marketresearch

How to Build Traction Starting from an MVP

How to Build Traction Starting from an MVP

A vision without traction is merely a hallucination. Cultivating and creating a successful startup is more than just offering a product or service, it’s a consistent effort of building, measuring, and learning. However, one of the most important factors to venture capitalists (VCs) is traction and measuring the potential success of your product. In regard to measuring traction for your startup, below is a list of what potential investors will value when looking for investments.

Minimal Viable Product

Let’s begin off with an MVP (Minimum Viable Product). This is not a beta or prototype you are launching it’s rather a product or service you make to see if there is a market for it. You are trying to learn what your users want and don’t want and minimize the amount of time you spend on creating features or aspects of the product which is not valuable. Believe it or not, many big companies we know today originated from an MVP.

Dropbox

A good example to represent this is cloud database company called “DropBox.” Their MVP product was essentially a video which showed what they wanted to do and a signup form for people who were interested in the idea and wanted to be early adopters. Almost overnight, there were over 75,000 signups all with only a 3-minute video of Dropbox and not even an actual product of the software. If you are very early in your startup, make sure there is indeed a market for your product or service using an MVP. This is a valuable aspect to present to investors if you haven’t created real customer data points yet.

Below is a list of more MVP’s which you may find very interesting and see how the actual product which has derived from this has changed.

1. Airbnb

Airbnb

Co-founders of Airbnb needed help paying their rent in San Francisco. They also noticed lots of business conferences around; hotels were very expensive in their area. They wondered if strangers would pay to live in someone else’s house for a night. They provided all the facilities and tested out their product assumption using the interface you see above. Creating a website like this especially in the type of technology we have right now would cost you couple hundred dollars max.. If you have no idea about coding then check out ShareTribe, it is great place to create a peer to peer marketplace website and they take of everything for you. You get to focus on building your customer base and they take care of everything that’s technical. Base plans start at $100 a month and this is definitely a great way to see your your product has a market fit without spending tens of thousands of dollars into something that hasn’t been validated yet. In addition to this, hiring university students in computer science is also a great cheap alternative as well.

(MVP is estimated to be $100/ month and 2–3 weeks of coding)

2.Groupon

the point

They first started off creating “the point” which was a platform for bringing people together for fundraising or boycotting a retailer. This platform failed and from this they created Groupon. They used a customized wordpress blog and didn’t invest any time in developing a coupon system or designing a new website. They just took whatever resources they had and made a MVP out of it. It definitely was not scalable but it did answer Groupon’s questions for them. To recreate this type of MVP a simple subscription to “WordPress” will work as well. Relaying information on your own customizable wordpress website is great and more importantly relatively cheap compared to investing in a dedicated server and a team maintaining the site.

3.Buffer

Buffer

What Buffer did for their MVP was create a landing page where they showed what it would do for potential users; if you were interested, you could sign up as a paying customer. If you still weren’t sure as to why you wouldn’t join, it you could still sign up for their email alerts and executives would reach out to to find out why you weren’t convinced to use the platform. Hundreds of people responded and the demand for Buffer was evident. This strategy helped give valuable feedback and find out what users really wanted out of the service. In today’s day and age creating a landing page to show potential users is very simple. The only real aspect of what is being invested is essentially your time to review and analyse what users are saying about your potential product or service.

You can use WordPress for $10–33 dollars a month and creating the static landing page will take a few days.

4.Zappos

Zappos

The founder began off by posting photos from the local shoe store and uploaded them to this website. He then checked if anyone was interested and if there was he would go to the store and buy the shoe and then sell it to the customer. Doing this overtime he found out there was indeed a need for this type of service and answered his question if his product would be accepted into the market. Only after that, he invested into infrastructure and inventory. Reselling is becoming very common in the 21st century and online commerce is almost everywhere around the world. To recreate this type of MVP it is very cheap, quick and easy. For example you can get a subscription on “Wix” for $5–10 dollars a month and use a premade template to upload photos onto your site. This process can take as little as a day. There are multiple website builders such as Wix, Shopify and SquareSpace and all with free and paid options as suited to your individual needs.

