Many see business ideas transforming into successful companies as a magical process. However, we see innovation around us each day. It is a clear and recurring pattern, followed by nature over and over again. Think of shells, flowers, plants or tornadoes. As Fibonacci pointed out: “Natural creation follows a universal pattern”.
If innovation is not a mystery, can it be made predictable and simple?
Although every business idea or innovation is a complex journey of learning and constant iterations. We see that steps that most startups take are predictable.
We Believe in 5 Key Principles:
1. Uncertainty is at its peak at the beginning of your startup Journey
Acknowledge that uncertainty is at its maximum at the beginning of a venture. Although this sounds obvious, many entrepreneurs often do not fully understand the implications of high uncertainty. You should not spend time on making your idea perfect when uncertainty is high as this increases the risk of failing. The focus should be on de-risking your business idea instead. Reduce the unknown. Validate your assumptions.
2.Test your assumptions
You make a lot of assumptions about how and why your idea is going to succeed. In order to increase the chances of success, you should list down these assumptions and test them.
Assumptions are all the things that need to be validated for your idea to work. It is very easy to list these them once you have shaped your initial idea. Select the most important assumption that needs to be validated for your idea to work. It will be the assumption/hypothesis you will test first.
3. Test to validate and learn
It is important to have the mindset of testing to learn. Stop building for perfection.
This is where many founders get confused. They try to perfect the idea rather than use a low-fidelity prototype to learn from their future customers.
4. Identify the right value proposition(s) AND business model
BUILDING your business starts after you have determined your right value proposition(s) and the business model. Find an urgent problem for your target customer, find a solution with a great value. Ensure it is a profitable business model, then start building your business.
To do this you should SELECT the best customer with an urgent problem.
5. Start cheap – Spend little
Start with cheap and fast experiments when uncertainty is high – invest in removing uncertainties. Test your idea fast, reduce your assumptions by TESTING your idea and PROTOTYPING your solution.
Build the simplest version of your product to speed up your learning process and minimize your spending.
Our Core Beliefs Combined
Combine our core beliefs and the predictable pattern we see emerges a Startup Journey of what we call The Innovation Curve.