6. 10:00-10:30 Example of how to validate a business idea.
10:30-11:00 Practicing formulation of assumptions.
11:00-11:30 Jenga of my business idea. Teams will write down in 30 minutes all
risky assumptions of their business idea.
11:30-12:30 Testing assumption(s). Teams choose 1-2 assumptions and write
down a plan for testing these assumptions.
12:30-13:30 Presenting the testing plan. All teams have 3 minutes to present
their riskiest assumptions and plan to test them.
13:30-14:00 Lunch
14:00-16:00 Executing. Teams have 2 hours to execute their plan.
16:00-17:00 Presenting results. All teams have 150 seconds to present their
results and lessons learned.
8. 1. There is 171 rainy days per year in Denmark
2. Andreas Søgaard decided to startr a social umbrella business
- allowing users to borrow and return umbrellas from shops.
Example #1
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9. Shoppers don´t visit the
shops because they
don´t want to get wet
Example #1
Experiment #1
He went to talk to shopownwers on
rainy days and asked them how
business went. They told him they lost
75% revenue when it rained.
Experiment #2
Pilotproject in 8 shops to learn if
people would throw away or steal the
umbrellas. .
Assumption: Experiments:
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Shoppers don´t throw
away or steal the
umbrellas
Assumption:
10. The experiment showed that
people did not steal umbrellas and
revenues increased.
Most innovative startup of Denmark 2015!
Example #1
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11. YEAR 2000
Digital Music Players
▪ big and clunky or
small and useless
▪ user interfaces
were "unbelievably
awful”
▪ sales are very small
and slow growth
13. Value Proposition
People are willing to pay for
hardware providing individual
listening experience.
Sony Walkman
Launched in 1979.
Costed $498.66 in current value.
Sold 385 million units
Assumptions: Analogue:
Assumptions: learning from analogues
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Value Proposition
Individual songs are as
valuable as full albums.
Value Proposition
People are willing to download
songs.
Napster
File sharing platform with
26 million users
14. Assumptions: learning from antilogues
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Value Proposition
People are interested in
large catalogue of songs to
choose from
Assumptions:
Value Proposition
Hardware has to be intuitive,
downloading music fast
Music Net and Pressplay
Buyers did not own the music.
Limited number of songs, few
users
Antilogues:
Rio mp3 player (1998)
Not intuitive, small memory, slow
download, few sales
15. Revenue stream
Enough people are willing to pay for downloading music
Assumptions:
Assumptions: to test by themselves
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Partners
Music industry is willing to allow sharing music in Apple music
system
Revenue stream
Enough people are willing to pay high price for intuitive mp3 player
17. Back in 2011 they were absolutely convinced what the world
needed was a multifunctional machine: an auto-driving lawn
mover for institutions with large green spaces and weeding
machine for farmers.
Example #2
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18. Value Proposition
Labor costs in mowing and weeding
applications are significant, and
autonomous implementation would
solve the problem.
Customer segment
Owners/administrators of large
green spaces (golf courses,
universities, etc.) would buy an
autonomous mower. Organic
farmers would buy if the Return On
Investment (ROI) is less than 1 year.
Weeding
Weeding in organic crops is huge
probleem, 50-75% of costs
Traditional weed solutions can´t be used.
Product will replace 10 to 150 workers
= Hair-on-fire-need
Mowing
Mild customer interest
Product will replace 1 or 2 workers
= Not very interesting
Assumptions: Results of the experiments:
Value Proposition and customers
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19. Mowing Dealers and
agricultural Dealers
Direct
Alliance with service providers
Eventually sell through
dealers
Assumptions: Results of the experiments:
Channels
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20. Asset sale - revenue stream
derives from selling the
equipment
Instead of selling hardware
they were selling a service -
charge by the acre with
modifier according to weed
density.
Assumptions: Results of the experiments:
Revenue Streams
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21. After a Steve Blank class
they took this idea and
formed a company - Blue
River Technology.
Within three years they
turned their vision and
PowerPoint slides into
plant detection and
precision spraying
solution.
In September 2017, Blue
River was acquired by
John Deere for $305M.
Learn more >>
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23. Jenga is a game where players in turn try
to remove blocks from a wooden tower.
Have you
ever
played
Jenga?
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24. Each block that’s
pulled out may make
the tower collapse, but
the blocks on the
bottom are critical to
keeping the tower
upright.
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25. Think of your idea as a big
Jenga tower, where all of
the bricks are assumptions.
We need to start at the
bottom, with what we call
the riskiest assumptions. At
the moment, all the other
assumptions are not as
important.
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26. Go over your business
model canvas and the
other things you have
already learned.
Discuss with your team.
Find your assumptions.
1
2
Use this template to
map them on a wall
with your team as a
Jenga tower. The ones
that absolutely must
be true for your idea to
work go on the bottom
of the stack. The ones
that are less important
or depend on other
assumptions go higher
up.
Write down in 30
minutes all risky
assumptions of your
business idea.
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More tools: https://designabetterbusiness.tools/tools/
28. People say you shouldn’t ask your mom
whether your business is a good idea.
Actually you shouldn’t ask anyone whether
your business is a good idea. It’s a bad
question and invites everyone to lie to you
at least a little.
1. Talk about their life instead of your idea
2.Ask about specifics in the past instead of
generics or opinions about the future
3. Talk less and listen more
A Sneak peek: http://www.startupwerkboek.nl/startupcenter/Momtest.pdf
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29. Read sneak peek of the
book – especially about
how to pass the mom test.
Take a closer look at your
riskiest assumptions. The
ones that, if it is wrong,
makes the whole idea fail
to pieces.
Choose 1-2 assumptions
and write down a plan for
testing these assumptions
within 2 hours.
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30. CUSTOMER INTERVIEWS. Use customer interviews to find out if you are
addressing a real need and solving a real probleem and to gain insights into if
your solution actually resonates with your customers.
PICKNICK IN THE GRAVEYARD. Investigate the biggest failures in your
industry and understand the reasons behind it. This method is not about
testing a hypothesis, instead, it is about generating ideas.
SINGLE-FEATURE MVP. Use simplicity to test your most crucial assumptions
with a single feature MVP. To avoid unclear conclusions test a single feature
minimum viable product.
LANDING PAGE. Get out of the building virtually. Landing pages can be used
as stand-alone single pages where you display f ex your value proposition
and aim to convert to a sign up via email or a sale.
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31. IMPOSER JUDO. Why build something if it already exists? Repackage an
existing product - this could mean creating static screenshots or mockups.
This method is particularly effective when selling physical products.
PRE-ORDER. Talk to your customers and gauge their interest by testing
their willingness to pay with pre-orders.
WIZARD-OF-OZ. Work „behind the scenes“ to deliver the service
manually, without huge infrastructures (but make customers believe that
the infrastructure is already in place).
A/B TESTING. Test both with a sample of users, then use the winning
version.
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