Session 1 - Introduction to lean and problem interviews
-
Upload
ignitor-accelerator -
Category
Business
-
view
243 -
download
1
Transcript of Session 1 - Introduction to lean and problem interviews
Slide 1
Standard Bank Lean Bootcamp
Who we are?Standard Bank Incubator Justin Coetsee Paul Smith Andrew RoyTeboho Khauoe
Bootcamp Goals 1 Apply lean startup to your business2 Select entrepreneurs
Entrepreneurs count off into team of 5Audience selects 30 random words to use for a name Each team selects 2 words to use for a name (example. Blank-blank.com) Each team has 5 minutes to create a business plan The business plan should consist of: A taglineA product or service (your solution)A business model (How do you make money)A go-to-market strategy (How do you get customers) Each team has 60 secs to pitch their plan Networking game: half baked.com
4
How we used to launch startups
Business PlanLaunchProduct Development
Learn if idea will work!Months / Years
The founders believed it would revolutionize transport and get the wealthy to trade in their BMWs. Instead security guards and tour guides were about the only market besides R380 million in startup capital. 6
Steve Blank
Eric Ries
A lean startup
Run ExperimentsLaunchProduct Development
Learn if idea will work!Months / Years
Quickly learn if a business idea will work!
Quickly learn if a business idea will workby running experiments
Move from Plan A to a plan that works!
A search for a repeatable and scalable business model!
SearchExecution
The story of anyperk: 3 months1 Dating site Mieple (Through friends)
2 Introductions to investors (Through friends) 3 Introductions to jobs (Through friends) 4 A translation company 5 Movie advice company 6 Teaching through Skype7 AnyPerk (Offer discounts and perks to employees)
Lean Startup: Blue River
Key assumptions
What assumption do startups most often get wrong?
1 Build a product no one wants2 Dont know how to attract customers to buy
The only thing that matters is product/market fit- Marc Andreessen
23
You can always feel product-market fit when its happening. - Marc Andreessen
The customers are buying the product just as fast as you can make it or usage is growing just as fast as you can add more servers. Money from customers is piling up in your company checking account.
Social networkFacebookDont know who is going to be in my class.Harvard StudentsPersonal inviteDont know who is single.Visit the websiteSign up on website Return to website Invite friendsFriend invitesLanding pageMessagingProfilesView classesSearch friendsFeatures Message friendsCreate profileRegister coursesFind out who are in your classesLook up friends of friends Search for people at your universityDont know who that person isFriend invite feature
Black like meBlack like meBurns and Smelt terribleBlackFemale ConsumersFormulas developed for real ethnic hairNot designedFor black hairMeet with sales personOrder productReorder productFace-to-face sellingSales pitch SamplesProduct to help with perms and curlsMaximum hair Car protectionUses natural oilsRepeat visitsPhone calls
29
Retail shopJenny ButtonLook great at workCareer womenClothes for international and local career womenNo high quality Fashionable Executive wearVisit storePurchase products Tell their friendsRetail outletSales pitch SamplesFashionable Female Executive clothesManufactured In Cape TownEvery collection is sewn in houseRepeat visitsRetail outlet
31
A repeatable and predictable way to get customers
You can always feel when product-market isnt happening. - Marc Andreessen
The customers aren't quite getting value out of the product, word of mouth isn't spreading, usage isn't growing that fast, press reviews are kind of "blah", the sales cycle takes too long, and lots of deals never close..
Choose your early adopter customer
What is the one thing every successful business has?
Customers
How do new businesses get customers?
1 Have a problem 2 Trying to solve it 3 Spent time or money
1 Have a problem 2 Want it solved
1 Have a problem
Overweight people spending money on trainers, diets, exercise programmes, etc.Overweight people trying to lose weight on their own with no help. Overweight people that have no interest in losing weight.
ExerciseApp
EveryoneHStart with an early adopter marketEliteUniversitiesUSUniversitiesAllUniversities
Step 1: Guess who you think your early adopter customer will be.
Easy to reach - Big pain - Ability to pay
Rich Environmentalistthatbuy sports carsTESLA
Corporate employees looking to start a business.IGNITORTask (5 MINS)1 Brainstorm potential customer segments.
