When I tell entrepreneurs that they need to validate their assumptions for their business, they often tell me “But we have already done that… we already have a few paying customers… they have paid us $X for it and are using it.”. Having initial customers is good and sure should be celebrated, that by itself … Continue reading Why winning a few customers is not ‘proof of concept’ of a startup?
‘Proof of concept’ and ‘Minimum Viable Product’ are two very different things. As clarified in the earlier chapter, when testing the proof of concept, you could be testing not just the product itself but also a few other assumptions about the business around that product. I.e. Product testing is just one of the aspects that could … Continue reading In the startup world, how is the ‘proof of concept’ different from a ‘minimum viable product’?
‘Proof of concept’ of POC is the process of validating your assumptions around a certain concept or idea. It is testing your hypothesis. In the context of startups, it is most crucial to get proof of demand. I.e. proof that is there a need for this product/service, and are there enough people who will buy … Continue reading What is ‘Proof of Concept’ of a startup?
As an entrepreneur, one key role is to plan the journey of your venture. And for doing that you have to visualize what the future looks like. You have to look at the immediate future, the mid-term as well as the long term. And of course, that means that you have to make assumptions. As … Continue reading Making ‘assumptions’ for your startup business…
Well, there is obviously no right or wrong revenue estimate. It is often a reflection of the vision and aspiration of the entrepreneurs. However, among the many mistakes that many entrepreneurs make while estimating revenue, the two top ones clearly are: Estimating too little Estimating too much Here’s an oversimplification of how you could think … Continue reading What is the right revenue estimate for a startup?
This is a rather tough part, but it needs to be tackled. Often you would not have any scientific basis, and therefore would have to start with some assumptions. How practical and reasonable those assumptions are will determine how accurate your revenue and growth estimates are. However, in the early phase, especially in new categories, … Continue reading How do you estimate the revenue and growth of your startup?
Clearly define what problem you are solving… and for whom – this will give you a good idea of the number of customers with that problem in the geographies that you plan to be available in. Estimate the practical reach e.g. while there may be a 100,000 people in your target audience spread across 50 … Continue reading Some points to consider when estimating the market potential of your startup…