Hi there -
Here is this week’s “1 principle, 2 strategies, and 3 actionable tactics” for running lean…
1 Universal Principle
"Demo-Sell-Build > Build-Demo-Sell.”
After struggling to sign people up to my first startup product, it dawned on me that people weren’t even getting past my demo. Why did I waste 9 months building something nobody wanted? I could have shown them the same demo 9 months sooner!
That’s when I got hit with the idea of Demo-Sell-Build, i.e, selling the demo before building a product.
I tested this approach with my next product, the Running Lean book, and the one after that, the Lean Canvas tool, to great results.
I proved to myself that it would work for a book and software, but what about B2B products, physical products, or services? Over the next several months, I went out of my way to work with founders building a wide array of products, and came back convinced this is the way.
Demo-Sell-Build is so obvious in hindsight, but like any good secret, not so obvious in foresight. Case and point: This week I published a video on demo-sell-build (linked below) and sure enough the comments were filled with: “but surely you’re joking…” responses :)
Those of you who have applied my demand validation playbook or 90-day startup program are aware that the demo-sell-build strategy is the underlying approach for achieving problem/solution fit (reaching paying customers) within 3 months, rather than 9 months.
It’s the single biggest hack that, when done well, can
- lead to paying customers 3 times faster,
- convert 3-5 times better, and
- guarantee you only build what customers want.
That said, while the strategy is simple, simple is seldom easy. So today, I want to focus on the doing it well part.
2 Underlying Strategies at Play
I. Attention is the first battle.
When launching any new product, earning attention is the first battle to be won. If you can’t get a prospect to a demo, there is no demo, and if there’s no demo, there is no sale.
But how do you craft a message that stands out in an increasingly overcrowded world without sounding like everyone else or making outlandish claims no one believes?
By nailing a problem that is specific, familiar, and compelling to a prospect and then going a step further, not to describe how you solve the problem, but explain the underlying root cause.
Problems, not solutions, create openings for new solutions.
Describing problems better than your prospects is how you attract a prospect’s attention and elevate your status from stranger to potential expert.
II. Trust is the next battle.
Nailing a problem and describing the underlying root cause starts trust-building. A well-executed demo builds up your trust bank further.
A well-executed demo is not about showcasing the breadth of your product or training your prospects on how it works, but rather demonstrating how you solve their specific problem.
Less is more when it comes to demos, and it took me a long time to pull back my demos here. I think many founders struggle with this too.
The tell of a good demo is when a prospect asks you about pricing and delivery dates.
So, the high-level strategy behind demo-sell-build is
- Earn attention to then
- Earn trust to then
- Earn the sale.
To pull this off well, you need the right ingredients for attention-building and trust-building, which cannot be guessed but must often be learned and earned through a problem discovery process.
I break this down to 3 phases:
3 Actionable Tactics
I. Broad-match problem discovery.
Identifying root causes requires casting a wider net and interviewing a broader range of customers to map and prioritize the opportunity space accurately.
II. Narrow-match problem discovery.
You then hone in on the most promising early adopters and problems worth solving to identify your beachhead market. Patterns emerge quickly, and this is how you find specific, familiar, and compelling problems.
III. Mafia Offer assembly.
Then, the fun begins as you weave these insights into a story pitch and create various attention-building and trust-building assets to put to the test.
I won’t lie.
Talking to customers feels less enjoyable than building products, but learning how to interview customers effectively is, hands down, the single most important skill that has had the biggest impact on my products and business.
The good news is that it’s completely learnable, and we even built a copilot that streamlines all the steps above.
That's all for today.
Ash
Author of Running Lean and creator of Lean Canvas
.
.
P.S.
Here's the YouTube video on demo-sell-build:
.
.
P.P.S.
Whenever you're ready, there are 2 ways I can help you:
1 - Get my Just Start course: If you're new to this framework, you'll learn the key mindsets for building the next generation of products that matter.
2 - Take the 30-day Business Model Design Challenge: If you're an aspiring or early-stage founder looking to launch a new idea in 2025, join my next Business Model Design Challenge, where you'll learn how to design and stress-test your idea without wasting resources.
