YOUR PRODUCT IS YOUR BUSINESS MODEL

  • Business plans rarely survive first contact with customers. As the boxer, Mike Tyson once said about his opponents’ prefight strategies: “Everybody has a plan until they get punched in the mouth.”
  • How can you predict a multi-year plan when nearly everything is unknown? These plans are generally fiction, and dreaming them up is almost always a waste of time.
  • Start-ups are not smaller versions of large companies. They do not unfold by following master plans. The ones that ultimately succeed go quickly from failure to failure, all the while adapting, iterating on, and improving their initial ideas as they continually learn from customers.

1.Document on plan A

Capture your business model assumptions

  • The first step is writing down your initial vision and then share this with at least one more person.
  • This is where business plans fail and the Lean Canvas succeeds
  • Fast
  • Concise
  • Portable

2. Identify your riskiest parts of your plan

Building a successful product is fundamentally about risk mitigation and the biggest risk is that we build something that nobody wants.

  • Is it something customers want? (Desirability)
  • Will they pay for it? (Viable)
  • Can the problem be solved? (Feasible)
  • Have we built something people want?
  • Achieving traction is the first significant milestone for a start-up
  • Iterate the plan
  • How do you accelerate growth?
  • Ensure you use the right metrics to manage this part of the process
  • How do you scale grow to 10x in a manageable manner? Use tested playbooks to manage this.

3. Test your plan

With your plan A documented and risks prioritized, you can test your assumptions

  • Use the validated learning loop to test your hypotheses
  • This could be a simple mock-up / Pretotype to put in front of customers
  • Use the data to learn, adapt your hypotheses and amend your lean canvas

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Andrew Constable MBA

Andrew Constable MBA

Founder, Consultant and Writer. Building a Fantastic Innovative Company! (http://visualisesolutions.co.uk).