founder institute learning to shoot puppies
TRANSCRIPT
FFI Intl Expansion
Learning to shoot puppies
Lets be honest .Most of you have products / ideas only a mother could love !
The biggest 3 mistakes of EntrepreneursInvesting in the wrong business
Staying too long in the wrong business.. (after you should know it is time to change)
People dont buy your product or service cause they understand why they should
I will see it when I believe itvs.I will believe it when I see it
Too much research is the first type
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An example: global warming
Hot summersWarm winters
Evidence of global warming
Cold summersCold winters
Evidence of global warming
Clearly there is evidence of global warming ?!
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6Solutions IssuesWe often do research to check our brilliant ideasSUGGING (Selling under the guise of market research)
SolutionsObjective criteria in place before the research startsIs 35% planned purchase good or badClearly define your biases before you startFocus on insight (vs. confirmation)Do regular reality checks
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Youre not alone !
More than nine out of ten consumable products launched in the last ten years offered absolutely nothing new to the consumer.
More than eight out of ten new products fail. You dont need to be a statistician to realize theres a correlation between the two numbers.
-- Robert McMath
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Arguing the other direction
Why is this a bad idea
If it fails, why will it fail
And then deciding what can be done about it
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A checklist for ideasIs there a benefit (real or perceived) People willing to pay (enough) Cost of cut-through acceptable People will see the benefit buy again / recommend to others Will someone hate it
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Pets.com
Pet supplies via the internet
Save big, save timeStay at home
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13Kosmo.com
Instant delivery of products purchased via the internet in big cities
Order a wide variety of products, from movies to snack food, and get them delivered to your door forfree within an hour.
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14Despair.com
We hate all the senseless, wasted time on employee motivation and un-founded optimism
We imagine you do to, buy our products and show your true colors
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Continuous effort is the key to unlocking your potentialWinston Churchill
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17Etoys.com
The new place to buy toys. Find you want on the internet
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19Petrock.com
Pets take a lot of time and energy. Your kids can have almost as much fun with a pet rock.
We even include a care guide
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22Webvan.com
Buying groceries should be easier. With webvan you can get all your groceries, so you have time for other things
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Now the most important questionWhy would this business fail
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Costs per stage
Ideas, screeningConcept, analysisProd.develTestmktgcommercialization
The time toMake mistakes !
BudgetTime
Can you ask the experts ???
I think theres a world market for about five computers. (President of IBM, 1943)
TV wont be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night. (President of 20th Century Fox, 1946)
28Should consumers be followed or led ?
Mobile phoneComputersInternet
Not all new products are revolutions !
There are many holes in the markets, but fewer markets in the holes ..
A checklist Talk to 20 people (that are not your friends)If no one hates the idea, be scaredAsk people if this fails why would it fail (youll get a lot more information than asking what they think of the idea !)Keep it simple check do people really understand
Remember better is never enough
Fat Bastard is priced higher, tastes less good but outsellsBilton 10 to 1
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A reading listThe wisdom of crowds how you can use non-experts to get answers to tough questionsThe start-ups owners manual..Chapter 3 customer discoveryWilliam Harmon- An incomplete guide to the future how to see what paradigms are affecting the way the you see the future
Sheet2Group NumberPets.comKosmoDespair.comEtoys.comPetrockFloozWebvanIs there a benefit (real or percieved)People willing to pay (enough)Cost of cut-through acceptablePeople will see the benefit buy again / recommend to othersWill someone hate it
Kill Puppy (0 = kill, 1 = love)Why would it fail Pets.comKosmoDespair.comEtoys.comPetrock.comFloozWebvan
Sheet1Group NumberIs there a benefit (real or percieved)People willing to pay (enough)Cost of cut-through acceptablePeople will see the benefit buy again / recommend to othersKill Puppy1Pets.com2Kosmo3Despair.com4Etoys.com5Petrock.com6Flooz7Webvan
Sheet2Group NumberPets.comKosmoDespair.comEtoys.comPetrockFloozWebvanIs there a benefit (real or percieved)People willing to pay (enough)Cost of cut-through acceptablePeople will see the benefit buy again / recommend to othersWill someone hate it
Kill Puppy (0 = kill, 1 = love)Why would it fail Pets.comKosmoDespair.comEtoys.comPetrock.comFloozWebvan
Sheet1Group NumberIs there a benefit (real or percieved)People willing to pay (enough)Cost of cut-through acceptablePeople will see the benefit buy again / recommend to othersKill Puppy1Pets.com2Kosmo3Despair.com4Etoys.com5Petrock.com6Flooz7Webvan