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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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Should Founders Work on Their Strengths or Weaknesses?

When looking at this scenario in a macro, it seems that most entrepreneurs at different stages of the business would choose to work on strengths and let another expert work on the weaker part. In theory it sounds logical and favourable. However, let’s examine these scenarios why a lot of first time founders seem to fall into the pit of spreading themselves too thin and focus too much on the business areas that are weak. Is there such a thing as a good balance? How do you measure it?

Different entrepreneurs will have strengths and weaknesses in different areas. Running a successful company is very demanding so it may seem that startup founders are supposed to be good at everything or all else will fail. Here is a short list of what strengths and weaknesses entrepreneurs may possess:

· Getting investor funding

· Pitching to investors

· Managing customers

· Managing internal team

· Building the product or service

· Marketing

· Sales

Investor Funding

Investor Funding

The famed author of the book “Rich Dad, Poor Dad” Robert Kiyosaki describes funding as a prime example of a necessary skill that most entrepreneurs are weak at. This is not to say they will not be successful but it is say that they should be aware of this early on in order to prepare for it when their business needs funding the most. A lot of startup founders try to take getting funding into their own hands, even though it is their weakness; they do this instead of hiring for others’ strength such as a software tool to help train their business or professionals to help broaden their network. Like any strength, securing investor funding requires knowledge of the startup investment field, relationship building, and logistical time. Usually startup founders would try and fail between 2 months — 12+ months before asking for the necessary help. By them, their business would have gone through a significant amount of suffering that could have been easily avoided. We have heard of startups who have gone through 1 year of unsuccessful capital raising before finally considering help with their weakness.

Tim Ferriss

Tim Ferriss

Tim Ferriss, #1 New York Times best-selling author and Silicon Valley entrepreneur, dedicates to steering people to work towards their strengths and hiring/ outsourcing for weaknesses in order to accomplish professional goals. When founders dive into the entrepreneurial journey and undergo self discovery, each will find where their strengths and weaknesses really lie. Each business decision relies on utilizing available resources, time, and strengths and weaknesses of people.

Team

When founders try and do everything themselves, they realize that they take a longer time to develop the skill sets that funding experts, accountants, web designers, etc.. would have. It would cost more time and money in the long run and the return on investment (ROI) is poor. When founders hire experts in the fields where they are weak, they can work along side the experts to better learn what the end result should look like. It would be a positive learning experience that also saves you time and resources in the end.

If founders did not put too much on their shoulders by hiring for weaknesses and doubling down on their own strengths, they will not only save themselves a lot of time but they will spend their days building their business and doing what they love.

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How letters of intent increases startup funding success

How letters of intent increases startup funding success

Letters of Intent

What is a letter of intent? Who are they for? Are letters of intent outdated? Are they legally binding? How is it related to funding? How does it increase my conversion metrics as a startup?

Let’s take a look deeper into one of the important elements of startup conversion called letter of intent. We have come across this topic when one of our startup clients who is preparing for funding using www.venturx.casuggested for more information about letters of intent and how it would affect his Conversion score on the VenturX tool. Let’s dive in and answer all those buzzing questions!

What is a letter of intent?

A letter of intent outlines the terms of a deal and serves as an “agreement to agree” between two parties. They are usually not legally binding but it depends on how it is written. Most partners, investors, merchants, etc.. tend to favour those that are not legally binding. Below, there are a few examples of letters of intent.

How does a letter of intent help me get startup funding?

Startups are always trying to defend their valuation of their business when it comes to funding. The truth is that most startups do not realize the gold and leverage they tend to have. Even when you cannot show revenue, you can certainly show traction. A written agreement proving the interest or partnership of another party is certainly a strong way to show traction. When you are up for investor funding, the investor has more confidence in what is presented when there are contact details, price points, etc.. on these letters.

Who should startups get letters of intent from?

There are several sources that startups could be collecting the letters of intent from.

1) Potential investors — startups might hit need to hit a certain milestone (ex. Patent approval) in order to get the potential investment. Like a term sheet, this letter assures other investors that your startup is valued at that particular pre-determined valuation. These would be used to back up those claims.

2) Clients — this works very well with Business to Business (B2B) clients. For example, before putting in a purchase order, the business you are trying to sell to might want to see test results, patent approvals, etc.. These terms would be written into the letter of intent.

3) Partners — there are many different kinds of partnerships. For example, a referral partnership would be when two parties refer clients to each other in exchange for a commission fee or just out of goodwill. When startups do not have a full product yet in order to sign a referral partnership agreement contract, a letter of intent could take its place until development is completed.

What should be included in a letter of intent.

1) Language and Tone: Think about who the letter of intent is for. For example, if you are a VenturX startup aiming for funding, your letter of intents would be read by the investors that VenturX matches you with. Therefore, your letters of intent would cater to the language of investors.

