Testing Business Ideas

What are the components of an experiment? A well-formed business experiment is made up of four components: 1. Hypothesis The most critical hypothesis from the top right quadrant of your Assumptions Map. (important & no evidence assumption) 2. Experiment The description of the experiment you will run to support or refute the hypothesis. 3. Metrics The data you will measure as part of the experiment. 4. Criteria The success criteria for your experiment metrics.

Experiment: Experiments are the means to reduce the risk and uncertainty of your business idea. The experiment is at the core of scientific method. What has remained consistent over time is that the scientific method is a valuable method for generating insights. Business experiments: • are procedures to reduce the risk and uncertainty of a business idea. • produce weak or strong evidence that supports or refutes a hypothesis. • can be fast/slow and cheap/expensive to conduct.