Happy Startup Ebook

BUILDING A
STARTUP
THAT
MATTERS
Great thinking for entrepreneurs.
Tim OReilly
Theres lots of bad reasons to start a
company. But theres only one good,
legitimate reason, and I think you know
what it is: its to change the world.
Phil Libin, Evernote

Latein2012weco-foundedTheHappyStartupSchoolto
encouragemorebuddingentrepreneurstobringtheirideastolife.
Notanyoldentrepreneursthoughratherauniquegroupofpeople
thatstartedbusinessesforreasonsotherthanmoney.
Despitethis,thegreatmajorityofentrepreneursarestillona
treadmillchasinginvestmentandgrowth,withoutevenstoppingto
considerwhy.
Theydowhattheythinktheyshouldbedoing,typicallyfollowing
someoneelsesidealswhetherthatbeinvestors,partnersor
shareholders.
Wefindonesimplequestioncutsthroughallthis:
Whatwillyourepitaphsay?
Thiscanshakethemupalittle.
Huh?
Yes,yourepitaph.Whatwillpeoplemissaboutyou,andyour
business,whenitsgone?
NotdiditbuyyouthatbeachsidecondointheCaribbean,butdidit
makeotherpeopleslivesmeaningfullybetterinawaytheyllnever
forget?
Onthequietovertheselast4yearswevebuiltupagrassroots
movementof100,000+foundersandchangemakersfromaroundthe
worldthatcaremoreabouttheirlegacy,ratherthanexit,strategy.
Thesetrailblazersarecreatingcompaniestheydnever
sellmeaningfulcompanies.
Webelievebusinesscan,andshouldbe,aforceforgood.Andour
communityisproofthatitspossibletobalancepurposeandprofit.
Andnotjustpossible,itmakesperfectbusinesssense.Weregladto
haveyouaspartofourtribe.Changingtheworld,onestartupata
time.
LaurenceMcCahill&CarlosSaba
Brighton,EnglandJuly2017

BUILDINGASTARTUPTHATMATTERS
INTRODUCTION
Weretold9outof10startupsfail.Wecreatedthise-booktohelpyou
becomemoreconfidentinwhatyouredoing(andwhy),getcleareron
whattofocusonrightnow,andreduceyourchancesofbecoming
anotherstatistic.
BeforesettingupTheHappyStartupSchool,weranasuccessful
startupstudio,helpingentrepreneursbringtheirstartupideastolife.
Thoseyearswereourapprenticeshipinstartupslearningfrom
othersmistakes,aswellasourown.Weworkedwithvarioustools
andtechniquesbutfeltthattoomanyofthese,andthestartupworld
ingeneral,focusedsolelyonthemechanicsofstartingabusiness.
Wefeltthatitwastimewemadeourbusinessesmorehumanandin
theprocessgivethemabetterchanceofsurvival.
Wecouldseethattheworldwaschanging,thePurposeEconomywas
comingandtheexistingtoolswerentfitforpurpose.
Youmayhaveheardoftheleancanvasorbusinessmodelcanvas?
Wevefoundtheseworkjustfineifyouwanttobuildaproduct
business,butifyouwanttobuildacommunityatribeofsuperfans
theystarttocreakalittle.

IntroducingTheHappyStartupCanvasablueprintforcreatinga
meaningfulcompany
(Seeappendixtoseethefullcanvas.)

Thisiswhereourcanvascomesinithelpsyoutotapintothe
growingtrendsthatwillultimatelyaffecthowyourbusinessoperates
andstarttobakepurposeintoyourcompanysDNA:

Customerscaremoreaboutwhotheyrebuying
fromtheyrebecomingmoreinterestedinthestorythan
thepricetag
Employeescaremoreaboutwhotheyreworkingforthey
wanttofeelliketheyrecontributingtosomethingworthwhile
Founderscaremoreabouttheimpacttheyre
makingtheresagrowingbreedofentrepreneurthat
wantstomakemoneyanddogood.Andsinceyourereading
thisbook,wereguessingyoureoneofthem.
The8chaptersofthisbookwillhelpyoudeveloptheDNAofyour
organisation.Itwillgetyouontheroadtoaligningyourvaluestoyour
workandallowyoutobuildamoreauthentic,impactfulbusinessasa
result.


Developedover3yearsago,itssincebeenusedinworkshopsand
acceleratorsallovertheworld,translatedintomultiplelanguagesand
helpedtensofthousandsbringtheirideastolife.Anditsbeenoneof
thekeyfactorsinusbuildingourcommunityof100,000foundersand
movementmakers.

Butwhileitsasimpletool,ittakesabitofworktoknowhowtouseit.
Luckilyhelpisathand

Inthisbookwellwalkyouthroughthisprovenmethodforbringing
purposefulideastolifewhetherthatsforanewbusiness,project
orreignitingtheflameonanexistingventure.

Thefollowing8chapterswillhelpyoutogetclarityonyourideasand
giveyoutheconfidencetomoveforward.Youllshiftfromthinkingto
doing.


Eachchapterwillhaveachallengeforyoutocompletewith
supplementarymaterialsintheappendixfromgettingclearon
yourwhy,todevelopingakillervalueproposition.
Usingthecanvashashelpedustotakeastepbackandevaluateour
underlyingcorebeliefsandsetoutafoundationbasedonvalues.I
thinkthatwasthehardestparttotryanddistanceourselvesfrom
whatweweredoingalreadyandfocusonthewhy.Itmadeus
questionourmotivesandseenewperspectives.Wefoundthatonce
wehadexploredourcorevalues,thingsbegantoflowmoreeasily.
Marcus&Ieva,M.I.Scribe


Eachchapterrelatestoasectionofthecanvas:
1. Purpose:Beclearaboutyourwhy
2. Vision:Shareyourvisionforchange
3. Values:Telltheworldwhatyoustandfor
4. Story:Knowyourstory
5. Problems:Findaproblemworthsolving
6. Solution:Howareyougoingtohelp?
7. Fans:Findpeoplethatcare
8. ValueProposition:Makesomethingpeopleactuallywant

Readyforthefirstchapter?Great,letsgetgoing.

