Problems vs. Solutions. What to focus on?

by | May 24, 2023 | Ideation

Problems vs. Solutions. What to focus on?
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Problems, not solutions, create spaces for innovation. ~Ash Maurya

Identifying problems is a key aspect of successful innovation. As startup founders, it's important to understand that the real opportunity for innovation lies not in the solutions, but in the problems that need to be solved. By honing in on the issues faced by your target audience, you can tap into untapped market potential and create a product or service that truly resonates with their needs.

One effective way of identifying problems is through the use of a Lean Canvas, and in particular the four specific boxes of the Leaner Canvas. The Lean Canvas is a tool that allows you to organize and prioritize the various elements of your business model. When filling out the Lean Canvas, it's critical to pay close attention to the "Problems" box. This is where you can identify the challenges faced by your target audience with existing solutions.

Focus on the top 1-3 problems

It is tempting to focus on your solution, at the end of the day, that is what you are good at and that is the essence of your idea as a founder. However, the most important thing to remember is: Investors don's care about your solution, aka product or service, they care about traction (customer engagement). Customers don't care about your solution either, they care about their problems and how your product solves them (Unique Value Proposition) better than the competition.

With this in mind, your initial objective when starting a company is NOT focusing on and building a solution but designing your entire business model.

Your Business Model is the product, not your solution.

When designing your business model, your goal is to find a big problem that a large market segment NEEDS a solution for.  You can begin by identifying a market you want to go after and identifying the jobs this market needs done.  For example, everyone needs to wash the dishes.  You can then focus on the The "Existing Alternatives" box on the Lean Canvas is an essential tool for identifying problems. 

When completing this section, it's important to consider a range of alternatives, such as competitors, substitutes, and complementary products. For example, a sink of soapy water, existing dishwashers, or throw away paper plates.  

This will give you a more comprehensive understanding of the ways your target audience accomplishes the job now and highlight potential opportunities for innovation.

Identifying problems is a fundamental step in the innovation process. By utilizing the Lean Canvas to focus on customer, market, and company jobs to be done, considering what existing alternatives there are to accomplishing these jobs, and what the problems are with these existing alternatives, you can identify opportunities for innovation and create a product or service that truly resonates with your target audience.

As demonstrated by Bosch, identifying problems and taking advantage of untapped market potential can lead to major success.  Bosch identified the need for quiet dishwashers that could operate quietly enough to not interrupt people in the family room adjacent to the kitchen.  They then created a revolutionary quiet dishwasher that has seen tremendous market success.

By focusing on your entire business model, solving a problem for a big market, you can craft a business that is setup for success without writing a line of code or designing a prototype.  Love the problem.

 

 

Here are top tips on how to use a Lean canvas to find a BIG problem:

Identify your customer segment:

Identify a specific group of customers that you are familiar with.  The more familiar you are with them, the better.  Being familiar will play well when you provide your "Why?" to investors because you understand the space.

What are they trying to accomplish?

 Identify an important objective of this customer segment.  What is the job to be done?

What are the existing alternatives?

How do they reach their goal today?  Not just directly competing tech, but also low tech alternatives.

Identify the problems with the existing alternatives:

What is the problem with the existing alternatives that is making your target market want to switch?   This should be a problem that your target customers are facing, and it should be specific and well-defined.

Develop a unique value proposition:

This is where you explain how your business solves the problem in a unique way that sets it apart from competitors. Your unique value proposition should be simple, concise, and easy to understand.

Outline your solutions:

Detail the specific products or services that your business will offer to solve the customer's problem. Be specific and make sure that these solutions directly address the problem you have identified.

Determine your channels:

Think about how you will reach your customers and deliver your solutions to them. This could involve online channels, in-person channels, or a combination of both.

Determine your revenue streams:

Identify the ways your business will generate revenue. This could include sales, subscriptions, advertising, or other methods.

Identify your cost structure:

List the key costs associated with running your business, such as product development, marketing, and operations. Be as specific as possible, and include both fixed and variable costs.