You can get this website running in 1 day and $5-$10/month on Wix

5.Twitter

Twttr

It was first used as an internal messaging system for Odeo employees and it picked up so much that the monthly bill for the messaging system went into the hundreds of dollars. They noticed the demand and prepared to take Twitter large scale and release Twitter publicly. Creating an MVP like this is more expensive than the other options available. Creating a whole messaging system for internal use requires some capital equipment which many startups may not be able to afford. However if you do have a reasonable number of assets and capital equipment then you should consider creating something for a specific group of people then expanding once you see the validation. Another way to overcome this issue is getting a developer on your team who can use today’s available tools to create a messaging system more efficiently and cheaply.

6.Zynga

Zynga

Zynga uses landing pages and adword MVP tests to direct available resources into developing projects. What this means is that they launch ads for games in existing games and if the user clicks on it and seems interested in the new game, then they would continue developing the new game and put more attention towards it. Farmville, Yoville, etc. are all games that were developed this way and based of users interests. This type of MVP is essentially placing ads whiles users are playing games or browsing through Zynga. Sending ads to your own users are virtually free but placing ads through the Google Search Engine costs about $0.58 per CPC.

Creating and launching your own ads take a few days.

7.Foursquare

Foursquare

Foursquare began with a single featured MVP which is essentially a version of the product where design and features were minimal. They started off with user check in and offering gamification rewards. Once they realized users like this they added more features and then tested those out. It was a very repetitive process but in the end it creates a product completely sculpted by users. Although it is still very pricey to outsource work in the creation of making an app as an MVP (50,000–1,000,0000) it is strongly advisable to have a experienced coder who has coded apps before. This saves on a lot of money and you make it completely customizable towards your needs. The whole app making process however takes a number of months. If you are still insistent on hiring a company to create your apps there are few who are great at that (247 Labs, Openxcell, etc.)

This MVP takes 3–4 months to build.

8.Pebble

Pebble

Pebble actually was actually able to get money from investors; however, over time, the money ran out and they needed funding to showcase their research in E Ink displays in watches. They really wanted to find out if people would be interested in a smartwatch that had an exceptional battery and could connect to your phone. They started a kickstarter which had a video explainer describing the product and reached their goal of $100,000 in 2 hours. At the end of the fundraising they had raised 10.2 million for the project and then finally they went to manufacture the product after the evident market demand. Kickstarter is a great way to really see if your product has a market fit without starting to mass produce the product. It’s free to launch on Kickstarter but there is one catch. You need to get all the funding you submitted for, if not you lose the funding you raised. In addition to this there will be a certain percentage kickstarter will take away from each successful fundraising effort. Furthermore, you need to have pictures and a live demonstration of your product in order for you to be valid for kickstarter. This whole process will take a number of days and it will be for. More specifically the Kickstarter team spends 30 hours reviewing your submission and will reply back in 2–3 business days.

If accepted, this costs $0 and 1–10 days to make the graphics/ video. (This does not include promotional campaigns.)

9.Spotify

Spotify

Spotify has a 4 step cycle when it comes to creating and testing out its MVP. “Think it, Build It, Ship it, Tweak it.” Spotify is made up of many small teams and they have many ideas, the way they get this idea validated is by first creating the MVP based off their idea. Then they release it to users very slowly and take in a mass amount of reviews from their MVP. After, they tweak the MVP based off the reviews and users’ thoughts. They used this very process to scale from bottom up. While Spotify’s MVP product was very expensive because of its strong software background, Spotify was still able to minimize costs by creating a complete roadmap of early and cheap prototypes. They only completely launched when baseline of quantity was met.

The next sign of traction I would like to focus upon is customer acquisition. How are you going to reach out to customers? What’s the cheapest way to reach them? How much customer growth have you had? Different traction channels works for a variety of startups and can cause a chain of explosive growth for your venture. A few examples of channels for traction is through targeting blogs and search engine marketing.

A) Targeting blogs is one of the most effective ways to reach out to your first wave of customers and create your presence.

