Discussions about startups that achieved tremendous success usually turn to organizations such as Amazon, Google, Facebook or other renown businesses. While these organizations are great examples of success, many new entrepreneurs fail to capture the true lessons to be learned from these businesses. Entrepreneurs should focus on approaches and factors within these organizations rather than analyzing specific practices. In Part Two of The Lean Startup, Eric Ries makes the argument that each startup faces a unique set of circumstances and should conduct market and product experiments reflecting their own situations (2011, p. 80). Ries also introduces minimum viable products (MVPs) as a means to obtain valuable insight about a product and its potential for growth and value. Other leaders such as Matt Blumberg, agree with Ries and offer additional insight on both of these ideas.
The ideas of perfection and trying our best on any given task are engrained in our minds throughout life. Thus, it would be logical for some entrepreneurs to incorporate this approach to businesses and their startups. Eric Ries cautions that a perfectionist approach might create an analysis paralysis, preventing entrepreneurs from getting out to the real world and testing products with real customers before spending large amounts of resources (2011, p. 90). This is an extremely important consideration given the number of startups and products that fail to capture customers and enter markets. While it is inevitable to start with some assumptions, the idea of putting together a minimum viable product (MVP) to the test with real customers will validate the perceive value of a product and test its growth prospects.
Knowledge is Power
Matt Blumberg, the author of Startup CEO, argues that entrepreneurs must truly understand a problem before offering a solution. The example he uses is that Henry Ford’s initial customers probably asked for a faster horse, not a four-wheeled engine. Ford had to determine that his customers wanted speed, but he would not have been able to arrive at this concussion without getting himself out to see and hear from his potential customers. A minimum viable product will provide these underlying insights that might not be in plain sight. It is not intended to be the product itself but a starting point to begin the process of learning about the actual and true prospects of a product (Ries, 2013, p. 93). Afraid of tarnishing their reputation, some entrepreneurs might feel skeptical about the idea of putting a less than prime product out on the market. However, if customers don’t see value on the product or there is no growth factor to propel the business, wouldn’t it be worth it to find out sooner rather than later?
Reflecting on the idea of minimum viable products as it relates to the Build-Measure-Learn loop, it should be said that it is everywhere. It is the sketches to a complex project, the outline to a paper, the first draft to an assignment. Perfection is not achieved overnight and at once. When executed properly, the process works, or at the very least it will save time and money.
References
Ries, E. (2011). The lean startup: How today’s entrepreneurs use continuous innovation to create radically successful businesses. New York, NY: Currency.
Blumberg, M. (2013). Startup CEO: A Field Guide to Scaling Up Your Business [Audiobook]. Retrieved from https://www.audible.com/pd/Startup-CEO-Audiobook/B00G4HLM6E?qid=1549811703&sr=1-1&ref=a_search_c3_lProduct_1_1&pf_rd_p=e81b7c27-6880-467a-b5a7-13cef5d729fe&pf_rd_r=MQG4RKJSRJY188S3HD7T&
Hi Jose,
I really enjoyed how you touched on the subject of putting a product into the market before it’s “ready.” As a designer, I find myself getting caught up in the nitty gritty of the product and waste too much time on aspects that I might not even like or keep. As an entrepreneur who is also a designer, I struggle with “putting a less than prime product out on the market.” But at the same time this is so subjective. When is the perfect time? What makes it “less than prime?” I feel like Matt Blumberg is talking to the people like me. The people who want it perfect, but really need to get the products out into the market to get a fresh set of eyes on it and a new perspective. I do however think you have to be careful because tarnishing your reputation is possible. If you are making electric bikes and all of your first bikes explode, no one will want to test out any more bikes in the future. Bad publicity is powerful and there are too many other competitors that are eager and ready to take your customers. So, I think there is a fine line between waiting too long to finalize a product and waiting not long enough. Yes, it is important to get feedback from others and test the market, but it is also important that the product is functioning properly and is in fact ready to face the masses.
Carter Jones
Reading your post makes me realize how impatient I am. The idea that you pitched here sounds so necessary, yet I find myself not wanting to do it what so ever. It is the safer and smarter route, and though I know there are times where you just have to dive in that process of putting out a MVP would be insanely beneficial. My dream is to build a wedding venue and my method of doing this could be to build a smaller structure first then as we grow we add to the building. But that way we do not sink 500k into a building that we are not certain about. Instead, we only put in 300K which is affordable for us.
