Extend Validation - Connect with larger Group of Customers - Exercise


Validation #1: All business brands need marketing. Business develops from an idea, then the business forms a product and eventually every business wants marketing. Marketing is a way for business to create a brand that people trust. Recently, visiting a fund raising session, the thought leaders mentioned that 50% of the funding will go into product development and 50% in marketing. Hence, all business brands need marketing. Validation #2: I will make money by charging business customers for the service. In the initial interviews with the local business, the entrepreneurs and founders of the business loved it. The customer understands the power of automation. While many technical folks in the bay area prefer to hire a full time social media marketing department, many of those tasks can be automated with artificial intelligence. Facebook and Twitter charge a lot of money for auto posts and promoted tweets. Hence, charge a monthly subscription fee to the customers for using the service. Validation #3: The product can scale up to any niche market and category. The auto tweets marketing platform can scale to any niche market and category. There are many local food and farmers market business using the product. There are also many yoga ashrams and small yoga business, that are utilizing the platform to auto tweets blogs, products, prices and links. The platform also gives an analytics view to measure traffic and followers. There are also early stage startups, using the product for initial visibility and marketing. Validation #4: The local food and farmers market business need marketing. While most local food and farmers markets business are actively out in the sun, driving around and visiting multiple markets, every business wants marketing. I created a simple survey, where I asked questions, for local food and farmers market business. I would then give them a demo on my phone. The best scenario was in Healdsburg California farmers market, where I walked in and within 30 minutes signed up half of the farmers market into the service. Because every local business wants marketing. Validation #5: The local food and farmers market business wants to add revenue channels. While interviewing the local food and farmers market business, given that the local business generates X amount of revenue, every business is always looking to add another revenue channel. With the homecookme service, the local business information, phone number, address, location is on the profile page and auto tweeted through the artificial intelligence platform. This allows Google to SEO the local business. The local business is then easily found on Google searches. Hence the platform is providing a new revenue channel to the customers. Validation #6: All local business wants to eventually have a website where they can sell products and become a brand. Every small local business that sells in the local food and farmers market want to add to their online presence. 30% of the signed up local business to the homecookme service, didn’t have email address. In helping them create email address, Twitter accounts and profile pages, the next step for them is to create their own business websites. Eventually they take control over the social media themselves. Validation #7: We already have customers from local food and farmers market that want to sell more products. Many of the local food and farmers market customers, after utilizing the homecookme marketing service, now want to sell their products with seller.io. This is a great option for them, because they wouldn’t need to allocate or hire resources, to build an e-commerce solution themselves. Also, there is trust in place with the homecookme service. Now it is time to actively help them sell more products. Validation #8: We can quickly launch a seller MVP and start testing it with the local business. The initial MVP will be where a local business can register themselves, and upload pictures of the product they want to sell. They can add price, return policy and other attributes of the product. The seller platform will then run marketing for the local business, generate measurable traffic, and measure conversions. The local business can then make modifications to the product, by reviewing the seller analytics data. Validation #9: The revenue from the project will be critical to the success of the startup. With the seller platform, there is opportunity to charge customers transaction fee for every product sold. There is also opportunity to charge customers if they would like to use the marketing service. The auto tweet marketing service will generate a constant stream of traffic, from all social media channels.