Test card

When you want to implement a new business model, it is recommended to test it correctly first. With Business Model Hacking it is recommended to use the Lean Startup approach for this. With the Lean Startup approach you try to test as small and quickly as possible, learn from the test based on data and use the insights to determine the next step. The effectiveness of the Lean Startup approach is highly dependent on the quality of the experiments you do. The test card can help you set up good experiments.

Download the test card: Powerpoint (fill in format) or on A4.

Explanation Test Card

This test card is inspired by Strategyzer’s test card and Ash Maurya’s Experiment Design Canvas. The test card is a simple tool that helps to design an experiment in a structured way. By using a test card, you force yourself to think in advance about what you will do to validate the risky assumptions in your business model. You determine the experiment, the measurement method, the investment, the reliability and the outcome with which you determine whether the assumption is correct. In our version of the test card, you also determine the 5 steps you need to do to successfully perform the experiment.

Advantages

  • Helps to set up sound experiments
  • Helps to objectively assess the results of experiments
  • Better validation increases the chance of success
  • Widely applicable tool on all the experiments in your company

Steps

1. Determine for which assumption you are going to conduct an experiment

Often you cannot test all the assumptions at the same time. Therefore, determine which assumptions are most important at the moment and test them first before testing the other assumptions.

2. Define the reason for the experiment

What is the reason for the experiment? Describe this briefly and to the point on a post-it.

3. Describe the assumption to be tested

When formulating the assumption, it is important to describe the assumption as concretely as possible. Make sure that the assumption is falsifiable: the test must answer the question of whether the assumption is correct or not. Also determine how important the assumption is to the startup.

4. Describe the test

Which test are you going to perform? Do you actually learn what you want to learn with the test? Tip: Make sure you describe the test and as concretely as possible. Also ask yourself whether you can test the assumption smaller and faster. To keep the pace high, it is recommended to always start with a Minimal Viable Test (MVT). Split large experiments into smaller sub-experiments to keep up the speed. Finally, indicate what it costs to perform the test and how reliable the test is.

5. Decide how you will measure the experiment

To measure = to know. But if you want to draw well-founded conclusions, you have to measure the right indicators. This sounds logical, of course, but in practice it often goes wrong. Which metrics confirm or disprove the assumption? When validating, it is important that decisions are made based on facts and not on opinions and intentions.

Just an example: Asking customers how likely it is that they would buy your product is not validation. Enticing your customer to place a (pre-)order or sign a letter of intent is.

6. Establish the criteria when the assumption is correct or incorrect

The pitfall with validation is that most people actually want to hear that they are “right” and that their assumption is correct. Do not fall into the trap of judging the data from the test through rose-colored glasses. Doing this will only get you further away from the right path.

To be able to measure objectively, it is important to determine your minimum success criteria in advance.

7. Determine which steps to follow to perform the experiment

Try to write down the steps that you have to take as simply as possible. Check that the steps are clear to each team member involved in the test.

Combine test cards with learning cards

It is recommended to use the test card together with the learning card. With the learning card you process the data from the experiment in a structured way, you draw the right conclusion and you determine the next step. The learning map is shown in the image below.

Ready to test your business model in a better way?

Use the test card and design better experiments.