1. Pivotal Failure
A case study by Arrgyle
We focused on small businesses and recommending third-party
software solutions to help them solve un-met business problems.
Based on customer and mentor feedback, we have learned that
this business is not sustainable in its current form.

2. Validated Learning
1. Businesses admit there are problems within their
business they are not aware of.
2. They believe technology could potentially help them
realize and solve these problems.
3. They value money over time.
4. They say they would sign up for a free or cheap
service based only on web content if it was relevant to
solving a business problem.

3. It’s a Numbers Game
Creating a recurring revenue stream is difficult because it
requires volume and demand.
In order to gross $250,000 in a year, assuming a 2%
conversion rate, we would need to put our product in
front of over 450,000 small business owners. The expense
of this exposure is not cost effective.

4. Summary
Through the lean process, we have determined which of
our assumptions are accurate and which are inaccurate.
Because of this we have learned that our model is flawed
and will require us to pivot. If it weren’t for the Lean
Startup Machine, this might have been a very expensive
error.
We wish we had started with this idea on Friday so we
could have pivoted during the event. Thank you LSM for
all your help!