All, ideation, validation

Do your customers want what you have?

Founders have great ideas. Founders have amazing ideas and are looking to solve meaningful issues that contribute to a better society. Their ideas are often born out of a pain they have faced themselves; I call this the light bulb moment or, one where they are dealing with the problem already at their workplace and have found a more efficient way to market. Being flexible and open-minded in the early ideation stage is important, however, do not sell your solution at this early stage. Conducting a thorough validation process is key and can potentially make the difference between success and failure. I’m often asked, what should you validate? I like to refer to this process as the ‘validation triangle’. Founders need to explore and challenge their current assumptions of these three points of the validation triangle to achieve product market fit  - Validation Triangle - Pain 2. Market 3. Product Be curious and thoroughly explore everything there is to know about these three areas with your customer.  That includes the relationship your customer has with the problem and how they deal with it today. Find out what solutions they use now and why, what is working, and what can be improved. If you’re doing this much, you’re on your way to being a great listener and finding the gaps in the market, the spaces you can crawl through, to find your unique positioning. We call this your secret sauce. Do not sell your solution at this early stage The challenge is trying to go against your natural tendency to hear what you want to hear. We often do it both in our personal and professional lives. And it’s no different when launching a start-up. It often is a common mistake made when developing a product.   Founders miss the warning signs and avoid digging more into potential negative responses, discounting them if they don’t fit within their preconceived objectives. It's good to hear bad news at this early stage. It will save you a lot of time and money in the long run. It’s good to hear bad news now. It will save you a lot of time and money in the long run. Instead, founders focus on the answers that validate the product they already have started to build or want to build and ignore the true feedback and criticism. Challenge your assumptions. It’s time to challenge your assumptions and test them on your customers. Make a short list of your top assumptions that you’re making for the business and then formulate a series of questions that will flush out these responses with your customer. If you’re truly honest with this process, it will go far deeper and beyond these initial responses. Understand your customer’s attitude and relationship with the pain point as we’ve said and get the full picture. Are your findings starting to align with your value proposition? Interviewing your customer. I constantly see founders selling their solutions in early interviews and most cases, their customers will just agree with them and give them false hopes to go build something they wouldn’t pay for. Without casting too many aspersions on your customers, they may not be telling you the whole truth when answering your questions. That’s why it’s crucial to dig deeper into your customer’s thoughts, avoid closed questions, and use techniques like the 5 why process, where you don’t take the first response and keep questioning until you unveil the real truths behind their answers. Cast your net out wide at first, using surveys and an audience building tool like Prolific, which will get you an initial market response from hundreds of customers for a reasonable cost. Narrow in on those responses that appear to be aligning with your assumptions and then send them a second series of questions and so forth. Continue this process until you’re satisfied that you have challenged your assumptions thoroughly. You’ll soon start to see common themes. Avoid closed questions, and use techniques like the 5 why process The next crucial part is to interpret the data correctly, making sure you’re not avoiding any negative answers and you seek to dig into them further, through secondary and tertiary surveys. Leave no stone unturned. Seek to then start having face to face interviews with some of those surveyed customers and find some new ones to speak to as well. Product market fit. Sometimes it may seem like there is a degree of luck involved when coming up with a product that will intrigue and excite an already busy marketplace. If you conduct a thorough validation process by asking the right questions, listening, and interpreting those answers carefully, then you may well just be on the way to achieving product market fit. Allow yourself to be challenged. Product market fit is the holy grail for any founder. It represents that perfect alignment where your product or service seamlessly meets the needs and desires of your target audience. Achieving this fit is a testament to your business's viability and potential for success. Product market fit is the holy grail for any founder. It means you've not only identified a genuine problem in the market but have also crafted a solution that resonates with your customers, creating a sustainable path to growth and profitability. For a founder, it's the ultimate validation that their vision is on the right track.

