What’s in it for me? Learn how to get started with your startup.
To the outside world, startup founders look like they’ve got it all sorted.
But inwardly, they might be dealing with fear, doubt, and imposter syndrome.
What if their idea sucks?
Do they actually know how to run a business?
And where on earth to begin?
Julia Austin has worked at several tech startups and now coaches startup founders.
She knows firsthand just how overwhelming it can be.
If you’re in the early stages of launching a startup, you probably have a lot of questions.
For instance, What should you be thinking about first?
Building a business is a complex, nonlinear process, so it’s normal to struggle at the beginning.
But Austin is here to guide you, sharing the insights she’s gained from years of experience.
In this Blink we’ll focus on just a couple of key areas – product discovery and choosing a cofounder.
We’ll outline some of Austin’s top recommendations and look at practical steps you can take to get started.
Whether or not you have a cofounder lined up, you don’t have to do this alone.
Defining success
Austin teaches aspiring startup founders at Harvard Business School.
On day one of the course, she asks her students, “What does success mean to you?
” One of her students, Giovanna, was planning a startup that provided OB-GYN services in Mexico City.
In response to Austin’s question about success, she said, “Our goal is to create a unicorn.
” In case you’re not familiar with the term, in the world of startups, a “unicorn” is a venture with a market value of more than $1 billion.
Giovanna’s answer was a good start, but a little vague.
Austin asked for more information.
If Giovanna’s venture did become a unicorn, then what?
What kind of impact did she want to make?
How would she feel about it?
After some thought, Giovanna gave a more detailed answer.
She wanted to feel proud of her work, knowing that women in Mexico City had access to high-quality care.
And actually, she and her cofounder had already discussed their vision of success.
They knew exactly what they wanted to achieve within a certain time frame.
And they knew how they planned to do it while raising families, without burning out.
If you’re listening to this Blink, you’ve probably got an idea for a startup too.
These are the kinds of conversations you should be having with your cofounder – in-depth discussions about your vision.
If you haven’t got a cofounder yet, don’t worry – we’ll get to that later.
Now, you’re likely in a hurry to get started – to get onto product discovery – but slow down for a moment.
There’s no rush.
Before you start your startup, think carefully about what success really means to you.
Not just the financial outcome, but the bigger picture.
Here’s an exercise to help you do that.
Choose a medium to record your thoughts – a journal, a document on the computer, or even a video.
Reflect on why you want to launch a startup, and ask yourself some questions.
For example: Why will people be talking positively about my venture in the future?
How will my business impact the world?
At some point, it’s also a good idea to discuss these questions with your team members.
Try using the “diverge-converge” method, where you diverge, each thinking about success separately, and then come together, or converge, to share your perspectives.
If there are areas where you disagree, look for ways to build alignment and support each other.
In order to set yourself up for long-term success, you need a solid foundation.
That means knowing what you’re doing and why, and being on the same page as the people you’re working with.
The importance of product discovery
Success takes experimentation, learning, and often major pivots.
Did you know that YouTube was originally a dating site?
Then it was bought by Google for $1.
6 billion and transformed into the mega-successful video platform we know it as today.
In order to succeed, your startup may have to pivot too.
And of course, while it’s easy to fantasize about becoming the next YouTube, there’s a sobering statistic you should keep in mind.
About 10 percent of startups fail in the first year.
No matter how optimistic you’re feeling, take a slow, cautious approach.
Take the time to experiment and to really understand your target audience.
Before you can offer a solution, you need to understand the problem.
That means doing in-depth discovery work.
For example, there’s a startup called Halo Braid.
It was founded by Yinka Ogunbiyi, a British Nigerian woman who wanted to create a new hair-braiding device.
Traditional methods are slow and demanding, often causing stylists to suffer from chronic pain.
Before creating her device, Ogunbiyi took her time doing research.
She interviewed stylists to understand their pain points and spent hours observing the stylists as they braided clients’ hair.
After multiple experiments, Ogunbiyi used a 3D printer to create a working prototype of the hair-braiding device.
And then, of course, there were further experiments, to see how the stylists used the device.
Austin advocates a similarly rigorous approach to the discovery process.
Do it thoroughly, so you don’t waste time and money creating the wrong thing.
Also, explore the big questions.
For instance: What do my customers find frustrating?
What’s something that could improve their lives, which they don’t even realize is missing?
Spending time on the discovery process is so valuable.
Not only will you gain insight into your venture, but you’ll also get some personal insights.
You’ll understand if this is the particular roller coaster you want to be on … and if you even want to be on it at all.
Better to find out sooner rather than later.
Start with what you believe
Aside from interviews and market research, one of the most useful things you can do during the discovery process is run a hypothesis experiment.
As the name suggests, this is an experiment that tests a hypothesis – it proves or disproves it.
These kinds of experiments help you to make sure you’ve got your facts right – confirming that this is who you’re building a solution for, and that these are the current problems.
Once you’re sure, you can start testing your solutions.
But bear in mind that as with everything else in the world of startups, it’s likely to be a nonlinear and repetitive process.
Sometimes it’ll be a case of two steps forward, one step back.
Here’s how to brainstorm a hypothesis experiment.
By the way – if you’re a solo founder, it’s a good idea to get some input from a colleague at this stage, to help you spot any gaps or biases.
The first step is to brainstorm statements beginning “We believe …” about the following categories.
The personas – in other words, the archetypal people who will benefit from your product – and the problem, or the pain points you think need solving.
Reflect on your beliefs about the market too.
Then, come up with detailed, specific statements.
For example, one of Ogunbiyi’s statements was: “I believe that a full-time stylist will have space to store a device at their salon.
