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10 STEPS TOPRODUCT/MARKET FIT  hashtag: #startupfest       ASH MAURYA           @ashmaurya   http://www.ashmaurya.com
products9/10   startups fail
66%   drastically change      their original plans
Not a better Plan A but a path    to a plan that works.
Lean Startup is a systematic process for iterating from          Plan A to a plan that works before              running o...
Plan that works = Scalable, repeatable, business model
Product/Market Fit is the first thing that matters.
via Tara Hunt (@missrogue)
Agenda: 10 Steps to Product/Market Fit1. Document your Plan A2. Tackle the riskiest parts first3. Maximize for speed, lear...
Agenda: 10 Steps to Product/Market Fit1. Document your Plan A2. Tackle the riskiest parts first3. Maximize for speed, lear...
Reasonably smart people can rationalize anything but entrepreneurs are especially gifted at this.
Business Model versus Business Plan
Business Model versus Business Plan                   A document investors make you write                          that th...
Business Model versus Business PlanA single diagram of your business
Problem                     Solution                     Unique Value Unfair                                      Customer...
1   Your product is NOT “the product”.
Your “product” is NOT the productProblem      Solution      Unique        Unfair      Customer                           V...
Your “business model” IS the productProblem      Solution      Unique        Unfair      Customer                         ...
2   Brainstorm multiple models and    prioritize where to start.
Brainstorm possible models                 Time
Prioritize where to start              1. Customer Pain Level              2. Ease of Reach              3. Price/Gross Ma...
Agenda: 10 Steps to Product/Market Fit1. Document your Plan A2. Tackle the riskiest parts first3. Maximize for speed, lear...
Identify the riskiest parts of your model                   Time
3   Understand the three stages    of a startup.
3 Stages of a Startup Problem/Solution   Product/Market                                      Scale       Fit              ...
3 Stages of a Startup Problem/Solution       Product/Market                                                  Scale       F...
3 Stages of a Startup Problem/Solution      Product/Market                                              Scale       Fit   ...
3 Stages of a Startup Problem/Solution        Product/Market                                                  Scale       ...
Before Product/Market Fit Problem/Solution           Product/Market                                             Scale     ...
After Product/Market Fit Problem/Solution           Product/Market                                                        ...
4   Focus on the right macro metrics.
Key Metrics   Acquisition                  How do users find you?    Activation   Do users have a great first experience? ...
Before Product/Market Fit   Acquisition                    How do users find you?    Activation     Do users have a great ...
After Product/Market Fit    Acquisition    Activation    Retention              Growth metrics     Revenue     Referral
Agenda: 10 Steps to Product/Market Fit1. Document your Plan A2. Tackle the riskiest parts first3. Maximize for speed, lear...
Speed
Learning           Speed
FocusLearning           Speed
The optimal                                               learning loop Premature                SpeedOptimization        ...
5   Formulate falsifiable hypotheses.
Too Vague: Being known as an “expert” will drive early adoptersSpecific and Testable: Blog post will drive >100 early sign...
6   Architect for learning.
Landing Page > Pricing > Signup
Landing Page > Pricing > Signup
Landing Page > Pricing > Signup
7   Architect for speed.
Most learning happensSome learning                                                   here   Requirements   Development    ...
Most learning happensSome learning                                                   here                             Cont...
8   Go only as fast as you can learn.
BACKLOG   IN-PROGRESS (1)   DONE
BACKLOG   IN-PROGRESS (1)   DONE
BACKLOG   IN-PROGRESS (1)   DONE
VALIDATED                            LEARNINGBACKLOG   IN-PROGRESS (1)     DONE
9   Validate Qualitatively, Verify Quantitatively.
Qualitative   Quantitative Start here   Verify with data
The ideal conversion dashboard is part analytics and part customer relationship management.
10   Systematically test your model.
Systematically test your model                  Time
Systematically test your model                  Time
Systematically test your model                  Time
Systematically test your model                  Time
Systematically test your model                  Time
Systematically test your model                           ...                  Time
Systematically test your model                           ...                  Time
Questions?              RUNNING LEAN              http://RunningLeanHQ.com              Buy PDF: $19              Save 20%...
10 Steps to Product/Market Fit
10 Steps to Product/Market Fit
10 Steps to Product/Market Fit
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10 Steps to Product/Market Fit

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10 Steps to Product/Market Fit