  1. The first step is to find a blog which is in the similar field as your product or service and ensure there are an appropriate number of followers on that blog suited to your needs.
  2. Secondly, reach out and offer your product or service to its readership to develop and build traction. Popular startups such as Code Academy , Mint and Reddit all got their start by targeting blogs. Mint actually gained initial traction by reaching out to mid sized blogs and ensured the bloggers were a good fit for their service. The famous bloggers used to exemplify the service and showcase it while Mint gave them VIP service in return through the service. This essentially grew the customer database.
Search Engine Marketing

B) Another channel to gain traction is through “Search Engine Marketing.” This term refers to placing ads on search engines such as Google and Bing and because SEO is so broad it will be applicable to any startup. This whole SEM process works by finding high-potential keywords which leads to your website or business online. The page that a potential customer lands on is called a landing page, and this is one the most important pages on your website. Key SEM metrics to reflect upon are CTR and the CPC. CTR (Click-Through Rate) is the percentage of people who clicked on your ads compared to the amount of people who actually saw your ads. The CPC (Cost per Click) on the other hand is the amount it costs to buy a click on an advertisement. What this means is how much are you willing to pay to get a potential customer on your website.

www.ancestry.com

A good example of a company that used this method to generate traction is Inflection, this is the company behind Archives.com which was soon to be acquired by Ancestry. They spent over $100,000 a month and dedicated several employees to customer acquisition through this method. Obviously very early startups don’t have this type of resources, but Monahan’s input on SEO is that “even if you decide to send less than 5,000, do it, because you get to have an early base of customers and users and it will create a whole bunch of things that are important in terms of regular metrics.”

The harsh reality is that majority of startups fail, and investors know that, that’s why traction is very important to them and making sure there is a market for that product or service. A MVP (Minimum Viable Product is a great way to see whether or not a business opportunity exists and ensures your long run potential. There are many ways to gain traction and I have showed many examples of it from successful startups who have all taken very different routes. Ensure there is a product market fit and traction will follow. The more traction you have, the greater the chance to catch an eye of an investor and finding external investment. “Almost every failed startup has a product. What failed startups don’t have are enough customers”- Gabriel Weinberg (CEO/Founder of DuckDuckGo)

To learn more about examples of traction feel free to head on over to the article written by us on how letters of intent can increase your startup’s funding success.

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3 Erreurs commises par les Startups: Sur quoi se concentrent les jeunes startups à part leurs Métriques?

Les startups en phase de démarrage ont énormément de choses à faire. Au fil de leur progression, leurs jours semblent de plus en plus courts. J’ai trouvé que beaucoup d’entre elles consacraient beaucoup de temps dans des choses à moyen et long terme plutôt que de se concentrer sur le présent. Lorsque je leur demande quelles sont les métriques sur lesquelles elles se concentrent, ce qui est important pour elles, etc… la variété de réponses obtenues est surprenante.

Cet article passe en revue les 3 erreurs les plus commises par les startups et explique comment un recentrage sur ses métriques remet les choses en perspective. Gardez à l’esprit que nous nous concentrons sur les startups en phase de démarrage et qui viennent seulement de créer leur entreprise.

1) Pas assez d’ACTION!

Les gens vous recommanderont toujours de lire ce dernier livre sur les startups ou bien les dernières tactiques de marketing pour atteindre des sommets.

Ce n’est pas pour vous décourager d’apprendre mais l’expérience de vos actions déterminera davantage ce que vous aurez appris que vos lectures. La stratégie marketing de quelqu’un d’autre, les canaux de distribution et la négociation commerciale ne sont peut-être pas adaptés à vous. Puisque chaque entreprise est si unique, vous ne saurez jamais quelles sont les meilleures pratiques à moins que vous sortiez et expérimentiez votre activité.

« L’ambition repose sur vos actions » — Gary Vaynerchuk, Entrepreneur, Animateur du AskGaryVee Show

POINT D’ACTION: Réservez-vous un ou deux jours dédiés à la lecture, la recherche, etc. Et consacrez les autres jours à la mise en pratique. (Je peux vous dire, par expérience, que si vous lisez un livre sur les startups, vous n’avez pas besoin de le terminer pour vous entraîner).

J’aime personnellement m’informer sur le marketing des réseaux sociaux car c’est un complément à ma formation de marketing en ligne. Je consacre généralement mon Samedi à apprendre de nouvelles choses. Pour atteindre mon public cible composé de startups, j’essaye tous les réseaux sociaux afin de voir où ma clientèle cible est la plus active et engagée. Je réalise des vidéos éducatives, des retransmissions en direct et des blogs sur Youtube, Facebook, LinkedIn, Instagram, Twitter et Medium. Je cherche quotidiennement les canaux de communication qui fonctionnent les mieux afin de décider quels seront mes futurs investissements en marketing.