CHAPTER 1
PURPOSE

WHYAREYOUDOINGTHISOTHERTHANTO
MAKEMONEY?

Theresagrowingbodyofevidenceshowingthatpurpose-driven
companiesaremoresuccessful.

Inanevermorecompetitiveworldpeoplearenotjustlookingfora
productorservicetobuy,theyrealsolookingforcompaniestheytrust
andbelievein.

Whenthinkingaboutyourbigideathestartingpointshouldreallybe
yourwhy.Toooftenwedivestraightintobuildingsolutionsrather
thanthinkingaboutwhyweredoingthisinthefirstplace.

Whatsdrivingthisbigidea?
Whoseneedsareweserving?
Whatsledustothispoint?


Bytakingtimetoreflecton,anddefineyourpurposeyoullnotonly
attracttherightcustomers,youllalsogetmoreclarityastowhatyou
shouldbeworkingon.

Itwillhelpyoutoknowwhatsinandwhatsout.

Startingwithwhy
InhisfamousTEDtalkHowgreatleadersinspireactionSimonSinek
pointsoutthatyouneedtoawakenanemotionwithinyourearly
customerssothattheyfeelsomethingonthebasisthatmost
buyingdecisionsarebasedonemotionnotlogic.

ThisiswheretheaboveGoldenCirclecomesin.

Whencommunicatingwhatyoudoandfocusingonthewhyyoucan
createmuchdeeperconnectionswithyouraudienceandgiveyour
businessabetterchanceofsuccess.

Youwanttocapturepeoplesheartsaswellasminds.

Theproductsandservicesyouofferwillnodoubtevolveovertime,but
yourpurposemostlikelywontitshouldjustgetclearerifanything.

Thisclarityonyourwhymaytakealittlewhiletofinetune,butitwill
becomeyourTrueNorth,guidingyoutomakebetterdecisionsmore
oftenthannot.

AtTheHappyStartupSchool,werelivingproofthatitspossibleto
buildapassionatetribeandevolveyourofferingfromaloyalbaseby
reallyfocussingonourwhy.

Definingyourpurpose
Thetipofourcanvasisallaboutdefiningthevisionandpurposeof
yourstartup.Inthischapterweretacklingpurpose.

Yourpurposeisthebenefityoubringtotheworldthroughwhatyou
do.

Wewantyoutothinkaboutthewhybehindyourideaandtocrafta
statementthatfeelsclearandauthentic.

Youwanttothinkabouthowyouwillmakeadifferenceintheworld,
andinthelivesofthosewhomattermosttoyou.Trytolookfor
alignmentbetweenwhatyoudobestandhowyoubenefitthe
world.

HelpingHand
Togiveyouahandhereareacoupleofexamplesofpurpose
statementsfromwell-knowncompanies:
Asthestorygoes,ittookSouthwestafewyearsastheleaderin
low-fareairtravelbeforethecompanydefineditspurpose:
Givepeoplethefreedomtofly.

ItisntjustaboutcheapflightsacrosstheUS,itsaboutmakingtravel
tofarflungplacesaccessibletothosethatotherwisecouldntaffordit,
thereforeexpandingpeopleshorizons.
Thecompanyknownfordeliveringhappinesstocustomerssaysits
purposeis:
Toinspiretheworldbyshowingitspossibletosimultaneouslydeliver
happinesstocustomers,employees,community,vendorsand
shareholdersinalong-term,sustainableway.

TonyHsiehandhisteamareouttoprovetotheworldthatfocussing
onthehappinessandwellbeingofthepeopleinthecompanywillhelp
drivebusinesssuccess.AsTonyhimselfsayswereacustomerservice
companythatjusthappenstosellshoes.

Andonelesserknownexampleofapurpose-drivencompany

GreystoneprovidesindividualsinSouthwestYonkers,NYwith
employmentskillsandresourcestoliftthemoutofpoverty.Asthey
sayintheirownwords:
Wedonthirepeopletobakebrownies,webakebrowniestohire
people.

Atruepurpose-drivencompanyifevertherewasone.
CompaniessuchasGreystoneandZapposaresoclearabouttheir
purposethatyoucanimaginethemapplyingtheirethostoanysector.
ForinstanceifZapposstartedanairlineyoudknowwhatto
expectgreatservicedeliveredbypeoplewhocare.

Othersmaytryandcopywhatyoudobuttheycantcopythewayyou
doit.Andanyway,whenyourefollowingyourpurposethereisno
competition,onlycollaboration.

Whataboutyou?
Whatsdrivingyourbigidea?
Whatneedsareyoutryingtoaddress?
Howdoyouwanttopositivelyimpactpeopleslives?
Bearinmindyouranswersfortheseexercisesdontneedtobeperfect
now.Dontletperfectiongetinthewayofcompletingthetasks.Go
withyourbestguessandre-visitlater.
Completethefollowing:

UsinganexampleofTheChirpyBusinessSchool:

CHAPTER 2
VISION

WHATSTHECHANGEYOUWANTTOMAKE?

Ifyourpurposeisyourwhy,thenyourvisioniswhatyouhopeto
achieveoverthelongterm.
Inotherwords,askyourselfIfIremaincommittedtomypurpose,
whatcanIaccomplish?HowwilltheworldbedifferentwhenIm
done?
Withoutaclearvision,youregoingtobeindangerofpursuing
opportunitiesforthewrongreasons(typically,justforthemoney).
Wereassumingyouvegotthisfarbecauseyouwanttheworkyoudo
tohaveapoint,notjustbringincash.

Whyisavisionimportant?
Yourvisionshouldbesimple,powerfulandinspiringaviewof
thefuturethatgetsyouandothersexcited.

Thiswillgetyouthroughthehardtimesandallowyoutokeep
persevering,soitneedstogetyourbloodpumping.Acompelling
visionwillstopyougettingboggeddowninthedetailandpreventyou
fromgettingtooattachedtoshort-termsuccess.

