Use this method to quickly test and iterate your idea
To create your own company it is important to understand the build, measure, learn loop.
This allows you to test your assumptions and minimise your risk, fast.
The build, measure, learn loop significantly reduces prototyping cycles and helps you to identify features that have your customers' needs in mind.
The key focus of the loop is validated learning, scientific research and facts, as well as quick, rapid iterations and prototypes. So how do you get started with the build, measure, learn loop?
First, you need to plan your experiments. What you want to look at is, what do you want to learn?, how can you measure it?, and what do you need to build in order to do so?.
Once you understand your experiment, you can then turn it into a hypothesis. These are yes or no answers to your questions. It either is right or it is wrong, but it is not ambiguous. The whole point of the build, measure, learn loop is to be as scientific, factual and researched as possible.
Once you have planned out your experiments, and in particular your hypothesis, you then can start to look to build a minimal viable product. A minimal viable product is really the bare features that you need in order to create your experiments.
Once you have built the minimal viable product and put it out into the market, you now need to measure the results and compare them against your hypothesis. This will allow you to establish whether you have a viable business and whether your product will have customer adoption and it will tell you whether you need to preserve what you have created, or whether you need to iterate or pivot.
When you have decided whether to preserve or pivot, you really need to go back to the beginning and continue the cycle. The key here is to continue through the cycle as quickly and as fast as possible.
Not every instance will lead to a positive outcome, but the key is to fail fast. This means coming up with an experiment, building a small product, getting the data, and learning from this.
If the data does not correlate to a positive hypothesis, you then need to look at how you can change your idea so that it will become a positive hypothesis.
The biggest advantage of this technique is really to minimise risk, minimise the cost of production, and zero in on a product that customers will adopt.
Let me give you a real life example of how this process can be used.
The staged development process is often used by property development companies. Once the construction of a building is commissioned, the first thing they do is map out what the building could look like.
Often they map it out in 3D models such as CAD models or drawings. Now, the first thing they do is take these drawings to their customers who commission the project, and ask for feedback early-on.
Not every drawing or every first concept will get two thumbs up from customers, but what it allows the construction company to do is really gain and gather feedback before they start getting into heavier costs.
You would build something, put it to the customer, get feedback, and make changes based on that. Once the initial drawing gets two thumbs up, the construction company will then take it one stage further.
It's only once everybody agrees and all consents and everything have been signed, that they actually begin construction. This is to mitigate issues such as, "Can you please turn the property around?" "It's facing south, not north." Or, "This door shouldn't be here, it's actually missing on the other side."
This loop helps you to figure out what is needed in order for customers to be happy before you build and start construction.
This is the same process that I want you to think about when you create your own company. How can you draw up your solutions in an easy and efficient way without the waste of too much money, too many resources or too much time.