The Market Your Message Show
The Market Your Message Show
Ch 18. The Business Validation Decision Tree
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Validating Your Business Idea: The Decision Tree Framework
In this episode of 'The Market Message Show,' host Jonathan Milligan delves into Chapter 18 of his book 'Validate Your Offer.' The chapter focuses on the 'Business Validation Decision Tree,' a systematic approach to testing and improving business ideas before going all in. Using the story of Dropbox's early validation techniques, Jonathan emphasizes the importance of gathering feedback, experimenting, and iterating to achieve a product-market fit. Key insights include the importance of finding the right audience, pinpointing the critical problems your audience faces, and gathering actionable feedback to refine your offers. The episode also provides practical steps to put the Business Idea Decision Tree into action, making sure listeners can validate their ideas efficiently and effectively.
00:00 Welcome to the Market Show
00:11 Introduction to 'Validate Your Offer'
01:16 The Dropbox Story: A Lesson in Validation
02:59 Understanding the Business Validation Decision Tree
03:51 The Two Traps of Idea Validation
07:03 Three Steps to Validate Your Business Idea
11:45 Implementing the Business Validation Decision Tree
14:25 Key Takeaways and Final Thoughts
Hello and welcome to the market. Your message show. I'm your host, Jonathan Milligan. And we are going through the third book in the series. Validate your offer. This is an important book because a lot of people will start their business online. And then they're trying to figure out how do I create something that people will want and how do I do it without wasting time? And that's what this third book in my book series is all about. Now as a thank you for being a loyal podcast listener, I am making the audio book available one chapter at a time every single week. And as you're listening to this, we are currently going through that. Validate your offer. Now, if you ever want the audio book or you want the book or the workbook, you can go to platform growth, books.com again, it's platform, growth books.com, and you could order one of those. And of course, listen, as you go through the book or use the workbook to implement what you hear. In each episode. So with that being said, let's jump right in to today's chapter.
Speaker 61:Chapter 18, the business validation decision tree. Ever heard the story of how Dropbox got started? Back in 2007, MIT student, Drew Houston was fed up with constantly losing his USB drive. So he started coding a solution, a file storage system that would sync his files across all his computers. Houston knew he was onto something, but when he tried to get investors on board, no one was biting. You see, online storage, wasn't a new idea. Big players like Google and Microsoft were already in the game. So why would anyone want Houston's product? Determined to prove the naysayers wrong, he decided to put out a minimum viable product. A simple video demonstrating how Dropbox worked. And that's when things got interesting. Overnight, the video went viral. Houston's beta waiting list skyrocketed from 5, 000 to 75, 000 people. All because he took a chance and put something out there to validate his idea. He learned that people really did want. A simpler way to store and sync their files. Armed with that knowledge, he was able to refine Dropbox into the service millions rely on today. Houston's story is a perfect example of what this chapter is all about. Validating your business idea. See, most people make one of two mistakes. They either barrel ahead with an idea without ever testing the market, or they put out an initial offer but fail to really evaluate the results and iterate. Both roads lead to the same destination. A whole lot of wasted time and money. So what's the solution? It's simple. You need a system to validate your ideas and offers a way to test the market before going all in. And that's exactly what the Business Idea Decision Tree is all about. Think of it like a choose your own adventure book for your business. At each step, you'll evaluate a key piece of the puzzle. Your audience. Your problem. Your offer. And based on the results, you'll know exactly what to do next. Launch a small beta group to gauge interest. Run a free challenge to validate the problem you're solving. Put out a paid workshop to test your offer. And at every turn, you'll be gathering valuable feedback and insights. Business So, you can ditch the guesswork and make confident, data driven decisions about where to take your business next. No more throwing spaghetti at the wall and hoping something sticks. With the Business Idea Decision Tree, you'll have a clear roadmap for turning your ideas into viable, profitable offerings. Ready to dive in? Let's get started.
