How quickly can you test the idea yourself?

If you are building your startup, one of the key success factor is how quickly your can test your ideas - your cycle time!

What can you do about the design of your product or service that allows you to have a faster cycle time?

Test your ideas...learn quickly...Agile development.


Your Business Model 

Your business model should be as simple as a lemonade stand, you should be able to explain it.

Start with the customer journey (Design thinking)

Eg: The morning routine: wake up in the morning....end of it --> I start the work day.
All the jobs you need to do in the morning routine?
Brush your teeth, breakfast, kids to school etc.

  • Main job to be done
    • Functional aspects: what things need to happen - tasks / actions that need to be performed.
      eg: drive my car
    • Emotional aspects
      eg: I am fed up for traffic
    • Personal dimension
    • Social dimension
  • Related jobs to be done
    • functional aspects - 
      Eg: I got to get dressed, find parking etc.
    • Emotional aspects
    • Personal dimension
    • Social dimension

When you break down these routines - You ask what is changing? that changes the answer to the jobs to be done?

This exercise is figuring out what the product or services business model is!

  • Here are the jobs to be done.
  • Here is a functional diagram that shows how I make money out of it.

A product or service that does not have a business model is called a Hobby!

A Business Plan is NOT your Business Model

Asking for a business plan before you know your product and market is like asking Columbus for a world map before he leaves Spain.

You need a Business Model

  1. People will do this thing...
  2. They will perform this job... in return for this money.
  3. I will extract that money... use some it to acquire more people.  And the thing will sustain itself

We do not spend enough time as startups thinking about our business model or about our go-to market and customer acquisition strategy.
We spend way too much time thinking about which buttons we should use, what color they should be etc.

The companies that fail are the ones that focus on the wrong things!

The ones that succeed are the ones that have

  • The Business Model
  • Think about customer acquisition
  • They recognize that Attention is the riskiest thing

 

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Cycle Time - Video Part 2

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