Great read and good truth,
Turner Votipka
Jose,
As a perfectionist, I can most certainly understand why it is hard for entrepreneurs to hold themselves back on their goals… I can also understand why it is beneficial not to waste unnecessary resources if the product doesn’t even have a market.
I really like the analogy of testing the market with a sample product with the concept of a rough draft of a paper. I find that very accurate since a draft is NOT the final product – it is merely a test to grasp at improvement factors such as a prototype of a product that will reach the actual market if it becomes a successful prototype.
I look forward to hearing more about how this relates to, “The Social Network” as we discussed that you’re going to make a connection between your book & the evolution of FB! So enthused to learn about your observations!
Thank you very much,
Alana Karma
Hi Jose,
I think it was the book from our previous class where the author talked about releasing a product before it is perfect. When you do this, you are able to mold your product and learn from your customers what they want. It becomes a learning process as your business grows. I am always willing to change things about my business if I see they are not working. I just changed a few products because I saw they were not selling because they were all white, there was no character to them and they were the least viewed products in my shop.
It is better to start with a less than perfect product and learn as you grow instead of never starting at all because you are too busy trying to perfect it.
Keep up the great work Jose.
Warm Regards,
Dani
Hello Jose,
This post provided some valuable insight into the inner working of the entrepreneur. I definitely agree that some entrepreneurs want to produce perfection from day one. Remember, first impressions can mean everything. It takes a lot of time and energy to recondition a consumer once they have made up their mind about a product or service from a specific business.
On the other hand, we need to remain flexible as entrepreneurs. Sometimes listening to consumers and the willingness to adapt can be more important than getting it perfect from day one.
It seems that doing some research and testing the market provides an opportunity to provide something of value while still being able to adapt in the future.
Great post, I look forward to more.
Best,
~Chris Ivesdal
Jose,
Such a great point! I think people get so caught up with these massive companies and think it will be so easy for them to achieve similar success. Many of the factors that made these companies are successful are not seen on the surface level, but deeply rooted in the way the company is run.
“You miss 100% of the shots you don’t take.” This Wayne Gretzky quote is something that I have tried to live by for the last few years. I think that analysis is extremely important and of course you always want to do things that make sense for your business, or your life, but sometimes you just need to pull the trigger! You really never know how a product is going to do until you release and market it.
This is definitely one of those fears many need to overcome! It’s scary because if you release an inferior product, it could affect the way people perceive your brand in the future. Balance is important in this step!
Tom
Jose,
There are three things that really jumped out at me when I read your blog. #1 I really like your use of the photo with the “Open for Business” sign. #2 Your introduction to your main point is smooth and interesting. #3 Focusing on the MVP is a great topic, and good advice for any entrepreneur considering testing a product. People can get excited about an idea and invest a lot of time and money in their innovation, but it’s critical to make sure the market likes the idea. This also gives the startup time to make adjustments based on what the market really wants from the product or service.
Hi Jose,
I read parts of the Lean Startup in undergrad, and we focused heavily on learning what problem a product actually offers a solution to before trying to enter the market. I said this example before, but in a city of less than 20,000 people, I counted 18 pizza places, some offering different experiences than the other, and a 19th pizza place entered the market, and closed after a few short months, I am assuming because it really didn’t offer an experience like the others did. One pizza place is the oldest in town and known for the quality of pizza, another place has a micro-brewery in it (Ohio’s oldest), at another location, a customer can get their pizza in 90 seconds, other places deliver, and this place offered literally none of that, and I believe the owner just was passionate about opening a pizza place (I know him, he really loves food), but failed to address the needs/wants of the people. The people obviously did not want another plain old pizza place.
Jose,
I enjoyed your writing style. It seemed as if you were talking directly at me throughout this post in regards to being the perfectionist. The caution provided from the reading was spot on and some thing for me to really think about as I am on this entrepreneurial journey. It would be a waste to invest heavily on what I would consider to be a great product if the people who are to buy it do not agree. Thank you for sharing.