Open Office: Validating a business idea - The Social Distancing Edition - britewrx
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The Social
Distancing
Edition
Open Office:
Validating a business idea
Neville Chamberlain
neville@britewrx.com
17 June 2020Validate a business idea
Revenue Engine
Marketing Lead Nurturing Sales Delivery Follow Up
Back Office: Systems, Processes, Admin & Money Management
Building Blocks
Business Model Brand Product Ladder
stuff done Strategy & Structure
Getting
Team, Culture & Personal
EffectivenessThere’s lots of information out there
Most information on validating business
ideas are aimed at startups who:
• have funding,
• want to grow fast, and
• want to grow big.
I’m going to look at what you can do:
• on your own (mostly),
• with limited resources,
• and little or no funding.
Even so, check out the resources at the end for
more information.Innovator’s bias
It’s our idea, so we like
to believe that everyone
must want it.
In an ideal world:
• Test it before you spend a lot of time & money building it
• Test the riskiest assumptions first
• Test scientifically (hypothesis, test, findings)Everything is an assumption…until we get out there
Until we test it in the Jake Fleas helps dog owners get rid of fleas on their dogs
though his info products and workshops. Here’s what his
real world, everything is assumptions may look like as he starts his business:
an assumption. For this to work, I’m assuming that:
Get out of the building. • Dog owners want to get rid of fleas on
their dogs
• They are searching the Internet for
solutions
• They want to join a community of like-
The riskiest assumption is the one that is
minded dog owners
most likely to cause your business to fail.
—> Test your riskiest assumptions first. • …From idea to testing
I have an Informal Are they
Do they buy?
idea testing interested?
Hurdle #2: get them to buy something:
Often generated by our
• Trial or test program
own or others’ frustrations,
• Reserve your seat
fears or difficulties, or our
• First payment / deposit
skills / expertise. Hurdle #1: get them to take an action:
• Letter of intent
• Sign up for information
Discussions & brainstorming • Download a freebie
with friends, colleagues, • Contact you
professional network.Hurdle #1: Are they interested?
To determine if they’re interested, you need to show
Mockup, them something. Build the least you can, for example:
Are they
prototype or
MVP
interested? • Landing page
• Brochure
• Prototype, mockup or MVP (Minimum Viable Product)
Test with:
Build just enough so 1. Friends, mentors, peers to see if it makes sense
you can demonstrate
2. Ideal clients: “will you help me understand if this is of
what you have in mind
value to you?”
It helps to:
Hurdle #1: get them to take an action: • Run this like a scientific experiment (hypothesis,
• Sign up for information experiment, findings) to reduce Innovator’s Bias
• Download a freebie
• Test your riskiest assumptions first.
• Contact youHurdle #2: Do they buy?
My preferred method:
Offer a low-cost trial or “dry run” of your product
or service:
There is a BIG difference • They pay - proof there’s at least some value in
Do they buy? between liking something this.
and buying it. • Make it clear you’re looking for feedback.
• You get to test your value proposition, material
and delivery all in one.
For example:
Hurdle #2: get them to buy something:
• Trial or test program • Workshop Ninja, November 2019
• Reserve your seat • $100 for a full-day workshop
• First payment / deposit
• Letter of intent • 12 participants (oversubscribed)
What I learnt here was invaluable in shaping my
marketing, material and delivery – and I got
video testimonials as well.Where do you find them?
Finding test subjects for high-value services can So how do you engage them?
be tricky.
• Network: get introductions from someone who
For example, I sell Tornado Method knows someone. (Warm outreach.) Make sure
Implementation workshops to owners of Small- your contact is excited about what you do
Medium Businesses, typically $500K-$5M in before they make the introduction.
revenue.
• Find out where they hang out, and see if you
It took me almost 2 years to become a speaker at can get in there.
TEC Canada. Now I speak to a “captive” audience
• Public speaking: a great way to create market
of 10-12 CEO’s in my target market 6-8 times per
awareness and build authority as an expert.
year.
• Target an influencer (rather than the key
person). Ask them if they would like to
participate in a study or blog series on
businesses like theirs.Summary: Validating a service business
1. Build a prototype or mockup. Remember:
• The sooner you get out there, the sooner you
2. Test it with friends, mentors & will start learning.
peers to make sure it makes
• Innovator’s Bias is our blindspot. The more
sense. objective you can be, the better.
3. Test it with potential ideal clients
– ask them to tell you if this will
be of value to them.
4. Run a low-cost trial to see if
people will actually buy.Resources
strategyzer.com
Create a free account, then go to Resources and look for:
• Testing your business model: A Reference Guide
• Test Card
• Learning Card
Note: Strategyzer is primarily designed for large businesses –
but there is a lot of value in their tools and methodologies.
leanstack.com
• Sign up for a free trial.
• Use the Lean Canvas to design your business model.
• Look at their training and resources (including the
Validation Plan).
Note: Leanstack is primarily designed for startups who want
to grow fast and big – even so, there is value in their tools
and methodologies.Thank you!
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