Validate Value Before You Build It
“Have you spoken to a real blood and flesh human who says they need your product?”
- Vartika Mansavi, Senior Advisor at MaRS, MBA, Innovation Supply Chains, Re-globalisation, R&D Commercialization
In this blog series CoLabourNation founder, Sandra Reimer, interviews start-up advisors about what it takes for start-up founders to succeed. Interview #2 is with Vartika Mansavi 2x exited founder and Senior Advisor at MaRSYou Must Have Cash.
Vartika Mansavi, Senior Advisor at MaRS, MBA, Innovation Supply Chains, Re-globalisation, R&D Commercialization
“Success is failing 100 times and finding the one thing that works for you,” says Vartika Mansavi, Senior Advisor at MaRS, MBA, Innovation Supply Chains, Re-globalisation, and R&D Commercialization.
Vartika founded and exited two tech companies; most recently, she sold StarkRaft.
Obsess About the Problem
Building products for other people since she was 19, Vartika’s confidence grew through the challenge of failure and iteration on the way to success. In her 20s, she said, “If I can do it for them, I can do it for myself.” Then, like other young founders, Vartika fell in love with the product she had created.
“This is usually the number one mistake all founders make when they start in their 20s.” Vartika says founders must “obsess about the problem, not why they want to build a product.” She admits learning the hard way that what a founder and customers want could be two different things.
Solution Validation is Critical
“Before you build something, you need the validation that a customer will pay for it. Validation is the most critical thing.” With her first product, Vartika never left her comfort zone to talk to customers until she had to. Now she knows that’s a red flag. “Without speaking to the customer, you build a product because you want it without knowing there is a need for it.”
From her experience, “Founders are great at fooling themselves.” Instead of talking to customers, they look at market data reports, research and secondary information and tell themselves a story that their product will work. “But it’s primary data that matters. Have you spoken to a real blood and flesh human who says they need your product?” Vartika adds that the opinions of “nice” friends, family and your mom don’t count.
Three Types of Value for Customers
Vartika emphasizes that founders must ask, “What is the perceived value of my solution in the eyes of a paying customer?” As a startup advisor and angel investor, Vartika looks for three indicators that a product or service will succeed.
Does it save customers money?
Does it save customers time?
Does it make customers look good or stand out?
It is a good product if a solution meets 2 out of 3 needs. “Most people cannot make their solution as simple as this.” She encourages founders to enhance the value of their solutions by quantifying the time and money they save clients and the reputational benefits they confer.
Honesty is Kind
Vartika is known for telling founders like it is. “That’s why they like working with me.” She says it is kind to tell business owners when they are not solving a problem that paying customers care about. “You don’t want to be that direct because it’s a nice person trying to do something, you don’t want to break their heart.” But if the person has left a job and “put their whole life savings behind an idea that’s not going to go anywhere, I tell them.”
Nurture a Circle of Trust
For honest feedback and encouragement, Vartika suggests founders build a “circle of trust”—a tip she picked up from an investor in Silicon Valley. Circle of trust members are individuals “invested in your startup idea, the work you’re doing, or your personal success—they care about what you care about.” They are not always advisors, but they are experts with different skills who can be called on at a moment’s notice when you get stuck on a problem. “They will be happy if you get to the next milestone.”
Vartika used to send the 49 members of her circle of trust a monthly e-newsletter updating them on her wins and challenges. “Nurturing those relationships is a very important thing. You never know when that one person could benefit you.”
Constraints Foster Creativity
With a solution valuable enough for customers to pay for and support from people invested in them, founders are on their way to success, but it’s not guaranteed. “Building a company is very hard. It’s good to have a plan, but nothing works as per plan.”
Initially, founders must work with insufficient time, money, and human resources. “Constraints bring in creativity and new ways of doing things…Adversity is the mother of success.”
Founding Members to Scaling Team
Vartika says that “great founders know something about everything.” They jump in and learn new skills to advance their visions. She was fortunate to partner with a talented technical co-founder on both of her businesses. He handled the tech side of the companies, and she tackled other challenges like finances. “Spreadsheets and numbers used to scare the hell out of me.” But Vartika learned to do the finances, including navigating multiple currencies. (She got so good at numbers she founded a DAO angel investing organization!)
After the initial phase of developing a viable solution with a founding team who pitches in doing a bit of everything, it’s time to shift gears. “As you grow and scale, that’s when you need to hire specialists.” Vartika says hiring decisions and managing a team are the “most difficult job a founder has.” She recognizes that “most people-related mistakes” happen at this early growth stage. Vartika suggests “stating relationship on a small [freelance] project” to see if someone fits your company's needs and culture.
Founders who provide valuable solutions to customers, build strong teams, and have a “never-give-up attitude” are positioned for success.
Find Vartika Mansavi on LinkedIn.
Need help validating or communicating the value of your products and services? CoLabourNation has vetted Canadian freelancers who can help with market research, branding, copywriting and more. Contact us.