Loading...
Answers
MenuWhat is the best strategy to take to establish proof of concept for a online platform concept prior to a beta version being created?
Answers
Likely you won't like my thoughts about this.
When I give talks about business bootstrapping, I suggest people only work ideas which meet my "Sunset Rule".
Sunset Rule - You should be able to go from idea to first sale, before sunset, or best consider other ideas.
This also relates to your MVP. If you can't dream up an MVP + sell it before the sun goes down, best consider other ideas.
Years ago, I was at an Internet Marketing Party mixer in Austin, TX + sat to visit with a friend. She was down because she was starting a new business + had spent months working on a business plan + determined she required $80K to bootstrap her business + then had spent another several months looking for investors.
A buddy of mine + I sat with her for 15mins + slightly retooled her idea. She launched the next day for a one time investment of $144/year (cost of a Meetup.com account) + was generating some significant profit in a few days.
Chunk down your MVP, so you can manually make sales by the end of the day... for $0 investment + you'll know for sure you have a profitable business.
If you can't sell one unit, by the end of the day... best consider some other idea...
I'm just going to come out and say it. I don't like either of these two guys' responses. You cannot build a Minimal Viable Product without The Real MVP: the Most Valuable Problem. This is the problem that is so painful your target customers will PAY YOU to solve it.
95% of your startup business can be started, tested and figured out before a software developer is involved.
For example, a woman comes on Shark Tank to pitch her chocolate pretzel business. She's gotten her products into stores like Neiman Marcus, Nordstrom, and Saks. She now has a HUGE order to fill for the holiday season but she doesn't have the capital to fulfill the order. So she raises money from the investors to pay for manufacturing because the business is there. She's proven it.
It's possible to do the same with building a software product, too! You can get investors to pay for the development work because your success/business is all but guaranteed.
Another example: My client is not technical at all. She has a serviced based business hosting events for like-minded singles in LA & NYC. She's going on 4 years. Now, she wants to build something scalable so she decides she needs an app...but she's not sure of all the features. Through our work together, in 3 months time, I had her prototyping the business assumptions of her new venture using only her Squarespace site...no developers needed.
I'd be happy to talk to you here or you can schedule a call on my website. Best, xx
Feel free to schedule a call. I'd be happy to help you go over the idea and map out how best to make an MVP in the fastest an cheapest possibly way. I'm a mentor at several accelerators, and you're right that they'd all want some form of MVP.
Depending on the idea, there are potentially many ways to implement an MVP, some of which wouldn't require writing any code at all, and many of which would minimize the amount of code that would be needed.
best,
Lee
I will like to add to the above and give some practical insights based on how I established my proof of concept -
Before that, first - how you plan to make money? As in is the business model geared towards acquiring users first and then monetizing or doing a trial to conversion or transaction based selling etc. Depending upon your business, you will know well which one suits at-least the initial hypothesis.
So once you have the hypothesis, the first step, research your target audience -
1. Where they engage online?
2. What they might search in Google?
If you are able to do the above, then just create 2-3 landing page testing one value proposition each - you will be able to set this up in unbounce.com, leadpages, tons of them available. Most of them give 30 day trial for the pro plans.
Run basic ads - and see if you are able to attract some initial leads.
Then try to get some detailed insights from people who have shown interest and ask them what will they pay (the pay is again based on what your model is, if it is users, you don't need to even go to the money talks)
Based on this, get the business plan done and start pitching.
This will show that you have done some ground work and understand some insights.
Related Questions
-
What is the best method for presenting minimum viable products to potential customers?
Whoa, start by reading the Lean book again; you're questions suggest you are making a classical mistake made by too many entrepreneurs who live and breath Lean Startup. An MVP is not the least you can show someone to evaluate whether or not building it is a good idea; an MVP is, by it's very definition, the Minimum Viable Product - not less than that. What is the minimum viable version of a professional collaboration network in which users create a professional profile visible to others? A website on which users can register, have a profile, and in some way collaborate with others: via QA, chat, content, etc. No? A minimum viable product is used not to validate if something is a good idea but that you can make it work; that you can acquire users through the means you think viable, you can monetize the business, and that you can learn from the users' experience and optimize that experience by improving the MVP. Now, that doesn't mean you just go build your MVP. I get the point of your question, but we should distinguish where you're at in the business and if you're ready for an MVP or you need to have more conversations with potential users. Worth noting, MOST entrepreneurs are ready to go right to an MVP. It's a bit of a misleading convention to think that entrepreneurs don't have a clue about the industry in which they work and what customers want; that is to say, you shouldn't be an entrepreneur trying to create this professional collaboration network if you don't know the market, have done some homework, talked to peers and friends, have some experience, etc. and already know that people DO want such a thing. Presuming you've done that, what would you present to potential users BEFORE actually building the MVP? For what do you need nothing more than some slides? It's not a trick question, you should show potential users slides and validate that what you intend to build is the best it can be. I call it "coffee shop testing" - build a slide of the homepage and the main screen used by registered users; sit in a coffee shop, and buy coffee for anyone who will give you 15 minutes. Show them the two slides and listen; don't explain, ONLY ask.... - For what is this a website? - Would you sign up for it? Why? - Would you tell your friends? Why? - What would you pay for it? Don't explain ANYTHING. If you have to explain something, verbally, you aren't ready to build your MVP - potential customers don't get it. Keep working with that slide alone until you get enough people who say they will sign up and know, roughly, what people will pay. THEN build your MVP and introduce it first to friends, family, peers, etc. to get your earliest adopters. At some point you're going to explore investors. There is no "ready" as the reaction from investors will entirely depend on who you're talking to, why, how much you need, etc. If you want to talk to investors with only the slides as you need capital to build the MVP, your investors are going to be banks, grants, crowdfunding, incubators, and MAYBE angels (banks are investors?! of course they are, don't think that startups only get money from people with cash to give you for equity). Know that it's VERY hard to raise money at this stage; why would I invest in your idea when all you've done is validate that people probably want it - you haven't built anything. A bank will give you a loan to do that, not many investors will take the risk. Still, know not that your MVP is "ready" but that at THAT stage, you have certain sources of capital with which you could have a conversation. When you build the MVP, those choices change. Now that you have something, don't talk to a bank, but a grant might still be viable. Certainly: angels, crowdfunding, accelerators, and maybe even VCs become interested. The extent to which they are depends on the traction you have relative to THEIR expectations - VCs are likely to want some significant adoption or revenue whereas Angels should be excited for your early adoption and validation and interested in helping you scale.PO
-
What are great examples of successfully launching digital two sided marketplaces other than the Airbnb example people always quote?