Inthestartupworldtheresalotoftalkaboutpivotingyourbusiness
modelbasedonfeedbackfromthemarket.

Howeverusentrepreneursareastrangebunchandthebestonescan
seethingsothersdonttheycanspottrendsandconnectthedots
waybeforeanyoneelse.Thiscanmeanthatyouneedtotrustyourgut
andintuition,particularlyearlyonwherelittledataisavailabletoback
upyourhunches.

Itsabouthavingfaithinwhatyouredoingandgettingcomfortable
sayingyeswheneveryonearoundyouissayingno.
The secret of leadership is simple: Do

what you believe in. Paint a picture of the
future. Go there. People will follow.
Seth Godin

HelpingHand
Oneplacetostartisbyframingwhatyouredoingagainsthowthings
currentlyarewhatisthestatusquothatyouretryingtodisrupt.
Havinganenemy
WhenwefirstlaunchedTheHappyStartupSchoolwewerequite
clearaboutwhatwewerefightingagainst.

BusinessasusualthinkTheApprenticeorDragon's
Den/SharkTankandyoullgetthepicture
Billion-dollarunicornstartupsanobsessionwithhockey
stickgrowthaboveallelse
Unhappyworkplaceswedbeenthereourselvesandknew
howbaditcouldget
Second-ratecustomerexperiencesdidanyonemention
Ryanair?

Allofthisgaveusfuelforourmissionforabetterworldonewhere
peoplecanflourish,bringingtheirwholeselvestoworkandcreate
amazingcompaniesintheprocess.
Visionstatements
Tohelpyoucreateyoursherearesomeexamplesfromother
visionaries:

BillGates,thefounderofMicrosofthadaveryclearvisionofwhatthe
futurecouldlooklike:

Acomputerineveryhome


Atthetimethiswascrazythinking.Computerswerejustforthe
workplace.Buthehadthisvisionoftheworldwherecomputerswould
empowerandenrichourlives.Andguesswhat,notonlydowehave
theminourhomesbutalsoinourpockets.Alotofpeopleboughtinto
thisideaofthefuture.

JeffBezos
Whatstartedoffasaserviceforbuyingspecialistbooksonlinehas
turnedintotheworldsshoppingmall.Jeffdidntwanttostopat
books.Anddidntwanttojuststopatonlineshopping.Hisvisionwent
beyonde-commerceplatformsbutstretchedtologisticsandtech:

Tobeearthsmostcustomer-centriccompany;tobuildaplacewhere
peoplecancometofindanddiscoveranythingtheymightwanttobuy
online.

Anywhereyouareintheworld,atanytimeofthedayyoushouldbe
abletogettheproductyouwant.Thatstheworldhestryingto
create.Thisvisiondoesntonlyexcitecustomersbutalsoinvestorsand
employees(thoughgivensomeofthepublicitytheyvehad,maybenot
allemployees).

Anyway,wehopeyouvegotthepicture.Thinkbigbutalsokeepit
simple.

Overtoyou
Withthisnextchallengewewantyoutocraftavisionforyour
venture.Theoutcomeofthisexerciseshouldbeastatementlikethe
onebelow(orifyourefeelingcreative,avisionboard)thatyouwill
wanttosharewitheveryoneyoucomeintocontactwith.

Itshouldhelpanyonetoquicklygraspwhatyouretryingtodoand
betterunderstandwhyyouresodriven.Butagaindontworryaboutit
beingperfectfirsttimearoundyouhavetostartsomewhereso
anythingisbetterthannothing.

ForourmadeupcompanyTheChirpyBusinessSchoolweveputthe
following:

CHAPTER 3
Values

WHATVALUESWILLDRIVETHEDECISIONS
YOUMAKE?

UmairHaque,theacclaimedauthorandeconomist,highlightsthatin
thePurposeEconomyconsumersarenowmuchmorecarefulabout
whotheybuyfrom,andwhethertheyrepresentthevaluestheyhold
dear.Thereforeitsimportanttopindownyourvaluesandwhatyou
standforbeforeyousetoutonyourentrepreneurialpath.

Thinkofyourcorevaluesasthosethat,whenthechipsaredown,you
believeinsomuch,ifyoutookthemawayyourcompanywouldcease
toexist.

Anytimeyoumakeachoicethatcompromiseswhatyouknowisright,
you'llstarttoloseheart.Evensmalldecisionsmadewiththewrong
intentioncanleadyoudownapaththatdoesn'talignwithyourvision.

Aswehighlightedinthefirstchapterpeoplecarenotonlyaboutwhat
youdobutwhyyoudoit.Ifyourworkisallaboutwinningatthecost
ofallelse,itwillultimatelyleaveyoualittlehollowinsidemakingit
hardertodevelopanydeepconnectionswithyouraudience.

Thisiswhyit'ssoimportanttostartwithyourvalues,notyour
solution.

Whatdoyoubelievein?

Bynowwehopeyou'vehadagoodthinkaboutyourvisionand
purpose,soyou'rehopefullyalittleclearerastoyourwhy.Wenow
wanttogetyouthinkingaboutyourguidingprinciplesthe
foundationthatwillhelpyoumaketherightdecisionmoreoftenthan
not.Abeliefsystemthatwillguideyouwhenuncertaintyand
temptationcomeyourwaydoyouacceptthatofferofinvestment?Is
thistherightpersontobeyourco-founder?

Inhisbook'GoodStrategy/BadStrategy'RichardRumeltsaysthatan
essentialelementofanygoodstrategyishavingastrongsetof
guidingprinciples.

Inordertoachieveyourvisionyou'regoingtobefacedwitha
countlessnumberofoptionsandpaths.Whichonesdoyouchoose?
Howcanyoubeconfidentthatyou'vemadetherightchoice?Inthe
end,whenfacedwithuncertaintyandincompleteinformation,you'll
havetogowithyourgut.

Whatyourguttellsyouwillbebasedonwhatyoufeeltoberight.So
beingabletobeclearonwhat'srightforyouisessentialtobeingable
tomaketherightquickdecisionsinthosehighpressuresituations.

