What a Startup Really Is

I’m getting sick of hearing people saying that a startup needs to be a young company (<2 years) that’s growing “hockey-stick”-style.

I’ll give you the real definition of what a start-up company is:

Startup = an organization which is still searching for its business model.

It gets money to continue experiments and testing for the business model. When the biz model is clear and has all of the processes 100% established, then it is no longer a startup.

Paul Graham’s ideas about high growth and bla bla are besides the point. I believe Steve Blank has a better view on this.

[Product Design] The Hierarchy of Engagement

[Article from:: https://www.linkedin.com/pulse/hierarchy-engagement-sarah-tavel]

Building an enduring, multi-billion dollar consumer technology company is hard. As an investor, knowing which startups have the potential to be massive and long-lasting is also hard. From both perspectives, identifying companies with this potential is a combination of “art” and “science” — the art is understanding how products work, and the science is knowing how to measure it. At the earliest stages of a company, it comes down to understanding how a product is built to maximize and leverage user engagement.

I think of user engagement as the fuel powering products. The best products take that fuel and propel the product (and with it, the company) forward. Just how products do that is something I’ve been thinking about for most of my career.

At the Habit Summit this week, I presented a framework for how I evaluate non-transactional consumer companies I’m looking to invest in that synthesizes some of this thinking — I call it the Hierarchy of Engagement. The hierarchy has three levels: 1) Growing engaged users, 2) Retaining users, and 3) Self-perpetuating.

As companies move up the hierarchy, their products become better, harder to leave, and ultimately create virtuous loops that make the product self-perpetuating. Companies that scale the hierarchy are incredibly well positioned to demonstrate growth and retention that investors are looking to see.

I encourage you to use the Hierarchy of Engagement framework when thinking about your own product, and building out your product roadmap. But, like most frameworks, I am continuously improving the hierarchy and would love to hear your thoughts.

Let me know what you think.

And here’s the presentation on SlideShare:

 

Squirrly SEO vs Yoast – a complete argument for SEO WordPress Plugins

us

You can use them both, that’s for sure. Squirrly has been built to work with Yoast and All In One SEO.

Yoast and AIO SEO are good for the basic SEO on your site: the things that are about the SEO structure of the site. We offer those functions for free as well, but if you already have them setup in these plugins, just use them.

Squirrly is a paid plugin, and there’s a good reason for it. Here’s a break-down of the main elements of the software and it would cost if you had them from other providers.

The power of Squirrly comes from:

1) Keyword Research (which impresses Neil Patel 10 Time-Saving Blogging Tools You Need To Use) (worth $68 / month :: keywordtool . io). In our tool, you can search for specific markets, not just by using data from google.com, you can do Google .com . br or any other

2) SEO Audit, which is one of the most craved for element of our All-Inclusive solution. It gets data about your site, shows you what you need to fix and how to improve your visibility score. (worth $49 / month :: woorank . com)

3) WooCommerce SEO , which is amazingly useful for ecommerce WordPress sites. (worth $79 at Yoast Woocomerce)

4) Instapage SEO , which is the only such thing on the market. Instapage is the best landing page creation software we’ve ever used, but they lack SEO on their WordPress deployments. Thus, we’ve taken care of it. It’s the ONLY SEO plugin that works with Instapage.

5) Google GEO Rank tracking for all your pages. What? This is a crazy and really solid benefit you get from using the Squirrly plugin. (worth $99 / month over at GeoRanker) You can use it to track pages for your very own specific country: Spain, Russia, you name it. It will show you the exact position in google of the page for your search engine location. You can set any location you need to track.

6) On-Page Optimization for Search Bots and Human beings on all Your Pages, Articles, Landing Pages, Products. You get feedback from our tool as you’re typing your content. You will always know when it’s 100% human and SEO friendly, so you can publish with peace of mind. (Worth over $200 / month at Inbound Writer).