2) Se projeter trop loin dans le temps

Les fondateurs sont tiraillés dans tous les sens à cause des nombreuses sources d’influence qui les entourent, que ça soit l’effervescence des évènements de startups, des retours d’amis ou de la famille, des recommandations de partenariats potentiels ou encore des « tu sais à qui tu devrais parler? ». Je suis sur que vous avez des exemples en tête!

Il est peu judicieux de concentrer son énergie sur des partenariats à moyen et long terme, plutôt que de se concentrer sur le prochain essai ou projet pilote.

Exemple: N’attendez pas pour embaucher la personne parfaite qui vous aidera à mettre en place votre projet pilote ou votre test bêta plutôt que de le faire vous-même.

Je l’admets, je suis parfois tombé dans le piège mais une chose m’a encouragée à me concentrer sur les partenariats à établir maintenant, les recommandations à suivre ou bien où allouer mes précieuses 24 heures, l’analyse de mes métriques en temps-réel! (Voir diagramme ci-dessous).

POINT D’ACTION: Marquez vos futures tâches sur une durée de 1 à 3 mois. Si vous pouvez rapidement identifier les missions ou les partenariats possibles à exécuter en un mois, alors inscrivez-les dans votre calendrier sur un délai d’un mois à compter d’aujourd’hui. Vous n’avez pas besoin de tout faire d’un coup et être dépassé par la quantité de choses à faire. Quand tout cela commence à s’empiler, un tas d’opportunités peut facilement devenir un tas de distractions. Une chose pratique à faire est de trouver un rythme. S’il y a une nouvelle ressource ou un nouveau canal à explorer, mettez-le de côté jusqu’à ce que vous ayez complété ce qui est important pour le moment comme faire de votre premier projet pilote un succès!

3) Éviter ses Clients

« La vente est le remède de tous les maux » — Mark Cuban, Shark Tank de ABC, Investisseur, Entrepreneur

Comment les startups peuvent avoir ce remède si leurs clients ne sont pas le centre de leur attention?

Éviter ses clients peut être expliqué de deux façons:

a) Découverte Client: Certains entrepreneurs en phase de démarrage connaissent des cycles de procrastination avant de faire quelconque étude de marché ou enquête sur leur Product Market Fit.

POINT D’ACTION: Pour apprendre à enquêter sur votre Product Market Fit en 24 heures, référez-vous à cet article: https://medium.com/@VenturX_team/comment-trouver-son-product-market-fit-en-24-heures-c00d07c77820

(Il va vous guider à travers les différentes étapes avec des exemples concrets). Si vous voulez un modèle de questionnaire, envoyez-moi un courriel, et je vous en enverrai un!

b) Ignorer les retours de nouveaux clients et réitérer

En tant qu’être humain, nous faisons ce que nous voulons faire et non pas ce que nous devrions faire. Si c’est plus simple pour certains de travailler sur la création d’un beau site internet plutôt que de récolter des retours clients, vous pouvez être sur qu’ils concentreront leurs efforts dans l’option #1.

POINT D’ACTION: Planifiez des rendez-vous avec vos clients pour avoir leurs retours de façon régulière. Essayez de les programmer en avance. Même si vous avez de nouvelles distractions telles que des évènements de startups, embaucher des nouveaux membres dans votre équipe, etc. ces rencontres régulières vont vous assurer de rester au contact de vos clients et montrer que vous ne les évitez pas.

Afin d’avoir des retours pour le lancement du produit VenturX, je programme des appels Skype toutes les 3 semaines avec des amis en startup pour leur montrer la refonte du site et avoir leurs retours. Je contacte aussi une startup, tous les après-midis entre 14H et 16H, pour lui parler de ses Métriques VenturX. Il m’a dit qu’il préférait les notifications SMS. Pour lui montrer ma gratitude, je lui envoie ces rapports individuels journaliers depuis mon téléphone.

Sur quelles Métriques devrais-je me concentrer?

C’est une très bonne question. Une question bien détaillée dans ce livre:

« Lean Analytics: Use Data to Build a Better Startup Faster » — Alistair Croll et Benjamin Yoskovitz

Ils expliquent que les startups devraient se concentrer sur une métrique à la fois, et que cela dépend du type d’industrie et de leur phase de développement. Voici un diagramme détaillé provenant du livre:

Avez-vous découvert dans quelle phase vous vous positionnez?

