 Carefully Watch Your Business Model Tests to Validate AssumptionsPublished Date: 2008-05-15 16:19:41 WorkOnInternet.com
Some of the tests will start to flop as soon as you begin them. That lack of results may come from finding out that a key assumption was wrong (for example, that it is easy to put together a prototype process to provide the new benefit), or from total disinterest by those who are supposed to be excited. Many of these failing tests should be immediately and permanently stopped. Some should be re-framed and re-focused to reflect what has been learned, especially where there is an execution problem. In either case, little benefit is gained by continuing with the planned test. At each review ask why the test should continue any further and what will be gained. Often, the decision should be that the test not continue and that nothing will be gained because as much useful information has already been gathered as one can hope for. On the other hand, the unexpected will often provide clues to breakthroughs. Especially pay attention to situations where a customer buys a great deal more than you would have ever thought possible, and where customers ignore something that looks like a great deal. In the former instance, you may simply be seeing leakage. A local unit of a national organization may be buying into your new offering for their whole company. That result means that your test is working, but not as well as you expected. Of even greater significance is the possibility that they have found a new way to use your offering. Ray Kroc's first introduction to McDonald's came from his curiosity about why one hamburger stand in San Bernardino, California was ordering so many more milk shake mixers than any of his other customers. When customers ignore something you think will expand their usage, you also have the opportunity to learn something valuable. What were you missing when you decided to run the test? Copyright 2008 Donald W. Mitchell, All Rights Reserved ------------------------------ Donald Mitchell is CEO of Mitchell and Company, a strategy and financial consulting firm in Weston, MA. He is coauthor of seven books including Adventures of an Optimist, The 2,000 Percent Solution, and The Ultimate Competitive Advantage. You can find free tips for accomplishing 20 times more by registering at: ====> http://www.2000percentsolution.com .
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