Can you make a dollar?
Velocity of a dollar is a concept studied by economists to measure how quickly money changes hands in an economy. It also has an important application for startups. For startups, velocity of the dollar is all about answering the question “Can we make 1 dollar today?” In the midst of building fancy websites, developing extensive feature sets, and continuous customer discovery, many startup founders fail to ask their customers to simply buy the minimum viable product.
The easiest way to validate whether or not your idea is worthy of more work is to just go out and try to sell it to someone. This is not the top-tier, multi-featured version of your product but rather the simple, early prototype that generally accomplishes what consumers want. If you can get consumers to salivate over this early product, developing traction will be in your near future.
Don’t get trapped in the office making a product that no one wants. For startups, sustainability today is greater than sustainability tomorrow. Don’t get caught up in your industry’s titans and their actions. Large companies adjust quarterly. The advantage of being a startup is your ability to out-focus larger companies and to adjust weekly instead of quarterly. The only place you can truly learn about your customer’s feelings about your product or service is out of the office.
Get out of the office and try to make a dollar!