Myths & Truths About Building a Web Product

PRESENTED BY:

Myths & Truths - Building a Product

PRESENTED BY:

PRESENTERS:

JESUS RAMIREZ

VP, PRODUCT, TALLWAVE

DAVE ALBERTSON

CEO, CO-FOUNDER, SHELVSPACE

INTRODUCTION

WWW.TALLWAVE.COM/SANDCASTLE [email protected]

INTRODUCTION

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AGENDA


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”


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


TIPS:

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

2. Use cheap rapid prototyping resources such as Elance, fiverr, or oDesk

3. Partner with a UX / prototyping group4. 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 users

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)


TIPS:

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 CLUTTER

6. 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


TIPS:

1. Find great design prototyping skillsets2. 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


TIPS:

• 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 plan.

Proof points, Storytelling , Business Model


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


TIPS:

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 right

•


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 vision

New 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 Ries


TRUTH: There is no such thing as an overnight success


“OVERNIGHT” SUCCESSES


Angry BirdsThe 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.

http://www.telegraph.co.uk/technology/video-games/8303173/Angry-Birds-the-story-behind-iPhones-gaming-phenomenon.html



TIPS:

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

user growth


Questions?


PRESENTED BY:

Myths & Truths - Building a Product

PRESENTED BY:

PRESENTERS:

JESUS RAMIREZ

VP, PRODUCT, TALLWAVE

[email protected]

DAVE ALBERTSON

CEO, CO-FOUNDER, SHELVSPACE