Sean Ellis, founder and principal at 12in6, discusses what he calls the “Fail Zone” for startups. All the risks and challenges are front-loaded, so essentially a startup will face the critical hurdles that will determine its success or failure, in the first year.
Ellis uses the “Startup Pyramid” model to explain his bottom-up approach in tackling early stage decisions and challenges.
Product/Market fit is at the base of the pyramid. Does the company have a strong product/market fit? Ask the question, “Is the product a “must-have have or a nice-to-have?” Does the value proposition then attract the right users? Is there a commitment to the conversion process and the initial user experience? The economics model, optimization strategy and scalability plan, should enter the picture only after there is a clear, strong definition of the product and market.
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