Génial!

Pouvez-vous déterminer quelle métrique est la plus importante?

Excellent travail!

Maintenant vous pouvez inverser la formule pour vous débarrasser de ces 3 erreurs commises par les startups en phase de démarrage!

Gardez en tête que même si ces informations proviennent principalement de nos observations de startups en phase de démarrage et de jeunes entrepreneurs, de nouvelles informations sont amenées à venir!

Il pourrait y avoir plus qu’une métrique que vous allez pointer du doigt comme un faible Product Market Fit ou des finances trop basses.

En tant que chercheuse dans le monde des startups, je souhaitais vous partager mes observations sur cette industrie fascinante. J’espère qu’avec ce simple guide, les débuts de votre entreprise seront sans heurt! Si vous avez des questions concernant vos métriques, envoyez-moi un courriel à l’adresse sydney.wong@venturx.ca et nous jetterons un coup d’œil ensemble!

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Founder Spotlight: Michael & Mathew (Slickspaces) – Revolutionizing Rental Space One Community at a Time OLD

Founder Spotlight: Michael & Mathew (Slickspaces) – Revolutionizing Rental Space One Community at a Time OLD

I had the great pleasure of spending time with Slickspaces in Vancouver. Both the team and the business illuminated as community business leaders of tomorrow.

Michael Driedger, CEO & Co Founder of Slickspaces

Michael Driedger, CEO & Co Founder of Slickspaces

Founders, Michael and Mathew, came together to join forces on 1 mission: to revolutionize the guest services space in a unique way. Michael (CEO) sprouted as a serial entrepreneur since the age of 10. Learning key operations from his past businesses paved the way to success for Slickspaces from Day 1. 

 

 

 

 

 

 

 

 

 

Michael Driedger, CEO & Co Founder of Slickspaces

Michael Driedger, CEO & Co Founder of Slickspaces

Mathew, Chief Technology Officer, leads the product and is equally strong in software and hardware. I had the opportunity to sit down with each of them to discuss their different takes on entrepreneurship today and what tips they would give others who are starting out.

Go grab your coffee and check out their live interviews.

 

 

 


“Coachability, an ability to learn on the fly and perseverance are key traits of great entrepreneurs. Matt has them all plus  a deep knowledge of trends in the short term rental market. ”

Clay Braziller, Advisor

About Slickspaces:

“Travel, sustainability and technology had a baby” — Slickspaces.com

SlickSpaces’ founders were both working towards a separate yet shared vision. To make travel accommodations easier to get into (they hate lines and looking for keys) and more sustainable (they really hate wasting energy). With backgrounds in building sustainability and technology integration they’ve created something that fulfils both of their dreams.

Slickspaces

Slickspaces

“Well positioned for success in the mushrooming short-term rental industry, Michael and his fellow founders have already distinguished Slickspaces by developing a paradigm-shifting solution to a critical challenge through their ability to listen to and follow his customer’s needs.” — David Dunnison, President & CEO at Global PVQ Canada, Harvard Business School.

About the team and environment:

When I arrived at their Vancouver headquarter, I noticed they had the opportunity to be surrounded by other community supporters such as BC Tech. Slickspaces won this great office space in a previous competition. One thing that I noticed about Slickspaces is their growing team and many moving parts. Slickspaces deal with both hardware and software. Because I got to walk into such a dynamic environment, I did a series of insightful interviews with the Founders that can be found here!

Click here for video

“Michael has a very clear vision on how technology will solve some fundamental pain points in the short term accommodation market. Michael possesses a combination of both industry and market knowledge and technical savvy that’s been key in Slickspace’s early development and market intro. It’s impressive to see the customer engagement the team have made in such a short period of time.” -Andy Edelmeier, President of Braemar West Capital

What does this company’s typical day look like:

Slickspaces’ scores on VenturX’s Entrepreneurship Tool

Slickspaces’ scores on VenturX’s Entrepreneurship Tool

Mornings:

· Gets to work at 6am

· Operational: Team meetings to discuss specific objectives such as contracts & upgrading to powerful accounting/CRM/etc.. software tools.

· Product: Focus product direction on scalability and channel distribution for Slickspaces’ future. This was handled by the CTO.

