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Venture Building · Perspective

A problem worth solving comes before a product worth building.

A product-led approach begins with understanding the need, testing the assumptions and learning what would make people change.

Don FarineauPublished Updated 4 min read

Three things to take away

  • Define whose problem you are solving and examine how people handle it today.
  • Test value, usability, feasibility and business viability with the smallest credible experiment.
  • Use evidence to decide whether to build, adapt or stop, then keep learning as the venture develops.

An idea can be compelling in a presentation and unnecessary in somebody’s life. The work of venture building is to discover the difference before the cost of being wrong becomes too high.

At Beanstalk, product-led thinking means organising around the customer’s problem and the outcome we want to improve. The product is the means. The evidence determines what deserves to be built, how it should work and whether it should grow.

Define whose problem it is

Start with a person in a specific situation. What are they trying to achieve? What gets in the way? How often does it happen, and what does the difficulty cost in time, money, effort or confidence?

The user, buyer and beneficiary may be different people. A service can be helpful to the user while offering insufficient value to the person paying for it. Understanding each perspective is part of defining the opportunity.

Observe what people do today

Ask about the last time the problem occurred. Walk through the actual steps, workarounds and decisions. Look for records, examples and behaviour that support the account.

Questions such as “Would you use this?” can generate polite encouragement. “Show me how you handled this last week” is more likely to reveal the need, the existing alternatives and the effort people already make to solve it.

This reflects the Design Council’s emphasis on discovering the problem before defining the challenge and developing potential solutions. Discovery may change the problem statement itself.

Separate assumptions from evidence

Write down what has to be true for the idea to work. Perhaps the problem occurs frequently, customers will change an established habit, a partner can fulfil demand, or the service can operate at a viable cost.

Keep observations, interpretations and untested assumptions distinct. A customer describing frustration is evidence of frustration. It does not, on its own, demonstrate demand for a particular solution or willingness to pay.

Test the risks that could change the decision

Silicon Valley Product Group identifies four useful discovery lenses: value, usability, feasibility and business viability. Applied to a venture, they prompt four practical questions:

  • Value: is the benefit important enough for people to choose it?
  • Usability: can they understand and use it in the relevant situation?
  • Feasibility: can we reliably build and deliver it with the resources available?
  • Viability: can the business sustain the offer within its commercial and operating constraints?

The most consequential uncertainty should shape the next experiment. A polished interface provides limited learning if the central doubt is whether anyone will switch from an existing provider.

Use the smallest credible experiment

A manually delivered pilot can test the usefulness of a service. A prototype can test whether someone understands an interaction. A clearly explained paid trial can test stronger commitment than a statement of interest.

Choose the method for the question. Define the participants, the expected behaviour and the result that would change your decision before the experiment begins. Make the terms clear; an experiment should not promise a service you cannot deliver.

For an illustrative household-consumables subscription, the early question might be whether people value a curated selection enough to replace several separate purchases. A small, honestly described pilot could test selection, replenishment, delivery costs and returns before a full marketplace is built.

Decide what the evidence means

Discovery should lead to a choice: continue, change direction, run another targeted test or stop. Agree in advance what would count as a useful result for this problem, customer group and experiment. The proportion of people who sign up or buy is one possible measure, but there is no single percentage that proves every idea is worth pursuing.

Look beyond initial interest to actual use, repeat behaviour, delivery effort and the economics. Early enthusiasts may not represent the wider market. A successful pilot is a reason to investigate scale, not proof that scale will work.

Keep the learning loop running

Discovery continues once a product or service is live. In a customer-support service, for example, repeated requests about the same issue, customers having to contact the team again and cases taking too long to resolve can reveal an underlying problem in the service or product. For a subscription product, abandoned sign-ups and cancellations provide different signals about where the proposition or experience falls short.

The same discipline applies to fixing a process or transforming an operating model: understand the need, shape a response, test it in practice, assess the outcome and adapt.

A problem worth solving gives an idea direction. Evidence gives it a basis for commitment. Continuous learning gives it a chance to become a business that lasts.

Further reading

Design Council — The Double Diamond ↗
Marty Cagan, SVPG — The Four Big Risks ↗

Don Farineau is the founder of Beanstalk & Co and a transformation leader with experience across financial services, consulting and the public sector. Meet Don

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