2) Pricing, dates of delivery, etc.. — if you have agreed on pricing, dates of delivery, etc.. that is great to add because it strengthens your letters of intent. Note that if deadlines are not met, you can send an updated letter of intent to be signed for the updated estimated delivery date. Specific details are better to be included when a third party is reading it because there is context and clarity.

3) Signatures — be sure that whoever’s signatures are on the letters of intent are the head decision maker and not likely to change jobs anytime soon. If this happens, you may need to spend more time getting another signed letter.

Examples

1. Purchasing Letter of Intent

This letter of intent includes details such as the pricing, who is buying, etc. It is a great example because these detail tell the investors that there is definitely traction in the pipeline. It helps support the analytics of the VenturX report for that company.

LETTER OF INTENT FOR PURCHASE OF COMPUTER EQUIPMENT

March 11, 20xx

Contact Name

Address

Address2

City, State/Province

Zip/Postal Code

OBJECT: LETTER OF INTENT FOR PURCHASE OF COMPUTER EQUIPMENT

Dear [CONTACT NAME],

[YOUR COMPANY NAME] intends to purchase certain computer hardware from [SELLER]. The purpose of this Letter of Intent is to summarize our discussions to date and to confirm our respective intentions with respect to the proposed transaction.

[YOUR COMPANY NAME] intends to purchase from [SELLER] the [MODEL] computer.

The purchase price for the [MODEL] model shall be the lower of [AMOUNT] or whatever better price [SELLER] is able to extend to [YOUR COMPANY NAME].

[YOUR COMPANY NAME] and [SELLER] will use their best efforts to conclude a contract on or before [DATE].

In order to secure timely delivery of the equipment [YOUR COMPANY NAME] has paid to [SELLER] the sum of [%] of the listed price as a deposit, which shall be promptly refunded in the event negotiations are terminated.

In the event that a contract is not signed on or before [DATE] for any reason whatsoever, [YOUR COMPANY NAME] or [SELLER] shall each have the right to terminate the negotiations without liability.

This document is a Letter of Intent only. It is not intended to be, and shall not constitute in any way, a binding or legal agreement, or impose any legal obligation or duty on either of us. If the foregoing reflects our mutual statement of intention, please sign and return the enclosed copy of this Letter of Intent.

Sincerely,

FOR [YOUR COMPANY NAME] FOR [SELLER]

Authorized Signature Authorized Signature

2. Purchase with Deposit/Escrow

This letter of intent is a great example even if your industry is not real estate. The timeline details as well as the deposit procedure details are included. It allows investors to visualize how the process is going to go. Even though the investors may be familiar with the industry standard deposits or escrow, it is always good to include the details in it so everyone is on the same page.

LETTER OF INTENT

This letter sets forth some of the basic terms under which Seller and Purchaser would be interested in entering into a Real Estate Purchase Agreement. It serves as a letter of intent (“Letter”) from _________________________ (“Purchaser”)through and dated ______________, 2010, in which Purchaser has set forth its interest in acquiring the subject Property. NEVERTHELESS, PLEASE BE ADVISED THAT THIS LETTER IS NOT CONTRACTUALLY BINDING ON THE PARTIES AND IS ONLY AN EXPRESSION OF THE BASIC TERMS AND CONDITIONS TO BE INCORPORATED IN A FORMAL WRITTEN AGREEMENT.

PROPERTY:

____________________

____________________

____________________

(hereinafter, the “Property”)

PURCHASER:

____________________

____________________

____________________

____________________

SELLER:

c/o Silo Group, LLC

7800 W Sand Lake Rd, Suite 210

Orlando, FL 32819

PURCHASE PRICE:

The Purchase Price shall be $___________

FINANCING:

EARNEST MONEY

DEPOSIT:

_________________ dollars ($_________) (“Earnest Money”) shall be placed in escrow with the Title Company upon the execution of the Purchase and Sale Agreement (defined below). Upon expiration of the Due Diligence Period (defined below) and provided Purchaser does not terminate the Purchase and Sale Agreement before expiration of the Due Diligence Period, the Earnest Money shall become non-refundable.

DUE DILIGENCE ITEMS:

Within five (5) days after the Effective Date. Seller, at its expense, shall provide Purchaser with the following items, if any, in Seller’s possession:

A copy of the most recent title commitment for the Property

Lease

Survey

Environmental Report

Items (a) through (d) above and the updated title commitment and updated survey, if applicable, are hereinafter referred to as the “Due Diligence Items”.

DUE DILIGENCE PERIOD:

Purchaser shall have up to ____________ (__) days from the Effective Date (the “Due Diligence Period”), to review the Due Diligence Items and to enter upon the Property to inspect the physical condition of the same, as it shall deem necessary. On or before expiration of the Due Diligence Period, Purchaser shall determine whether it is feasible to purchase the Property based on Purchaser’s review of the Due Diligence Items and its physical inspection of the Property. If it is not feasible for Purchaser to purchase the Property, Purchaser may terminate the Purchase and Sale Agreement. If Purchaser so terminates, the Earnest Money shall be returned to Purchaser, and the Due Diligence Items shall be returned to Seller.