· Other: Work on tasks for the competition

Afternoons:

· Operational: Work on new community grants for their stage

· Other: Meetings with mentors to review upcoming presentation, business analytics, and content.

Evenings:

· Operational: Share feedback from individual meetings, discuss upcoming tasks for new hires.

Next Milestone

Bringing disruptive global innovation one community at a time has shone the spotlight onto Slickspaces.

Slickspaces just entered the BC New Ventures competition 2017, a 13 week competition. Their beta is making impressive footprints within the short term rental industry across North America. If you are in property management, be sure to keep updated on their leaps of achievements via their social media: Twitter and Facebook. Their direct contacts are listed below.

In conclusion, after spending time with this energetic team, it was clear that Canadian companies like this can achieve greatness by doing good.

Contact info: Michael Driedger and Mathew Hunter

Email: info@slickspaces.com

Linkedin: https://www.linkedin.com/in/michael-driedger-06363a13/ and https://www.linkedin.com/in/mathewhunter/

Website: https://www.slickspaces.com/

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4 Reasons Why Startups Should Take Advantage of Business Intelligence

4 Reasons Why Startups Should Take Advantage of Business Intelligence

What is Business Intelligence?

Since starting my customer discovery, I have noticed that a lot of startups do not track their metrics. I don’t just mean the metrics that VenturX focuses on (Product Market Fit, Real-time Runway, Conversion, and Engagement); I mean most startups do not look at any metrics on a weekly basis. At first, I thought it was because some people may be less analytical types than others. But one day, a startup finally told me the answer.

I don’t have enough data to track! [It is not reflective of my business.]” — Local Montreal Startup

What do we mean by data?

Data is a collection of facts and quantities used for analysis. In this case, we mean tracking your customer interviews and meetings, revenues and expenses, industry metrics, how many customers signed up this week, how many customers are retained, etc.. All data is good data as long as it is tracked accurately and updated regularly. Business intelligence is the process of analyzing data to make business decisions. 

1. I don’t have enough data to input!

Quality over quantity. Keep in mind that 2 early adopters who love your product is far better than 100 surveyed people who are only so-so about it. Those 2 that really felt the problem your startup is trying to solve should definitely be tracked.

What to do next: Investors want to see how much you have evolved over time. Tracking early is the only way to show improvement!

2. I am too busy to input my data

Time is Money! If you don’t start tracking from the very beginning, you might end up losing running into dead ends without even knowing it!

What to do next: Spend 10 mins/day to track your data with VenturX and save yourself months of pursuing the wrong path. Almost all startups who ignore data tracking don’t see how much time is wasted. It is just a way for founders to be very conscious of where they invest their time and money.

Time is money

3. I won’t want investors to see my metrics

Investors do want to see that startups are using business tools to monitor their customers, finances, teams, and project. Not only do you need to have intimate knowledge about how well your startups is doing but you also have to be able to prove it. There is nothing better than seeing a visual of how your business is doing. Investors are keen on data driven results and decisions which is a great habit to form for all startups. Don’t worry if your progress at that stage looks bad, the improvement is the most important part. If you only track when you are rising, it doesn’t look like you improved by very much. You need to show how much you have learned.

“It is not about how much you fall, it is about how quickly you get back up.” — Barbara Cocoran

What to do next: Sign up today www.venturx.ca to get into the good graces of VenturX’s list of investors.

4. It is not reflective of my business

Business intelligence focuses on the business as a whole, not just one particular part. The business includes customers and users, finance, product,etc.. Some founders are technical product managers while others have team management skills. All founders need to be focused on the overall well being of the business, not just the parts they are comfortable with. This is a big reason why some founders feel discomfort when seeing that their metrics are low regarding some parts of their business. The good news is that modern business tools also come with hints on how to improve on weaker parts of the business!

VenturX Startup Dashboard with Hints

What to do next: Make sure to use a credible and well-rounded tool like VenturX to get the most benefit!

The bottom line is why wouldn’t startups want to use every resource in their toolbox including tracking their data to make smart decisions? Corporations have been using business intelligence with all their C-level executives forever so wouldn’t startups want to model after those best practices?