We'reassumingyou'rebuildingaHappyStartupforareasonyou
wantyourpersonalvaluestoalignwiththeworkyoudo.Yourwork
shouldbeareflectionofwhatyoubelieveandsoknowingwhatyou
believeisessentialtoyoursuccess.
HelpingHand
Tryingtocomeupwithalistofvaluesthatdon'tsoundgenericand
blandcanbehard.Whatwewantyoutodoisfocusonyourcore
values.Thethingsthatyoumoststronglybelievein.

Oneapproachfordoingthisistotakestockofallthemeaningful
eventsandcrossroadsinyourlife.Foreacheventtrytoreflectonwhy
youfollowedonepathratherthantheother.Youshouldhopefullybe
abletospotapatterninyourdecisionmaking.

Thinkaboutthethingsthatyouholdmostdear.Thatyoucouldnever
dowithout.Alsoyoushouldalsothinkaboutthethingsthatyou'd
neverdo.Thosewillbeclearindicatorsofwhatyoustronglybelievein.

Youcanalsothinkabouthowyou'dliketolive.Whatarethevalues
youraspireto?However,tomakethemyourown,youmustcommitto
themandmakethemapartofyourdailylife.Don'tjustpaylipservice
tothembecausetheysoundcool.


Whenwewererunningastartupstudiowespentsometimetryingto
understandwhywedidtheworkwedid.Thishelpedusmapoutwhat
droveustomakethedecisionswemade.

Ithelpeduscomeupwithaone-linerthatdescribedourwhy.Funnily
enoughitalsocoincidedwiththeearlydaysoftheHappyStartup
School.Byexploringourvaluesweultimatelyfoundoutwhatwereally
shouldhavebeendoing!"Optimisingentrepreneurialhappiness".

Nowit'sovertoyou!
Writedownthevaluesthatmostinfluenceyourdecisionmaking.Ifyou
havetroublethinkingofthemtrytousethetechniquesdescribed
above.

ForTheChirpyBusinessSchoolwe'dwritethis

CHAPTER 4
STORY

WHATSTORYDOYOUWANTPEOPLETO
TELLABOUTYOU?

Toooftenpeoplehaveastartupideaandthenjumpdirectlyinto
defining,andthenselling,thesolution.Theythink"wouldn'ttheworld
bebetterifthisshinynewthingexisted".

Theytakeontheroleofvisionary(theSteveJobscomplex)and
convincethemselvesthatalltheyneedtodoisbuildit,andtheywill
come.

Weknowthatthisisrarelythecasethere'sareasonwhymost
startupsfail.Thetruthismostofthetimepeopledon'tcareaboutyour
idea.

Attheveryearlystagetrynottogettooboggeddowninthedetails
andinsteadspendmoretimetryingtogetpeopletobuyintoyour
visionandlistentoyourstory.

Fromcavepaintingtonovels,storieshavealwaysfascinatedus.A
storyhelpstoillustrateapointbetterthanasetoffacts.Itgives

peopleareasontocareaboutwhatyouresaying.Theyrelatetoyour
storyandthereforeyourmessage.

Sodon'ttrytosellyouridea,connectwithpeopleonadeeperlevel.
Youwanttowintheheartsandmindsofyouraudienceandthat
mightincludeinvestorstoo.Sotrytomakeitpersonalagreatstory
reelsyouin,feelshumanandauthentic.

Itwilltaketimetoshapethissothesooneryoucanstarttellingyour
story,thesooneryou'llfindsomethingthatsticks.

Craftastorynotasalespitch
Starttalkingfacts,figuresandfeaturesandmostpeoplewillquickly
loseinterest.Tellacompellingstorythoughandthesamepeoplewill
situpandtakenotice.

Don'tbeafraidtoshareideascanbecopied,technologycanbe
stolen,websitescloned,butanauthenticstorycanonlybeownedby
you.

Onceyou'vegotyourstorystraightitwillbecomeaconversation
starterandaneffectivewayofspreadingyourmessage(andahellof
alotcheaperthanGoogleAdwords).

Finallyhavingagreatstoryandhavingittoldbyothersisthefirststep
tocreatingyourbrandthesestorytellersbecomeyoursecret
marketingweapon.

Examples

InnocentDrinks
"Natural,delicious,healthydrinksthathelppeoplelivewellanddie
old"

AlthoughInnocentareknownfortheirhealthydrinksanddownto
earthbranding,thestorythey'reknownforishowtheygotstarted.
Thestorygoesthatthe3founderssoldtheirfirstsmoothiesfroma
stallatamusicfestivalinLondon.AsignabovethestallreadsShould
wegiveupourjobstomakethesesmoothies?andpeoplewereasked
tothrowtheiremptiesintobinsmarkedYesorNo.

Needlesstosay'Yes'won.

TOMSShoes
"Buyone,giveoneaway"

AbrandlikeTOMSshoesusestheirstoryasabedrockfortheir
existence.Thetagline,Oneforone,meansthatforeverypurchased
pairTOMSgivesapairofshoestosomeoneinneed.TOMSexiststo
improvelives.

Theirstorydescribesthewholereasonfortheexistenceofthe
company.Thatbuildstrust.Carefulcustomersareaskingwhyshould
Ibuyfromyou?Ifyoucananswerthatquestionwitharealstory,then
youvebuiltthetrustofthatcustomer.

HelpingHand
Sowhatstorydoyouwantpeopletotellaboutyou?Howdoyoucome
upwithyourowncompellingstory?Ifyou'restuckyoucanalwaystry
tousewhatyou'velearnedfromthefirst3chapters.Everystoryneeds
aherothatstandsforsomething-YOUandyourvalues.Italsoneeds
avillain-thethingthat'sbrokenwiththeworldandyourvisionofhow
itcouldbebetter.Andfinallytheheroneedsaquest-inthiscaseyour
purpose.Combinethesetocreateyourownauthenticshortstory.

Nowit'sovertoyou!
Havesomefunandwritedownashortstorythatyou'dwantpeople
totellaboutyou.