7) Social Media Metrics for each page, product, article. Reddit, StumbleUpon, Facebook, Pinterest, Twitter (YES, Twitter! The same api and great stuff that Mashable uses these days, after Twitter removed counts from their own API), Google Plus, LinkedIN. You will get to see your top performing channel for each Article. Amazing value! (worth $99/month at BuzzSumo if you tried using their tool for these details).

8) Inbound Metrics straight from MOZ. We pay a lot of money to bring you these. Just check their API pricing. To get this sort of details in your wordpress it would cost you $99 / month.

9) Content Marketing Lessons (worth $197 over at Udemy.com)

See? The value of using Squirrly SEO Plugin for WordPress comes from these 9 strong points that ONLY we offer to the WordPress community.

The Squirrly All-Inclusive SEO way is $20 / month for the PRO package, as opposed to $700 / month if you purchased all these tiny bits from the other providers.

Upgrades and Power-Ups for myself

  1. I recently became a member of OMFG from Chris Brogan (I’ve always liked that guy!)

It’s all about Ownership and Being an Owner, which is cool. It shows you how to own your decisions and actions.

2) I can add Makers and New Products to ProductHunt. Well, I’ve been doing this since December 2015, but I wanted to brag about it.

3) I have access to ES Summit and there’s tons of great stuff I can learn from there.

4) I might finally take Ovi’s advice and start a podcast tour. I have so many experiences to share.

5) I began using EmpireAvenue again. It still has active bloggers. #socool

EmpireAvenue is something I’ve used when we launched Squirrly. I had to get in touch with many bloggers and it seemed like the best way to do this.

Framework for Figuring out Your Value Proposition

Screenshot 2016-04-09 00.42.13

I’m a big fan of the Lean Startup movement and love the underlying principle of testing, learning, and pivoting by experimenting with the most basic product prototypes imaginable – so-called Minimal Viable Products (MVP) – during the search for product-market fit. It helps companies avoid building stuff that customers don’t want. Yet, there is no underlying conceptual tool that accompanies this process. There is no practical tool that helps business people map, think through, discuss, test, and pivot their company’s value proposition in relationship to their customers’ needs. So I came up with the Value PropositionDesigner Canvas together with Yves Pigneur and Alan Smith.

The Value Proposition Designer Canvas is like a plug-in tool to the Business Model Canvas. It helps you design, test, and build your company’s Value Proposition to Customers in a more structured and thoughtful way, just like the Canvas assists you in the business model design process (I wrote more about how we came up with this new tool previously).

This article is from :: http://businessmodelalchemist.com/blog/2012/08/achieve-product-market-fit-with-our-brand-new-value-proposition-designer.html

The Canvas with its 9 building blocks focuses on the big picture. The Value Proposition Designer Canvas zooms in on two of those building blocks, the Value Proposition and the Customer Segment, so you can describe them in more detail and analyze the “fit” between them. Companies need to get both right, the “fit” and the business model, if they don’t want to go out of business, as I described in an earlier post on failure. The tools work best in combination. One does not replace the other.

Untitled

In this post I’ll explain the conceptual tool. In my next post I’ll outline how you can use it for testing in combination with the Customer Development process by Steve Blank and the Lean Start-up process by Eric Ries. The Value Proposition Designer Canvas will allow you to better describe the hypotheses underlying Value Propositions and Customers, it will prepare you for customer interviews, and it will guide you in the testing and pivoting.

The Value Proposition Designer Canvas

As mentioned above, the Value Proposition Designer Canvas is composed of two blocks from the Business Model Canvas, the Value Proposition and the corresponding Customer Segment you are targeting. The purpose of the tool is to help you sketch out both in more detail with a simple but powerful structure. Through this visualization you will have better strategic conversations and it will prepare you for testing both building blocks.

Achieving Fit

The goal of the Value Proposition Designer Canvas is to assist you in designing great Value Propositions that match your Customer’s needs and jobs-to-be-done and helps them solve their problems. This is what the start-up scene calls product-market fit or problem-solution fit. The Value Proposition Designer Canvas helps you work towards this fit in a more systematic way.

