Ross Chayka. How to validate your startup/product idea?
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This document outlines various methods for validating startup and product ideas, including market validation, problem validation, product-market fit validation, feature validation, onboarding validation, business model validation, and growth model validation. It discusses using tools like surveys, interviews, wait lists, ads, and metrics like customer acquisition cost to determine if there is a problem, a solution, and a viable business model. The document also provides examples of famous startups that underwent pivots or grew rapidly after validation.
Ross Chayka. How to validate your startup/product idea?
- 1. How to validate startup / product idea? Ross Chayka linkedin.com/in/rchayka fb.com/rostyslav.chayka
- 2. Audience ● Startup founders ● Product managers ● Entrepreneurs
- 3. About me ● Ross Chayka ● Lviv Startup Club - Founder & CEO ● Lemberg Tech Business School - Founder & CEO ● Associated Coach Practitioner by RCG
- 4. About you ● City ● Startup / Product ● Validation challenge
- 5. Agenda ● Why validation is so important ? ● 5 validation stages ● Validation for every type of product idea ● Validation metrics ● Work in groups ● 9 most impressive startup pivots ● Validation on late stages ● Q&A
- 6. Online master-class code of conduct ● Duration - 1.5 hour ● Video ON, Audio OFF ● Registration with NAME ● One person speaking ● Question in chat or raise your hand or show sign
- 8. Startup mantra ● Fail Fast ● Killer Feature ● Growth Model ● Business Model
- 9. Early versions of famous startups ● Instagram - Burbn ● Slack - Glitch Game ● Twitter - Odeo podcasts ● YouTube - dating site ● Shopify - snowdevil ● Groupon - The Point ● Flickr - game Neverending ● Netflix - DVD mail order ● Airbnb - housing for conferences ● Nintendo - play cards
- 14. Market validation ● Is there enough customers? ● Target audience ● Tools: Statistics ● Tools: Research ● Personas creation
- 17. Market Validation Metrics ● 15% of Target Audience if enough
- 18. Validation for every type of product idea # New markets - new product in new market # Solve your problem #Do it better - new product in existing market # Copy solutions - new country - new industry - new domain - sub niche - new business model
- 19. False negative ● Copycats in less developed markets ● Base technology absence
- 20. Problem validation ● Do your customers have a problem? ● Tools: ○ Interviews ○ Surveys ○ Wait lists ○ Ads
- 21. Survey questions ● What is the biggest challenge at your work? ● If I would a wizard what would you wish? ● What problem do you have that could be solved by tech? ● How much are you gonna pay for magic solution ? ● How much do you already pay for solution?
- 22. Validation for every type of product idea # New markets - new product in new market # Solve your problem #Do it better - new product in existing market # Copy solutions - new country - new industry - new domain - sub niche - new business model
- 23. Problem Validation Metrics ● Money paid for solution ● Wait list size & growth ● Ad conversion
- 24. False Negative ● Vitamin startups
- 25. ”Product/market fit means being in a good market with a product that can satisfy that market.” Marc Andreessen .
- 26. Product - Market Fit ● Will customers use your product ? ● Tools: ○ Surveys ○ Interviews ○ Competitors analysis ○ Landings with features ○ Wait List ○ Wait list advertisement ○ Customer videos ○ Fake products
- 27. Survey questions ● How would you feel if you could no longer use the products? ● What type of people do you think would most benefit from the product? ● What is the main benefit you receive from the product? ● How can we improve the products for you?
- 28. Validation for every type of product idea # New markets - new product in new market # Solve your problem #Do it better - new product in existing market # Copy solutions - new country - new industry - new domain - sub niche - new business model
- 29. Product - Market Fit Metrics ● Absence Disappointing > 40% ● Churn (product <> solution) ● Media startups: ○ Time on site ○ Daily returning visitors ● Problem solving oriented metrics
- 30. Features Validation ● What features are critical for product? ● Tools: ○ Surveys ○ A/B tests ● MVP ● Metrics: ○ Conversions between versions ○ Use usage metrics in A/B tests
- 31. Onboarding Validation ● How easy your customers understand value of your product? ● Tools: ○ Personal onboarding ○ Recorded sessions ○ Surveys ○ Interviews ● Metrics: ○ Bounce rate
- 32. Product Creation Validation ● Could you build product that would be a solutions? ● Is there other intellectual property in your product?
- 33. Business Model Validation ● Would customers pay for your product? ● Would it be enough money to build company? ● Tools: ○ Free samples ○ Freemium model A/B Tests ○ Discounts
- 34. Validation for every type of product idea # New markets - new product in new market # Solve your problem #Do it better - new product in existing market # Copy solutions - new country - new industry - new domain - sub niche - new business model
- 35. Business Model Metrics ● Pricing plans ● Customer LTV > Customer Support Cost ● Finance metrics (ROI > interest rates, etc..)
- 37. Growth Model Validation ● Could you get to know your customers about your product? ● Growth Hacking
- 38. Validation for every type of product idea # New markets - new product in new market # Solve your problem #Do it better - new product in existing market # Copy solutions - new country - new industry - new domain - sub niche - new business model
- 39. Growth Metrics ● CLV > CAC ● NPS (Net promoter score) ● Virality ● Brand ● Churn
- 41. Famous startup growth rates ● Instagram: 2 hours: 10K, first week - 100K, second week - 100K ● Slack: first week - 10 000, 3 month - 50 000 ● Twitter: ● YouTube - dating site ● Shopify - snowdevil ● Groupon - The Point ● Flickr - game Neverending ● Netflix - DVD mail order ● Airbnb - housing for conferences ● Nintendo - play cards
- 43. Questions ?