5.6.1 from 0 to completing the first cycle.
When the startup idea was first founded, there were only two person, Michael and Tom. Since they both agreed to do a startup together, and the idea was generated by doing conversation between the two, it was much like imagine and mobilizing interests from the two key stakeholders to agree on pursuing the idea. This agrees with what Jolly suggests as the main stakeholders are peers, colleagues, research partners and such. The next step, according to Jolly, was to mobilizing interest and endorsement.
Soon after project Voltset started, the team was so focused on building the first MVP, to create sells, thus to validate on the business idea. Under pressure, that was the only thing the team could think which was the right thing to do. Within a year or work, the Voltset team have engaged numerous (the Voltset team guessed would be) high potential buyers. The Voltset team were pitching the idea to anyone the Voltset team could find. Local makers, engineering students, local engineers who the Voltset team could find, engineering college professors, physics teachers and more. There were lots of conversation between the team to these person especially for those who see value in the project and are very interested to tell the team more what the Voltset team should do. Thus to construct the product they would buy, the Voltset team engaged countless face-to-face interview or workshops to develop concepts.
To get the project going, the Voltset team had a working prototype for the initial Voltset concept (the smallest and smartest multimeter) with the size of a thumb but very limited functions. The Voltset team also engaged several contract engineering firm to develop a different version, which would be larger but also has more functions to use. The Voltset team called the smaller one mini-Voltset and the regular one mega-mini-Voltset. That was the result of listening to feedback and building according to what seems to be the best way to go about it. The team was gearing
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towards building two models, thus two markets. One is the common maker/engineer group with smaller, less-function and cheaper mini-Voltset and a larger market. The mega-Voltset would be the industrial grade of Voltset thus be more pricy, and has less orders.
At the time, when the Voltset team attended of the first Maker Faire in 2013. Only the mini-Voltset was working. Mega-mini-Voltset was under development. Engineering wise, the mini-Voltset team have had been in the same mode for a couple of months. However, zero sells were created for almost a year until one thing changed everything.
Right after the Voltset team were featured on Make Magazine online site. The Voltset team received the first order, and many more in just those three days while attending the faire. In this case 1 scenario, minding the Lean Startup build-measure-learn cycle, trying to ask as many people as possible and building quick models did not cause much validation of the concept compare getting endorsement from the Make Magazine. Author suggests that this was one of the missing link the team was not acknowledged of at the beginning stage. This experience matches with Jolly’s framework. It was possible that getting endorsement was the only missing key to move forward, or perhaps all that interview and models the Voltset team
constructed were paving the ways so the Voltset team could pitch to opinion leaders (the editor from Make Magazine) in a way that was just good enough for him to catch the idea and to like it enough wanting to support it publically. With this change, the project was able to move to next stage, the incubating stage.
5.6.2 Reflecting with the 9 sub-processes from Jolly
Once the Voltset team have orders, the project moved into the incubating stage which is to find out what sells. To acquire paying supporters, the Voltset team had working prototype of
mini-Figure 5-6 The Voltset experience suggests that opinion leader’s endorsement is gatekeeping what innovators would support or not for the first MVP cycle. Source: From this study.
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Voltset. A work-in-progress mega-Voltset pit into a transparent box for people to see. Along with the internet traffic, the team were able to generate close to thirty orders. These orders were very special in a way how the Voltset team designed the sell:
● All orders had to go through the online store to make sure everyone see the following,
● Under the purchase page, it is clearly highlighted in bold, red text stating that signing up as a beta tester (meaning ordering and paying for a beta unit), one will be getting a
Voltset beta unit that is not likely to work. The project is under beta stage and the shipped product can almost certain to require tweaking by individuals before it can work well.
● The price difference between the two models was set to be relatively small. One is
40USD while the other one is 50USD. This was designed to test out the buyer’s feedback for size and functions.
At the time, the team had not purchased a multimeter that was more than 30 USD. Thus thinking if the Voltset team could find people willing to pay $40 or $50 was a very clear validation for business potential.
The bold-red-text and the pricing was set up with the diffusion of innovation in mind. Since the Voltset team know only innovators would be interested in such a product, the Voltset team clearly stated it is a beta, not likely to work, but the buyer would be getting the very first smart multimeter that was ever designed. The results of the testing spoke loud and clear to the Voltset team for innovator’s preference.
To sum up our finding for the first question. To reflect the Voltset experience with Jolly’s model.
The startup needs to pass the product/technology market vision, mobilizing interests and endorsement, mobilizing resources for demonstration, and demonstrating contextually in products to pass the idea to first sell process. More details on each sub-processes are listed below:
● Process Imagining: the two co-founders had to agree on pursuing the project together. They both see the good in making this project happen and the possible financial outcome it might bring later. The founders must stay working on the project however.
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● Process mobilizing interest and endorsement: Only getting interests could cause misleading information for product readiness. Thus Lean Startup emphasize on the getting information only from paying customer. This was clearly realized by the team after the experience. Endorsement from recognizable source to your specific target
audience is critical. Without the opinion leader’s endorsement, the chance to complete the first MVP iteration is difficult.
● Process mobilizing resources for demonstration: This was not as hard compare to acquire paying customers. Founders could spend their own savings, ask from friends or family to support. Joining competition with financial reward is a possible way as well.
However, friends, family or even business competition judges are not a good source for getting product iteration advice unless they are actual users of the product.
● Process demonstrating contextually: Author suggest that this was a critical part that should not be shortcut in anyway. Demonstration takes practice. A/B test for value proposition. Give out just enough information to let the listener to imagine and ask for their thoughts are sometimes the best way to listen for keywords. Demonstrating is such a dynamic exercise with multiple uncontrollable variables. However the demonstration process needs to be at certain level before a startup could acquire paying customers which will lead to the incubating process to define commercializability of the product.
Figure 5-7 Picture showing mini-Voltset (to the left), and mega-Voltset (to the right) which was available for beta, pre-order.
Source: from this study.
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