Identify key metrics:

Choose the metrics that will be used to track the success of your business. These could include customer acquisition, retention, revenue, or other metrics that are specific to your business.

Highlight your unfair advantage:

This is where you explain what makes your business unique and difficult for competitors to copy. This could include a patented technology, a large, loyal customer base, or other advantages that are specific to your business.

Remember, the Lean Canvas is a flexible tool, and you may need to iterate and adjust your answers as you learn more about your customers and market. The goal is to use the Lean Canvas to create a simple, concise, and effective communication of your business model that can be used to test and validate your ideas.

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Problems vs. Solutions. What to focus on?

May 24, 2023

Problems, not solutions, create spaces for innovation. ~Ash Maurya Identifying problems is a key aspect of successful innovation. As startup founders, it's important to understand that the real opportunity for innovation lies not in the solutions, but in the problems...

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Early adopters: who they are and where to find them

by | Feb 10, 2023 | Ideation

Early adopters: who they are and where to find them
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When launching a new product or service, it's important to understand the different types of customers you will encounter. Two key categories of customers are early adopters and mainstream customers, and it's essential to understand the differences between them.

Early adopters are the first customers to purchase and use a new product or service. They are typically more willing to take risks and try new things, and they are often seen as trendsetters within their social and professional networks. Early adopters are typically more forgiving of flaws in a product or service and are more likely to provide valuable feedback that can help you improve and refine your offering.

Mainstream customers, on the other hand, are those who adopt a new product or service once it has been proven and has achieved broader acceptance. They are typically more risk-averse and are more likely to be influenced by the opinions of others. Mainstream customers are typically more demanding of a high-quality product or service and are less likely to tolerate flaws or inefficiencies.

Early adopters are more likely to provide valuable feedback that can help you improve and refine your offering 

When launching a new product or service, it's important to understand the different types of customers you will encounter. Two key categories of customers are early adopters and mainstream customers, and it's essential to understand the differences between them. In this article, we will explore the characteristics of each group and what they mean for your product or service.

Early adopters are the first customers to purchase and use a new product or service. They are typically more willing to take risks and try new things, and they are often seen as trendsetters within their social and professional networks. Early adopters are typically more forgiving of flaws in a product or service and are more likely to provide valuable feedback that can help you improve and refine your offering.

Mainstream customers, on the other hand, are those who adopt a new product or service once it has been proven and has achieved broader acceptance. They are typically more risk-averse and are more likely to be influenced by the opinions of others. Mainstream customers are typically more demanding of a high-quality product or service and are less likely to tolerate flaws or inefficiencies.

The difference between early adopters and mainstream customers is crucial to understand when launching a new product or service. Early adopters can provide valuable insights and feedback that can help you improve your offering, but they are also more forgiving of flaws and inefficiencies. Mainstream customers, on the other hand, are more demanding of a high-quality product or service and are less likely to tolerate flaws or inefficiencies.

In order to effectively target and market to both early adopters and mainstream customers, it's important to understand the different needs and motivations of each group. For early adopters, it's important to focus on the unique value proposition of your product or service and how it solves a problem or meets a need in a new and innovative way. For mainstream customers, it's important to highlight the proven value and quality of your offering and how it meets their specific needs and requirements.

By understanding the unique needs and motivations of each group, you can effectively target and market to them, improving your chances of success.

 

 

In order to target and engage early adopters, it's important to understand where they can be found. There are several places where early adopters tend to congregate, including:

Online communities and forums:

Many early adopters are active participants in online communities and forums related to technology, entrepreneurship, and innovation. By participating in these communities and forums, you can connect with early adopters and engage with them directly.

Networking events:

Networking events are another great place to connect with early adopters. By attending these events and connecting with others in your industry, you can build relationships with early adopters and learn more about their needs and motivations.

Conferences and trade shows:

Conferences and trade shows are great places to connect with early adopters and other members of your target audience. By attending these events and participating in discussions and workshops, you can learn more about the needs and motivations of early adopters and how your product or service can meet their needs.

