{"id":11385,"date":"2015-02-20T10:00:00","date_gmt":"2015-02-20T15:00:00","guid":{"rendered":"https:\/\/magazine.wework.com\/?p=11385"},"modified":"2020-03-30T18:43:07","modified_gmt":"2020-03-30T22:43:07","slug":"incubating-impact-establish-framework-innovation-startup","status":"publish","type":"post","link":"https:\/\/www.wework.com\/ideas\/professional-development\/incubating-impact-establish-framework-innovation-startup","title":{"rendered":"Incubating impact: establish a framework for innovation in your startup"},"content":{"rendered":"

Silicon Valley\u2019s \u201cfail fast\u201d mentality sounds exciting: Go big, or go home! The problem, of course, is that failure isn\u2019t appealing. It\u2019s hard, painful, and, in certain cases, career-ending.<\/p>\n

But if success is better than failure, why do so many startups flame out<\/a>? A recent study by CB Insights<\/a> found that most startups fail because there\u2019s no market need for their product or service. Similarly, a 12th & Broad<\/a> analysis found that poor market fit is a key culprit in startup failure. That\u2019s right: Most startups fail because they build something no one wants.<\/p>\n

What good is a well-crafted offering if it serves no discernible need and there are no customers willing to pay for it? If you think about it (or if you\u2019ve been in this position yourself), you know it\u2019s not simple to view your product or service objectively.<\/p>\n

Founders are often overwhelmed with daily activities and buried in an avalanche of data and metrics. And then there\u2019s the human component. People in early stage startups are sometimes bonded together by little more than the desire to succeed at something new. And if your startup is funded, you can add investors to the mix. Although getting funded sounds like every founder\u2019s dream, it often is the equivalent of bringing in a boss or an entire team of bosses.<\/p>\n

In today\u2019s rapidly evolving and volatile economy, startups are essentially prospecting for the right idea, the right product, the right customer, and the right business model that brings it all together with maximum results. When put in perspective, you can see why so many startups fail the most basic of business tests. Thankfully, there are ways to make sure you stay on track, foster impactful innovation, and mitigate your risk of failure.<\/p>\n

Get Back to Basics With a Business Model Checkup<\/b><\/h2>\n

A good framework can help you outline your business model, test its viability, and articulate your value proposition concisely and realistically. The Business Model Canvas<\/a>, created by Alex Osterwalder, is a strategic management and entrepreneurial tool that allows you to describe, challenge, invent, and pivot your business model. Many founders happily fill this out in the early days, and then file it away, never to be reconsidered again.<\/p>\n

But the Business Model Canvas is the perfect tool for a mid-stage startup to regularly revisit. Using this tool every month or quarter forces you to examine all angles of a concept, from profitability to customer desire. Effectively, you unbundle your value proposition into smaller, actionable steps, reduce noise and confusion, and focus on your minimal viable product.<\/p>\n

If you\u2019re being honest and objective, doing this exercise regularly will uncover flaws in your thinking and help you shore up weaker areas of the business. In fact, it will help you keep product-market fit, which will increase your chances for success. In addition to the Business Model Canvas, there are tons of tools for entrepreneurs to use to periodically reassess their businesses, including:<\/p>\n