2 Choose the customer segment you believe is your early adopter.
3 Place it on your canvas.
4 Return to your seats asap. Hint: Choose a market with the biggest pain, is easy to reach and will pay.
Customer problemWhat problems are you solving for customers?
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
CUSTOMER GOAL
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEMCd player jumps & mission to carry cdS!
CUSTOMER GOALListen to music while running and in the park
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEMOVERSEAS CALLS ARE EXPENSIVE!
CUSTOMER GOALTalk to my girlfriend
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEMIt is a headache getting a taxi!
CUSTOMER GOALGet to the party
SUCCESSFUL BUSINESSES
SIMPLE SOLUTIONBIG PROBLEM
Pizza took forever to arrive!
CUSTOMER GOALEat a pizza
Every successful business helps customers achieve a goal and solve a problem
Rich Environmentalistthatbuy sports carsTESLAPollute the environment.Support the oil companies.Electric cars are slow, look terrible and have a problem with distance.
Corporate employees looking to start a business.IGNITORScared of failing.Dont find corporate work meaningful.Need help ensuring the business will succeed.Task (5 MINS)1 Brainstorm different customer goals and problems 2 Write the biggest customer problems and goals on a sticky note 3 Place the biggest customer problems and goals on the canvas 4 Return to your seats asap.
Pivots, problems and guesses
GuessBusiness NameGuess.GuessGuessGuessGuessGuessGuessGuessGuessGuessGuessGuessGuessGuessGuessGuessFriend invite feature
Most businesses get their initial guesses wrong
How do you ensure you are solving a problem the customer cares about?
Problem interview
Talk to your customers and deeply understand their goals and problems
Experiment #1:Problem interview
Why interview customers?
vs.Ensure you are building something people want!
61
Save time
62
I wish I had known about this earlier
I cant believe I have wasted a year building something that will never make money. F@#k!
How to conduct a problem interviewINTRODUCE
INDICATORS
INTERVIEW
INVITE
Reminder: 4Is
How to conduct a problem interviewINTRODUCE yourselfi.e. My name is [name] I am doing market research for a startup and I was wondering if I could take 5 minutes of your time.
Check customer INDICATORS i.e. Ask questions to test if they are in your target market.
Conduct INTERVIEWi.e. Story, Challenge, Solution.
INVITE them to meet with you again.i.e. Ask if they would be interested in seeing the product and giving feedback when it is done.
What questions to ask? STORY
CHALLENGE
SOLUTION
What questions to ask?SOLUTION:3. What if anything have you done to solve the problem? 3.2 What was not ideal about the solution?CHALLENGE: 2. What was most challenging about that? What frustrations or problems did you encounter?STORY: 1. Tell me a story about the last time you (describe the goal they are trying to achieve)?
What questions to ask? SOLUTION:3.1 What if anything have you done to solve the problem?3.2 What is not ideal about that solution?CHALLENGE: 2. What was most challenging about that? What frustrations or problems did you encounter?STORY: 1. Tell me a story about the last time you tried to get advice or help with starting your business?
How do you conduct a problem interview
1 RAPPORT 2 CUSTOMER INDICATOR 3 GIVE CONTEXT 4 PROBLEM QUESTIONS X35 WRAP UP6 REFERRALS 7 THANKS
Write your problem interview script (10 mins)INTRODUCTION: Introduce yourself and set the context.
Customer INDICATOR: What questions / observations will tell you if they are a potential customers?
INTERVIEW:STORY: Tell me a story about the last time you (describe task they are trying to achieve)?
CHALLENGE: What was most challenging about that? Why was that challenging?
SOLUTION:What if anything have you done to solve the problem? Why did you dislike that solution?
INVITE: We are actually developing a solution [mention their biggest problem]. Can I contact you if we develop a solution?
