How to Launch a Business From Scratch Part 1: The Open loop Product Development Framework
Last week, we wrapped up the launch of our premium product: a veteran’s business mastermind.
Minimum price of entry: $3,000.
We now have a small group of veteran’s going through our program as well as 5 figures to kick-start building out new products and services in order to scale and grow the business.
This is just another example of the lean launch I wrote about several months ago, and another example of selling on proof of concept alone.
Over the next few weeks, I want to take you behind the scenes of how we did this, including:
- How we developed the idea into a shippable product (today’s lesson)
- How we developed a lean sales funnel (building an audience from scratch in less than a month)
- How we managed to more than quadruple industry standard conversion rates for a live sales webinar (or what I like to call: “The Coffee Is For Closers Technique”)
I’m also rolling this out as a video series.
Would love to know what you think in the comments below. So once you finish watching, let me know!
What I discuss in Today’s video:
- Background on the idea and the project itself
- How we fleshed out our idea, refined the vision and scope, and eventually launched our premium product
- The 8 steps of The Open Loop Product Development Framework
A Brief Overview of The Open Loop Product Development Framework
Every business, product, invention, whatever – starts with an idea.
The idea’s not the hard part.
Forming the idea into a shippable product is.
The Open Loop Product Development Framework approaches product development (and when I say products, I mean in the broader sense, including services) from the angle of progressive refinement.
In other words: every element of what goes into developing a successful product (or service) is interconnected. Every element affects every other element.
If you change the customer segment, this will affect your marketing and sales channels, and possibly your problem and solution.
If you decide to charge more for your product, this changes the revenue model, which directly affects how we define the problem, who our first customers will be, etc.
Hence: open loop.
The 8 Steps of The Open Loop Product Development Framework:
Step 1: Identify your first 10 / first 100 customers
Step 2: Determine if this a real problem / pain people have (and are willing to pay to fix)
Step 3: Define the solution (product / service ) you’re offering
Step 4: Define your unfair advantage (why should we pay attention to you? what makes it impossible for someone to copy what you’re doing?)
Step 5: Identify how you will reach your first 10 / first 100 customers
Step 6: Determine revenue + expenses (how much do you plan to make from this? is it worth your time and effort?)
Step 7: Set a ship date
Step 8: Go back through steps 1 – 6 several times before the vision is refined (don’t take longer than a couple days) then start building your product / service / offer
Was The Open Loop Product Development Framework Useful?
If so, let me know if the comments below.
And also let me know:
- what else you’d like to read?
- what other information would be useful?
- what could be explained in more detail?
Check back next week for an update on how we developed our lean sales funnel and built an audience from scratch in less than a month.
Started, finished, and shipped in Denver, Colorado
Soundtrack: Bon Iver Pandora Station
Total writing and filming time: 5:40 hrs