[TEXT: Expert Advice Series]
[TEXT: Design-Driven Entrepreneurship]
[Rich Nadworny:] Congratulations, you’re almost done.
I’m Rich Nadworny, and this is the final lesson of Design-Driven Entrepreneurship.
Now, let’s talk about creating a prototype.
One thing you haven’t done yet is to create a prototype of your big idea.
This might be the first thing you do, or you might do this several times over time.
In this stage, a prototype is often called a Minimum Viable Product, or MVP.
It’s not actually a product. It’s a representation
or manifestation of an idea that you can share with people to get feedback.
MVPs have a tendency to focus too much on features.
So some entrepreneurs instead create a Minimum Loveable Product —
that is, an idea that people will fall in love with
and want to buy as soon as they can.
That’s really what you’re trying to create:
something that will truly resonate with people, especially your early customers.
So, time for you to create an MVP or an MLP.
Here are few ways you can do that.
The most important task is to create something tangible, not just words on a page.
In short, they are:
Make a physical model. This is good for products.
Draw the process. This is good for digital interfaces.
Code. With rudimentary functionality, this is good for technology.
Storyboard. Depict your system or service comic-book style.
Act it out. Create a skit to show what will happen in service experience interactions.
Or make a space, either life-size or a model, that will show an environment.
From that list, choose the best fit for your big idea and get started. Create your prototype.
Once you’ve completed your prototype, time to test, test
and test your MVP or MLP.
You’ve created your prototype to get feedback.
Show it to people who will be the most enthusiastic users
who have the greatest need.
You want to get as much input as you can right now;
don’t spend time defending or explaining how it works.
If people don’t understand it,
you need to go back to the drawing board and make it better.
Take all of your feedback and revise your prototype, and then test it again.
The reason you’re doing this now is that it will save you a lot of money — and time —
when you create your product or service for real.
Right now you’re only using paper or cardboard or colors.
That’s a lot cheaper than metal or plastic or computer chips!
How will you make any money from it?
The key resources, activities and partners
will determine how much it will cost to make your big idea.
How much should you charge for it? Do the research.
Find the competition and see where you can price yourself in the market.
Then, like anything else, test it.
Here are a few ways to test your price.
One way is to use search engine marketing to advertise your new business.
This kind of advertising takes people to test landing pages.
Obviously, you should spend very little money to do this.
But you can see how many people click on your ad and how many people would click an “I would buy this” button.
Another way to test this is to launch a crowdfunding campaign
using a service like Kickstarter or Indiegogo.
These crowdfunding sites allow you to “presell” products that don’t exist yet.
You’ll be able to see how many people will buy your product
without even seeing it while raising money at the same time.
The last way is to show people your prototype with a price attached
and gather feedback the old fashioned way — in person.
How do your customers react?
Is your product too cheap or too expensive?
Remember to ask some probing questions to get valuable feedback.
The cost goes in the bottom left of your Business Model Canvas.
The price goes in the bottom right under “revenue.”
And here you are! Congratulations!
You’ve designed your new enterprise with help of the Business Model Canvas
and lots of human-centered design tools.
You’ve focused on people throughout the process.
Now you have a story to tell — a story you can tell to potential investors, partners and customers.
You have a big idea that solves a problem for a specific customer group.
You have an ecosystem to create and sell.
You have financial numbers to back up your new business.
Most of all, you’ve learned tools that will help you design all aspects of your business.
The questions we’ve asked require you to provide the basic information for your idea that will help you move from vision to viability.
Revisit this process regularly throughout the planning and running of your business.
You’ll find that your answers may change, and that’s ok.
With the human-centered design approach,
you’ve applied the rules of Design-Driven Entrepreneurship
that will give you an advantage in creating and maintaining a successful business.
Good luck!
[TEXT: Expert Advice Series]
[TEXT: Produced by the U.S. Department of State]