All

MentorLabs Story

Co-founders Richard Cristina & Liam Morris have years of experience in the start-up ecosystem helping founders realise their dream of launching tech companies. As the Principal Director of the Founder Institute's London chapter, the world’s largest pre-seed accelerator program, Richard has helped graduate 100's of companies. Many have since gone on to raise funds. Liam is a UX/UI design specialist who has helped numerous tech companies bring their product to life at the best practice level. This platform is a testimonial to that. Recognising a market gap that some start-up founders were not ready for a long-term commitment to programs like an accelerator or similar programs, which often required founders to commit to 8 to 12 weeks of their time and give up equity. Having previously collaborated, working for mutual clients, Richard & Liam knew there was a synergy in their working together to achieve their objectives. When they discussed the gap they saw in the market, they knew they could take this project on and started working on it 18 months ago from now. Recognising a market gap that some start-up founders were not ready for a long-term commitment to programs like an accelerator or similar programs, which often required founders to commit to 8 to 12 weeks of their time and give up equity. Convinced of a market opportunity, they started outlining their plan to interview founders and mentors alike and challenge their assumptions. Do these founders really exist? Will they pay for on demand help? There was much to research and dig down to. Across this time, we end up interviewing over 300 users, mostly founders and also many mentors. We felt it was important to speak to mentors also, as they play a pivotal role in this marketplace and we needed to understand their motivations for joining our community. Rich & Liam meticulously planned and designed various prototypes, which they used in their research to get feedback and as a result made several iterations. They were not 'founder friendly' and used to building products for corporations or funded start-ups. We were boostrapping therefore price was key. We're probably making this sound easy, but it wasn't. As we finalised which version we will start building, we set out to find a suitable tech partner. We looked around for some time, meeting with several companies. They were not 'founder friendly' and used to building products for corporations or funded start-ups. We were boostrapping therefore price was key. We found Woods & Walker, based in Newcastle, UK and the rest is history. They built what we see today and have been an awesome tech partner. Yet even with all this expertise in the room, unforseen things cropped up to challenge us. A major payment supplier advised us we couldn't do what we planned with their product, two thirds of the way through our build, setting us back weeks. Lesson here for us was to question our vendors more, ensuring the product was going to deliver exactly what we asked for and get proof of it. There were times we doubted ourselves and what we were doing and even felt like giving up. With some perserverence, MentorLabs is the result of a lot of hard work from a team focussed on bringing an on demand service to market for start-up founders. The journey continues as we eagerly build our founder and mentor community.

All, marketing, startups

How to create your marketing dept for founders.

Emin Can Turan, a celebrated figure in London's marketing landscape, talks about what founders should do when creating their first marketing departments. Can, is a seasoned entrepreneur with a rich leadership background at Google, Cisco, and Walmart, shares his vast experience in marketing strategy. This episode delves into the nuances of what differentiates an average marketer from a pro, the transition from corporate life to entrepreneurship, and the crucial skills founders need in MarkSales teams. He also explores the fascinating intersection of AI and marketing, with a special focus on his venture, Pebbles AI. This podcast is a treasure trove of knowledge for anyone looking to master GTM strategies in the B2B space.

All, startups, Virality, growth

The three kinds of viral growth and how to use them in your startup.

People talk about things going viral all the time, usually in connection to some meme or video. Virality is the holy grail of business models. There are three different kinds of virality that might apply to your startup business. The term viral growth comes from epidemiology. If each sick person infects more than one new person, the disease will rapidly grow and spread through a population. While we don’t want that with sickness, it is fantastic in business. Viral user growth describes a situation where existing users bring in new users. The real magic happens if each user brings in more than one new user creating exponential growth.  I think about three different kinds of virality: Incentivized, Advocacy, and Inherent. Incentivized virality is where a business basically bribes its users to recruit their friends. Any time you get a free month of a service for each referral that signs up, you are participating in incentivized virality. The down side of this approach is that it can be off-putting to your customers. It can feel like you are trying to exploit your users at the expense of their friends. The cost of these incentives can also become very large, but it can be very effective in the early growth stages of a business. The key to achieving that critical user density is to focus on small closed populations. Advocacy virality happens when your users want to tell all their friends about your business. They love your solution and want to let everyone in on this great thing they have discovered. You see this with Tesla owners all the time. We can be downright annoying with the amount we go on about these cars. Tesla does not need to give me anything to get me to endorse them at every opportunity. Strong network effects characterize inherent virality. If a service gives you more value when more people you know are using it, you have a strong incentive to get them on the service. The example economists always use is fax machines. If you are the only person you know with one, it is a big paperweight. Facebook is a more recent example. Its value is inextricably tied to having your friends on the platform too. Once you join a system like this, you will start pressuring people you know to join as well. An interesting complication of an inherently viral business model is the low value in the early stages. When your company is just starting, users will not find their friends already there, so they won’t get much out of the service. The key to achieving that critical user density is to focus on small closed populations. Within a small group, you can quickly hit a high enough density to ensure that most new users will find many connections already signed up. Facebook did exactly this by launching exclusively to current college students and focusing rollout on a school-by-school basis. It was only after they had a very large user base in that population that they opened up membership to the general public around the world. The Hard Truth In all cases, the user’s experience of your solution is critical. People will not invite friends to use a service, even with significant incentives, if they think they will be resented for doing so. None of us wants to look bad by recommending a lousy product. So, the good news is that all you have to do for high virality is to make an incredible product. The bad news is that you somehow need to make your product incredible. I hear a lot of companies describe themselves as viral. However, I rarely hear them dig deeper and explain what kind of virality they have and how they will measure and maximize it. If you think virality will be an important component of your startup, see if you can get some initial data and measurements early. Even surveys can provide some indicators of how effective this strategy might be. If you have real evidence that virality will work for your business, as an investor I am very interested in listening to you.