Value Proposition Canvas - fit

Customer Jobs

First let us look at customers more closely by sketching out a customer profile. I want you to look at three things. Start by describing what the customers you are targeting are trying to get done. It could be the tasks they are trying to perform and complete, the problems they are trying to solve, or the needs they are trying to satisfy. Value Proposition Canvas - customer jobs

Ask yourself:

  • What functional jobs is your customer trying get done? (e.g. perform or complete a specific task, solve a specific problem, …)
  • What social jobs is your customer trying to get done? (e.g. trying to look good, gain power or status, …)
  • What emotional jobs is your customer trying get done? (e.g. esthetics, feel good, security, …)
  • What basic needs is your customer trying to satisfy? (e.g. communication, sex, …)

Customer Pains

Now describe negative emotions, undesired costs and situations, and risks that your customer experiences or could experience before, during, and after getting the job done. Value Proposition Canvas - pains Ask yourself:

  • What does your customer find too costly? (e.g. takes a lot of time, costs too much money, requires substantial efforts, …)
  • What makes your customer feel bad?(e.g. frustrations, annoyances, things that give them a headache, …)
  • How are current solutions underperforming for your customer? (e.g. lack of features, performance, malfunctioning, …)
  • What are the main difficulties and challenges your customer encounters? (e.g. understanding how things work, difficulties getting things done, resistance, …)
  • What negative social consequences does your customer encounter or fear? (e.g. loss of face, power, trust, or status, …)
  • What risks does your customer fear? (e.g. financial, social, technical risks, or what could go awfully wrong, …)
  • What’s keeping your customer awake at night? (e.g. big issues, concerns, worries, …)
  • What common mistakes does your customer make? (e.g. usage mistakes, …)
  • What barriers are keeping your customer from adopting solutions? (e.g. upfront investment costs, learning curve, resistance to change, …)

Rank each pain according to the intensity it represents for your customer. Is it very intense or is it very light. For each pain indicate how often it occurs.

Customer Gains

Now describe the benefits your customer expects, desires or would be surprised by. This includes functional utility, social gains, positive emotions, and cost savings. Value Proposition Canvas - gains Ask yourself:

  • Which savings would make your customer happy? (e.g. in terms of time, money and effort, …)
  • What outcomes does your customer expect and what would go beyond his/her expectations? (e.g. quality level, more of something, less of something, …)
  • How do current solutions delight your customer? (e.g. specific features, performance, quality, …)
  • What would make your customer’s job or life easier? (e.g. flatter learning curve, more services, lower cost of ownership, …)
  • What positive social consequences does your customer desire? (e.g. makes them look good, increase in power, status, …)
  • What are customers looking for? (e.g. good design, guarantees, specific or more features, …)
  • What do customers dream about? (e.g. big achievements, big reliefs, …)
  • How does your customer measure success and failure? (e.g. performance, cost, …)
  • What would increase the likelihood of adopting a solution? (e.g. lower cost, less investments, lower risk, better quality, performance, design, …)

Rank each gain according to its relevance to your customer. Is it substantial or is it insignificant? For each gain indicate how often it occurs.

Products & Services

Now that you sketched out a profile of your Customer, let’s tackle the Value Proposition. Again, I want you to look at three things. First, list all the products and services your value proposition is built around. Value Proposition Canvas - products & services

Ask yourself which products and services you offer that help your customer get either a functional, social, or emotional job done, or help him/her satisfy basic needs?

Products and services may either by tangible (e.g. manufactured goods, face-to-face customer service), digital/virtual (e.g. downloads, online recommendations), intangible (e.g. copyrights, quality assurance), or financial (e.g. investment funds, financing services).

Rank all products and services according to their importance to your customer. Are they crucial or trivial to your customer?

