need to make your idea ready for the rigors of startup life.

1. Evaluating Your Idea
you do vet them don’t you??

2. Demand First Experience
Construction Value Capture
Distribution Positioning

3. Demand First Experience
Construction Risks Value Capture
Distribution Positioning

4. Common Mistakes
I’ve made all of these once, twice, three, four times...

5. Mistake #1
People want it

6. Mistake #2
Lots of people want it

7. Mistake #3
It’s easy to explain

8. Mistake #4
I built it, they will come

9. Mistake #5
It’s obvious how to use it

10. Mistake #6
They’ll remember to use it

11. Oh god, I’m doomed.
well, not quite..

12. As with most things,
start w/ a framework!
Just so happens I’ve got a few for you!

13. #1 Business Hypothesis
Specify your dream

14. Day Month Year
No.
Who are our Key Partners? What Key Activities do our Value Propositions require? What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value?
Who are our key suppliers? Our Distribution Channels? Which one of our customer’s problems are we helping to solve? Segments expect us to establish and maintain with them? Who are our most important customers?
Which Key Resources are we acquiring from partners? Customer Relationships? What bundles of products and services are we offering to each Customer Segment? Which ones have we established?
Which Key Activities do partners perform? Revenue streams? Which customer needs are we satisfying? How are they integrated with the rest of our business model?
How costly are they?
What Key Resources do our Value Propositions require? Through which Channels do our Customer Segments
Our Distribution Channels? Customer Relationships? want to be reached?
Revenue Streams? How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
What are the most important costs inherent in our business model? For what value are our customers really willing to pay?
Which Key Resources are most expensive? For what do they currently pay?
Which Key Activities are most expensive? How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
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15. #2 Enumerate Risks
What should you be worried about... in order!

16. Validation Board
Project Name: Team Leader Name:
Solas Bar
232 E. 9th Street
Track Pivots Start 1st Pivot 2nd Pivot 3rd Pivot 4th Pivot
Tip: For two-sided markets,
Customer always validate the riskier side first
Hypothesis
Remember:
Problem Limit one sticky-note per box
Write in ALL CAPS
Hypothesis Do not write more than 5 words on any sticky-note
Solution Tip: Do NOT define a solution
until you’ve validated the problem
Hypothesis
Design Experiment
Track Pivots Riskiest Results Invalidated If Invalidated, pivot at least
one Core Hypothesis Validated If Validated, brainstorm and
test the next Riskiet Assumption
Tip: Clear all post-its from this area after each experiment is completed Assumption
1 2 1 2
Only put the Riskiest
Assumption from an
GET
experiment in these boxes
Which Core Assumption has the Record data &
OUT
highest level of uncertainty? learnings separately
Method 3 4 3 4
Core Assumptions
Any assumption that, if invalidated, will break the business OF THE
What is the lowest cost way to
test the Riskiest Assumption?
Choose: Exploration,
BLDG
Pitch, or Concierge
Minimum 5 6 5 6
Success
Criterion
What is the weakest outcome
we will accept as validation?
www.ValidationBoard.com © 2012 Lean Startup Machine. You are free to use it and earn money with it as an entrepreneur, consultant, or executive, as long as you are not a software company (the latter need to license it from us).
This work is licensed under a Creative Commons Attribution 3.0 Unported License.

17. Typically, worry and
build outside-in
Where will What ad will What value
people find pique their do I need to
me? interest? sell them on?
Can they get Do I maintain
Have I earned
that value fast a good
their dollar?
as possible? relationship?

18. Resources
Business Canvas Plan: www.businessmodelgeneration.com
Lean Validation Board: www.validationboard.com
Reading List
Lean Startups by Eric Ries
4 Steps to the Epiphany by Steve Blank