  1. 1. 10 STEPS TOPRODUCT/MARKET FIT hashtag: #startupfest ASH MAURYA @ashmaurya http://www.ashmaurya.com
  2. 2. products9/10 startups fail
  3. 3. 66% drastically change their original plans
  4. 4. Not a better Plan A but a path to a plan that works.
  5. 5. Lean Startup is a systematic process for iterating from Plan A to a plan that works before running out of resources.
  6. 6. Plan that works = Scalable, repeatable, business model
  7. 7. Product/Market Fit is the first thing that matters.
  8. 8. via Tara Hunt (@missrogue)
  9. 9. Agenda: 10 Steps to Product/Market Fit1. Document your Plan A2. Tackle the riskiest parts first3. Maximize for speed, learning, and focus
  10. 10. Agenda: 10 Steps to Product/Market Fit1. Document your Plan A2. Tackle the riskiest parts first3. Maximize for speed, learning, and focus
  11. 11. Reasonably smart people can rationalize anything but entrepreneurs are especially gifted at this.
  12. 12. Business Model versus Business Plan
  13. 13. Business Model versus Business Plan A document investors make you write that they don’t read
  14. 14. Business Model versus Business PlanA single diagram of your business
  15. 15. Problem Solution Unique Value Unfair Customer Proposition Advantage SegmentsTop 3 problems Top 3 features Single, clear, Can’t be easily Target compelling copied or customers message that bought states why you are different and Key Metrics worth buying Channels Key activities Path to you measure customersCost Structure Revenue StreamsCustomer Acquisition Costs Revenue ModelDistribution Costs Life Time ValueHosting RevenuePeople, etc. Gross Margin PRODUCT MARKETLean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under theCreative Commons Attribution-Share Alike 3.0 Un-ported License.
  16. 16. 1 Your product is NOT “the product”.
  17. 17. Your “product” is NOT the productProblem Solution Unique Unfair Customer Value Advantage Segments Proposition Key Metrics ChannelsCost Structure Revenue Streams
  18. 18. Your “business model” IS the productProblem Solution Unique Unfair Customer Value Advantage Segments Proposition Key Metrics ChannelsCost Structure Revenue Streams
  19. 19. 2 Brainstorm multiple models and prioritize where to start.
  20. 20. Brainstorm possible models Time
  21. 21. Prioritize where to start 1. Customer Pain Level 2. Ease of Reach 3. Price/Gross Margin 4. Market Size Time
  22. 22. Agenda: 10 Steps to Product/Market Fit1. Document your Plan A2. Tackle the riskiest parts first3. Maximize for speed, learning, and focus
  23. 23. Identify the riskiest parts of your model Time
  24. 24. 3 Understand the three stages of a startup.
  25. 25. 3 Stages of a Startup Problem/Solution Product/Market Scale Fit Fit Stage 1 Stage 2 Stage 3
  26. 26. 3 Stages of a Startup Problem/Solution Product/Market Scale Fit Fit Do I have a problem worth solving?
  27. 27. 3 Stages of a Startup Problem/Solution Product/Market Scale Fit Fit Have I built something people want?
  28. 28. 3 Stages of a Startup Problem/Solution Product/Market Scale Fit Fit How do I accelerate growth?
  29. 29. Before Product/Market Fit Problem/Solution Product/Market Scale Fit Fit Focus: Validated Learning Experiments: Pivots Terrain: Qualitative
  30. 30. After Product/Market Fit Problem/Solution Product/Market Scale Fit Fit Focus: Validated Learning Focus: Growth Experiments: Pivots Experiments: Optimizations Terrain: Qualitative Terrain: Quantitative
  31. 31. 4 Focus on the right macro metrics.
  32. 32. Key Metrics Acquisition How do users find you? Activation Do users have a great first experience? Retention Do users come back? Revenue How do you make money? Referral Do users tell others?
  33. 33. Before Product/Market Fit Acquisition How do users find you? Activation Do users have a great first experience? Retention Do users come back? Revenue How do you make money? Referral Do users tell others? Value metrics
  34. 34. After Product/Market Fit Acquisition Activation Retention Growth metrics Revenue Referral
  35. 35. Agenda: 10 Steps to Product/Market Fit1. Document your Plan A2. Tackle the riskiest parts first3. Maximize for speed, learning, and focus
  36. 36. Speed
  37. 37. Learning Speed
  38. 38. FocusLearning Speed
  39. 39. The optimal learning loop Premature SpeedOptimization Chasing your tail Learning Focus Run out of resources
  40. 40. 5 Formulate falsifiable hypotheses.
  41. 41. Too Vague: Being known as an “expert” will drive early adoptersSpecific and Testable: Blog post will drive >100 early sign-ups
  42. 42. 6 Architect for learning.
  43. 43. Landing Page > Pricing > Signup
  44. 44. Landing Page > Pricing > Signup
  45. 45. Landing Page > Pricing > Signup
  46. 46. 7 Architect for speed.
  47. 47. Most learning happensSome learning here Requirements Development QA Release Very little learning
  48. 48. Most learning happensSome learning here Continuous Requirements Release Deployment Shorten cycle time
  49. 49. 8 Go only as fast as you can learn.
  50. 50. BACKLOG IN-PROGRESS (1) DONE
  51. 51. BACKLOG IN-PROGRESS (1) DONE
  52. 52. BACKLOG IN-PROGRESS (1) DONE
  53. 53. VALIDATED LEARNINGBACKLOG IN-PROGRESS (1) DONE
  54. 54. 9 Validate Qualitatively, Verify Quantitatively.
  55. 55. Qualitative Quantitative Start here Verify with data
  56. 56. The ideal conversion dashboard is part analytics and part customer relationship management.
  57. 57. 10 Systematically test your model.
  58. 58. Systematically test your model Time
  59. 59. Systematically test your model Time
  60. 60. Systematically test your model Time
  61. 61. Systematically test your model Time
  62. 62. Systematically test your model Time
  63. 63. Systematically test your model ... Time
  64. 64. Systematically test your model ... Time
  65. 65. Questions? RUNNING LEAN http://RunningLeanHQ.com Buy PDF: $19 Save 20% - Discount Code: STARTUPFESTAsh Mauryatwitter: ashmauryablog: http://www.ashmaurya.com

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