Lean startup for service companies – Part II

This is a follow up to Lean startup for service companies – Part I entry. In the last blog, we spoke about how we started on problem verification. This week, we turn our attention to solution validation.

After we ran a few problem validation interviews, we had a good idea about what were the key issues that our potential customers face. We eliminated some of the assumed problems from our list and then had a relook at our solution offerings. We were not completely off the mark, however the priority order of the problem was much different than what we had assumed. Also, we discovered at least one new problem from these interviews.

We are services company, what do we demo?

UVPFor our solution interviews, we choose to highlight attributes of our Unique Value Proposition (UVP) and how this addresses the key problems that where highlighted during the problem interview and our pricing model. To demonstrate this, we showed the prospective customers, a few projects which highlighted these attributes. The demo was not restricted to technology/business solution but it also highlighted how we went about delivering the solution.

It’s important that we do not get carried away while doing these demo’s. This is neither a sales pitch nor a demonstration of all your capabilities. The key part is to provide just enough information on the key attributes of the solution offerings. The goal is then to listen and understand how this resonates (or does not) with the customer.

Once that was out of the way, we discussed our pricing model. And this can be a challenge for a seasoned sales person to do. However, it’s very important to get this feedback. Sometime, you may be surprised to find out there is more room in the upper range than you thought.

We have a done a few of these and the feedback has been as expected very valuable. It is helping us to refine our UVP and pricing model.


Recovering programmer, Agile software developer & coach

Posted in Agile, Lean Tagged with: , , ,

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