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PRESENTED BY:
Myths & Truths - Building a Product
December 10, 2014PRESENTED BY:
PRESENTERS:JESUS RAMIREZ
VP, PRODUCT, TALLWAVE
DAVE ALBERTSONCEO, CO-FOUNDER, SHELVSPACE
INTRODUCTION
JESUS RAMIREZVice President, ProductTallwave LLC
Product designer, entrepreneur and problem solver.
Helps early stage tech startups design and build products that users love through a human-centered, empathy driven design approach.
In a previous life:● DrFirst● Zazzle● Stanford d.school
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
INTRODUCTION
Dave AlbertsonCEO, Co-Founder Shelvspace
Product executive, entrepreneur, and startup advisor.
Build dynamic product teams and companies with focus on culture, design, and demand driven solutions.
In a previous life:● Intel● iCrossing● Infusionsoft
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
AGENDA
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
• Myth 1: You need to have a fully functional product to approach customers
• Myth 2: You already know which features users will love most
• Myth 3: You need a technical founder to get your idea off the ground
• Myth 4: You can appeal to everyone• Myth 5: You need a product in market to raise
capital• Myth 6: You’ll be an overnight success
THE MYTHS
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MYTH #1: YOU NEED TO HAVE A FULLY FUNCTIONAL PRODUCT TO
APPROACH CUSTOMERS
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MISCONCEPTION
“Customers will be turned away if the product is not fully ready”
Pride, Perfectionism, Worry
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
REALITY #1
If you’re not embarrassed by the first version of your product, you
shipped it too late” Reid Hoffman, LinkedIn
Fail Fast, Learn, Find “Reach”WWW.TALLWAVE.COM/SANDCASTLE [email protected]
REALITY #2If you wait until product is built to
approach your customers, you lose opportunity to:
• Identify the best problems to solve• Get better ideas
• Be told that your idea stinks• Discover how to find more customers
• Discover how to give customers what they want
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
• Early goal is to learn
• It’s easier than ever to build prototype
• It’s easier than ever to find and test users
• It’s far riskier NOT to
THE TRUTH: A PROTOTYPE IS ALL YOU NEED TO APPROACH CUSTOMERS
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
TIPS:
1.Use cheap rapid prototyping tools such as InVision, UXPin, Solidify,
proto.io2.Use cheap rapid prototyping
resources such as Elance, fiverr, or oDesk
3.Partner with a UX / prototyping group
4.Be genuine with what you are doing, observe, and listen
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MYTH #2: YOU ALREADY KNOW WHICH FEATURES USERS WILL
LOVE MOST
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MISCONCEPTION
“I know more than my users”
Arrogance, Tunnel Vision, Steve Jobs effect
REALITY #1:
You’ll build a much better product if you involve & collaborate with your
users
Different Points-of-View, Evangelists, Community
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
REALITY #2:
Falling in love with your original idea can stunt growth
“Startups that pivot once or twice raise 2.5x more money, have 3.6x better user growth, and are 52% less likely to scale prematurely than startups that
pivot more than 2 times or not at all”
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
Marmer, Max, Bjoern L. Herrmann, Ertan Dogrultan, and Ron Berman. Startup Genome Report. Rep. Startup Compass, 2011. Web. Oct. 2014.
THE TRUTH: Count on your product changing; Users will show you if you are
watching
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
EXAMPLES:
The Point → Groupon: wrong audience
Burbn → Instagram: wrong functionality (post plans, move location/check-in, post photos)
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
TIPS:
1. Observe (don’t ask) your users 2. Build prototypes & test new ideas
3. Study metrics!4. Be open to pivots, don’t fall in love with a
single idea5.Focus on the GOOD, kill the CLUTTER6.Be shrewd with your product & user
experience
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MYTH #3: YOU NEED A TECHNICAL FOUNDER TO GET YOUR IDEA OFF
THE GROUND
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MISCONCEPTION
“Without a Chief Technology leader I am dead in the water”
Paralysis, Knowledge Gap
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
REALITY #1
Best Technical Co-founders are like VC’s -- they need validated
NEED & MARKET
Fit, Proof, Vision
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
REALITY #2
Finding perfect marriage is difficult, but much easier when
you know what you are looking for
Design, Culture, Platform
• Designers/prototypers can often carry you
further than CTOs in the early stages
• Risk of a wrong fit is costly
• Getting off ground first will often attract best
talent and fit
THE TRUTH:SOMETIMES ITS WORTH THE WAIT
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
TIPS:
1.Find great design prototyping skillsets
2.Ensure you understand market segment and how they want to
experience a solution before finding the right fit (e.g. iPhone, desktop,
scaling requirements)3.Your early tech co-founder may not
be your CTO as you scale, ensure you have culture and vision fit
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MYTH #4: YOU CAN APPEAL TO EVERYONE
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MISCONCEPTION: THESE GUYS DID IT!