CONTRACT:

Upon the mutual execution of this Letter, Seller will promptly prepare a Purchase and Sale Agreement and Seller shall make a good faith effort to deliver said Purchase and Sale Agreement to Purchaser within five (5) days from the effective date of the LOI.

TRANSFER:

Special Warranty Deed or the equivalent thereof in the State where the Property is located.

CLOSING:

Closing shall occur on a date mutually acceptable to purchaser and seller, no later than ________ (__) days after the effective date.

CLOSING COSTS:

Closing Costs shall be paid according to local custom, further detailed in the Purchase and Sale Agreement.

SALES COMMISSION:

Purchaser and Seller each represent that no real estate broker, finder or intermediary has been consulted or used in connection with the purchase and sale of the Property except Silo Group, LLC. Silo Group, LLC shall be compensated upon Closing by Seller pursuant to a separate agreement with Seller.

CONFIDENTIALITY:

Seller, Purchaser, and their agents shall maintain the confidentiality of the parties, terms, and conditions of this letter and the negotiations that may follow, if any, from this date forth.

The above items are the general business terms and conditions to be covered in the Purchase and Sale Agreement, which would be submitted to the Seller. Additional remaining terms of the Purchase and Sale Agreement will be negotiated and must be acceptable to both Purchaser and Seller.

This Letter is not intended to be a binding contract.

If this Letter accurately reflects the general business terms and conditions which may form the basis of a separate written agreement, please confirm in writing no later than ______________, 2010.

Buyer hereby agrees to the terms and conditions of the Letter.

By: ________________________________ ____________________

Date

Name: _____________________________ ____________________

Title

Seller hereby agrees to the terms and conditions of the Letter.

By: ________________________________ ____________________

Date

Name: _____________________________ ____________________

Title

3. Purchase Upon Due Diligence and Shipping Details

This example gives details about how the inspection or due diligence will take place. These details are good to give assurance to investors because depending on the situation, investors may also offer a second round of due diligence. If the inspection/due diligence is being serviced by a trusted third party, that is even better. The delivery details also gives an overview of the timeline when things will take place. This transparency in the letter increased trust level between the parties.

AIRCRAFT PURCHASE OFFER

Ref: _________________ S/N ___________ Registration: _________ (the “Aircraft”)

Subject to ratification of a mutually agreeable Aircraft Sales Agreement within 5 business days, Purchaser offers to purchase and Seller agrees to sell the above referenced Aircraft subject to the following:

1. Purchase Price: The purchase price shall be $ _____________________________________ USD

2. Deposit: Upon ratification of this Offer, Purchaser shall make an immediate refundable escrow deposit in the amount of $ ________________USD to _______________________________ (“Escrow Agent”) within 1 business day. Purchaser and Seller shall share escrow fees equally. Time shall be of the essence.

3. Inspection: This Offer is subject to Purchaser’s satisfaction with a visual inspection of the Aircraft and records to be completed within 3 business days followed by a technical inspection (hereafter “Inspection”) of the Aircraft, engines, avionics, logbooks and records including a test flight of one hour, to be commenced within 5 days at _______________________________ or other mutually agreed upon facility to determine the Aircraft is in compliance with Paragraph 5 below. Purchaser expressly agrees that all costs of the visual or technical Inspection and the movement expenses shall be for Purchaser’s account and pre-paid in advance. The Aircraft shall not be flown, except for delivery, following the Inspection.

4. Acceptance: Prior to rectification of any discrepancies found during the technical Inspection, Purchaser shall accept (“Acceptance”) or reject the Aircraft in writing within 2 days following completion of the technical Inspection. Upon Acceptance, the deposit shall become non-refundable, subject only to Seller’s performance hereunder.

5. Condition: Aircraft shall be delivered at the Seller‘s expense:

(1) With all airworthy systems and avionics functioning normally

(2) Current on it’s maintenance program with no deferments or extensions;

(3) With all AD’s and mandatory SB’s accomplished

(4) With all records, logbooks, flight manuals, and accessories in owners possession;

(5) Free and clear of all liens or other encumbrances.

6. Delivery & Closing: Final payment & Delivery for the aircraft shall occur simultaneously at ___________________________________ within 3 business days following Sellers compliance with Paragraph 5 above through the Escrow Agent. Prior to delivery, Seller shall execute and place a Bill of Sale with the Escrow Agent. This contract and all negotiations shall remain strictly confidential.

7. Additional Terms:___________________________________________________________

_____________________________________________________________________________

SELLER: PURCHASER:

_________________________________ ___________________________________

(Company name) (Company name)

_________________________________ ___________________________________

(Signature) (Signature)

Title: _____________________________ Title: _______________________________

Date: _____________________________ Date: _______________________________

The examples show that there are different styles for letters of intent. It highly depends on what industry the business is in. When reviewing it, make sure to include all the details mentioned in this article and your business will be one step closer to your funding goal.

