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Let's recap what we learned about experimenting and how we can use that to establish a product market fit.
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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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