VenturX is a startup success tracker that focuses on early stage startups who want an operational view of their Product Market Fit, Conversion, Real-Time Runway, and Engagement. Its unique SMART scoring mechanism will provide hints and daily SMS notifications when you reach danger zones in your scores to help you quickly improve. As an added value, you can also submit your metrics and application directly to Seed and Series A investors on the platform with just one click! For more info, go to www.venturx.ca

Why Venturx? In comparison to corporate business tools that are not customized for startups, this is is only a fraction of the price. So this is a very affordable tool with credible value, real time metrics, and even connect to investors who favour analytics and metrics at the startup stage.

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VenturX is for ALL early stages of Entrepreneurship

VenturX is for ALL early stages of Entrepreneurship

Did you know that 90% of startups fail in their first year? VenturX’s goal is to help early stage entrepreneurs beat the odds! VenturX uses benchmarks and metrics from granters and investors across Canada to help guide startups with a SaaS tool. There are different types of “Early Stage” Entrepreneurship broken down as follows. Let us show you how we can help!

 

1. How VenturX helps in the Idea Creation Stage:

Definition:

· You have thought of a name and what you want to build or maybe a couple of ideas of different potential startups

· You may have recruited interested co-founders

· You may even have business cards!

· You haven’t talked to potential customers in your target market and haven’t invested a lot of time and money yet.

Are you ready for VenturX? YES!

How VenturX can Help:

· VenturX can help you test out your early ideas! Check out this article for 4 MUST-DO steps while in the Idea Creation stage: https://medium.com/@VenturX_team/how-to-survey-for-product-market-fit-in-24-hours-2f79571ea5d4

2. How VenturX helps in the “Pre-Revenue” Stage

Definition:

· You are passionate about the idea and don’t know all the opportunities that are out there

· You don’t have any sales yet (sometimes said as no revenue yet)

· You might be busy building out your product or having a hard time finding those early adopters

Are you ready for VenturX? YES!

How VenturX can Help You Save Time:

· We help you prioritize which new features to build

· We track your early adopters’ pain points

· We free you up to work the other things on your plate!

· VenturX provides industry benchmarks to guide you along the path of success and increase your chances of earning trevenue!

3. How VenturX helps in the Funding Stage (Seed Round or Series A)

snoopy

Definition:

· You are trying to gain funding from investors

Are you ready for VenturX? YES!

VenturX Entrepreneur Dashboard gives real time Runway

How VenturX can Help:

· We calculate your runway time so you know how much money and time you have to get funding and make that first sale!

· Gives you benchmarks and requirements for funding to best prepare you for success for investor presentations

4. How VenturX helps in the Ramen Profit Stage

ramen profitDefinition:

· You make just enough money to eat Ramen Noodles every day

· Officially launched startup but want more customers

· Already have your early adopters on board

Are you ready for VenturX? YES!

How VenturX can Help:

· Score test results from your market for early majority customers

·After helping you identify early adopters, VenturX guides you to your next target. you don’t want to waste too much money investing in the wrong market. We are here to help!

5. How VenturX helps in the Late Funding Stage (Series B-D)

Product Adoption Lifecycle

Product Adoption Lifecycle

Definition:

· You have closed Series A and are looking into more funding

· You are focusing on your innovative R&D and scaling your growth

Are you ready for VenturX? YES

 

How VenturX can Help:

·You can still use VenturX to test out new product extensions to make sure you are not cannibalizing your own market

“The reality is the Lean Startup method is not about cost, it is about speed. Lean startups waste less money, because they don’t use a disciplined approach to testing new products and ideas.” — Eric Ries, American entrepreneur, blogger and author of The Lean Startup, a book on the lean startup movement.

Let VenturX help you accelerate your startup today. Sign up @ www.venturx.ca

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How to Survey for Product Market Fit in 24 hours

With all the buzzwords surrounding entrepreneurship like venture capital, acceleration, growth hacking, etc., there is always one phrase that stumps most entrepreneurs in their track! PRODUCT MARKET FIT!

This topic was fascinating to me to the point where I have been researching it since 2016 and built a startup tool to measure it. That was how VenturX was created, a startup that focuses on leveraging data to help early stage startups get from product market fit to funding. We focus on the most important KPIs for young companies such as product market fit.