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3 Reasons Why Every SaaS Startup Need to be Consultants!

3 Reasons Why Every SaaS Startup Need to be Consultants!

As a super busy startup in today’s world, it seems impossible to be doing anything extra. Today, we want to tell you why that extra added service will go miles for your new SaaS (Software as a Service) business.

1. Research on Your Customer’s Needs

Customer-centric companies win. Getting there, however, requires getting to know customers so well that there’s not only understanding of what they do, but why they do it. This is the mentality that Founder of Apple, Steve Jobs, always understood.

An excellent way to do it is to simply ask. Work with them on the solutions directly. Help your target market to achieve their goals so you can benefit from key takeaways to that will benefit your technological solutions. Find out what not only what the solution should be but how customers want to use it and any other extra features that would make it more valuable.

When startups are close with the customers, that relationship will act as an insightful competitive advantage. (This rings true if the target market for your SaaS is the same as your consultant clients.) For us for example, it would startups who are first time business owners looking for their first round of funding (Pre-Seed — Series A). If you are very specific with your target, the more you will benefit in the long run.

2. Use it as Your Side Hustle

Get some revenue coming in from the side hustle. Depending on how much you charged, your startup can still reinvest that money into things such as Facebook or Instagram ads like we did. If your consultancy packages enough for you to invest in automation softwares or salaries, even better!

This would also be play a helpful hand when you are applying for government grants where they require you to show some form of revenue.

3. Use It to Build Your Startup Brand

To utilize the customer feedback and questions to build your brand will show community engagement as well as branding your company as an expert in this industry. It is always hard for startups with no money to build a brand so utilizing as much content in a consistent format as possible is a big step in the right direction.

For example, VenturX, has free monthly Health Checks for subscriber users. This takes place on Skype. Because I have a close friend who is a startup on our platform, I asked if our Health Checks can be recorded. This recording would show her asking questions about our VenturX metrics, why these metrics are important to investors and what other considerations she needs to think about before submitting to investors. She agreed it was a good idea. So starting March 4th at 8PM EST, we will have our first Health Check session. This is ideal for branding because her questions may be the same as others in our target market when it comes to investing and it gives a sneak preview of what to expect as a VenturX user. If you want to catch the video, please follow us on FacebookTwitterInstagram, and Youtube.

In addition, we will be writing a Medium blog and Youtube debrief on how the first session went. We expect there to be at least 2 sessions so you would be able to see a typical startup user’s improvements and added value.

Resources on how to get started on branching out your consultancy services

  1. Post your services on your website

2. You will need a consultancy package to send to potential clients so the understand what your field of expertise is and the price.

Here is a sample of how ours look like:

Pricing Package

Pricing Package

3. Other places to post your consultancy services:

a) ME University

We put ours under Raising Capital and Funding. You can see ours as an example of a typical description of the services:

ME University

ME University

b) Freelance Service Sites: FiverrUpwork, and Guru.

c) Post it on your social media as announcements of your new services

d) If you have a newsletter, make sure your audience is aware.

The main thing startups should beware of is contributing too much too little time. If your SaaS company is your main operation, be sure to devote the necessary care and time to it. When startups do not have the history of clients and built up a reputation yet, a lot of clients may have a lot of questions in order to feel more trusting and secure about taking that next step with you. This could take a lot of time to “nurture” new leads. From our experience, we help answer some of those questions on our website and our latest blog post to explain the pros and cons of hiring startup consultants here!

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Should First Time Entrepreneurs Pay for a Startup Consultant or Not?

Should First Time Entrepreneurs Pay for a Startup Consultant or Not?

“A journey of a thousand miles begins with a single step” — famous Chinese proverb

With entrepreneurship becoming so popular nowadays, it is certainly overwhelming to know which resources are right for you (ie. investor platform, incubators, accelerators, startup consultants, etc..)

As our business who mainly targets startups, we devote a lot of time keeping our ears to the ground and finding interesting startup problems, solutions, and ideas to explore. Here is a post that inspired this post. It was from a popular Facebook group.

Facebook
Facebook Post

This post was from a first time entrepreneur who received 54 comments in 24 hours from startup consultants, entrepreneurs who have used consultants, people who have not used consultants, etc.. (This post has been edited several times and we cannot find the original post.)

The most detailed and interesting comment was this one:

“I started my business with $100 and a hunger to create freedom in my life.

At the time I couldn’t afford coaching or programs and guess what?

I didn’t buy any.

I did market research by talking to people (that costs me nothing).

I then created a membership program (in the B2C space) on WordPress (had to learn how to use WordPress) — that costed me the $100 of Siteground hosting and nothing else.

I had a Facebook group I was running the community in. That cost me nothing.

I then went on and started doing live videos and promote my membership (costed me nothing).

I sold 60 memberships, that replaced my banking job. So I quit.

