A startup creation scheme that allows you to evaluate your idea before you spend $ 1. Steps 4-6 of 6

In the last publication, we began translating Mitchell Harper's article “Startup Creation Scheme, which allows you to evaluate your idea before you spend $ 1.” Today we publish its second part.

Step 4 - Look for flaws in existing solutions

Regardless of whether the people you interviewed use an existing product or not, you need to find flaws in the current problem solving process.

If they use a product, what do they dislike about it? What is missing? What do they need in this product to make work easier / faster? Do not run a product from the category of "I, too, so I can."

There is nothing wrong with having similar functions as a basis, but they should be no more than 80% of your product. The remaining 20% ​​should be better - not just different, to be different, but significantly better.
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There should be a noticeable advantage that your potential customers will notice when comparing your product with others. And one more thing that you will demonstrate after launch.

If they do not use the product to solve the problem, look at it as if using it. Is it a combination of email, outsourcing and Dropbox, for example? Is it a manual process that involves 2 people for a full-time job? Find the flaws in this process (time / complexity / cost / irritation).

Keep digging until you can make a list based on a telephone conversation.
Ok, now let's see what you have:

• Clearly worded problem
• At least 20 people you spoke with
• You have the opportunity to solve this problem in a better / simpler / cheaper way (the same 20% we talked about above)
• And you can articulate these 20% - so your solution will be better than existing products or processes.

Step 5 - Check if there is a budget for the solution.

If you have existing competitors who want to solve the same problem, you can look at their success. How fast are they growing? Do they have enough customers? Do they attract (or attract) funding? Do they hire people? Look for signs of growth.

In most cases (but not all) a good sign is that they have not only a good product, but, in addition, they make a profit and find paying customers. This means that there are people who are willing to allocate funds for a product like theirs (and you).
You also need to establish feedback with at least 10 potential customers with whom you spoke on the phone, and ask their opinion about the price. Not about the specific price, like "$ 5 per user per month", but to find out their initial reaction to the fact that they will have to pay for the solution of the problem they faced.

You can start by voicing the problem and explaining your solution to them (spend a little time describing your 20% - why your solution can solve the problem better than other options).

And you come to this:

So, if we create something that can solve your problem, as I just described to you, what do you say about payment?

You will receive one of the following three answers:

1. They will say directly that they will not pay for it.
2. They will doubt
3. They will say they are willing to pay

If they say that they will not pay for it, or they will begin to doubt, dig deeper.

Why don't they want to pay? Maybe someone else from the company is willing to pay? Is it a matter of budget? Do they have a 100-year contract with IBM for an existing solution? They just don't like startups? The problem is not really paramount to them? Or because today is Monday and they are not in the mood?

After talking about the price of at least 10 potential customers by phone, you need at least 5 to agree to pay. You did not agree to a specific price, but simply agreed to pay when your decision is ready.

It is worth warning you that if someone said that he would pay for your product, this in no way means that he really will. But this is a great start, and I guarantee you that it will allow you to weed out at least half of your ideas - if you have more than one of them.

Step 6 - Use your potential customers to define an action plan.

Given that you can solve the primary problem, for the solution of which a sufficient number of people are willing to pay, you now have a permanent audience of 10/20/30/50 people.

If you decide to continue your startup (with which I congratulate you), you now have your own audience with which you can discuss functions, layouts, design, etc. as you create your product.

In the end, some of them may become the first customers to pay for your product.

You got what I call a short feedback loop. And what's the best? That you spent almost $ 0 to get to this point.

Sumptuously!

Further steps

From here you can continue to do what most startup founders BEGIN to plan a product and build an MVP.

I hope you understand that, using a simple step-by-step approach, you can quickly determine whether your idea has a chance of becoming a profitable company - long before you write the first line of code, hire a designer, or attract investment.

Given the low barrier to entry for technology, product creation in 2015 is easy. But the product is not the whole company.

The company is made up of buyers who are faced with a problem and who are willing to pay for its solution.

Do not rely on the 0.0000000001% chance that you will be able to create a new Instgram or Snapchat. Most likely, you can not, and you will not - and this is normal.

I prefer to solve problems for business - companies are used to paying for software, and therefore it is much easier to sell after launch.

Good luck!

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