Cobuild: Megatrend in the startup world
We are part of a technological world full of challenges, where each one of these challenges can be seen as an opportunity if we see it with an organizational vision based on new collaboration tools. In this sense, the term cobuild was born as an emerging concept based on three elements combined as an art: organizational vision, professional execution, and collaboration.
Etymologically speaking, the word cobuild starts from the prefix co- referred to interactive processes, an aspect that translates into collaboration or coordination, which emerges from the dynamics, where its parts influence each other, that is, they co-construct. In this regard, social interaction is an essential dimension, enhancing the value of present social relations and structures.
Do you know about cobuild stages?
When we talk about cobuild, we refer to a process based on taking an idea to a scale up or a company with more than 50 employees or more than $250.000 annual revenues. It is carried out through four stages, which begins with the idea validation, then is time to market and product validation to create a Minimum Viable Product (MVP), to finally implement the Growth Hacking. Let’s talk about a little bit about each one, to see what is this about.
Step 1: Idea validation
A study from 2013 revealed that 8 out of 10 ideas fail. That’s why the idea validation is really important as the first step. But don’t worry! We are going to give you some tips to help you validate the idea successfully:
Focus on the situation, not the solution. Define what do you want to solve or improve and keeps it simple.
Identify if it is the real problem or situation that you want to solve. Keep in mind that the entrepreneurs will spend some time in the next steps.
Define what differentiates you from competitors. Beware of competitors, there are many startups that currently exist in the technology market.
Find a growing market and go deeper.
Step 2: Marketing strategy
In this step, the market analysis is carried out, an implicit element in the competition analysis, jointly with the value proposal. Validate the demand for your product is the most important part, even more, important than technology, equipment, design, and price. Without validating the market, you will have a product that nobody is willing to pay for, so you will spend a lot of time, energy and money unnecessarily.
At this point, you need to define the actions that establish the marketing strategy, branding and pre-funding are carried out. The web page creation, characterized by a great design and name, that is attractive to the audience or market sector previously analyzed is of utmost importance.
Step 3: MVP’s
Once you have completed the previous step, you can start where many entrepreneurs start, plan their business and build their Minimum Viable Product (MVP). This term has been popularized by Eric Ries, a famous writer on startups and it represents the basis of the Lean Startup methodology.
It’s time to define the MVPs. The MVP depends on the level of criteria and product context, prior to funding. It represents the first version of your product, so you can consider beta testing as part of this step to let the people know about your product and to fix possible bugs that may arise.
When we are talking about an MVP, it should have three basic characteristics:
- It generates enough value, so people can buy it or use it initially.
- It demonstrates its benefits to retain early users.
- It can give you a feedback loop to guide future step in the development.
Step 4: Growth Hacking
The last step is given by Growth Hacking. Growth hacking linked to cobuild is a novel way in which most modern startups grow a market with the least use of resources, getting a large number of leads with a low budget.
For this, the analytical vision is fundamental, especially in the current context, where the number of startups grows at an unstoppable pace, highlighting the fact that technology companies lack the resources to develop expensive marketing campaigns. For this step, is really important to consider the pillars of startup success.
Six Pillars of Startup Success
Nowadays, developing a product is easy, but the product does not make the company. This is where cobuild can help you achieve a successful entrepreneurship.