I then with the money I made bought a new MacBook so I can work faster.

I then sold more memberships and more memberships and here I was making $5000 a month.

And that’s when I decided to invest $2000 in the 90 Day Year.

This year (1.5 years later) I am on track to have a 7 figure year by the end of 2018.

You see… all these programs you see.. you don’t have to buy them.

Also.. the people that sell them.. they don’t need to change their pricing to accommodate “people who can’t afford it”.

Coaching IS NOT a right.

It’s a privilege.

Programs and courses are NOT a right.

They are a privilege.

And Iike any privilege, you either

1) make money and work to deserve it (and reward yourself with it)

2) don’t make money and don’t buy it.

3) look for organizations that offer free mentorship for startups (lots of them in the World)

Sooooo

I don’t understand what the issue is.

Work hard.
Make money.
THEN invest.” — Anonymous

There were also other comments from the post explaining how startups who are new to the world of entrepreneurship have reservations about investing because of these following reasons.

Why People Don’t Pay for Startup Consultants

  1. Insecure feelings about their business- or the consultant
  2. Not 100% sure about their own ROI from the business enough to pay for a consultant
  3. Lack trust in the consultant
  4. Feel that there are enough free resources about certain areas on the internet
  5. They do not understand the long term value of the business and how a consultant can make a difference (ie. spending $1000 to make $20,000)
  6. They cannot find the right fit for the exact field of expertise that they need

You Don’t Know What You Don’t Know

You don’t know what you don’t know

You don’t know what you don’t know

This famous saying rings true in entrepreneurship. This boils down to whether this million dollar idea is worth the risk you are taking or not. For most first startups who come to our team and ask for investment money, it tends to stop right here and they will tend to go back to their full time jobs or take our advice to ponder about whether or not they go forward for another 4–6 months.

Since we run a startup platform, VenturX, that helps prepare and connect early stage startups for investments, we have the opportunity to see with our own eyes what success and failures within startups look like everyday. Even though they come from diverse backgrounds, the checklist of startups we can accept in order to maintain a high level of successful launches and investments are still the same. We can quickly tell a) if they are in our target market and b) what their next step would be in order to best be prepare for big investors like ours.

Time VS Money VS Quality

Time, Money, Quality

Time, Money, Quality

From working with over 300 startups and hearing their stories of successes and failures, there are only so many things you can invest into your business if you don’t have the luxury of quality. Quality stems from knowledge and experience. Every investor who has been an entrepreneur in a previous life always talks about getting your hands dirty. That is where your “je ne sais quoi” value comes from and therefore enhancing your overall “quality.” If it is your first time, you really only have the options of investing your time (known as sweat equity) or your money (known as hiring people or purchasing resources).

Even though we have a platform where potential clients can already see there are startups using our platform and getting investment, they have valid questions before signing up or hiring our consultation services. Their questions are ones that all startups should consider when investing any amount of money into their business.

Why Should First Time Entrepreneurs Hire Startup Consultants? (What do potential clients ask?)

  1. What is your field of expertise? Why should I choose you?

Answer: Helping prepare you for your first big round of funding and helping get to you launch with business intelligenceFrom working in the startup industry, we get to see the ingredients of success and failures on a daily basis that we use to benefit our consultation clients so they don’t have to suffer with their time and money in the long run.

2. Do you have referrals from other startups?

Answer: Yes — some are on our website: www.venturx.ca and others can be sent to you privately. We strongly recommend our best practices such as developing good positive relationships with clients in order to collect those success stories!

3. How does the consultation services work?

Answer: You can purchase specific packages such as “Review my investor’s pitch deck” or purchase a set of 5 or 20 hours of consultation. We meet on a call to help you with specific goals and come up with a structured plan of implementation and we make sure this plan is executed in the best manner possible.

4. Do you connect us with contacts?

Yes! As an added bonuses are connections and contacts when applicable. We know that not all consultants, coaches or mentors do that; however, it is part of our practice. There are some that are exclusive to only VenturX platform users.

4. Can I get a discount?

Answer: Discounts are available to all VenturX platform users or those who purchased larger set of consultation hours (ie. over 20 hours).

There you have it! The reasons why first time entrepreneurs opt to hire or not hire help. We hope this article helps you make informed decisions that can help your startup in the future years to come! For more startup tips, check out our other blogs!

Work

Work

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Do Networking Events Contribute to Your Business Goals?

Do Networking Events Contribute to Your Business Goals?

Networking

Networking

People always say that a plan without a goal is just a dream. Networking events should be part of your overall plan to ensure you get the most out of your valuable time. If there is no connection between your strategy and your actions, there is a problem.

During my first year of business, I personally wasted a lot of time going to startup networking events because I thought I had to. It could easily become a norm or hype to go without reflecting on how it was affecting your overall business strategy. Some people go just to be seen; some stay for 20 mins to take a picture for social media. That could be their overall goal but at least it means they are aware of their goals and understand how networking events fit into those.