Speaker 62:The two traps of idea validation. Let's be real. When it comes to validating a business idea, most people fall into one of two traps. First, there's the ready fire aim approach. You know, the type they get struck with a lightning bolt of inspiration and charge full steam ahead without ever stopping to test the waters. They pour their heart and soul and maybe their life savings into an idea only to watch it fizzle out faster than a firework in a rainstorm. Then, there's the flip side. The people who dip their toe in the validation pool, but never fully take the plunge. They put out a half hearted offer, get a lukewarm response, and promptly throw in the towel. Guess that idea was a dud, they shrug, moving on to the next shiny object. Both of these approaches rarely work. You might get lucky and hit the jackpot, but chances are, you'll end up watching your chips disappear faster than free donuts in a break room. The truth is that not properly validating your ideas is like setting out on a cross country road trip without a map. You might have a vague idea of where you want to end up, but without a clear route, you're bound to take a lot of costly detours and dead ends. You'll waste time and resources, you'll chase the wrong audience, solve the wrong problems, or offer the wrong solutions. And here's the kicker. Even if you do put out an initial offer, failing to carefully evaluate the results, Is just as dangerous. It's like planting a seed and then abandoning it after a day because it hasn't bloomed yet. Ideas take time and nurturing to grow. If you don't take the time to understand why an offer fell flat. You might be missing out on a golden opportunity to refine and improve. So, what's the secret to successful idea validation? It's all about mindset. Treat your initial offers as experiments, not life or death trials. Think of it like you're a mad scientist concocting different formulas in your lab. Some might blow up in your face, metaphorically, we hope, while others could lead to a game changing discovery. The key is to launch, then learn. Put something out there, gather feedback, and use it to inform your next move. It's not about perfection, it's about progress. And that's where the Business Idea Decision Tree comes in. It's like a trusty roadmap for navigating the validation process. At each fork in the road, you'll evaluate a key element of your business. Your audience, your problem, your offer. Based on the results, the tree will guide you to your next steps. Think of it like playing a game of hot or cold. With each move, you're getting warmer, zeroing in on that sweet spot of product market fit. And the beauty of the decision tree is that it takes the guesswork out of the equation. No more relying on gut feelings or hunches. Just clear, data driven actions. To keep you on track. So if you're ready to stop spinning your wheels and start making real progress, it's time to embrace the business idea decision tree. Get ready to experiment, iterate, and unlock the full potential of your ideas. Your breakthrough is just around the corner.
Speaker 63:The three steps to validating your business idea ready to put your business idea to the test. It's time to break out the business idea decision tree. Think of it as your trusty compass for navigating the uncharted waters of idea validation. Step one, find your tribe. First up, we need to make sure you're barking up the right tree when it comes to your audience. After all, even the most brilliant idea will fall flat if you're pitching it to the wrong crowd. So, how do you find your tribe? It's all about starting small and testing the waters. Whip up a bite sized offer. Maybe a mini course, a virtual workshop, or a four week group coaching program. Nothing too fancy or time consuming. resonates. Then, put it out there and see who bites. Share it with your network, post about it on social media, and shout it from the rooftops. Okay, maybe not that last one. The goal is to gauge interest and engagement. Think of it like trying to complete a puzzle. You might have to try out a few different pieces before you find the ones that fit just right. And that's okay. The key is to stay flexible and keep iterating until you find that perfect match. Remember, this is just the first step. If you don't, hit the bullseye right away. Don't throw in the towel. Keep tweaking your idea or your audience until you start to gain some traction. Step two Pinpoint the pain. All right, so you found your people. They're engaged. They're interested. They're ready to rock Now it's time to dig a little deeper and make sure you're solving the right problem Here's the deal your audience could be very engaged But if you're not addressing a real pressing pain your offer will flop. So how do you validate the problem? You Easy. Run a free challenge related to the issue you're trying to solve. Invite your audience to join in and see how they respond. Are they eager to participate? Are they asking questions, sharing their struggles and really digging in? Then congratulations, you're on the right track. But if you're hearing crickets, it might be time to go back to the drawing board. And that's where a little research comes in handy. Fun fact, according to CB Insights, the number one reason startups fail is because there's no market need. In other words, they're trying to solve