We had a very good turn out for the 5th meetup to discuss the book the Lean Startup. We had a new interesting idea that was tried out, where one of the participant takes 5 minutes to talk about something that he/she found interesting and wanted to share with the group. Sverrir took the first stab at it and outlined a check list for making a business case for your product or service. His posting is here on Facebook, for those who don’t want to go there and find the post I have reproduced it:
22 Power techniques to show that your product or service has characteristics and benefits to secure a unique position for your product and sell it (From Formula Five)
The core things need to be present (all products and services have these), how can you show that you have strength in each of these attributes?
- The specific product or service, describe it
- Any associated service or product
- Bonuses coming along
- How is it used, how easy is it to use it?
- Perceived value and status element
- Your delivery
- Your deliverability
- Is it readily available? How is it available, when?
- Your customer and technical support
- Your selection
- Your convenience
- Any warranty
- Your policies
- Your guarantee or risk revearsal proposition, how do you minimize the risk for the buyer?
- Your reputation
- Reputation of people that own product
- Joining the club
- (more, not mentioned here?)
- Find and show the financial value of the element that will positively effect the buyer. – Calculate and show the better value. – If you are giving bonuses, say what they are worth.
- Free focus factor, if the product has lower cost, calculate when the lower cost has added up so that the product is really free after that point. Tell it. Show it. „Pays itself up/free in ten months.“
- Instead of value, when pays itself up, show how much extra profit customer will make. Do the math for customers (most won‘t do it themselves).
- If not cost and money, show how things are quicker, easier, simpler, better environmentally.