Start-up simulation – idea generation and product development
Note: This worksheet is part of the 'Start-up Simulation' series. This series consists of eight thematic worksheets that guide your students through the process of developing their own start-up.
Objectives:
Students independently develop a start-up idea, from identifying the initial problem to product development, while learning the fundamental methods of business founding.
Content and Methods:
Students simulate the process of founding a start-up. Working in groups, they use methods like the Problem-Solution Fit to develop a business concept, create a Minimum Viable Product (MVP), and subsequently validate their idea through interviews and surveys.
Competencies:
- Problem-solving and creative thinking
- Application of start-up and marketing methods
- Teamwork and communication skills
- Conceptualization and presentation of ideas
Target Audience and Level:
Grades 9 and above
70 other teachers use this template
Target group and level
Grade 9 and above
Subjects
Start-up simulation – idea generation and product development
Note for the teacher
These worksheets guide students through a flexible, project-based unit focused on launching their own start-up. They are optimally designed for team collaboration, which is why the instructions and tasks are consistently phrased in the plural form.
The materials are organized by thematic focus areas such as Marketing, Financing, or Presentation, enabling a modular deployment. Depending on the time available, teams can either focus on one subject in depth or complete all sections through a division of labor (collaborative teamwork), without needing to follow a fixed sequence. Each worksheet combines concise theoretical input with practical exercises that students can directly apply to their own start-up project. Furthermore, a glossary of essential specialized vocabulary is provided at the end of every worksheet.
This specific worksheet provides learners with a five-step guide for developing a product idea. Some of these steps may require further support. For instance, the 'Start-up Simulation - Market Analysis and Competition' worksheet can be utilized to conduct a more detailed investigation of a target audience.
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Introduction
Every successful business begins with an idea. But what distinguishes a good idea from a great one? Successful start-ups understand this key principle: A great idea solves a real-world problem. In this worksheet, you will learn how to systematically generate ideas, test them for relevance, and further develop them into a concrete solution to a problem.
What is a Problem-Solution Fit?
Before you start getting creative yourself, you need to understand what truly matters. A Problem-Solution Fit is the moment when you have a solution that perfectly matches a relevant problem experienced by your target audience.
It consists of three main elements:
- The Target Audience: Which group of people do you want to address?
- The Problem: What everyday challenge, frustration, or need does your target audience have?
- The Solution: Your idea, product, or service that addresses and resolves this problem.
Airbnb serves as a great example of this concept.
- Problem: Many travelers were looking for a cheaper and more personal alternative to hotels. Simultaneously, people had unused rooms or apartments.
- Solution: Airbnb created a platform that brought these two groups together, thus solving the problem for both sides.
Ideation
👥 Now form groups to develop your own idea. Use the following method to do so.
Jobs-to-be-Done (JTBD) Framework
In the fast-paced world of startups, identifying and understanding the problems faced by potential customers is crucial for developing products that truly address their needs. The Jobs-to-be-Done (JTBD) framework offers a systematic approach to uncovering these problems and generating ideas for innovative solutions. The primary goal here is to gather ideas for problems that will eventually lead to the development of products aimed at solving them.
The JTBD framework focuses on understanding the "job" a customer is trying to get done, rather than just the product features. This perspective shifts the focus from what the product is, to what it should achieve for the customer. By concentrating on the customer's desired outcome, startups can innovate more effectively.
Strengths and Weaknesses:
The JTBD framework excels in promoting customer-centric innovation. Its strength lies in its ability to uncover deep insights into consumer behavior and motivations. However, it can be challenging because it requires a shift from traditional product-centric thinking. Implementing JTBD demands thorough research and a keen understanding of customer needs, which can be resource-intensive.
Example:
Consider a company developing a new app for reading. Instead of focusing on features like font size adjustments, the JTBD approach would examine what job the customer is trying to accomplish—perhaps finding a convenient way to read during a commute. By addressing this job, the company might innovate an audio feature or an offline reading mode, for instance.