Social media:

Social media is a powerful tool for connecting with early adopters. By engaging with users on platforms such as Twitter, LinkedIn, and Facebook, you can connect with early adopters, build relationships, and share information about your product or service.

Your objective is to define an early ader, not a main stream customer

Your list of customer segments shoud represent the total adressable markeet (TAM) for your idea. Your early adopters are specific subset of your TAM. early adopters often represent your ieal customer profile.

Distinguish between customers and users

A customer is someone who pays for your product. A user does not. 

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Problems vs. Solutions. What to focus on?

May 24, 2023

Problems, not solutions, create spaces for innovation. ~Ash Maurya Identifying problems is a key aspect of successful innovation. As startup founders, it's important to understand that the real opportunity for innovation lies not in the solutions, but in the problems...

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Don’t write a traditional business plan

Don’t write a traditional business plan

by | Feb 10, 2023 | Ideation

Don’t write a traditional business plan

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A business model describes how you create, deliver, and capture value (get paid) from customers. ~Saul Kaplan

Deconstructing an idea for a product or business is a crucial step in the development process. By breaking down the concept into its core components, you can gain a deeper understanding of what makes your idea unique and valuable. One tool that can be especially useful in this process is the Lean Canvas, a method developed by Ash Maurya in his book "Running Lean." We will explore the key elements of the Lean Canvas and how you can use it to deconstruct your idea.

Lean Canvas consists of 9 boxes. Let's take a look at each one of them:

  1. Problem: Identify the problem that your product or service is meant to solve.
  2. Customer Segments: Define your target market and the specific groups of customers you are trying to reach.
  3. Unique Value Proposition: Explain what makes your product or service unique and why your target market should choose it over other options.
  4. Solutions: Outline the specific solutions your product or service provides to address the problem identified in the problem component.
  5. Channels: Describe the different channels through which you will reach your customers, such as social media, email marketing, or content marketing.
  6. Revenue Streams: Outline the various sources of revenue that your product or service generates, such as product sales, subscriptions, or advertising.
  7. Cost Structure: Identify the costs associated with creating, marketing, and distributing your product or service.
  8. Key Metrics: Define the key metrics you will use to measure the success of your product or service, such as customer acquisition cost, lifetime value, or churn rate.
  9. Unfair Advantage: Explain why your product or service is more likely to succeed than similar offerings from competitors, such as proprietary technology, a large network of partners, or a unique business model.

By filling out each of these components on a Lean Canvas, you can gain a comprehensive understanding of your idea

and identify any potential areas of weakness. For example, if you struggle to define your unique value proposition, this may indicate that your idea is not as differentiated as you had initially thought. On the other hand, if you have a strong unfair advantage, such as a large network of partners, this can be a source of strength that you can leverage to gain a competitive advantage.

One of the benefits of the Lean Canvas is that it provides a visual representation of your idea

making it easier to understand and communicate with others. This can be particularly useful when working with a team or seeking feedback from others. Additionally, the Lean Canvas can help you identify areas where you need to focus your efforts, such as developing your unique value proposition or finding more efficient channels for reaching your customers.

In conclusion, the Lean Canvas is a powerful tool for deconstructing an idea for a product or business. By breaking down your idea into its core components and gaining a deeper understanding of each of these elements, you can gain insights that can help you improve your idea and increase the likelihood of success. So if you're looking to bring your idea to life, consider using the Lean Canvas to give it the structure and clarity it needs to succeed.

There is no right order for filling out a Lean Canvas

There is no right box to start with or specific order to follow, so start in a box that you understand well  and build from there. If you are not sure how to proceed use the suggesteed order - 1. problem, 2. customer segments, etc. - as shown on the illustration above.

Think in the present

The traditional business plan tries to predict the future. The difference that Lean Canvas allows you to examine the current stage of your business, in other words, what you know right now. from there you can decide what are the next steps you need to take and next sets of assumptions to test to move your project further.

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