Success

Success

Why are goals important?

Goals should be tied to the different tactics of your business. Each thing that requires any piece of your precious 24 hours in a given day should have a goal. Without goals, we have no purpose and no way of measuring the success of our actions.

Networking Event

Networking Event

There are different types of networking event goals:

1. Meeting prospective clients (to generate new leads)

2. Giving a presentation at that event (as a guest speaker or panelist) to boost brand awareness

3. Blowing off steam (that is personal goal but it may have no affect on your business)

4. Boost LinkedIn numbers

5. Find UX testers

6. Meet investors

7. Nurture relationship with particular person you know is attending that event (as part of lead nurturing tactic)

8. Find startups who need help with getting funding of $25,000-$1,000,000+ (which is our goal)

For each networking event, have a goal. As long as we know why we are going and what we are hoping to expect from the opportunity, our business strategy will look more and more clear every day.

Stayed tuned for our upcoming startup event on February 15th at 6PM EST by checking out our Twitter, Facebook, and Instagram LIVE!

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BIG Mistakes business owners make when hiring ’TOP’ Employee’s

Guest Post by: Jeff Consul, Institute Of Innovation

1.) Skills can be Taught — VALUES CANNOT. Always first confirm that you would trust them to work on your grandmothers house, or babysit your kids — before you start to see how they handle the tools. People with crappy attitudes and bad values are NEVER worth the effort. Inevitably they find something to externalize about; you’re not paying them enough, they don’t get enough time off, the gravity is too heavy…

2.) Confirming GRINDABILTY — But don’t ask how hard there last job was. Ask How LONG this hard job lasted, ask why they DIDN’T quit, ask what they LEARNED from this hard job, and how it changed them as a person.

3.) Call References — BUT — ask questions that allow you to see if you were right about their character. Remember that’s what you’re ultimately judging. 70% of the stuff on any resume is going to be questionable/exaggerated. When they worked for you; What were they the most proud of? When were they the happiest? What’s something most people wouldn’t know about them?

Call References

4.) Always remember that doing one or two more interviews is always MUCH less time than retraining anyone. Wait for the right person, even if their particular skill is lower — someone who lines up with your values can be leveraged over the long run, someone who quits in the middle of a job because the gravity is a little too heavy that day… is always going to be a let down

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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: Jennae Gedeon de Ecoeats – Une application alimentaire pas comme les autres!

Founder Spotlight: Jennae Gedeon de Ecoeats – Une application alimentaire pas comme les autres!

Dans cet article nous allons découvrir comment son esprit visionnaire l’a menée à un tel succès chez Ecoeats. Et comment vous pouvez y participer.

In this article we will discover how her visionary spirit led her to such success at Ecoeats. And how can you participate?

Jennae Gedeon

Ce mois-ci, notre équipe a eu l’occasion d’accompagner quelques jours Jennae Gedeon dans les rues de Vancouver. Durant ce temps, nous avons tendu l’oreille pour comprendre comment devenir l’une des entreprises  les plus en vogue de notre génération!

Ecoeats, comme VenturX, souhaite avoir un réel impact sur la société, et avance pas à pas vers l’application qui révolutionnera la vente alimentaire. Au fil de la discussion avec Jennae, nous avons tout de suite compris que son esprit visionnaire et son leadership allaient faire de Ecoeats, une application indispensable.

Tout a commencé lorsque Jennae décide de se lancer dans le Youth Biis Startup Program où elle suit un programme d’accélérateur d’entreprises en démarrage à Vancouver, en décembre 2016. Dès lors, elle fonde Ecoeats et avance à pas de géants. En signant un partenariat avec le Metro Vancouver hub et en participant aux programmes Red Academy et BCIT ISSP, elle établit une base solide pour le lancement de son entreprise.

Phil, professeur au Youth Biis SFU et mentor en affaires, explique ce qui démarque Jennae des autres entrepreneurs ayant participé à son programme.

« Jennae est dynamique, passionnée et sait ce qu’elle veut. C’est généralement le signe qu’une personne est efficace, car elle fait en sorte d’atteindre ses objectifs. Elle a un but précis… très visionnaire! » -̶̶ Philippe, Youth Biis Start-up Program

Ecoeats

Ecoeats

Parlez-nous de votre entreprise

L’application Ecoeats relie les particuliers aux commerçants en proposant leurs produits invendus. C’est l’occasion de découvrir de bons produits de qualité tout en participant à la réduction du gaspillage alimentaire. Ecoeats redéfinit la perception de la durabilité de nos aliments et cherche à convaincre le consommateur que les invendus sont tout aussi délicieux. Selon moi, l’application est une réponse au chaînon manquant dans notre communauté entre le commerçant et le consommateur pour, en fin de compte, mieux manger et consommer de façon durable. C’est l’occasion de répondre aux problématiques du gaspillage alimentaire en proposant de nouveaux canaux de collaboration et de rendre notre monde meilleur.