CHAPTER 5
PROBLEMS

HOWAREPEOPLESTRUGGLING?

Mostofusthinkweneedtocomeupwiththebigidea.We
unnecessarilycriticiseourselvesfornotbeingcreativeenoughorget
disheartenedwhenpeopledontunderstandwhatweretryingtodo.
Thisobsessionwithhavingtobetheinspiredvisionaryleaderiswhat
holdstoomanypeoplebackfrombeginningtheirstartupjourney.

Wesuggestyouflipthismindsetandinsteadlookforproblemsworth
solving.Ratherthantryingtothinkupthenextbigworld-changing
ideajusttaketimetonoticewhat'shappeninginyourlifeandthelives
ofthosearoundyou.

Bemindfuloftheworld,talktopeopleandnoticethethingsyouand
theyarestrugglingwith.Inotherwords,lookforproblemsratherthan
solutions.Getcuriousideascancomefromanywhere.
Life'stooshorttobuildsomethingnobodywants

ThefailedSinclairC5

It'ssoimportanttoputyourselfintheshoesofyourtargetaudience
andthinkaboutwhattheyneedtogetdone.Whatholdsthemback
fromgettingsomethingdoneorachievinganoutcome?Howcouldyou
makeitfaster,easierorsimplerforthem?

Byfocusingonproblemsandbarriersinpeople'slives,itmakesit
muchmorelikelythatyou'lldevelopanideathatpeoplefinduseful
andvaluable(we'llcoverthisinchapter8too).

Ifyou'vecompletedchapter1and2youshouldhaveaclearstarting
pointfromwheretosearchforproblemsthatmatter.Bydefiningyour
purposeandarticulatingyourvisionfortheworldyou'llbeableto
focusonwhatisstoppingthesethingsfromhappening.Ifyouthought
aboutyourenemyyoumighthavealreadyhitonsomeproblemsthat
currentlyexist.

What'smissingintheworld?
AtTheHappyStartupSchoolwesawthatmanypeoplewere
unhappyatworkandwantedtohavethefreedomtoworkfor
themselves,butfounditdifficulttofindanddevelopabusinessidea.

Theywouldwastetimegoingroundincirclesanddidn'thavea
processtohelpthemgetclarityandfocusandweren'tasking
themselvestherightquestions.Tacklingthisproblemhead-onaligned
withourvisionofaworldfullofstartupsthattrulymatter.Forus,it
wasaproblemworthsolving.


Soavoiddivingstraightintosolutions.Thinkaboutwhatpeopleare
tryingtoachieveandmakeiteasierforthem.

HelpingHand
Ifyouhaven'tbeenabletogettogripswithyourvisionandpurpose
yetagoodplacetostartlookingforproblemsisby'scratchingyour
ownitch'.Someofthebestideascomenaturallyfromyourown
experiencesthemostsuccessfulstartupsalmostalwaysbeginthis
way.

They'renotlookingtochangetheworld,they'relookingtochange
theirworld.

AgreatexampleofthisistheprojectmanagementtoolBasecamp:

A great way to build a business is to start

out by solving your own problems. You'll
be the target audience and you'll know
what's important and what's not.
Jason Fried, Basecamp


Ifyou'resolvingproblemsthatyoudon'texperienceyourself,you'll
needtodoalotmoreresearchandexperimentation.Sowe'dadvise
lookingforproblemsthatyouknowwellandcanthensolvemore
easily.

Hereare3placestostart:
Yourpersonalpassions
Whatdoyoulovedoingorfeelstronglyabout?Isthereahobbyyoudo
regularlythatyou'dliketodoturnintoaliving?Doyoucurrentlywork
withorhelpoutacharity,schoolorsocialenterprise?Whathasgotin
yourwaywhentryingtopursuetheseactivities?

PaulSinton-HewittstartedParkrunbecausehewaslookingforaway
topursuehisloveofrunningandalsobepartofthelocalcommunity.
It'snowgoneinternationalwithoverhalfamillionrunnerstakingpart
intheirweeklyruns.

Yourpersonalexperiences
Weallexperiencethingsthatwearejustwaitingforsomeoneto
solve.MinKyu-choi,founderoftheMuslimlineplug,lovedhisApple
devicesbutsawthataccompanyingplugsweretoobulky.

InhisDoLecturestalkhebeautifullyillustratedtheproblemofmailing
aniPadthroughthepost:

Yourprofessionalexperiences
Themajorityofusspendatleastathirdofourwakinghoursworking.
Becauseofthiswehaveuniqueinsightsthatothersmaynothave
(eveniftheyseemobvioustous).Theseexperiencesareoftenarich
sourceofproblemsworthsolving.

WhilstrunningouragencySpookStudioweusedtospendalotof
timewithclientstryingtoagreewhotheiraudiencewas(morein
chapter7).Wemadethisamuchmoreengagingandproductive
processbydevelopingasimpleonlinetoolthathelpedusgetonthe
samepagequicker.Asitturnsoutthiswasaproblemthatlotsof
peoplehaveexperiencedtoowenowhaveover20,000people
whovesignedupfortheproduct.

Nowit'sovertoyou!
Yourchallengetodayistolistthetop3problemsyou'relookingto
solve:


CHAPTER 6
SOLUTION

HOWAREYOUGOINGTOSOLVETHESE
PROBLEMS?
Nowyou'rehopefullygettingclearerontheproblemsyou're
addressing,it'stimetothinkofhowyou'regoingtosolvethem.

Bearinmindit'srareforPlanAtobetheonethatworks(unless
you'reoneoftheluckyfew),sotheimportantthinghereistostart
somewhereandsoonerratherthanlater.

Atthisstagecomingupwithsolutionsisn'tsomuchaboutbuilding
theperfect(orevenright)productorservice,butmoreaboutworking
outwhetheryou'reontherighttrack.Mostpeoplestartoffthinkingup
verycomplexsolutions.Don'tfallintothesametrap.Now'sthetimeto
putsomethingouttherefast.

