Operations

The steps to developing a product used at 49labs.

Product Lifecycle

There are three genaral stages for products at 49labs:

1. Problem/Solution Fit (3 to 6 months)
2. Product/Market Fit (18 to 24 months)
3. Scale (36 Months)

Value Delivery Steps

The process below is how 49labs come to life

1. Lean Canvas

Establish the idea using a lean canvas.

2. Lean(er) Canvases (desirability test)

Create lean(er) canvases to reduce initial product business model complexity
and distinguish customer segments.

3. Fermi Estimate (viability test)

Test the viability of the problem using a fermi estimate with the questions below:

• What is your minimum success criteria?
• What is your pricing model (ex., 40/month)?
• What is your customer lifetime (ex., 3 years)?
• What is the estimated conversion rate for customers?
• How many customers do you get from referrals?

Revenu-Based Valuation

valuation = annual revenue * multiple, where the multiple for SaaS averages 5, but can go significantly higher depending on rate of growth. An example is $450,000 ARR * 5 = 2.25M

ref: Flippa

4. Create Traction Roadmap (feasibility test)

5. Problem Discovery & Framing

• Customer Interviews
• Initial Offer ("Mafia Offer")

6. MVP