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
BUT THEY DIDN’T START THAT WAY
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
Originally focused on colleges, limited to Harvard and few other Ivy League Schools
Originally limited to hosts w/ air mattresses willing to serve breakfast to guests
Started with books. Had a list of top 20 products, but chose books because of low cost and universal appeal
TRUTH: YOU CAN’T AFFORD TO FOCUS ON EVERYONE source: Crunchbase
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
TIPS:
• Target niche, but maintain broad appeal• Build a product few LOVE vs. a product
many SORTA LIKE• Focus on an acute entry point (e.g. deepest customer pain, market white-space, least resistance, inefficiencies)
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MYTH #5: YOU NEED PRODUCT IN MARKET / MM OF USERS /
REVENUE TO RAISE CAPITAL
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MISCONCEPTION
“Investor will only invest in product that works and growing”
Funding Sources, Experience, Knowledge
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
REALITY #1
Seed Investors invest in the team and the belief in your go-to-market
plan.
Proof points, Storytelling , Business Model WWW.TALLWAVE.COM/SANDCASTLE [email protected]
REALITY #2
It may take hundreds of pitches, but the right partners are out there.
Background, Desire for Change, Belief
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
• More investors than entrepreneurs, sometimes not easy to find
• Most investors will tell you perceived gaps, they are not always right but you will learn from the themes
• Be sure to share vision, team, and why you will win…….don’t over-focus on product
THE TRUTH: THERE ARE INVESTORS OUT THERE FOR ALL STAGES OF BUSINESS
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
TIPS:
1.List on angel list and other funding sources, talk to whoever will listen
2.Build target of all investors you can find that match criteria, search for
investors with your model or industry background
3.Prepare for full-time funding efforts, don’t give up, keep building and
pitching until you get it rightWWW.TALLWAVE.COM/SANDCASTLE [email protected]
MYTH #6: YOU’LL BE AN OVERNIGHT SUCCESS
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
MISCONCEPTION
“Successful startups made it big overnight”
“I’ll build a product, users will flock to buy it and in a few years
I’ll sell/exit and drink champagne”
Wishful thinking, distorted perception
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
Reality #1
False expectations can be dangerous and lead to short-
sighted decisions
Examples: Short-term revenue vs long-term
visionNew features vs user experience
Reality #2:
Worth spending time early on (while low cash flow) focusing on right users,
product offering & go to market
“Your startup is a learning machine to validate your business before you run
out of money” - Eric RiesWWW.TALLWAVE.COM/SANDCASTLE [email protected]
TRUTH: There is no such thing as an overnight success
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
“OVERNIGHT” SUCCESSES
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
Angry Birds
The mobile game was a huge success. But Rovio
had been through 50 mobile games up to that
point and almost went bankrupt
before it hit big.
Was founded in 2007 and been around for 7 years despite being the
poster-child for viral growth.
Founded in 2006 (8 years ago) and battled the US
record labels for 4 years just to enter the US market.
OTHER NOTABLES
Evernote: Was founded in 2007 (7 years) despite it’s hardcore and loyal users.Buffer: Was founded 2010 and just raised its first VC round.
TIPS:
• Buckle down, strap in• Invest in long-term product vision, culture
and user growth
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
A 2-WEEK BUSINESS VALIDATION + UX PROTOTYPE
SPRINT
Visualize your product idea
Validate your product/market fit assumptions
Reduce development costs (code debt)
Demonstrate your product to customers and investors
TALLWAVE.COM/SANDCASTLE [email protected]
Questions?
WWW.TALLWAVE.COM/SANDCASTLE [email protected]
PRESENTED BY:
Myths & Truths - Building a Product
December 12, 2014PRESENTED BY:
PRESENTERS:JESUS RAMIREZ
VP, PRODUCT, [email protected]
DAVE ALBERTSONCEO, CO-FOUNDER,
SHELVSPACE