5-Step Guide:
Identify Target Customers:
Begin by defining who your potential customers are. Consider diverse demographics and psychographics, including age, gender, profession, and lifestyle. This broad identification will help you understand various perspectives and needs.Conduct Interviews and Surveys:
Engage with your identified customers through interviews and surveys. Ask open-ended questions to uncover the jobs they are trying to get done. Focus on understanding their pain points, desires, and limitations. This qualitative data is invaluable for gaining genuine insights into customer needs.Analyze Jobs and Outcomes:
Once you have gathered data, analyze it to identify patterns in the jobs customers are trying to accomplish. Look for common themes and outcomes that customers desire. This step involves synthesizing information to pinpoint the real issues they face.Ideate Solutions:
With a clear understanding of the jobs and desired outcomes, brainstorm potential solutions. Encourage creativity and think outside the box. Consider how technology, design, and service can be leveraged to address these jobs in innovative ways.Validate Ideas:
Before moving forward with product development, validate your ideas with potential customers. Share prototypes or concepts and gather feedback to ensure the solutions align with their needs. This step helps refine ideas and ensures they are grounded in real-world applicability.
By following this 5-step guide, startups can systematically generate ideas that align closely with customer needs, paving the way for successful product development.
📝 Here is space for your notes.
📝 Here is space for potential sketches and drawings.
📌Select the three best ideas for problems you want to solve and analyze them in detail.
💡 Idea 1
💡 Idea 2
💡 Idea 3
👥 Now, as a group, decide on one problem and then use a brainstorming session to note down potential ways to solve it. This brainstorming will subsequently serve as the foundation for your product development.
📝Space for your brainstorming.
Product Development
Start-ups rarely have the resources to immediately develop a perfect, fully-featured product. Instead, they utilize the Lean Start-up Method, whose core element is the MVP (Minimum Viable Product).
The Minimum Viable Product is the first functional version of a product that contains only the absolutely necessary core features. Its purpose is to offer just enough functionality for early adopters to use it and provide feedback.
Why use an MVP?
- Saves Time and Lowers Costs: You avoid spending months developing a product that ultimately no one wants.
- Early Feedback: You learn very quickly what customers truly need and what they don't.
- Development: The product is continuously improved and expanded based on user feedback. You start with a simple model and build it up step-by-step.
📝Take your start-up idea and write down all possible functions/features you can imagine. Then, highlight the three functions that are absolutely necessary for your product to be usable. Eliminate everything else – that is your MVP (Minimum Viable Product).
✏Create a simple sketch of your MVP. This can be a drawing of an app interface, a flyer for a service offering, or a paper model of your physical product. Present this version to your classmates and gather feedback.
📌 Now, create a prototype of your product. This prototype should be designed in such a way that you could present it to potential customers.
Validation
Validation is the process of directly testing the business idea and its underlying assumptions (Problem, Target Audience, Solution) against the potential market. The goal is to minimize risk and avoid developing a product that no one wants to buy.
This process works best with the following methods, for example:
- Customer Interviews: One-on-one conversations with potential customers are an invaluable source of feedback.
- Surveys and Questionnaires: Surveys can be useful for broader data collection. They help gather quantitative data regarding the target audience size and the relevance of the problem.
- Prototypes and Landing Pages: A simple, interactive prototype or a basic website describing the product can be used to measure user interest (e.g., via a 'Pre-Order Now' button).
📌 Now, conduct interviews with potential customers to find out if your product is genuinely well-received. Use the following document to guide your process.
📌Glossary
🔍 Here you will find the most important specialized terms from the worksheet. You also have space to note down additional terms and their definitions.
The most important specialized terms
Terms and Definitions
- Problem-Solution Fit: The alignment between a solution and a relevant problem experienced by the target audience. It consists of identifying the target audience, understanding their problem, and developing a solution that effectively addresses it.
- Minimum Viable Product (MVP): The initial version of a product with just enough features to satisfy early adopters and gather feedback. It helps startups save time and costs by testing the market before developing a fully-featured product.
- Lean Startup: A methodology focusing on validated learning through iterative testing and adjustments. It helps startups quickly discard ineffective ideas and focus resources on promising ones, fostering innovation and reducing risks.
- Jobs-to-be-Done (JTBD) Framework: A framework that helps identify and understand customer needs by focusing on the "job" they are trying to accomplish, rather than product features.
- Validation: The process of testing a business idea and its assumptions against the market to minimize risks and ensure there is demand for the product.
- Target Audience: The specific group of people a startup aims to serve with its product or service. Understanding their demographics, psychographics, and challenges is crucial for developing effective solutions.
- Venture Capital (VC): Investment funds provided to startups and early-stage companies with high growth potential. Venture capitalists exchange funds for equity and play a significant role in scaling businesses.