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Skillset

Start a startup

Convert an idea into a sustainable business.

Test yourself Copy to your organization

Skills contained in this skillset:

I understand what is meant by a startup

A startup is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model.

According to Paul Graham, a startup is a company designed to grow fast.

I am familiar with common startup terminology 9 sub skills

Startup runway refers to how many months your business can keep operating before it's out of money.

Default alive is a startup company that is on track to make it to profitability with its current resources.

The burn rate is typically used to describe the rate at which a new company is spending its venture capital to finance overhead before generating positive cash flow from operations.

The burn rate is usually quoted in terms of cash spent per month. For example, if a company is said to have a burn rate of $1 million, it would mean that the company is spending $1 million per month.

A startup pivot occurs when a company shifts its business strategy to accommodate changes in its industry, customer preferences, or any other factor that impacts its bottom line. It's essentially the process of a startup translating direct or indirect feedback into a change in its business model.

A minimum viable product, or MVP, is a product with enough features to attract early-adopter customers and validate a product idea early in the product development cycle. In industries such as software, the MVP can help the product team receive user feedback as quickly as possible to iterate and improve the product.

From 28:03 - 30:03

A pitch deck is a brief presentation, often created using PowerPoint, Keynote or Prezi, used to provide your audience with a quick overview of your business plan. You will usually use your pitch deck during face-to-face or online meetings with potential investors, customers, partners, and co-founders.

I can find a good idea for a startup 4 sub skills

An interesting idea is not neccessarily a good idea.

A good idea is one that matches a sufficient amount of the criteria in the skill "I can identify if an idea is worth exploring".

An interesting idea is merely something that someone considers intellectually stimulating.

 

  • Is the company designed for growth?
  • Does it have an unfair advantage?
    - Is your company 10x better than the competition?
    - Do you have a founders advantage?
    - Is your market growing by 20%+/year
    - Can you get customers without paying for ads? (Get business through word of mouth)
    - Do you have a "monopoly" / will you gain an advantage over time? (Due to things like network-effects)

If yes to one or more of the questions above, you may have yourself a great startup idea.

I can build the right thing

Notes

Start 1:00
3:27 On the importance of aligning everyone in your company. Strategy is the only way to align people
6:55 -8:27 Every decision you have to make highlights a missing principle
You have to have a way to turn your decisions into principles other can follow and make the same decisions as you would, so you don’t have to make the decisions every time. Method.
11:31 -12:19 Importance of strategy continnues.

12:20 - Part 1: What to build?

  1. Desirability (does anyone want it?), feasibility (can it be done?), viability? (Can it make money?). A good product must have a least two of the three.
  2. The problem you are trying to solve should be big and frequent. 
  3. DO NOT solve a small, rare problem.
  4. DO NOT have the combination of low value per account and high touch onboarding. 

Note: Wecomplish har high touch onboarding og low value per account. Vi løser dette ved å lage champions som kan ta seg av spørsmål på innsiden av organisasjonen?

16:50 Scoping
- Where should you start?

  • What is the first step we can do to create value?
  • Where to stop developing your product?
  • Scopylock principle
  • MVP - get feedback

22:37 Summary on what to build

23:01 Part 2: Keep everything aligned 

- Your business needs a mission (What we try to do)
(Trenger en mission for Wecomplish)

  • Needs some values

27:44 Alignment continues. 

On the importance of aligning product, marketing and sales

If you let different department iterate in isolation, they will grow apart.

Sell what you build, and build what you sell

30:38 Summary on alignment

31:12 Part 3: Growth and maintenance

What got you here, won’t get you there.

You can no longer rely on intuition when you grow.

Roadmap for growth and maintenance

Be mindful of your products core innovation. Other parts are just there to round off your core. Have a «make it work»-mentality towards the round off-parts, and keep the attention to the core. 

37:25 How to think about work?

Most work you do should have a reason. Revenue hypotese. Will this work

  • Help sales close more deals? (Lets measure that)
  • Help us sell for higher prices?
  • Decrease customer churn?
  • Improve our site conversation rate?
  • Decrease costs to serve our customers?
  • Give us a unique position in the market?
  • Other reason?