All, MVP

A Founder’s Guide to Navigating MVP Development.

with Tom Green, CEO of Verticode. Embarking on building a startup is an exhilarating endeavor, brimming with possibilities and challenges. One crucial step in this journey is the development of a Minimum Viable Product (MVP). This foundational milestone allows founders to validate their ideas and gather invaluable feedback from users. But where does one begin, and how can founders navigate this process effectively? Join us as we explore the ins and outs of MVP development, guided by Tom Green, CEO & Founder of Verticode, an MVP builder for startup founders and trusted partner of MentorLabs.  Understanding the Journey There's no one-size-fits-all approach to determining the right time to embark on MVP development. It's a decision rooted in understanding your product's value proposition and identifying an accessible target audience. Whether after conducting extensive market research or securing a group of early adopters, the key is to start as soon as you have a solid understanding of your product's potential. Tom Green, CEO & Founder of Vericode says, “Some founders may reach this stage after completing extensive market research, conducting 1000 customer interviews, and delving deep into analytics concerning their target market. He adds, ”Conversely, others may deem it appropriate to proceed with an MVP once they've secured 25 early adopters in their network.” The primary purpose of an MVP is to facilitate learning from user interactions, hence, the sooner this process begins, the better – often prompting founders to initiate MVP development as soon as possible.” Prototyping vs. MVP When asked what the difference is between prototyping and an MVP, Tom mentions, “While prototyping offers a glimpse into your product's design, an MVP goes further by providing a basic version with core functionality. The distinction lies in their focus: prototypes showcase design elements, whereas MVPs aim to test the product's value through user interaction and feedback. While both serve essential purposes, MVPs are crucial for founders ready to launch their startups, so they can learn from real user experiences.” A prototype and an MVP serve different purposes in the product development process, but they are closely related and often used in tandem.  In summary, while both prototypes and MVPs are essential tools in the product development toolkit, they serve different purposes and are used at different stages of the development process. Prototypes are  used to explore and validate ideas, while MVPs are used to test the viability of a product concept with real users. Building an MVP on a budget Building an MVP on a budget requires careful planning and resource allocation. Here are some tips for founders to build an MVP without breaking the bank: 1. Define Clear Goals: Start by clearly defining the purpose and goals of your MVP. Focus on the core features that address the primary pain points of your target audience. Avoid feature creep to keep costs low. 2. Prioritise Features: Identify the essential features that are critical for your MVP's functionality. Rank them based on their importance and impact on the user experience. This helps in allocating resources effectively. 3. Use No-Code/Low-Code Tools: Leverage no-code or low-code platforms to build your MVP without extensive coding knowledge. These platforms offer pre-built templates and drag-and-drop interfaces, reducing development time and cost significantly. 4. Open Source Technologies: Utilise open-source technologies and frameworks whenever possible. They are often free to use and have active communities for support and updates. 5. Outsource Development: Consider outsourcing development to freelance developers who offer competitive rates. This approach also provides access to expertise in niche technologies or areas where internal talent may be lacking, enabling startups to develop high-quality MVPs tailored to their specific needs. Overall, outsourcing development can be an effective cost-reduction strategy for startups looking to build an MVP on a budget.  6. Minimum Design: Focus on creating a functional user interface with minimal design elements. Use wireframes or prototype tools to visualise the user flow and interactions without investing in elaborate designs. 7. Iterative Development: Adopt an iterative approach to development. Release a basic version of your MVP with core features and gather feedback from users through testing. Use this feedback to iterate and improve subsequent versions gradually. 8. Lean Development Methodology: Embrace lean development principles to minimize waste and maximize efficiency. Continuously prioritize tasks based on value and iterate quickly to validate assumptions. 9. Bootstrap: Bootstrap your startup by utilising existing resources and networks. Bootstrapping encourages frugality and efficiency, prompting founders to make strategic decisions and iterate quickly based on user feedback. While it requires perseverance and careful budgeting, bootstrapping enables founders to retain control over their vision and product roadmap while laying a solid foundation for future growth and funding opportunities. 10. Focus on Validation: The primary goal of an MVP is to validate your business idea and the market demand. Concentrate on validating your assumptions and gathering relevant data to make informed decisions for future development. 11. Limit Infrastructure Costs: Opt for cost-effective hosting solutions such as shared hosting or cloud platforms like AWS, Google Cloud, or Microsoft Azure. Start with minimal resources and scale up as your user base grows. 12. DIY Marketing: Instead of investing heavily in marketing, leverage cost-effective channels such as social media, content marketing, email newsletters, and SEO to reach your target audience. Share your journey, insights, and updates on relevant forums, blogs, and social media groups to build credibility and foster relationships with potential users. Encourage word-of-mouth referrals through referral programs or incentivized sharing.  13. Measure Metrics: Define key metrics to track the performance and success of your MVP. Analyze user behavior, engagement, and feedback to make data-driven decisions and prioritize future development efforts. By following these tips, founders can efficiently build an MVP on a budget while still delivering value to their target audience and validating their startup idea. Choosing the Right Partner Selecting the right development partner is critical for the success of your MVP. Look for expertise in relevant technologies, a track record of successful projects, and alignment with your vision and budget. With Verticode, founders benefit from UK-based developers, transparent communication, and a partnership built on trust and collaboration. Building an MVP doesn't have to break the bank. By focusing on building essential functionality only and partnering with cost-effective development teams, founders can bring their ideas to life without overspending.  Conclusion As founders embark on the journey of MVP development, partnering with the right team can make all the difference. With Verticode's expertise and commitment to founder-friendly pricing, turning your vision into reality has never been more accessible. So, seize the opportunity, harness the power of MVP development, and pave the way for a successful startup journey with Verticode by your side.