Here's an evernote file of things I've found and liked around the internet re: 2 sided marketplaces. All digital, although not sure exactly how "successful" they are - but more for reference. Quality / Copywriting https://www.yourmechanic.com/works#mechanics https://www.airbnb.ca/?locale=en http://powhow.com/ Community Engagement http://www.houzz.com/ideabooks https://www.healthtap.com/ https://www.airbnb.ca/wishlists/popular https://www.wello.com/class/set/Yoga/ Categories / Search http://www.etsy.com/ http://fiverr.com/ https://www.airbnb.ca/s/moncton?source=hdr http://takelessons.com/search?q=4gq30T Deliver of Service www.hotelstonight.com www.uber.com https://www.medicast.co/ www.wello.com www.takelessons.com www.taskrabbit.com How it works https://www.taskrabbit.com/how-it-works https://www.zaarly.com/howzaarlyworks http://takelessons.com/students/how-it-works https://www.wello.com/how-it-works/ https://www.medicast.co/how-it-works https://www.healthtap.com/#how_it_works https://www.wello.com/how-it-works/ https://www.odesk.com/info/howitworks/client/ http://www.guru.com/emp/takeTour.aspx The Why http://nest.com/smoke-co-alarm/why-we-made-it/#nobody-ever-looks-up Supply Side https://www.elance.com/q/find-work http://www.guru.com/pro/index.aspx https://www.odesk.com/info/howitworks/contractor/ http://takelessons.com/teachers https://www.zaarly.com/selling http://www.skillshare.com/teach https://www.udemy.com/teach/ www.powhow.com/open-your-own-studio https://www.airbnb.ca/rooms/new Conversions http://www.justanswer.com/ http://www.skillshare.com/ Referals http://www.powhow.com/open-your-own-studio uber.com/invite/rjif2 Subscriptions http://www.powhow.com/open-your-own-studio http://premium.docstoc.com/subscribe/plans http://www.rocketlawyer.com/plans-pricing.rl Help Center http://help.zaarly.com/ https://www.airbnb.ca/help Pricing http://www.rocketlawyer.com/plans-pricing.rl http://www.powhow.com/open-your-own-studio http://premium.docstoc.com/ http://mixergy.com/premium/ http://wistia.com/pricing https://teamtreehouse.com/subscribe/plansDM
-
How can I convince a client to sign up a 12 month SEO contract?
The best way to work around something like this is to map out the long-term strategy in phases. Build out a brief project map that outlines what they will receive within the 1-3 month period, the 4-7 month and the 8-12 month period. Set micro objectives for each period and this will give the client a bit more confidence in the short-term plans as well as the long. The key thing to remember here is that the client will often be worried about being tied into a contract that doesn't deliver results. As a result, you need to show why you need the time that you do. One thing that I often throw in is an extra incentive for longer contract lengths - for example, an extra PR/content campaign or some paid advertising extras. Try to assure them of some shorter term results that you can obtain as 'quick wins' and build their confidence this way - the major targets will always be longer term but if you can demonstrate that there will be progress between then they will be a lot more receptive.MH
-
How does my startup hire an affordable marketing expert?
I don't even know how to answer this. Do you know what the difference between McDonalds and the local burger joint that is filing for bankruptcy is? It's marketing. McDonalds is worth billions of dollars not because of the quality of their food, but because of their marketing. Marketing is not an expense. A janitor is an expense. Your computer is an expense. Marketing is an INVESTMENT. Would you shop around for the cheapest heart surgeon? Of course not. Because you would likely end up dead. Why, then, do you shop around for a marketing expert? Are you ok with your company going bankrupt? Is that worth the small savings to you? No. Of course not. Hire someone who is good at marketing. Hire someone who knows what they are doing. Buy yourself a Lamborghini with your profit the first quarter. Get a beach house in hawaii. Grab a yacht. Or, try to find your business the cheapest heart surgeon you can and then spend the next five years wondering why such a solid business idea failed in the first 6 months. I'm passionate about this exact topic because all those statistics you read about "70% of businesses failing in two years" are solely because of horrible marketing.AM
-
How can I effectively market my online business to baby boomers / senior citizens?
You have a lot of options to market to boomers and seniors. That age group is facebook's fastest growing segment. Build ads that target that age group and think about having a facebook page to supplement your efforts there. Older people search just like the rest of us as well, so build an adwords campaign around keywords that might align with your product. Contact me if you'd like to chat about some options or need some help building your campaigns. Good luck!JR
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.