Myths & Truths About Building a Web Product

PRESENTED BY:

Myths & Truths - Building a Product

December 10, 2014PRESENTED BY:

PRESENTERS:JESUS RAMIREZ

VP, PRODUCT, TALLWAVE

DAVE ALBERTSONCEO, CO-FOUNDER, SHELVSPACE

INTRODUCTION

JESUS RAMIREZVice President, ProductTallwave LLC

Product designer, entrepreneur and problem solver.

Helps early stage tech startups design and build products that users love through a human-centered, empathy driven design approach.

In a previous life:● DrFirst● Zazzle● Stanford d.school

WWW.TALLWAVE.COM/SANDCASTLE INFO@TALLWAVE.COM

INTRODUCTION

Dave AlbertsonCEO, Co-Founder Shelvspace

Product executive, entrepreneur, and startup advisor.

Build dynamic product teams and companies with focus on culture, design, and demand driven solutions.

In a previous life:● Intel● iCrossing● Infusionsoft

AGENDA

• Myth 1: You need to have a fully functional product to approach customers

• Myth 2: You already know which features users will love most

• Myth 3: You need a technical founder to get your idea off the ground

• Myth 4: You can appeal to everyone• Myth 5: You need a product in market to raise

capital• Myth 6: You’ll be an overnight success

THE MYTHS

MYTH #1: YOU NEED TO HAVE A FULLY FUNCTIONAL PRODUCT TO

APPROACH CUSTOMERS

MISCONCEPTION

“Customers will be turned away if the product is not fully ready”

Pride, Perfectionism, Worry

REALITY #1

If you’re not embarrassed by the first version of your product, you

shipped it too late” Reid Hoffman, LinkedIn

Fail Fast, Learn, Find “Reach”WWW.TALLWAVE.COM/SANDCASTLE INFO@TALLWAVE.COM

REALITY #2If you wait until product is built to

approach your customers, you lose opportunity to:

• Identify the best problems to solve• Get better ideas

• Be told that your idea stinks• Discover how to find more customers

• Discover how to give customers what they want

SUPPORTING FACTS:BUILDING PRODUCTS IS

EXPENSIVE $$$

• Early goal is to learn

• It’s easier than ever to build prototype

• It’s easier than ever to find and test users

• It’s far riskier NOT to

THE TRUTH: A PROTOTYPE IS ALL YOU NEED TO APPROACH CUSTOMERS

1.Use cheap rapid prototyping tools such as InVision, UXPin, Solidify,

proto.io2.Use cheap rapid prototyping

resources such as Elance, fiverr, or oDesk

3.Partner with a UX / prototyping group

4.Be genuine with what you are doing, observe, and listen

MYTH #2: YOU ALREADY KNOW WHICH FEATURES USERS WILL

LOVE MOST

MISCONCEPTION

“I know more than my users”

Arrogance, Tunnel Vision, Steve Jobs effect

REALITY #1:

You’ll build a much better product if you involve & collaborate with your

Different Points-of-View, Evangelists, Community

REALITY #2:

Falling in love with your original idea can stunt growth

“Startups that pivot once or twice raise 2.5x more money, have 3.6x better user growth, and are 52% less likely to scale prematurely than startups that

pivot more than 2 times or not at all”

Marmer, Max, Bjoern L. Herrmann, Ertan Dogrultan, and Ron Berman. Startup Genome Report. Rep. Startup Compass, 2011. Web. Oct. 2014.

THE TRUTH: Count on your product changing; Users will show you if you are

watching

EXAMPLES:

The Point → Groupon: wrong audience

Burbn → Instagram: wrong functionality (post plans, move location/check-in, post photos)

1. Observe (don’t ask) your users 2. Build prototypes & test new ideas

3. Study metrics!4. Be open to pivots, don’t fall in love with a

single idea5.Focus on the GOOD, kill the CLUTTER6.Be shrewd with your product & user

experience

MYTH #3: YOU NEED A TECHNICAL FOUNDER TO GET YOUR IDEA OFF

THE GROUND

MISCONCEPTION

“Without a Chief Technology leader I am dead in the water”

Paralysis, Knowledge Gap

REALITY #1

Best Technical Co-founders are like VC’s -- they need validated

NEED & MARKET

Fit, Proof, Vision

REALITY #2

Finding perfect marriage is difficult, but much easier when

you know what you are looking for

Design, Culture, Platform

• Designers/prototypers can often carry you

further than CTOs in the early stages

• Risk of a wrong fit is costly

• Getting off ground first will often attract best

talent and fit

THE TRUTH:SOMETIMES ITS WORTH THE WAIT

1.Find great design prototyping skillsets

2.Ensure you understand market segment and how they want to

experience a solution before finding the right fit (e.g. iPhone, desktop,

scaling requirements)3.Your early tech co-founder may not

be your CTO as you scale, ensure you have culture and vision fit

MYTH #4: YOU CAN APPEAL TO EVERYONE

MISCONCEPTION: THESE GUYS DID IT!

