Chapter 8
Anatomy of a startup

I’ve studied the MVPs of many startups and there are as many different pathways to success as there are entrepreneurs. There is no one-size-fits-all roadmap to success, but it’s reassuring to know that there are signposts you can follow that can guide the way.

What is an MVP?

A Venn diagram shows two circles labelled as ‘Minimum (Pathetic products that no one wants or needs)’ and ‘Viable (Pleasant products made by rich companies)’. It shows the common area labelled as ‘Minimum plus Viable (Potential products for startups to make)’.

Figure 8.1: defining an MVP

People don’t know what they want until you show them.

Based on the MVPs I’ve researched, I’ve created a general MVP blueprint you can use to help you get your MVP up and running. It may not fit your business model exactly, but it will help you get some momentum and overcome ‘paralysis by analysis’.

13 steps to launching your MVP

If you’ve never created an MVP before, it’s hard to know where to start. Here are 13 basic steps many entrepreneurs follow to help them get their MVPs up and running. If you’re not quite sure how to launch your MVP, this blueprint may help.

Step 1: They use the product or service, discover there’s something wrong with it and feel certain it can be improved; or they have a burning desire to make a bucketload of cash and have no attachment to what they sell. Either way, they have a business idea they’d like to bring to life.

Step 2: They see what others are doing in the sector or elsewhere and ask, ‘What’s this like …?’ and ‘Wouldn’t it be great if …?’

Step 3: They tap into a growing niche market that displays the potential to be much bigger.

Step 4: They create a basic ‘no frills’ MVP.

Step 5: They ask for feedback to validate whether their idea has merit.

Step 6: They find collaborators who bring complementary talents or assets to the business.

Step 7: They start small and roll out using a small test market that targets one user persona.

Step 8: They use cheap tech tools to grow the business and deliver efficient customer service.

Step 9: They gradually add extra functionality and launch it again to get feedback.

Step 10: They back themselves and trust their instinct.

Step 11: They get involved and are hands-on at the outset.

Step 12: They create a point of difference that’s meaningful and relevant to the user.

Step 13 (optional): They connect their business idea to a higher, more important purpose than money alone.

How Vets on Call used the 13-step process to create their MVP

If you’ve ever struggled to locate your sick cat and put it in a box, and then transport it across town to the vet without it getting out of the box and scratching you to smithereens, then you’ll know what a great idea it is to have a vet who comes to your house. This is Vets on Call founder Morgan Coleman’s 13-step MVP story.

Step 1: They use the product or service, discover there’s something wrong with it and feel certain it could be improved.

Morgan described his vet experience as ‘just so awful for my pet that I walked away thinking that there had to be a better way. I thought about the pain points I felt as a consumer and they were: the lack of convenience; the stress it causes for the pet but also for the owners; and also, the lack of affordability.’

Step 2: They see what others are doing and ask, ‘What’s this like …?’ and ‘Wouldn’t it be great if …?’

Morgan asked, ‘Wouldn’t it be great if … the vet could come to my house?’ Based on that core premise he asked the question, ‘What’s this like?’ and realised that the idea is similar to Uber in that the service allows pet owners to book a vet to come to their home. (Uber’s core asset is an algorithm that links vacant drivers and cars with people who need a driver and a car, thereby helping the drivers utilise their unused time.) Similarly, Vets on Call creates value for both the pet owner and the vet by utilising the vet’s down time.

Step 3: They tap into a growing niche market that displays the potential to be much bigger.

With incomes and insurance levels on the rise, people are more willing to spend money so their pets can live longer. ‘People are also investing in pets the way they once invested in children so pets are receiving a lot more attention and special treatment than they once did.’

Step 4: They create a basic ‘no frills’ MVP.

Morgan conducted a three-minute survey via SurveyMonkey on Facebook to see if the idea was of interest to the vets.

Step 5: They ask for feedback to validate whether their idea has merit.

‘I surveyed a lot of vets and pet owners to see if there was a need. Once I validated my idea that there was a need for it I started meeting with pet owners in dog parks and places and asked them to trial my service,’ Morgan says. ‘Once I’d done this our MVP was really me being the middle man between vets and the owners, trying to set up vet trial appointments for pet owners and getting feedback from them afterwards.’

Step 6: They find collaborators who bring other talents or assets to the business.

Morgan teamed up with vet Henry Wong and tech partners Nathan Sinnott and Rael Kuperholz, who each took an equity stake in the company.

Step 7: They start small and roll out using a small test market with one user persona.

Vets on Call will initially launch in Morgan’s home town of metropolitan Melbourne before expanding further, and will be focused on city-based residents.

Step 8: They use cheap tech tools to grow the business and deliver efficient customer service.

Morgan uses Optus Loop, a low-cost call-management system so pet owners and vets can ring one number to reach him across all devices.

Step 9: They add extra functionality and launch it again to get feedback.

Morgan created a basic version of the app, which enabled users to book a vet online. He is now building in extra capabilities such as the ability for the vet to order services such as pharmaceuticals and x-rays. On the pet-owner’s side, their pet’s history and product purchases are all available via the mobile app, which makes it very convenient to keep track of their pet’s needs.

Step 10: They back themselves and trust their instinct.

Morgan is funding the startup himself and sold his house to pull together the $60 000 needed to start the business. ‘I really believe in what we are doing and the value we are bringing to the market,’ says Morgan, who has since taken on seed funding to get to the next level.

Step 11: They get involved and are hands-on at the outset.

Morgan says, ‘As a startup entrepreneur you will be doing literally everything and you need to know the most intimate details about your business, without exception.’

Step 12: They create a point of difference that is meaningful and relevant to the user.

‘Vets on Call will be priced from $80 for a general consultation, which is the going rate for a vet at a clinic, but the big point of difference is the vet will go to your home,’ says Morgan.

Step 13: They connect their business idea to a higher, more important purpose than money alone.

‘Growing up in Bendigo I was the only indigenous kid in my school. I grew up with a single mum who is not indigenous so that brought its own challenges,’ he says. ‘For me it is really important to be the change you wish to see. I want to create change not just for myself and my family but for indigenous Australia,’ he says. ‘That’s the reason I’m starting an internet business — it’s scalable to the point where hopefully it will inspire other indigenous entrepreneurs around the country.’

If you need to create an MVP to launch your online idea, try using these 13 steps to help you get started.

When you build your MVP you’ll almost certainly be filled with self doubt and uncertainty as to whether your idea will succeed or not. Being comfortable with being uncomfortable is part and parcel of being a startup entrepreneur and it’s a feeling you’d better get used to.

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset
3.146.255.127