How about a “Starbucks Test”?
Marc Randolph knows how to behave in business – and at the highest level. The 65-year-old was one of the founders of Netflix, of which he was the first CEO from 1997 to 1999.
One can therefore assume that quite a few people presented their business ideas to him. Now he would like to use his wealth of experience to help people who are faced with such situations. One of his key tips is: “You have to learn to communicate your idea clearly.” To put this to the test, he advises on his blog to the so-called “Starbucks Test”.
“Grab your laptop, stand at a Starbucks table and talk to someone in line,” he writes. “Offer the person a coffee and ask them to listen to your two-minute pitch and then talk about it for a few minutes.”
If Randolph has his way, it should be done 20 times. You get “priceless insights” because, in his experience, you get all the answers you need after just a few conversations. It is crucial to ask specific questions: “What does our company do?” or “How does the service work?” or “Who could use it and for what purpose?” The answers to these questions should “identify the weak points, needs and wishes of your reveal to future customers,” he explains.
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The more often you repeat this process, the more confident you become in “real” pitch situations, says Randolph. He recommends what is helpful in many situations in life: practice, practice, practice. Because a pitch is not just about numbers, as expert Maximilian Mayer knows, who explains what the perfect pitch deck looks like here.
“The best pitchers are constantly honing their game by watching people’s reactions. It’s a process every entertainer is familiar with. Even the most brilliant comedians spend countless hours in small clubs honing their jokes to create the perfect Netflix special,” explains Randolph.
He learned “that the hallmark of a great entrepreneur is not the brilliance of his ideas. It’s their ability to find quick, cheap, and easy ways to get those ideas validated by real people.” And maybe a little Starbucks investment can help with that.