All, startups, Mentoring

The Transformative Power of Mentorship.

In the fast-paced world of start-ups, the journey from ideation to success is riddled with challenges. For founders daring to embark on this adventure, mentorship emerges as a secret weapon, significantly amplifying the chances of success. Let’s delve into the profound impact of mentorship on start-up founders and how it serves as a compass, guiding them through the complex terrain of entrepreneurship. History of Mentorship. The concept of a mentor goes back to ancient Greek times, approximately 3000 years ago, found in Homer’s classic poem, The Odyssey.  Thought to be written around 800 BCE, it tells the story, set around the Trojan War (you may remember the wooden horse), of the appointment of ‘Mentor’, a guardian and advisor to Odysseus’s family, King of Ithaca. The King’s son, respected by his people, saves the day and does so by receiving good advice from his Mentor. Mentoring is not a new concept. Wisdom has been passed down for the benefit of others for thousands of years. The same is true today. Mentoring comes in various forms, but at the end of the day, the mentee gains insights, knowledge, and wisdom on how to navigate certain issues and situations. This accelerates the learning curve, helping them avoid common pitfalls and navigate unforeseen obstacles. Benefits of Mentorship. When thinking about how start-up founders benefit from mentorship, we created the following list. 1. Wisdom Transfer and Learning Acceleration. For today’s start-up founders, mentorship comes from seasoned entrepreneurs and professionals. Mentorship serves as a conduit for transferring invaluable wisdom and experience to a mentee. This accelerates the learning curve, helping them avoid common pitfalls and navigate unforeseen obstacles. Founders find themselves able to reach important milestones with the help of a mentor’s own experience. 2. Strategic Decision-Making. Mentors help with critical decision-making that can shape their company’s trajectory. With a mentor by their side, founders gain access to strategic insights honed through years of expertise in a particular area where a founder needs help. Moreover, they provide a sounding board for ideas, challenging assumptions, and encouraging critical thinking to refine strategies. Through constructive dialogue and mentorship, founders gain clarity, confidence, and a sharper strategic acumen, empowering them to lead their start-ups toward sustainable success. 3. Network Expansion. Beyond knowledge, mentors open doors to extensive networks, connecting start-up founders with industry influencers, potential clients, and investors they wouldn’t always get easy access to. These connections can catalyse growth opportunities, foster collaborations, and pave the way for strategic partnerships. 4. Tailored Guidance for Unique Challenges. Whilst there is a lot of information founders can find online or receive through events, getting a mentor to provide personalised guidance that is tailored to the specific needs of the founder will make all the difference. This targeted advice can be a game-changer, offering solutions that resonate with the start-up's vision and mission. 5. Confidence Booster & Emotional Support. Entrepreneurship is a rollercoaster ride, and many founders find themselves enduring tough times mentally. They often grapple with their inner demons, self-doubting themselves. A mentor acts as a confidant, offering encouragement, constructive feedback, and a fresh perspective. This emotional support can be the catalyst that keeps founders resilient in the face of adversity and to keep pushing through the obstacles faced. Without a mentor, a founder can often find themselves giving up when all they may need is a fresh ideas and solutions to a seemingly impossible issue. Mentorship examples. Steve Jobs and Mark Zuckerberg Both Steve Jobs, the co-founder of Apple, and Mark Zuckerberg, the co-founder of Facebook, had influential mentors who played significant roles in their success. Jobs was mentored by Mike Markkula, an early investor in Apple, who provided guidance on business strategy and marketing. Zuckerberg was mentored by Sean Parker, the co-founder of Napster, who offered valuable advice on