-
Title:
05-01 Value_Proposition
-
Description:
-
On today's lecture, we're going to cover value proposition.
-
What is it you're building and for who?
-
What pains and gains are you creating for what customer segments?
-
And more importantly, what's the minimum viable product that results from all this knowledge?
-
So you're all familiar with the business model canvass and hopefully by now
-
you've actually taken a shot and tried to fill out the canvas for your own idea and your own startup.
-
But today, we're going to talk about the first box, value proposition.
-
Value proposition is just a fancy word in the business model canvass
-
for what is it that you're building.
-
What product or service are you building?
-
And by the way, we're going to ask later for who are you building it
-
and what exactly does it solve for those people?
-
So let's take a look at value proposition.
-
As I said, it's not just about your idea or product.
-
One of the things that's hard for founders to realize is there's actually a customer
-
at the other end and so while you're thinking this is the greatest thing since sliced bread
-
the whole idea about customer development is to get you out of the building
-
and tell me whose need or problem you're solving.
-
It's about satisfying a customer need and not just you thinking what a great idea.
-
And that can't be repeated enough.
-
So today, while we're talking about value proposition, value proposition works hand in hand
-
with who your customers are, which we'll be talking about in the next lecture.
-
Understand that this relationship between what you're building, the value proposition,
-
and the customer is what makes startups succeed or fail on day one right there.
-
And we give those two boxes, those two relationships, a special name.
-
We call that product market fit.
-
And when you hear the phrase product market fit, just simply visualize the canvass and go,
-
"Oh that's another fancy word that says is what I'm building needed or wanted
-
or passionately desired by a set of customers on the other end? And if I don't have that,
-
then the good news about the customer development process is it allows us
-
to keep searching without going out of business and so what you'll find is
-
we'll be iterating back and forth doing things called pivots and iterations
-
as we kind of discover what customers really want versus what we think we're building for them.