Ecoeats

Ecoeats invite tout le monde à s’inscrire dès maintenant sur ecoeats.ca.

Quelle est la prochaine étape décisive?

La prochaine étape importante est de préparer le pilote. Le pilote consiste à mettre en place le produit minimum viable, une offre minimum cohérente afin de mettre en relation les épiceries/supermarchés avec les consommateurs et les œuvres caritatives dans le secteur de Metro Vancouver. Venez visiter notre site si vous souhaitez voir quel restaurant ou épicerie fait partie de notre offre depuis l’automne 2017.

Quelle journée type pour notre entrepreneur?

Les scores sur VenturX

Matin, débute à 7 h :

• Réveil pour répondre aux courriels

Après-midi :

• Réunions portant sur les produits pour transformer l’offre à la production minimale viable

• Encadrer les nouveaux membres de notre équipe

• Mener des réunions stratégiques et de partenariats avec nos mentors en affaires, nos collègues et nos associés

• Rédiger des documents Google à titre d’information destinée à l’équipe responsable des produits et de la stratégie

• Créer des infographies très utiles en réunion pour les mémoires visuelles (elles sont géniales!)

Soirée :

• 15 minutes consacrées à la revue et à la mise à jour de son horaire pour la journée suivante

• Mise à jour de son calendrier de projets pour les objectifs à court terme et réponse aux courriels

• Préparation des objectifs à long terme tels que les stratégies de partenariats

Une qualité qui fait de Jennae un leader exceptionnel : son sens de l’organisation! Avec son carnet de notes toujours en main pour écrire la moindre information, elle est une source d’inspiration pour tous les entrepreneurs!

Jennae Gedeon

« Peu importe ce que l’avenir me réserve, c’est quelque chose qui me passionne et qui fera toujours partie de qui je suis! »

Contact Jennae Gedeon at team@ecoeats.ca or on LinkedIn

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Comment trouver son Product Market Fit en 24 heures

Comment trouver son Product Market Fit en 24 heures

Parmi les notions à la mode dans le monde de l’entreprenariat; venture capital, accélération, growth hacking, etc. il y en a toujours une qui laisse les entrepreneurs perplexes, le PRODUCT MARKET FIT!

J’ai trouvé ce sujet si intéressant, que depuis 2016, j’en étudie tous les aspects afin de mettre au point un outil capable de le mesurer pour les startups. Voilà comment VenturX a vu le jour, une startup exploitant les données dans le but d’aider les entreprises, en phase de démarrage, à passer du Product Market Fit au financement. Nous nous concentrons sur les indicateurs-clés de performance (ICP) essentiels pour les jeunes entreprises, comme le Product Market Fit.

Chez VenturX, nous offrons les outils qui permettent aux jeunes entrepreneurs de réussir; nous leur recommandons toujours de commencer par déterminer leur Product Market Fit. C’est non seulement une des principales raisons d’échec chez les startups (selon un rapport de CBInsights), mais aussi la plus compliquée à atteindre en raison du travail colossale que peut représenter la collecte de données afin de prouver que son idée répond à un réel besoin.

Cependant, l’évaluation initiale de son Product Market Fit ne nécessite pas forcément beaucoup de temps ou d’argent. Nous allons vous détailler quatre étapes essentielles à suivre pour avoir une vision claire de l’adéquation entre votre idée et son marché.

Top Reasons Startups Fail

CBS Insights

Que signifie le Product Market Fit?

Le Product Market Fit désigne une rencontre et un accord parfait entre un produit et son marché. Le premier à employer le terme, Marc Andreessen, le définit ainsi :

« Product/market fit means being in a good market with a product that can satisfy the market » — Marc Andreessen, Entrepreneur & Co-fondateur de Silicon Valley Venture Capital (Source: http://web.stanford.edu/class/ee204/ProductMarketFit.html)

4 étapes pour déterminer le Product Market Fit

1. Déterminez votre public cible

Si vous ne savez pas par où commencer, demandez-vous: à qui est-ce que vous vendez? Qui a besoin de votre produit/service ?

Après avoir rencontré de nombreux entrepreneurs cette année, j’ai appris que le plus difficile était d’interroger les 5 premiers clients. Pour l’accomplir en 24 heures, pourquoi pas trouver un évènement ou un lieu où se trouve cette clientèle cible? Mais rappelez-vous, vous n’êtes pas ici pour lui vendre quelque chose mais simplement mener votre enquête.

Exemple: Concernant VenturX, une partie des clients ciblés sont les investisseurs en capital-risque. Il me semblait évident que ces investisseurs seraient présents à des compétitions de startups où ils servent généralement de juges. Je savais que participer à un tel évènement serait l’occasion idéale pour collecter un maximum de données en 24 heures.

