Raise Your Odds of Success

  • Learn the top reasons why products fail,
  • Capture your vision on a 1-Page Business Model,
  • Build a successful product without waste.

How to Test Whether Your Business Model is Worth Pursuing

Last time I emphasized getting specific on your revenue streams – down to the customer segment, pricing model, and customer lifetime assumptions. If you don’t have a “big enough” problem worth solving (that’s not even plausible on paper), then why expend any effort on it. In this post, I’m going to show you how to use these simple inputs to ballpark your business model and test whether it’s worth pursuing.

Inputs for Minimum Success Criteria

There is No Business Model Without Revenue

I created the Lean Canvas back in 2009 as a way to more effectively document my most critical business model assumptions for my products which were predominantly SaaS software products at the time.

Lean Canvas is now taught at over 200 universities (including high schools), close to 100 startup accelerators, and used at hundreds of businesses (including large enterprises). We just crossed the 125K users and 175K canvases mark with our online Lean Canvas tool.

But with expansion comes challenge.

Business Model Story

2 Reasons that Derail You From Running Lean

Keeping a locked knee (or a completely straight leg) is key for one-legged balancing yoga poses. A locked knee provides a solid foundation that keeps your foot grounded as you progress through the rest of the pose. I can’t help but draw a parallel to running lean where “locking your knees” corresponds to “tackling what’s riskiest in your business model”.

standing-head-to-knee

How to Identify Your Riskiest Business Model Assumptions

While you might be really excited by your idea’s potential, others don’t see what you see. What they see instead is something untested and risky. It logically follows that that you should prioritize tackling what’s riskiest, not what’s easiest, in your business model. But while tackling what’s riskiest is a simple enough concept to grasp, it’s ironically quite hard to put into practice.

3 Meta-principles of Running Lean

The Science of How Customers Buy Anything

A basic tenet of running lean is validating a product or feature ideally without having to building it first
The first battle isn’t fought on the ground but in the mind of the customer. It isn’t fought with your built out solution but instead with an offer.

Physics of Customer Acquisition

How To Interview Your Users And Get Useful Feedback

It’s not enough just to talk to customers. You have to know know.
In this post, Garrett shares his lessons learned for crafting effective customer interviews.


How to Get Customers to Want to Pay Even Before Building Your Product

In my post “Why You Should Never Ask Customers What They’ll Pay, I covered how to uncover initial pricing for your product by first spending time to understand your customer, their problems, and their existing alternatives. In this post, I’ll talk about how you use that information to test pricing.

AIDA

Why You Should Never Ask Customers What They’ll Pay

Can you imagine Steve Jobs asking you what you would have been willing to pay for an iPad before it launched? Sounds ludicrous right? Yet, you’ve probably asked a customer for a “ballpark price” at some point. Well, that’s just backwards. Think about it for a moment. There is no reasonable economic justification for a customer to offer anything but a low-ball figure. They may honestly not know and this question only makes them uncomfortable.

Steve Jobs Introduces iPad