39:07 Be very of adding features to close deals.

41:38 Nothing will protect you against competition

44:18 The old and the new moats
New moats:
- Make a platform. Make other companies build on top of you.
- Build community
- A brand
These moats are hard to copy.

46:08-47:26 Summary of Growth and maintenance

«Get everyone aligned around the mission and the strategy, and the decisions all take care of themselves».

Question-round

I can build something that people love 5 sub skills

"

"Do I have product-market fit?"

There is no such thing as "early product-market fit". You don't need to question whether or not you've got product market fit. Watch from 12:03 - 13:15.

Notes:
0:41 Start: Introduction to Weebly
1:35 Weeblys journey to market-fit
9:30 What is product-market fit?

  • Make something a lot of people want
  • Startup phases: Idea -> Prototype -> Launch -> Traction -> Monetization -> Growth
  • idea to traction is the initial product-market fit search
  • Two hardest things when building a company
    1. Finding product market fit
    2. Hire and building a world class team
  • The best companies create its own market
  • When you find someone hack your product to do something it wasnt designed for. pay attention to that. 

16:11 Building a remarkable product

  1. Have a great idea
  2. Talk to customers
  3. ???
  4. Profitt
  • Let's talk about step 3. Step 3 is
  1. Talk to customers. Develop market theis
    - make sure it is with a target customer
    - But be flexible about who your target customer is
  2. Listen to their problems, not their solutions
  3. Rapid prototyping and user testing
  4. Build the solutions to their problem
  5. Test the solution with them
  6. Did it work? If no, go to step 1.
  7. By the time you´ve reached this step, you´ve likely looped around 27 times.

26:24 When should we launch? 

  • Minimum viable product. 
  • Launch when your product is better than what is out there.
  • What to prioritize what to build
  • Focus on only what gets you to the next stage
  • Optimize for learning

29:15 How do I know when we have achieved product market fit?

  1. Returnerende brukere (1 day, 3 days, 7 days, 30 days)
  2. NPS (> 50)
  3. Paying customer renewal rate

32:25 How does it feel to have product-market fit?
33:25 Beyond product market fit
- Model/market fit
- On when to scale the team
- On building a brand
41:32 Questions from the audience.

 

https://review.firstround.com/how-superhuman-built-an-engine-to-find-product-market-fit

From 13:00 - 20:02

Notes:
Step 1. Identify the metrics that represent the value my users get from my product
Step 2. Measure the repeat usage off that metrics

  • What is the one metric that I can measure, easily, every day. And what is the ideal frequency that should happen.
  • Put that in a graph. Metrix on y-axes and time on x-axes. 

If you have small sample size: Ask your customers “How would you feel if you could no longer use our product.”




I can communicate how my startup provides value 2 sub skills

From 01:01:16 - 01:06:01

  • A deep and clear understanding of what one is doing
  • An ability to destill the core idea to a simple, jargon-free, transmissable message
  • An ability to understand the real motivation for people using the product (the emotional benefit over the functional utility)
  • A foot-in-the-door strategy
  • An understanding of why people would pay for the product

Notes:
- Do I understand the idea?
- Am I excited by the idea?
- Do I like the team?

Be clear! A clear idea is a foundation for growth. The goal is that your company grows by word of mouth. That can only be done if you can give people a clear understanding of what your product is. 

How to make things easy to understand:

  • Make it legible (Clear enough to read)
  • Make it simple
  • Make it obvious

A legible idea can be understood by people who know nothing about your business.

Avoid:
- Ambiguity
- Complexity (Simple idea is one idea)
- Mystery (don't use jargon)
- Ignorable

What you should do:

  • Be conversational
  • No jargon
  • No preamble
  • Reproducible

Questions we should have a clear answer for
What are you making?
What is the problem?
Who is the customer?

Should I use X for Y?

  • For example: “We are Tinder for disabled people”?
  • X should be a household name.
  • Y should be a huge market

Lead with what, not why and how.
Be concise

In your description of what your company does, use nouns.