Pain Relievers

Now lets outline how your products and services create value. First, describe how your products and services alleviate customer pains. How do they eliminate or reduce negative emotions, undesired costs and situations, and risks your customer experiences or could experience before, during, and after getting the job done? Value Proposition Canvas - pain relievers Ask yourself if they…

  • … produce savings? (e.g. in terms of time, money, or efforts, …)
  • … make your customers feel better? (e.g. kills frustrations, annoyances, things that give them a headache, …)
  • … fix underperforming solutions? (e.g. new features, better performance, better quality, …)
  • … put an end to difficulties and challenges your customers encounter? (e.g. make things easier, helping them get done, eliminate resistance, …)
  • … wipe out negative social consequences your customers encounter or fear? (e.g. loss of face, power, trust, or status, …)
  • … eliminate risks your customers fear? (e.g. financial, social, technical risks, or what could go awfully wrong, …)
  • … help your customers better sleep at night? (e.g. by helping with big issues, diminishing concerns, or eliminating worries, …)
  • … limit or eradicate common mistakes customers make? (e.g. usage mistakes, …)
  • … get rid of barriers that are keeping your customer from adopting solutions? (e.g. lower or no upfront investment costs, flatter learning curve, less resistance to change, …)

Rank each pain your products and services kill according to their intensity for your customer. Is it very intense or very light? For each pain indicate how often it occurs.

Gain Creators

Finally, describe how your products and services create customer gains. How do they create benefits your customer expects, desires or would be surprised by, including functional utility, social gains, positive emotions, and cost savings? Value Proposition Canvas Ask yourself if they…

  • …create savings that make your customer happy? (e.g. in terms of time, money and effort, …)
  • … produce outcomes your customer expects or that go beyond their expectations? (e.g. better quality level, more of something, less of something, …)
  • … copy or outperform current solutions that delight your customer? (e.g. regarding specific features, performance, quality, …)
  • … make your customer’s job or life easier? (e.g. flatter learning curve, usability, accessibility, more services, lower cost of ownership, …)
  • … create positive social consequences that your customer desires? (e.g. makes them look good, produces an increase in power, status, …)
  • … do something customers are looking for? (e.g. good design, guarantees, specific or more features, …)
  • … fulfill something customers are dreaming about? (e.g. help big achievements, produce big reliefs, …)
  • … produce positive outcomes matching your customers success and failure criteria? (e.g. better performance, lower cost, …)
  • … help make adoption easier? (e.g. lower cost, less investments, lower risk, better quality, performance, design, …)

Rank each gain your products and services create according to its relevance to your customer. Is it substantial or insignificant? For each gain indicate how often it occurs.

Competing for Customers

Most Value Propositions compete with others for the same Customer Segment. I like thinking of this as an “open slot” that will be filled by the company with the best fit. The visualization for this was an idea by Alan Smith, one of my co-founders, and the designer of Business Model Generation. Competing Value Propositions If you sketch out competing value propositions, you can easily compare them by mapping out the same variables (e.g. price, performance, risk, service quality, etc.) on a so-called strategy canvas. BoS Strategy Canvas

The Value Proposition Designer Canvas Poster

You can use the Value Proposition Designer Canvas like the Business Model Canvas: plot it as a poster, then stick it up on the wall, and then use sticky notes to start sketching.

Contrary to the Canvas, the Value Proposition Designer Canvas poster and methodology is copyrighted. However, you are free to use it and earn money with it as an entrepreneur, consultant, or executive, as long as you are not a software company (the latter need to license it from us). However, when you us it please reference and link toBusinessModelGeneration.com.

Here is a downloadable draft poster version of the Value PropositionDesigner Canvas.

Value Proposition Designer

Testing and Pivoting

Using the Value Proposition Designer Canvas as a thinking and design tool is only a start. To get the best out of it you need to combine it with testing and pivoting. In my next blogpost I explain how the Value PropositionDesigner Canvas perfectly integrates with the Customer Development and Lean Startup Process. I explain how it helps you substantially when you “get out of the building” as Steve Blank would say.

Last But Not Least: Workshop Date Announcements

We have a couple of 2-day workshops coming up where you can learn about all our tools:

Hope to see you in either San Francisco or Zurich!