Timekillsthesensors
Mostofthesuccessfulprojectswe'velaunchedovertheyearshave
beenthosewherewe'vegonefromideatoactionfast.Forinstance

weconceivedandlaunchedournewonlinecommunityinjust24
hours.

Whetherit'smorefeaturesforanewappormoreofferingsaspartof
theirservice,there'satendencyforfirsttimeentrepreneurstoover
complicatebyaddingtoomuchtotheirfirstsolutionandtakingtoo
longtolaunchsomething.We'dadviseagainstthisforseveral
reasons:

1. Ittakeslotsoftimeandmoneytomakecomplexthings
2. There'sahigherriskofthingsgoingwrong
3. Ifitisn'tsimplethere'sabigchanceyou'llconfusecustomers
4. Moreeffortmeansmoreattachmenttothesolutionandso
yourelesslikelytochangetackifitdoesn'twork

Sodon'ttrytooverengineeryourfirstsolutionandinsteadtryto
reverseengineertheproblem.Breaktheproblemdownandidentify
thesimplestthingyoucanbuildtogetfeedbackonyouridea.

Don'tbuildthewholething,now'sthetimetoexperiment..
Fakeitbeforeyoumakeit
Ifyou'rethinkingofopeningaflowershoporfranchisinga
McDonald'sdefiningtherightsolutionmaynotbesuchabigproblem.
Theseareknownbusinessesandsotheproductandcustomerneedis
wellunderstood.Makingbusinessesliketheseworkismainlyabout
goodmarketingandsales.

However,ifyou'vegotaninnovativeideathenyou'llneedtofollowa
differentplan.Onethatrequiresabitmorerisk-takingand
experimentation.

Thingswon'talwaysgotoplan,soit'simportanttobeawareofthis.
It'saboutacceptinguncertainty,andlearningfromanysetbacksyou
have,nottakingthemtoheart.
It'sallaboutlearning
Atthisstagedon'tworrytoomuchaboutgettingcustomersand
growingrevenue,butfocusonlearning.Reallyunderstandthe
problemsyou'resolvingandwhoyou'resolvingthemfor(moreonthis
inthenextchapter).

Ifyoustartedthise-bookwithabusinessideainmindyou've
probablygotcertainassumptionsaboutyourcustomersandyour
solution.However,basedontheproblemyoudefinedinchapter5we
wantyouinsteadtothinkofthesimplestandcheapestsolutionthat
helpstestyourassumptions.

Howcouldyoubegintosolvetheproblemwithouthavingtospend
loadsoftimeandmoneyonit?Whatcouldyoudonextweek?

HelpingHand
Now'sthetimetogetcreative!Youneedtoembracetheconstraintsof
limitedtimeandmoneytoseehowyoucanapproachtheproblemin
differentways.Thisisgoodpracticeforstartuplifesincetimeand
moneyareluxuriesyourarelyhave.

Wesuggestyoutrybrainstorminglotsofdifferentsolutions.Don'tget
toocaughtupwithtryingtofindthebestone,justspendsometime
gettinglotsofideasdownonpost-itnotes(nomatterhowcrazythey
sound).Thenpickthebestonetouseforthisweek'sexercise.

Hereareexamplesofsomesolutionstogetyouthinking:

1)Buildalandingpage
Whilethisdoesn'tsoundquitelikeasolutiontoaproblemit'sagreat
wayforyoutogetintouchwithpotentialcustomers.Thepageshould
explaintheproblemyou'retacklingandhowyourpotentialsolution
willaddressit.Youshouldthenaskpeopletosignuptobethefirstto
usethatsolution.TryusingSquarespaceorStrikinglytogetaquick

pageup.WetookthisapproachforourmountainsideretreatAlptitude
in2015andhadmorethan100applicationsforonly25spacesbefore
we'devenconfirmedtheevent.

2)Createademovideo
Ifit'sdifficulttodescribeyoursolutioninwordsthentrycreatinga
simpledemovideo.Thisapproachissimilartothepreviousonebutin
thiscaseyoutellthestoryoftheproblemandthesolutioninamore
engagingway.ThisisexactlywhatDropboxdidbeforethey'deven
builttheirproduct.

3)Buildapop-up
Thisapproachisparticularlyusefulforbusinessideasthatrequire
premisessuchasrestaurantsorphysicalstores.Youcouldlookfor
emptypremisesorlocationswithsparespaceyoucoulduse.A
previousstudentonourHappyStartupHomeSchoolhadagrand
visiontobuildaplayzoneforadults.Hestartedtestingtheideaby
puttingaballpitinhisofficeandrunningnerfgunsessions.Sincethen
he'sbeenscalingupwithbiggerversionsoftheconceptinbigger
spaces.


4)PlayWizardofOz
Ratherthanbuildoutanytechnology,employstafforinvestintoo
muchinfrastructureyoucoulduseexistingtoolsandabitofmanual
efforttoreplicatethefinalsolution.Thisisthetacticfollowedbythe
founderofZapposwhenhewasworkingoutwhetherpeoplewould
buyshoesonline.Hebasicallypostedpicturesofshoesonhiswebsite
andwhenanybodyorderedthemhe'dbuythemfromalocalstoreand
thenmailthemtothecustomer.Hedidn'tmakeanymoneybuthe
learnedalot.

Whiletheseapproachesmightnotmakeyouanymoneytheywillhelp
youtestoutyourideaandconnectyouwithcustomers.Fakeitbefore
youmakeitandyou'llreducetheriskofbuildingthewrongthing.

Nowit'sovertoyou!
So,getbacktoyourworksheetandwritedownthefirstsolutionyou
couldtryouttoaddresstheproblemfromchapter5.Rememberthisis
justyourPlanAmostlikelyitwillevolveonceyou'vegotfeedback
fromrealpeople:


CHAPTER 7
EARLY ADOPTERS

WHOWILLBEYOURPASSIONATEFIRST
CUSTOMERS?

Attheverybeginningofyourstartupjourneynoteveryoneisgoingto
understandwhatyou'retryingtodo,particularlyifyouhavean
innovativeidea.