At VenturX, we’re creating tools to help early-stage startups succeed; the first thing we always suggest is assessing the product-market fit. Not only is it the number one reason why startups fail (according to a report by CBInsights), but also the hardest to achieve because it can seem daunting to collect all the data in order to prove that their idea addresses a real need. The initial assessment of product market fit doesn’t necessarily require huge amounts of time or money. In this post, we’ll lay out four straightforward steps that you can follow to get a solid first look at how well your idea fits a market need.

top 20 reasons startups fail

What exactly is product market fit?

“Product/market fit means being in a good market with a product that can satisfy that market.” — Marc Andreessen, Entrepreneur & Co-founder of Silicon Valley Venture Capital Firm (Source: http://web.stanford.edu/class/ee204/ProductMarketFit.html)

4 steps for assessing product-market fit

1. Determine Your Target Audience

If you don’t know where to start, ask yourself who are you selling to and who needs your product/service?

From researching entrepreneurs for the past year, I learned that the hardest step is surveying those first 5 customers. To do it in 24 hours, can you find an event or location where your target audience happens to be? Remember you are doing research and not selling to them.

Example: For VenturX, part of my target audience is venture capital investors. I knew that they could often be found at startup competitions where they serve as judges. I knew that attending an event like this would be ideal to get the most amount of research done in 24 hours.

“If you can do 5 [customer interviews], you can do 35” — Robert Bennett, Viatec Accelerator

Tip: Not everyone likes talking to strangers, so why not bring a friend who LOVES it!! If you are in Montreal, send me a message or comment below and I’ll take the first 5 people to go surveying for their startups!

2. Ask the Right Questions

I asked multiple startups how they were currently researching product market fit and they all told me they input information into a spreadsheet and never used it again. Their issue was that they were collecting only qualitative information and had no way of comparing answers. If they had quantitative information, they would be able to compare the target market’s level of pain and benefit.

The solution? Rather than asking purely open-ended questions like “What do you think of this idea?” get them to describe the pain your idea addresses and the benefit it provides and asks participants to rate them on a numerical scale. Here’s an example of how your survey might look. If you’d like a copy of the survey, shoot an email to sydney.wong@venturx.ca with the subject line “Product Market Fit Survey” and I’ll send it your way.

Example of Pain: Startups who are not ready for funding take up a lot of the investors’ time with everything from initial pitches to due diligence and follow-ups. Investors often end up telling these startups to keep in touch, that it is not a good fit at this time, or to come back later.

Example of Benefit: What if you had a solution that would replace your current application process and cut your due diligence in half? You would see the best startups who have reached their product market fit level and score higher than their industry benchmarks.

TIP: Always ask about the pain before the benefit. If you only talk about your solution, it is no longer research, but rather a sales pitch!

TIP: If you are unsure of your pain and benefit statements and only have limited time at one event to get all those responses, then bring two different pain and benefit statements, and compare responses to both.

3. Track Answers

Currently, most startups are manually tracking their answers on a spreadsheet. The benefit of spreadsheet tools is that it’s familiar, and you can manually create graphs from the data and present them to your team.

Another option is to use the startup tool that we’ve created at VenturX, that takes in your survey data and automatically calculates a product market fit score. It takes 30 secs to get a score like the one below! You can try it out at www.venturx.ca.

Example of my score when I interviewed Early Stage Venture Capitalists regarding their Pain and Benefit:

Find out your product market fit score @ www.venturx.ca

TIP: Do not let your target audience see other people’s answers or else it might influence their answers too.

4. Rinse and Repeat

It is normal that you do not get a lot of 9’s and 10’s on your first iteration, but the important thing is to stay consistent. Do not change your pain or benefit statement after just a few responses. (You’ll know that you are on the right track when you consistently get high scores (9’s or 10’s) when you survey.

Example: I had to narrow my target market to only early stage venture capitalists, rather than all VCs. If I expand my product with more features, I will have to rinse and repeat this process all over again with a new product market fit survey for a new audience!

Once you’ve completed these steps, take a step back and look at your results. Whether your scores are low or high, you’ve certainly achieved something. You now have a quantified score that either validates your idea or tells to you to try a different target market or tweak your angle. Either way, stay strong, motivated, and persistent, and keep on quantifying!

So there you have it! Steps on how you can quickly and efficiently get your product market fit and get a real analysis of what your market is really looking for. Product Market Fit is one of the key KPIs that VenturX helps startups track and improve on in real time. For more information about this topic or other startups KPIs, please visit www.venturx.ca

Or contact the author sydney.wong@ventux.ca

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