« Si vous pouvez en faire 5 (interviews clients), vous pouvez en faire 35 » — Robert Bennett, Viatec Accelerator

Astuce: Tout le monde n’aime pas parler à des inconnus, alors pourquoi pas le faire avec un ami qui adore ça! Si vous êtes à Montréal, envoyez moi un message ou laissez un commentaire et je m’occupe de vos 5 premiers répondants!

2. Posez les bonnes questions

J’ai interrogé beaucoup de startups sur leur manière de chercher leur Product Market Fit et ont toutes répondu qu’elles intégraient leurs informations dans un fichier qui ne sera plus jamais réutilisé.

Le problème est qu’elles ne collectent principalement que des données qualitatives et ne savent donc pas comment les comparer. Le recours à des données quantitatives leur permettrait de mieux cerner le niveau de difficultés et d’avantages du marché ciblé.

La solution? Au lieu de poser des questions ouvertes comme « Que pensez-vous de cette idée? », faites en sorte que votre répondant décrive les difficultés et avantages de votre idée en les notant sur une échelle numérique. Voici un exemple de ce à quoi devrait ressembler votre questionnaire. Si vous souhaitez bénéficier d’une copie de ce questionnaire, envoyez moi un courriel à l’adresse sydney.wong@venturx.ca avec comme objet intitulé « Product Market Fit Survey » et je vous l’envoie!

Exemple de Difficulté: Les startups qui ne sont pas prêtes pour un financement font perdre beaucoup de temps aux investisseurs entre les présentations initiales et les due diligences. Les investisseurs finissent généralement par expliquer aux startups qui ont atteint leur Product Market Fit de rester en contact car ce n’est pas le bon moment ou bien de les contacter ultérieurement.

Exemple d’Avantage: Et si vous aviez une solution vous permettant de remplacer votre processus actuel d’inscription aux financements et simplifier vos due diligences? Vous verriez les meilleures startups ayant atteint leur niveau de Product Market Fit avec des notes plus élevées que leur industrie de référence.

Astuce: Toujours poser la question des difficultés avant celle des avantages. Si vous ne faites que parler de votre solution, il ne s’agit plus de recherche mais d’une présentation commerciale!

Astuce: Si vous n’êtes pas certain de votre affirmation concernant les difficultés et les avantages et que vous avez peu de temps, simplifiez-vous la tâche en recensant au moins deux affirmations de difficultés et avantages afin de comparer leurs réponses.

3. Suivez vos réponses

Pour le moment, la plupart des startups ont tendance à suivre et enregistrer manuellement leurs réponses sur un fichier. L’avantage de cet outil est qu’il est familier, facile d’utilisation et vous permet de créer manuellement des graphiques à présenter à votre équipe, à partir de vos données.

L’autre option, c’est d’utiliser notre outil conçu pour les startups. VenturX va vous permettre d’enregistrer les données de vos questionnaires et de calculer automatiquement votre Product Market Fit Score.

Cela ne prend alors que 30 secondes pour avoir votre score comme dans l’exemple ci-dessous ! Essayez vous-même sur www.venturx.ca.

Trouvez votre niveau de product market fit sur le site www.venturx.ca

VenturX

Voyez l’exemple de ma note lorsque j’ai interrogé les investisseurs spécialisés dans les entreprises en démarrage sur leurs Difficultés et Avantages.

Astuce: Ne surtout pas laisser votre clientèle cible voir les réponses des autres, cela pourrait influencer leur jugement.

4. Recommencez !

C’est tout à fait normal de ne pas avoir beaucoup de 9 ou de 10 lors de votre première enquête, il faut simplement rester cohérent. Ne commencez pas à modifier votre affirmation de difficultés et avantages après seulement quelques réponses. Vous saurez si vous êtes sur le bon chemin lorsque vous aurez constamment de bonnes notes (9 et 10) dans vos enquêtes.

Exemple: J’ai dû affiner mon marché cible aux investisseurs de capital-risque spécialisés dans les startups en démarrage plutôt que de m’adresser à tous les investisseurs. Si je souhaite enrichir mon offre avec davantage de caractéristiques, je vais devoir recommencer ce processus avec une nouvelle enquête sur mon Product Market Fit pour une nouvelle clientèle!

Une fois ces étapes complétées, prenez du recul et analysez vos résultats. Que vos notes soient élevées ou basses, vous avez tout de même accompli quelque chose. Vous avez désormais une note quantifiée vous permettant soit de valider votre idée, soit de tenter un nouveau marché cible ou bien d’ajuster votre angle d’attaque. Quoi qu’il en soit, restez fort, motivé, persistant et continuez à quantifier!

Voilà! Vous avez désormais les étapes nécessaires pour déterminer rapidement et efficacement votre Product Market Fit en disposant réellement d’une analyse sur ce que recherche votre marché. Le Product Market Fit est un des ICP sur lequel VenturX aide les startups à progresser en temps réel. Pour plus d’information sur ce sujet ou bien d’autres ICP, visitez notre site www.venturx.ca.

Contactez l’auteur à l’adresse sydney.wong@venturx.ca

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