Mostpeoplestartoffbythinkingthatthewholeworldistheirmarket
andsotheycasttheirnetaswideaspossibletryingtoreachthe
greatestnumberofpeople.Howeverushumansareadiversebunch,
withdifferentneedsandbehaviours.

Forthisreasonit'sgoingtobeimpossibletocaterforallofthem
(unlessyou'vegottheresourcesofAppleperhaps).


Thekeyhereistofocusonagroupofpeoplewhoreallygetwhat
you'retryingtodo.

Atthebeginninggearyourmessageandsolutiontowardsthemand
onlythem.Don'tthinkofthemaspotentialcustomers,butratherallies
andco-creatorsofyourmovementforchange.

Withtheiradviceandfeedbackyou'llbeabletorefineandhoneyour
offering.Sowhatareyouwaitingfor?Now'sthetimetostarta
conversationwiththem.Atthisearlystageit'saboutattractingthis
nichethatwilllovewhatyoudo,ratherthanjustlikeyoualittle.

It'sthedepthofpassionyou'relookingfor.Andthiswillhappenifyou
solvetheirproblem,believeinthesamethingsandtalkthesame
language.Tobuildyourtribeyouwantthemtofeellikethey'vefound
theirpeople.

Marketingisdead.Longlivethetribe.
Wewantyoutothinkaboutbuildingatribenotjustacustomerbase
loyalfollowerswhobelieveinthevisionasifitweretheirs.With
passionatefolksliketheseonboardthere'llbenoneedforthehard
sell,butratherawillingnesstoengageinanhonestconversation.

Thebrandmythandadoption

Yourbrandisn'tyourlogo,itisn'twhatyousaytoyourcustomers,it
isn'tyourlatestcampaign.Yourbrandistherelationship.

Manyofyouwillknowthediagrambelowofhownewtechnologies
areadoptedbyapopulation.MostpeoplefallintheEarlyMajorityand

LateMajoritybands.Theyrarelytrysomethingnewandsosellinga
newideatothemisgoingtobeanuphillstruggle.

Whenbuildingyourtribefocusinsteadonthesmallergroupofpeople
theInnovatorsandEarlyAdoptersthoseonthelookoutfor
emergentideasandnewtechnologies.They'lltypicallyhaveanunmet
needthatthey'retryingtosolvesoyourfirstmissionwillbetohelp
them.

Managedwell,thissmallgrouparegoingtobeoneofyourmost
valuableassetsforseveralreasons:
1. Whentryingtomanageandactonfeedbackit'smucheasier
toworkwithasmallergroup.
2. Ifyoulistenwellandusetheirinputwiselynotonlywillyou
buildabettersolutionbutyourtribewillgainasenseof
ownershipofyouridea.They'lllovewhatyoudobecausethey
helpedyoumakeit.Thisistakingadvantageofwhat
behaviouraleconomistscalltheIkeaEffect.
3. Thisgroupwillbecomeevangelistsandadvocates.Essentially
they'lldoallyourmarketingforfree!Whocouldsaynoto
that?

Soifyouwanttochangetheworldyouneedtostartoffwitha
handfulofbelieversafamiliarstorytous.Westartedaglobal
movementbyrunningintimateeventsintheUK.

Allgreatthingsstartsmall.


Ifyou'vefollowedthestepssofarthenyou'llknowthatbytacklingthe
peakofthecanvasyou'llhavethestartingpointforastorythatshould
startattractingtherightpeopletoyourmission.Buttobelaser
focusedwe'vefounditcanreallyhelptohaveavividpictureofwho
yourfirsttribemembersmightbe.

HelpingHand
Includedintheappendixisourpersonatemplateandcheatsheet.
Printoutafewcopies.

Playaroundandusethesetocreateanumberofpersonastheseare
meanttobecustomerarchetypes.Atthebeginningbasetheseon
whatyouknowrightnow,evenguesses.Overtimeyoucanrefine
thesebasedonyourknowledgeofwhoyou'retalkingto.

Whoseproblemdoyouwanttosolve?Tohelpyougetclaritythe
personatemplateissplitinto4quadrants:

Name&Picture
FactsandDemographics
Behaviours
Need&Goals

AsanaddedhelpyoucouldalsouseourPersonapptool.Thatway
you'llbesavingthetreestoo.

Nowit'sovertoyou!
Onceyou'vecomeupwithapersonaforyouidealtribemember
completethefollowingsectionofyourworksheet:

ForTheChirpyBusinessSchoolwe'dwritethis...

CHAPTER 8
VALUE PROPOSITION

HOWAREYOUGOINGTOMAKEPEOPLES
LIVESBETTER?

AswementionedintheSolutionschaptermostpeoplegetcarried
awaywithaddingmorefeaturesorofferingstowhattheydoasthey
thinkitaddsmorevalue.

Howeveraswepointedoutthisapproachismorelikelytoconfuse
thanattractthem.Ultimatelyyourcustomerswanttoknowonething:

Whatareyougoingtodoforme?"

Thereareamyriadofwaysyoucanhelpthembuttypicallyitcomes
downtomakingtheirlifebetterinsomeway,whetherthatissaving
timeormoney,convenienceorpeaceofmind.

Yourjobistouncoverwhattherealsourceofvalueisforyour
audiencesoyoucanusethisinyourmessagingandbeingcrystal
clearaboutthebenefitsofyourproductorservice.

Inthelastchapterweemphasisedthatyoushouldengagein
conversationswithyourearlyadopters.However,bewareofjust
askingthemwhattheywant(mostofthetimetheywon'tknowwhat
ispossible).Insteadlookdeeperandunderstandtheirunderlying
needs.


Focusonoutcomesnotfeatures
Inhis2003bookTheInnovatorsDilemma,ClaytonChristensenwrites:

"Dontsellproductsandservicestocustomers,butrathertrytohelp
peopleaddresstheirjobs-to-be-done."

It'simportanttodifferentiatebetweenwhatyourproductandservice
doesandtheoutcomeyou'retryingtocreate.