BUT THEY DIDN’T START THAT WAY

Originally focused on colleges, limited to Harvard and few other Ivy League Schools

Originally limited to hosts w/ air mattresses willing to serve breakfast to guests

Started with books. Had a list of top 20 products, but chose books because of low cost and universal appeal

Reality #1

Lack of focus creates scattered efforts

Reality #2

You have limited capital

TRUTH: YOU CAN’T AFFORD TO FOCUS ON EVERYONE source: Crunchbase

• Target niche, but maintain broad appeal• Build a product few LOVE vs. a product

many SORTA LIKE• Focus on an acute entry point (e.g. deepest customer pain, market white-space, least resistance, inefficiencies)

MYTH #5: YOU NEED PRODUCT IN MARKET / MM OF USERS /

REVENUE TO RAISE CAPITAL

MISCONCEPTION

“Investor will only invest in product that works and growing”

Funding Sources, Experience, Knowledge

REALITY #1

Seed Investors invest in the team and the belief in your go-to-market

Proof points, Storytelling , Business Model WWW.TALLWAVE.COM/SANDCASTLE INFO@TALLWAVE.COM

REALITY #2

It may take hundreds of pitches, but the right partners are out there.

Background, Desire for Change, Belief

• More investors than entrepreneurs, sometimes not easy to find

• Most investors will tell you perceived gaps, they are not always right but you will learn from the themes

• Be sure to share vision, team, and why you will win…….don’t over-focus on product

THE TRUTH: THERE ARE INVESTORS OUT THERE FOR ALL STAGES OF BUSINESS

1.List on angel list and other funding sources, talk to whoever will listen

2.Build target of all investors you can find that match criteria, search for

investors with your model or industry background

3.Prepare for full-time funding efforts, don’t give up, keep building and

pitching until you get it rightWWW.TALLWAVE.COM/SANDCASTLE INFO@TALLWAVE.COM

MYTH #6: YOU’LL BE AN OVERNIGHT SUCCESS

MISCONCEPTION

“Successful startups made it big overnight”

“I’ll build a product, users will flock to buy it and in a few years

I’ll sell/exit and drink champagne”

Wishful thinking, distorted perception

Reality #1

False expectations can be dangerous and lead to short-

sighted decisions

Examples: Short-term revenue vs long-term

visionNew features vs user experience

Reality #2:

Worth spending time early on (while low cash flow) focusing on right users,

product offering & go to market

“Your startup is a learning machine to validate your business before you run

out of money” - Eric RiesWWW.TALLWAVE.COM/SANDCASTLE INFO@TALLWAVE.COM

TRUTH: There is no such thing as an overnight success

“OVERNIGHT” SUCCESSES

Angry Birds

The mobile game was a huge success. But Rovio

had been through 50 mobile games up to that

point and almost went bankrupt

before it hit big.

Was founded in 2007 and been around for 7 years despite being the

poster-child for viral growth.

Founded in 2006 (8 years ago) and battled the US

record labels for 4 years just to enter the US market.

OTHER NOTABLES

Evernote: Was founded in 2007 (7 years) despite it’s hardcore and loyal users.Buffer: Was founded 2010 and just raised its first VC round.

• Buckle down, strap in• Invest in long-term product vision, culture

and user growth

A 2-WEEK BUSINESS VALIDATION + UX PROTOTYPE

SPRINT

Visualize your product idea

Validate your product/market fit assumptions

Reduce development costs (code debt)

Demonstrate your product to customers and investors

TALLWAVE.COM/SANDCASTLE INFO@TALLWAVE.COM

Questions?

PRESENTED BY:

Myths & Truths - Building a Product

December 12, 2014PRESENTED BY:

PRESENTERS:JESUS RAMIREZ

VP, PRODUCT, TALLWAVEjesus.ramirez@tallawave.com

DAVE ALBERTSONCEO, CO-FOUNDER,

SHELVSPACE

Myths & Truths About Building a Web Product

Technology

Vaccination Myths and Truths v2

Myths, Countermyths, and Truths about Intelligence …girodm/643/Sternberg.pdf · Myths, Countermyths, and Truths About Intelligence ROBERT J. STERNBERG Ten myths and countermyths

Myths & Truths About Building a Web Product

Online & Digital Education: Myths and Truths · Online & Digital Education: Myths and Truths . February 12, 2015 . Agenda • Myths & Truths • Berkeley Haas Online Course Examples

Celiac disease truths n myths

Mobile Marketing: myths, truths and practice

Myths vs Truths of Assisted Living

Cell Site Analysis Truths & Myths

Myths and Truths About Economics19631

MYTHS, TRUTHS, and RECOMMENDATIONS for COLLEGE …

Vaccination Myths and Truths

Scorpionic America Historical Myths and Truths

Toxicological Myths and Half-Truths

Armands Baranovskis -Myths and truths about agile

Myths and Truths About Liposuction

Green Myths and Truths - Energy

Myths & truths marketing your startup (1)

GMO Myths and Truths

Myths & Truths About Leadership & Your Leadership Development

Myths, Truths and Futures of online learning