Lean startup, value proposition, and competitive positioning workshops for startups enrolled in the Spring Accelerator.

1. Meena Sandhu
@meenasandhu
Feb 28, 2016
MVP & Customer Discovery
Sunday, February 28, 16

2. Minimum Viable Product
A minimum viable product is “that product which
has just those features and no more that allows you
to ship a product that early adopters see and, at
least some of whom resonate with, pay you money
for, and start to give you feedback on”.
Identifying the problem
Sunday, February 28, 16

3. Five Whys
1. Why did the machine stop? (There was an overload and the fuse blew.)
2. Why was there an overload? (The bearing was not sufficiently
lubricated.)
3. Why was it not lubricated sufficiently? (The lubrication pump was not
pumping sufficiently.)
4. Why was it not pumping sufficiently? (The shaft of the pump was worn
and rattling.)
5. Why was the shaft worn out? (There was no strainer attached and metal
scrap got in.)
The next step is this: you have to commit to make a proportional
investment in corrective action at every level of the analysis.
Sunday, February 28, 16

4. MVP Explainer
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5. MVP Landing Page
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6. MVP Wizard of Oz
Zappos shoes is the biggest online shoe retailer.
The founder didn’t start by stocking up big amounts of shoes and investing in
an e-commerce backend. Instead, he went to local shoe shops. He would asked
the owner’s permission to take photos of shoes and put them online. Once
the orders started flown in, he went to the shop, bought the pair that was
ordered, shipped it, handled payments, returns… all of it himself, and by hand.
This was not a scalable business.
But it was an experiment designed focused on answering one question: is there
already sufficient demand for a superior online shopping experience for shoes?
And it allowed the founder to validate most of his assumptions with a very little
investment.
Sunday, February 28, 16

7. MVP Concierge
Food on the table provides easy weekly recipe and grocery lists based on
sales at your store. They need lots of stuff to make this work. A list of stores
and groceries, weekly updates on sales, recipes, algorithms to match your
preference to recipes to promotions…
But the founders did not start by building all these assets. Before building
anything, the two founders went to their local shop in Austin. They
interviewed shoppers until they found one that was interested in their service.
She got a concierge treatment.
The CEO visited her every week. He came with a shopping list and selected
recipes, carefully chosen based on (a) her preferences and (b) promotions in
the local store. The list was updated on the spot based on her desires and
feedback. Most importantly, the CEO would pick a check of $9.95 for this
service.
Sunday, February 28, 16

8. MVP Piecemeal
A Single Featured MVP
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9. Value Proposition
•In a nutshell, value proposition is a clear
statement that
•explains how your product solves customers’
problems or improves their situation (relevancy)
•delivers specific benefits (quantified value)
•tells the ideal customer why they should buy
from you and not from the competition (unique
differentiation)
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10. Sunday, February 28, 16

11. Sunday, February 28, 16

12. Sample Plan
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13. Sunday, February 28, 16

14. Minimum Viable Product
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15. Minimum Viable Product
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16. Minimum Viable Product
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17. Features
•Self-setting clock
•50-number speed dial
•One-click financial reports
•Custom programs
•Open 24 hours
•Batteries included
Factual statements
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18. Benefits
•The benefit of a self-setting clock is convenience.
•The benefit of 50-number speed dial is fewer keystrokes.
•The benefits of one-click financial reports are immediate information and
prepared statements for your accountant.
•The benefit of custom programs is that they're designed just for you.
•The benefit of a store open 24 hours is you can buy when you want.
•The benefit of batteries included is the product is ready to use out of the
box.
What’s in it for me?
Sunday, February 28, 16

19. Benefits
•Self-setting clock: I won't feel dumb!
•50-number speed dial: I can keep in touch with my best customers
without effort, and I won't get frustrated misdialing.
•One-click financial reports: I can see exactly where my business is
financially at any time. I can spend more time with my family instead of
trying to figure out whether I'm making enough money or not. I can see
business what-ifs instantly.
•Custom programs: It will accomplish exactly what I need, and I won't have
to worry paying for services I don't want.
•Open 24 hours: When my pregnant wife craves pickles and ice cream at 4
a.m., I won't have to disappoint her.
•Batteries included: I'll never have to see the crushed look on my child's
face when his toy won't work because I forgot to buy batteries.
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20. Competitive Positioning
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21. Competitive Positioning
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22. Customer Discovery
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23. Customer Discovery
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24. Customer Discovery
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25. Customer Discovery
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26. Customer Discovery
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27. Customer Discovery
Usability Hypothesis
What user story did we design & execute this against?
What value proposition was that story delivering against? Why do we
believe the user wants to do this?
What problem are we solving for the user with this value proposition?
Who is this user? Do we understand what makes them tick? What shoes
they might wear?
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28. Customer Discovery
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29. Customer Journey
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