a problem that people don't really care about. So, if your challenge isn't gaining traction, don't be afraid to ask your audience what's really keeping them up at night. Send out a survey, hop on some calls, and do a little digging. The answers might surprise you. And remember, this is all valuable intel. Even if you have to pivot, you're one step closer to cracking the code on a problem that really matters to your people. Step three, get the scoop. Okay. So you found your audience and zeroed in on a juicy problem. You're feeling pretty good about this whole validation thing, but before you break out the bubbly, there's one more step, it's time to gather some feedback. Maybe you're not quite sure if you're targeting the right folks or you've nailed the audience, but you're still not 100 percent clear on the problem. Or maybe just maybe you've got the audience and the problem on lock, but your offer isn't quite hitting the mark. Never fear. The survey is here. Seriously though, this is where the magic happens. It's time to go straight to the source and ask your people what they really think. Not sure about your audience? Float a new idea out there and see how it lands. Struggling to pinpoint the right problem? Ask your email list or social media followers about their biggest challenges. Offer falling flat? Reach out to those who didn't buy and find out why. The key is to gather as much data as you can. Once you have that precious feedback in hand, you'll be ready to take your offer to the next level. Just look at Uber. When they first launched their initial offer was a total flop, but did they give up? No way. They listened to their users, made some tweaks and kept on iterating. And now, well, you know, the rest. So don't be afraid to ask for feedback. Even if it stings a little, every piece of input is a clue, a breadcrumb leading you closer to that pot of gold at the end of the validation rainbow. And once you've got all that juicy data. Well, that's where the real fun begins. But we'll save that for the next chapter. For now, just remember, validate, iterate, and always, always keep your ear to the ground. Your audience holds the key to unlocking your idea's full potential. All you have to do is listen.
Speaker 64:Today's exercise, implement the business validation decision tree. All right, it's time to get our hands dirty and put the business idea decision tree to work. This is where the rubber meets the road folks, where we separate the validation pros from the entrepreneurs. So block off the next 10 to 15 minutes, silence your phone and put on your thinking cap. It's time to give your validation offer a good hard look. First, pull up the business idea decision tree. Now, take a stroll through each step and evaluate how your offer stacks up. Question 1. Were you able to generate excitement about your topic idea? If the answer is yes, go to question 2. If no, then give it a few weeks and try a new topic or different audience, after you survey your list and social for more topic ideas. Question 2. Did you tackle a problem people were willing to pay for? If the answer is yes, go to question 3. If no, ask people what their biggest challenges are when it comes to the topic. Question three, did you get a decent amount of sales? If yes, congrats. If no, send an email to all the non buyers. Ask them to reply to your email and share with them why they decided not to buy at this time. Collect what they mentioned to you. Did you find your tribe or are you still searching for that perfect audience match? Did your free challenge strike a chord or did it fall on deaf ears? Are people whipping out their wallets for your paid offer? Or is your checkout page gathering virtual cobwebs? Be honest with yourself. This isn't the time for rose colored glasses or wishful thinking. The more brutally honest you are, the better equipped you'll be to make smart, strategic moves. Now here's where it gets juicy. Look at where you're getting stuck on the tree. Is it the audience branch? The problem branch? The offer branch. Wherever you're hitting a snag, that's where you'll want to focus your energy. It's time to get creative. Brainstorm at least three experiments you could run to unstick yourself and level up your validation game. And don't be afraid to think outside the box. Maybe you need to test out a new audience by partnering with an influencer in a different niche. Or perhaps you could run a series of polls to uncover the problems that really keep your people up at night. Or, what if you tweaked your offer to include a juicy bonus or a payment plan? So take a deep breath, roll up your sleeves, and get ready to experiment like a mad scientist. The Business Idea Decision Tree is your trusty sidekick, and those three experiments are your secret weapons. Now, go forth and validate like a boss. Your breakthrough is waiting. Key takeaways. Validation isn't a one time event, but an ongoing process. Keep iterating based on feedback until you reach product market fit. Use the Business Validation Decision Tree framework. Use it to methodically diagnose issues with the audience, problem, or offer. Then Use it to determine the right adjustments to make. You launch and then you learn. The key to successful validation is maintaining an experimenter's mindset. Treat everything as a learning opportunity to refine and improve.