Planning your problem interviews
Problem interviewsCorporate employees looking to start a businessStartup Events10 InterviewsSought advice or help with starting the business7 / 53Sought advice or helpMost people dont spend a lot of money on seeking helpLook for sponsors and offer the programme for free
Process overview
Problem &SolutioninterviewsNursesHospital VisitInterview 58 NursesSaid they would want to use it92% Said they wanted itNurses want this productKeep going. Talk to decision makers at the hospitalProblem & Solution interviewsHospital AdministrationsHospital visitsInterview 10 AdministratorsInterested In purchasing0 / 10 Were interested in buyingUser is not the customerPivotProblem & Solution InterviewMomsBaby shopsInterview 105 momsWould they purchase96%Interested in purchasingMoms are excited about the productDevelop Prototype
Video &Landing pageMomsMedia1000Online adsLeave email on landing page477 emailsBig demand for the productKeep goingInterviewsMomsVisit baby StoresInterview 139 customersMost they would payAverage pricing$182They would Pay moreRaise pricesLanding Page Price testWebsite VisitorsWebsite +Online ads1130Click on Buy buttonMax Profit$299It is more Profitable to raise pricesSelect price
Before you leave1 Filled in Customer, Problem2 You have a plan to talk to customers tomorrow3 You have written up your interview script
Interviewing Advice
Be super nice1 Small talk
2 Smile and laugh
3 Fun
4 Gifts or props
Have empathy1 Reward
2 Emphatic stories 3 Keep it conversational
82
Note taking 1 Look for emotion 2 Keywords / phrases3 Word document / Note pad
The Mum Test
Do interviews in teams of 2 (If possible)One ask questions The other writes down answers
Use quick emotion symbolsHappy : ) Frustrated : ( Embarrassed : |Problem ! Obstacle []
Interview tips Get psyched to hear thing you dont want to hear Disarm politeness training Use the mom test (Behaviour not opinions) Listen, dont talk Encourage but dont influence Parrot back to confirm Say thank you
Mindset
This can save me months and years!
This is what the worlds best entrepreneurs do!
I am open to being wrong!
Customer insight is the key to startup success!
Customer insight is the key to startup success!
I will find a way or make one!
Be like when finding customers.
Talk to them like Keep looking until you find one
behaving like
Recording results
Paul SmithXXA bigger problem was having no time!XXXXXXXXMark BriggsSipho NdlovuMichaelMandyGregLindaJulianRichardSiya24XX6Older customersLived in a rural area!
98
Problem interviewsCorporate employees looking to start a businessStartup Events10 InterviewsSort advice or help with starting the business3 / 10 Sort advice or helpMost people dont spend a lot of money on seeking helpLook for sponsors and offer the programme for free
CAN YOU find early adopters? 1 Do 1 round of interviewing
2 Write up actual results
3 Analyze what you have learnedNew customer definition New customer problem New channel
2 / 10 Spent money trying to solve the problem
2 / 10 Spent money, time or effort10 / 10 Spent money, time or effort
1 What was different about customers that had the problem? 2 Is there a bigger problem worth solving? 3 Should you try targeting a different customer segment? 4 Should you try a different idea?
Interview customersGet out of the building Conduct customer interviews (Phone or face-to-face)Aim to do at least 10 interviews (Ideally 20 interviews)Aim to run and analyse 2 experiments Next presentation at 16:00Feel free to ask for help from Justin or Paul after each round of interviews
Customer behavioursWhat do customers need to do to purchase?
What actions do customer need to take to purchase?
Create customer interview plan:Put together a plan to speak to at least 10 customers tomorrow morning: Friends and family (Facebook, Linkedin, Email, Cell phone) Social media (Twitter, Facebook, Google, LinkedIn) Online ads (Twitter, Facebook, Google, LinkedIn, OLX, Gumtree) Similar services (Competitor products, Products / services you use before/after)Events (Conferences, Sporting events, Seminars, Meetups)Bored people (Waiting in lines, Gautrain, Bus stops, Taxi ranks) Cold calling (LinkedIn, Facebook, Google)Public spaces (Events, Parks, conferences, Airports)
Corporate refugeesSoftware engineersOnline retailersBusiness with R1M+ turnover CorporatesSoftware EngineersDont know how to growNeed accountability Not using best practice Cant get customers Need to raise fundingDont know how to growStartup eventsLinkedIn ProfilesFriends on FacebookFriends on Linked inCell phone address book
StartupEvents
Customer definitionCustomer definitionCustomer definitionCustomer definitionCustomer definitionCustomer definitionTask (5 MINS)1 Brainstorm 5 different channels (Ways to find your customer)2 Select the best channel.3 Place your Channel / Experiment 1 column.4 Return to your seats asap. Customer problemCustomer problemCustomer problemCustomer problemCustomer problem Customer problemChannelChannelChannelChannelChannelChannel