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Software startups often make assumptions about the problems and customers they are addressing as well as the market and the solutions they are developing. Testing the right assumptions early is a means to mitigate risks. Approaches such as Lean Startup foster this kind of testing by applying experimentation as part of a constant build-measure-learn feedback loop. The existing research on how software startups approach experimentation is very limited. In this study, we focus on understanding how software startups approach experimentation and identify challenges and advantages with respect to conducting experiments. To achieve this, we conducted a qualitative interview study. The initial results show that startups often spent a disproportionate amount of time focusing on creating solutions without testing critical assumptions. Main reasons are the lack of awareness, that these assumptions can be tested early and a lack of knowledge and support on how to identify, prioritize and test these assumptions. However, startups understand the need for testing risky assumptions and are open to conducting experiments.
Early reduction of risks in a startup or an innovation project is highly important. Appropriate means for risk reduction, such as testing business models with different kinds of experiments exist. However, deciding what to test and how to select the right test, is challenging for many startups and innovation projects. This article presents the so-called Business Experiments Navigator (BEN), a toolkit to assist startup and innovation processes. It compliments other tools such as the Business Model Canvas or the Lean Startup process. The main contribution of BEN is to bridge the gap between the riskiest assumptions of a business model and the multitude of available testing techniques by providing assumption templates. The Business Experiments Navigator has been validated in several workshops. Results show that it creates awareness among the workshop participants that a business model is based on assumptions which impose risks and need to be validated. Further, users of BEN were able to identify relevant assumptions and map different kinds of assumptions to appropriate testing techniques. The process applied in the workshops, as well as the assumption templates, helped the participants understand the main concepts and transfer their learnings, to their own business ideas.