Recap3:01 with Pasan Premaratne
Let's recap what we learned about experimenting and how we can use that to establish a product market fit.
Using this framework of exploring your business model using a business model 0:00 canvas, and conducting a series of experiments to validate your assumptions, 0:04 you will soon end up with a business model that's scalable and repeatable. 0:09 Let's recap what we've learned so far. 0:13 After we develop the first iteration of your business model, we need to. 0:16 Conduct experiments to test each assumption we built in the business model. 0:21 Our experiments should engage with customers and 0:25 test their understanding of the model. 0:28 Gain a better understanding of our customers. 0:31 Implement the insights gained from conducting each experiment. 0:35 The reason we conduct experiments is so that we validate our assumptions. 0:39 Validating our assumptions is an important activity, 0:43 because validating your ideas before you build can save you a lot of time and 0:47 money by avoiding a situation, where you build a product that no one wants. 0:51 Validating your assumptions gets you connected with your customers. 0:55 Start by validating your problem. 1:00 If this test passes, validate the size of the market, and then the product. 1:02 Your experiments should be simple, passed fail tests that enable you to 1:07 quickly gain feedback and move on to validated learning. 1:12 Finally, all experiments should happen through customer interaction. 1:16 When conducting experiments, we are going to use a system developed by Eric Reese, 1:21 called the Build, Measure, Learn Feedback Loop. 1:25 In the Build stage, we start by asking what metric would confirm our hypothesis? 1:29 Once we have our metric, we design the experiment to gain data on that metric, 1:35 by developing our MVP or minimum viable product. 1:39 The MVP is a version of our product that enables us to 1:43 complete a single iteration of the Build, Measure, Learn, 1:47 Loop with a minimum amount of effort and the least amount of development time. 1:50 Once the MVP is done, 1:56 we move onto the Measure phase, where we analyze whether product development 1:58 efforts in the Build phase actually translated to meaningful progress. 2:02 After the Measure phase it's the Learn phase, where we take the insights that we 2:06 have gained from this experiment and apply that to our product or service. 2:10 If the test fails, we discard those assumptions and keep experimenting. 2:14 If the experiment validates our assumption, we persevere and 2:19 continue to the next experiment. 2:22 If not, we discard the assumption. 2:24 If our riskiest assumptions fail, that is the market, problem, or 2:27 product assumptions, then we need to pivot. 2:31 A pivot is a major change to your business model that's designed to 2:35 test a new set of hypotheses and assumptions. 2:38 With each pivot, we discard our previous business model and start from the top. 2:42 We have a new business idea that we need to explore using the canvas, and 2:46 a new set of assumptions that we need to validate with experiments. 2:51 Remember, the point of all this is to find a business model 2:55 that is scalable and repeatable 2:58
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