nodeflux
Business Strategy / Case Study
OVERVIEW
nodeflux is a startup in the artificial intelligence industry, specialising in image interpretation.
The goal was to do a company diagnosis and then provide the tools necessary to bring clarity and provide a pathway for solutions.
CHALLENGE
Client has a pervasive mindset issue in understanding the best practices in a startup.
ROLE
Consultant
SCOPE
Create a company diagnosis
PROCESS
INTERVIEW
Interview the key employees
REVIEW
Review the findings with team
DEFINE
Finalise the solutions for the client
WORKSHOP
Present the solutions to the client
The interview led to a pattern of common problems found within the company
COMMON QUESTIONS
"Which is the right thing to do? Market diversification or market penetration?"
"Is it time to get more funding?
If so, why?"
"Have we spent enough on marketing?
Did we overspend on marketing?"
WORKSHOP
BACK TO THE BASICS
What makes a startup a startup?
A startup doesn't know:
what it is selling,
who it is selling to,
how to sell it
A startup needs to:
CONTINUOUSLY ITERATE
what it is selling,
who it is selling to,
how to sell it
until all are answered
THE ANSWERS
From the infographic, it became very clear that the client was at the product/market fit phase.
The answers to the questions became very easy to answer.
Q: What is the right thing to do?
Market diversification or market penetration?
A: If you are unsure, do both. The most important thing is to track the results for learning.
Q: Is it the right time to get funding?
If so, why?
A: If you need more funding to speed up your learning, do it. If you need funding to continue operating (surviving), do it.
Q: Have we spent enough for marketing?
Did we overspend for marketing?
A: Development costs & marketing costs vary, but a 50:50 effort is a good indication that the balance is just right.
Q: Are we ready to scale?
When is the right time to scale?
A: When you have achieved the
product/market fit.
The product is then ready for beyond just early adopters.
As a team, we provided the client with a lot more than just this presentation, but this was my biggest contribution to this project because I was the only one that could answer these questions then.
PERSONAL IMPACT
The client set a market share goal for the very first time.
There was no confusion at what stage of startup they were in.
It became clear that everything was justified as long as they were tracked for learning.
The purpose of funding became clear.