Forinstanceifyousellgardeningservices,ratherthanfocusingsolely
onwhatyoudoe.g"Gardenmaintenanceandclearance",instead
focusyourmessageonthevalueyoucreate:

"Reclaimyourweekends.Welovegardeningsoyoudon'thaveto."
GreenGirlsslogan

Focusingonoutcomeskeepsyouclearonwhatyoushouldbe
buildingratherthanwhatseemslikeacoolidea.


ThisiswhereDesignThinkingcomesin.Simplyput,it'sabout
developingempathywiththepeopleyou'recreatingthisfor.You're
wantingtoliveintheskinofyouraudienceandunderstandwhat
they'refeeling.

Thisiswhy'scratchingyourownitch'issuchapowerfulwaytobuild
abusinessyouunderstandyourcustomer'sworld.

Butwhetherornotyou'reintheirshoes,ifyou'relookingtobuilda
tribeyoucanavoidexpensivemarketresearchbygettingtoknowyour
customersthroughreal,authenticconversations.You'regenuinely
tryingtohelpthemandhavetheirinterestsatheart.

Whataretheyactuallytryingtodo?

Throughtheseconversationsyoucandigdeeperintotheunderlying
JobsToBeDoneratherthanjustobservingpeople'sbehaviour.

Forinstance,aparenttakingtheirchildrentoamovieonaSaturday
afternoonmaynotjustbeaboutseeingthelatestPixarreleasebut
moreaboutfindingsomethingtodowiththemonarainyafternoon?

Lookingatthesituationinthisnewwaynotonlyuncoversamore
interestingproblembutalsoopensyouuptothinkingaboutother
potentialcompetitors.

HelpingHand
Whenthinkingaboutoutcomeswewantyoutotakethesimple
approachofunderstandingyourpotentialcustomers'currentpains
andthepotentialgainstheyrelookingfor.

Whataretheystrugglingwithandwhatwouldtheyliketogetthat
theydon'thavenow?

Whenthinkingaboutyourvaluepropositionyouwanttoreduceor
eliminatethepainsandincreaseorcreatethegains.

Goingbacktotheearlierchaptersthinkaboutyourearlyadoptersand
theproblemyou'retryingtosolve.Thentakealookatthesolutions
you'reproposingandthenthinkaboutthefollowing:

1. WhatpainscanIreduce?
2. WhatpainscanIeliminate?
3. WhatgainscanIincrease?
4. WhatgainscanIcreate?

Takingourgardeningexamplewecouldanswerthequestionsinthe
followingways:

1. IwouldliketoreducethetimeIspendinthegardencentre
2. Iwanttoeliminategettingfrustratedwithgardening
3. IwanttoincreasethetimeIspendwithmykids
4. Iwanttocreateastrongerfamilybond

Playaroundwiththisapproach

Youmayneedtomodifythesolutionordigdeeperintotheproblem,
butthisisoneofthethingswe'dlikeyoutotakefromthise-book
thateachelementofyourcanvasisaworkinprogress.Thesewill
needtoberefinedandperhapsevenre-thoughtafterworkingthrough
theexercisesandspeakingmorewithpeople.

Thisisperfectlynormalaswepointedourearlyon,PlanAisn't
usuallytheplanthatworks.Ifeverythingisgoingtoplan,you're
probablynotworkinghardenough!

Workinglean
Whilewe'vepresentedthee-bookasalinearprocesswehopeyou
willbegoingbackandforthbetweeneachchapterasyougetclearer
onyouridea.

Thisisthepartofbuildingastartupthatcanfeelmostchallengingfor
manyasit'sfullofuncertainty.However,it'salsothepartthatisfullof
themostpossibility.

Don'tpanic.You'rejuststartingtoflexyourHappyStartupmuscles
andwe'llbetellingyouhowtokeepthemomentumgoingattheend
ofthise-book.
Nowit'sovertoyou!
Thisyourfinalexercise.Rememberthisisn'tsupposedtobethefinal
versionofyourvalueproposition,justyourbestguessfornow.

Listoutallyourpossibleanswerstotheabovequestionsandshare
theclearestoneinyourworksheet:

ForTheChirpyBusinessSchoolwe'dwritethis...

Wow,you'redone!
Well,you'vereachedtheendofthestart...

You'venowgotabetterideaofhowtouseTheHappyStartup
Canvas.Butlearninghowtousethecanvasisn'tthesolepurposeof
thise-book.

Weknowthatrealprogresshappenswhenyouconnectandshare
whatyou'redoingwithlikemindedpeopleatasimilarstage.Thismay
soundscarybutweregatheringjustsuchagroup.

JoinourFREEFacebookgrouptodevelopyourideasfurther,get
inspiredandmoveclosertolaunchingyourHappyStartup.Weve
createdasafespacetoshareyourideasandgetthesupportyouneed
toturnyourideaintoaction.
APPENDIX
Customer development matrix
SCORE FROM Customer Customer Customer Customer

1-3 segment segment segment segment
Level of pain
Ease of access
Will they pay?
Total
Name & picture Behaviours
Facts and demographics Needs & goals

Name & picture Behaviours
Describe their typical day. (Focus on behavoir
patterns relevant to your value proposition/
product)
Here are some examples:

- Has a housecleaner
- Buys take-away 3 times a week
- Frequently feels overwhelmed when she
forgets something
Facts and demographics Needs & goals

Describe the basics: age, family, job, hobbies and List common questions, tasks or frustrations they
interests. Where do they live? What is it like? have.
Some examples: Some examples:

- Working mum - Spend more time with her friends
- 34 years old - Feel like she has it sorted
- Lives in Reading, works in London - Live a healthier lifestyle
- Married, 2 kids - Clone herself
- Household 125k a year

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BUILDING A

Phil Libin, Evernote

The secret of leadership is simple: Do

A great way to build a business is to start

Jason Fried, Basecamp

SCORE FROM Customer Customer Customer Customer

Will they pay?

Facts and demographics Needs & goals

Here are some examples:

Facts and demographics Needs & goals

Some examples: Some examples:

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