” For step two, take a look at all your statements – or hypotheses – and put similar ones together.
Make a note of any new ideas that come up.
Step three – prioritize.
Decide which hypotheses are the most important, or the ones you’re going to test first.
This might be based on who you already have access to, though be prepared – discovery work often requires getting out of your comfort zone, and doing some cold calling.
And finally, step four.
This is where we really get into it, designing experiments to prove or disprove your hypotheses.
Come up with a detailed experiment plan – when, where, who, and how.
Consider the materials you’ll need.
And if multiple people are involved in running the experiment, use a script to ensure consistency.
You could also create a short, simple survey to gather data from subjects after the experiment.
Lastly, think about how you’re going to assess the outcomes of your experiments.
How are you going to measure them?
In the early stages, you’ll probably just have a general idea of whether or not you’re onto something.
But as you run more tests, try to come up with a more specific way to measure results.
Understand what they really do
You should run at least a few different tests before building a product.
The more information you have, the more likely it is you’ll come up with the right solution first-time round.
In addition to hypothesis experiments, you might try ethnographic research.
This involves observing a target customer in the setting where you think they’re experiencing a problem.
As we mentioned previously, Ogunbiyi spent hours in salons, watching stylists braid hair.
This kind of research can provide valuable insights, from customers’ emotional responses to subtle issues you might never have noticed otherwise.
Concierge experiments can also be helpful.
This is where you simulate an experience in order to get into the shoes of your target customers, and the people who take part are aware that it’s an experiment.
For example, one of Austin’s students believed that some solo travelers would be willing to share an expensive hotel room with a stranger.
That way, they could stay in places that would normally be out of their price range.
To test his theory, the student arranged for a few travelers to share hotel rooms.
He learned so much about what it would take for his idea to work.
Whatever approach you try, stay focused on your goal – discovering the truth about your target personas and their problems.
Having said that, there is such a thing as too much experimentation.
Startup founders tend to aim for perfection, but at some point, you have to decide that what you have is good enough, and get on with it.
Before we move on, here’s something to keep in mind.
When you’re doing these experiments, what you’re really looking at is human behavior.
As you’ve probably noticed, people can be unpredictable, and getting them to change their behavior is often challenging.
That’s why experimentation is so important.
In order to come up with the best possible product, you need to really understand not just what people are doing, but also what they’re thinking and feeling.
Choosing a cofounder
That brings us to another key aspect of startups – deciding to what extent you want to work with other people.
What about your cofounder?
Now, you don’t necessarily need a cofounder.
If you have a lot of expertise and experience, you might prefer to do it alone.
Just be aware that it will likely be a slower process.
Also, investors may see a startup with a solo founder as a risky prospect.
If you’re lacking expertise and experience, you can still go solo.
But you’ll need to hire an experienced team and advisors, and again, it’ll probably slow things down.
According to research, 36 percent of billion-dollar startups have two cofounders – a higher proportion than those with just one founder.
Having a cofounder could potentially lead to greater financial success.
But when it comes to choosing a cofounder, don’t rush the decision.
In her years of working with entrepreneurs, Austin has noticed just how important the cofounder relationship is.
It’s dependent on so many different factors – experience, leadership style, and even chemistry.
So, when you’re picking a cofounder, treat it like a courtship.
Think about it this way.
If you were choosing a long-term romantic partner – someone to potentially have children with, or buy a house with – you wouldn’t commit after just a couple of coffee dates.
It’s the same with a cofounder.
You need to really get to know them.
Start by talking to other startup founders so you can learn about their experiences with their cofounders.
Using these insights, create a cofounder job description.
It should include details such as experience, expertise, and the values and traits you’re looking for.
Next, meet several candidates – at least a half-dozen.
Talking to multiple people will help you to be more confident when you’ve found the right fit.
Once you’ve picked a potential cofounder, it’s time to test the relationship.
You can do this through work-related things, such as building prototypes, but also through social activities – trips, sports, or cooking together.
This way, you can see how the person reacts in different situations and how they cope under pressure.
Austin also recommends having some uncomfortable conversations.
Talk to your potential cofounder about their relationship with money and any past experiences that influence their attitude to work.
If things are looking good, at this stage, you can have the prenup conversation.
Once you’ve discussed things in-depth – making sure you’re aligned on important factors like intellectual property – you can come up with a cofounder agreement.
Finally, arrange to meet each other’s partners and families.
In a way, you and your cofounder are also family now.
All this may sound like a lot, but the process of cofounder courtship can’t be rushed.
The aim is to choose the right person, and then build a relationship of mutual understanding, trust, and respect – a true partner for the journey ahead.
Final summary
In this Blink to After the Idea by Julia Austin, you’ve learned that launching a startup can feel overwhelming and it’s best to move slowly and carefully.
Before diving in, take a moment to define what success really means to you.
Reflect on your long-term goals, and consider the bigger picture – not just your financial goals.
Also, don’t rush to build your product.
Slow down and do meticulous discovery work, so you can understand your target users – their pain points and unmet needs.
Learn from startup founders like Yinka Ogunbiyi, who spent hours researching before creating her hair-braiding device.
Try hypothesis experiments to test your assumptions, and use methods like ethnographic research or concierge testing to gather insights.
Investing in these experiments will help you to build the right product from the get-go, saving you time and money in the long run.
Finally, when choosing a cofounder, treat it like dating.
Don’t rush the process, but spend time truly getting to know each other, and making sure you’re in alignment.
A great cofounder relationship is one of the most powerful assets your startup can have.
Okay, that’s it for this Blink.
We hope you enjoyed it.
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See you in the next Blink.