Your "value hypothesis" is probably wrong (and that’s OK!)
Let’s rip the Band-Aid off quickly—your value hypothesis is wrong. No sugar-coating it. But here’s the fun twist: that’s exactly how it’s supposed to be! Let me take you on a little journey that might save your startup from becoming the next “Remember-That-Time-I-Almost-Had-A-Business?”
You’re solving a problem… or so you think
If you think you're just selling a product, guess what? You’re doing it wrong. You’re not selling widgets, gadgets, or whatever your high-tech mind-bending service is. You’re solving a problem. The funny thing is, the problem you think you're solving is probably not the real one. Shocking, right?
Here’s what Steve Blank, a startup Jedi from Stanford, preaches. He coined the term "value hypothesis," which basically means the assumption you make about what value you're delivering to your customers. Spoiler alert: your first assumption will be so off, it’s like bringing a spoon to a knife fight.
Why does this matter? Because your strategy will fail if you stick to your original value hypothesis like it’s written in stone. Most of the time, you’ll discover that what you thought was your customers’ biggest problem is actually their third cousin’s cat’s toenail. Not super important. Your job? Refine. Test. Iterate. Pivot faster than a basketball player on defense. According to the Startup Genome Report, startups that pivot early grow 3.6x faster than those that stand there.
Let’s talk about your "Biggest Problem”
If your biggest problem isn’t even getting a “meh” from your customers, do you think tackling the second or third problem is going to be any more exciting? Nah. You don’t win by solving a ton of problems; you win by solving one problem really well. Like, “wow, this product is so good, I can't imagine life without it” kind of good.
So, here’s a checklist for you. Ready? The problem statement needs to answer three critical questions:
What is the problem? (Hint: It’s probably not what you initially think.)
Who has this problem? (Make sure they’re real people, not imaginary friends.)
Why is this a problem? (Seriously, why? Dig deeper. No, deeper than that.)
Then set the stage for your solution to shine
Once you nail down the problem, your solution should follow like the punchline to a joke. It should be so connected that when you say it out loud, people go, “Of course!”
Your solution isn’t just some generic, off-the-shelf thing. No, it’s tailor-made to fix this specific problem for this specific group of people. If it’s not, back to the drawing board!
Now let’s talk about the psychological mystery that is buyer motivation. People buy for reasons—whether it’s to save time, avoid pain, make their lives easier, or impress their neighbors. The point is, you need to understand why your customers are pulling out their credit cards. The “Why” Behind the Buy.
Here’s the kicker: the more you understand the reasons behind their buying decisions, the better you can position your product to hit them right in the feels. And what happens then? Conversions, my friend. Sweet, sweet conversions.
And make it the “good” kind of sticky
Here’s a little secret for you: the best products aren’t just useful; they’re sticky. No, not like “I just spilled syrup on my laptop” sticky, but the kind where people want to use your product again and again. Not out of necessity but out of desire.
(To go more in-depth on the customer experience Check out our 5D model )
When a product is sticky, it does this magical thing: it learns from its users. The more they interact with it, the better it gets at giving them what they want. The experience becomes more personal, more beneficial, and, let’s be honest, harder to leave. It’s like that perfectly comfortable couch you never want to get up from because it just feels so right.
Simply put, sticky products use the data users create while engaging with the product to make their experience better over time. It’s like the product is working for them. And, at the same time, the more they use it, the more they’d lose if they left. That’s when you’ve truly nailed it.
So, to sum up this rollercoaster of revelations: Your value hypothesis is probably wrong. But guess what? That’s totally normal. In fact, it’s a good thing because it means you’re about to learn what actually works. Just remember to test, iterate, and pivot like a pro. Stay agile. Your ability to figure out the real problem, craft a solution that sticks, and understand what truly motivates your buyers will make all the difference.
So go ahead—embrace the unknown, expect your first try to be a bit of a mess, and get ready to pivot like your startup depends on it. (Because it does.)