Nail it Then Scale it – Nathan R. Furr, Paul B. Ahlstrom
This book will teach you how to create your own startup, nail the problem it solves, and scale it.
Make something people want.
Since only one in every five to ten ideas works out, the strategy of limiting the time we have to prove that an idea works allows us to try out more ideas, increasing our odds of success.
Nail it then Scale it
- The conventional approach to entrepreneurship, which involves building a product and then selling it, does not work because entrepreneurs start out with a guess
- More money is not necessarily better for a startup, as it can lead to a lack of focus on customer needs and the pursuit of flawed business plans
- The NISI (Nail It Then Scale It) approach to entrepreneurship involves getting out into the field and testing assumptions like scientists, failing fast and embracing change, adopting the attitude of learning, and testing guesses with rapid, inexpensive experiments
Being An Entrepreneur
- Cognitive flexibility, or the ability to recognize new information and change one’s perspective, is important for agility and success in entrepreneurship
- The motivation trap, or the tendency to be overly attached to a startup, can lead to overconfidence and irrational decision-making, while the familiarity trap involves trying to reuse ideas from other settings that may not be appropriate
- Tips for starting out as an entrepreneur include becoming an “expert-novice,” reframing the purpose of the venture as learning about the market, seeking a high volume of feedback, and being data-driven
Nail It!
- The first phase of the NISI approach is to “nail the customer pain,” which involves defining and understanding the customer pain, determining whether it is a market opportunity, and testing hypotheses about a solution to the pain
- The 50% rule states that if 50% of customers return a cold call, the entrepreneur has found a monetizable pain and a potential beachhead for their product
- The second phase of the NISI approach is to “nail the product,” which involves creating a minimum viable product (MVP) and testing it with potential customers
Marketing
- The third phase of the NISI approach is to “nail the marketing and sales,” which involves identifying the most effective marketing channels and creating a sales process that works
- The fourth phase of the NISI approach is to “scale,” which involves expanding the product, marketing, and sales efforts to reach a larger audience.
The right approach
- When discussing potential solutions with customers, it is important to detach oneself from biases, look at the problem from the customer’s perspective, and make the customer feel that their input is valued
- The prototype test involves developing an inexpensive, rapid prototype and testing it in front of full buying panels of customers, and using the $100 game to identify the most important features of the product
- Testing the price point involves asking customers questions about how much they would be willing to pay for a solution and whether they would be willing to prepay or purchase it
Customers Buying Process
- The solution test involves partnering with customers through a pilot program to refine the solution and begin closing paid pilots or selling the product
- Phase 3 of the NISI approach, “nail the go-to-market strategy,” involves understanding the customer buying process, developing a sales model, defining a market infrastructure strategy, and conducting pilot-customer development
The Final Steps
- Phase 4 of the NISI approach, “nail the business model,” involves understanding the cost structure and revenue model of the business, identifying key performance indicators (KPIs) and creating a plan to reach them, and creating a financial forecast
- Phase 5 of the NISI approach, “scale,” involves expanding the product, marketing, and sales efforts to reach a larger audience, as well as continuously iterating on the product, marketing, and sales strategies based on data and customer feedback.