scaling Facebook and navigating the tech industry. Brian Chesky, Joe Gebbia, and Nathan Blecharczyk from Airbnb The founders of Airbnb received mentorship from several experienced entrepreneurs, including Reid Hoffman, the co-founder of LinkedIn. Hoffman provided strategic advice and introduced the founders to potential investors, helping Airbnb secure crucial funding in its early stages. His mentorship played a key role in shaping Airbnb's growth trajectory. Travis Kalanick and Garrett Camp from Uber Travis Kalanick and Garrett Camp, the co-founders of Uber, received mentorship from prominent entrepreneurs such as Ryan Graves, the company's first CEO. Graves provided guidance on building a scalable business model and navigating regulatory challenges in the transportation industry. His mentorship was instrumental in helping Uber grow into a global powerhouse. These examples illustrate how mentorship can have a profound impact on the success of startup founders, providing them with guidance, support, and access to valuable networks that accelerate their growth and increase their chances of long-term success. Team Slack Slack, a popular team communication platform, was founded by Stewart Butterfield, Eric Costello, Cal Henderson, and Serguei Mourachov. The founders received mentorship from venture capitalist and entrepreneur, Michael Dearing. Dearing provided strategic advice on product development, market positioning, and fundraising. His mentorship played a crucial role in Slack's rapid growth and eventual acquisition by Salesforce. These platforms offer easy access to a community of mentors that can be engaged through subscription models or pay-as-you-go arrangements, providing on-demand assistance. A Founder's Mentorship Options. Founders now have a plethora of mentorship avenues to explore. Accelerator and incubator programs are on the rise, offering structured environments for founders to acquire specialised knowledge within a team setting. These programs often facilitate interaction with fellow founders and numerous industry experts at the same time. Participation in formal programs typically entails adhering to a prescribed curriculum and completing set tasks. Founders are usually required to pay an entry fee and may even relinquish equity. Individual mentorship is also prevalent, with mentors offering their services for a fee or sometimes in exchange for equity. A blend of both payment and equity is not uncommon. Recently, marketplace platforms have emerged, providing access to a community of mentors who offer personalised services. These platforms offer easy access to a community of mentors that can be engaged through subscription models or pay-as-you-go arrangements, providing on-demand assistance. The choice of mentorship service a founder engages in will often hinge on the founder's specific needs. Formal mentorship programs offer exposure to multiple mentors but demand a time commitment, adherence to a specific curriculum, and potentially sacrificing equity alongside an entry fee. Conversely, individual, or on-demand mentorship, provides flexibility for founders to seek immediate advice without the obligation to give up equity, catering to their immediate needs. MentorLabs has recently introduced our on-demand mentoring service platform. Founders can select from a curated list of startup experts to get the assistance they need without giving up equity or making long-term commitments. We are excited to announce the launch of our mobile-friendly Beta platform this week also, designed specifically for busy founders and mentors who are constantly on the move. To celebrate, we're offering all readers a 30% discount on their first session booking. Simply use the code 'BLOG30' at checkout. Conclusion. Mentorship emerges as a cornerstone for success for a start-up founder. It is not just a luxury but a necessity for founders navigating uncharted waters. By tapping into the wealth of knowledge, networks, and support that mentors provide, start-up founders can significantly increase their chances of not only surviving but thriving in the competitive landscape. In mentorship, we find not just advice but a compass guiding us toward the summit of success. By Rich Cristina. Co-founder MentorLabs.