Lean Startup Essentials (Oct 2012)

At STARTup Live Bratislava 2012.

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Transcript

1. How to save time, money & headaches LUKAS FITTL @lfittl spark59.com LEAN STARTUP ESSENTIALS Lean Startup is trademarked by Eric Ries and used with permission. Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA.
2. About Me •Entrepreneur (USERcycle, Ef cient Cloud, Soup.io) •Member of Spark59 (Lean Canvas, Running Lean) •http://founderswiki.com/
3. So, how do we start a company?
6. This company failed after 1.5 years with 0 EUR revenue and 100k EUR investment. Long sales cycles, customers didn’t really care.
7. Lean Startup Essentials Failed Startup Launch RISK TIME BUILD BUILD BUILD
8. Lean Startup Essentials Lean Startup Launch RISK TIME Launch Launch Launch
9. What We’ll Do •1. What is Lean Startup? •2. Create our Lean Canvas •3. Talk about Customer Interviews
10. What is Lean Startup?
11. Lean Startup Essentials Focus •Presenting to Investors & Press •Make Something People Want
12. Lean Startup Essentials Focus •Presenting to Investors & Press •Make Something People Want
13. Lean Startup Essentials Based on the work by these folks & many others
14. Lean Startup Essentials Startup: Temporary organisation used to search for a repeatable and scalable business model. As de ned by Steve Blank.
15. Lean Startup Essentials WOW! It works! o o $$$
16. Lean Startup Essentials Years! $$$
17. Lean Startup Essentials Why am I doing this? o o Years! $$$
18. So, how can we avoid this?
19. Lean Startup Essentials Failed Startup Launch RISK TIME BUILD BUILD BUILD
20. “74% of high growth Internet startups fail due to premature scaling.” - Startup Genome Project
21. Examples: Overspend on customer acquisition Hire too many employees Focus too much on engineering Raise too much money too early
22. Lean Startup Essentials Lean Startup Launch RISK TIME Launch Launch Launch
23. Lean Startup Essentials “Build the best services over the long term by quickly releasing and learning from smaller iterations rather than trying to get everything right all at once.” The Hacker Way - Facebook’s S-1
24. Lean Startup Essentials Your Focus. What you do What you ignore
25. Lean Startup Essentials You’re focused on your Solution.
26. Lean Startup Essentials But: Who is your customer? How do you reach them? Why do they care?
27. Lean Startup Essentials Don’t ignore your Customers.
28. Lean Startup Essentials Find your Customers.
29. Lean Startup Essentials Focus on your Customers.
30. Lean Startup Essentials Exercise #1: Document Your Business Model #1: The Lean Canvas Lean Startup Essentials
31. Lean Startup Essentials The Business Model Canvas #1: The Lean Canvas Alex Osterwalder - Business Model Generation http://businessmodelgeneration.com
32. Lean Startup Essentials The Lean Canvas BM Canvas adjusted for early-stage #1: The Lean Canvas Ash Maurya - Running Lean http://book.runningleanhq.com
33. Lean Startup Essentials #1: The Lean Canvas PROBLEM SOLUTION UNIQUE VALUE PROPOSITION UNIQUE VALUE PROPOSITION UNFAIR ADVANTAGE CUSTOMER SEGMENTS PROBLEM KEY METRICS UNIQUE VALUE PROPOSITION UNIQUE VALUE PROPOSITION CHANNELS CUSTOMER SEGMENTS COST STRUCTURE COST STRUCTURE COST STRUCTURE REVENUE STREAMS REVENUE STREAMS REVENUE STREAMS EXISTING ALTERNATIVES EARLY ADOPTERS
34. Lean Startup Essentials
35. Lean Startup Essentials Example: CRM Software for Business Development
36. Lean Startup Essentials Customer Segments •Persona of your prototypical (early) customer •Narrow group of people that buy/ use your product •Marketing is easier if you have a narrow customer segment #1: The Lean Canvas Key Partners Key Activities Value Proposition Value Proposition Customer Relationships Customer Segments Key Partners Key Resources Value Proposition Value Proposition Channels Customer Segments Cost Structure Cost Structure Cost Structure Revenue Streams Revenue Streams Revenue Streams
37. Lean Startup Essentials Customer Segments #1: The Lean Canvas CRM Example: BizDev Department in Big Corporations
38. Lean Startup Essentials Customer Segments •Persona of your prototypical (early) customer •Narrow group of people that buy/ use your product •Marketing is easier if you have a narrow customer segment #1: The Lean Canvas Key Partners Key Activities Value Proposition Value Proposition Customer Relationships Customer Segments Key Partners Key Resources Value Proposition Value Proposition Channels Customer Segments Cost Structure Cost Structure Cost Structure Revenue Streams Revenue Streams Revenue Streams Your Turn!
39. Lean Startup Essentials Problem •What is the use case? •What are the problems the customer is trying to solve? •These might be things they’ve already started building in house, because there is an active need #1: The Lean Canvas Problem Key Activities Value Proposition Value Proposition Customer Relationships Customer Segments Problem Key Resources Value Proposition Value Proposition Channels Customer Segments Cost Structure Cost Structure Cost Structure Revenue Streams Revenue Streams Revenue Streams
40. Lean Startup Essentials Problem #1: The Lean Canvas CRM Example: 1. Getting Back In Touch With People 2. Identify Potential for Partnerships 3. Organising The Funnel
41. Lean Startup Essentials Problem •What is the use case? •What are the problems the customer is trying to solve? •These might be things they’ve already started building in house, because there is an active need #1: The Lean Canvas Problem Key Activities Value Proposition Value Proposition Customer Relationships Customer Segments Problem Key Resources Value Proposition Value Proposition Channels Customer Segments Cost Structure Cost Structure Cost Structure Revenue Streams Revenue Streams Revenue Streams Your Turn!
42. Lean Startup Essentials Solution •Whats the Minimum viable product (MVP) ? •Minimal set of functionality to solve each problem of the customer #1: The Lean Canvas Key Partners Key Activities Value Proposition Value Proposition Customer Relationships Customer Segments Key Partners Key Resources Value Proposition Value Proposition Channels Customer Segments Cost Structure Cost Structure Cost Structure Revenue Streams Revenue Streams Revenue Streams
43. Lean Startup Essentials Solution #1: The Lean Canvas CRM Example: Online CRM that is tightly integrated into Email and LinkedIn “Get-back-in-touch” list
44. Lean Startup Essentials Solution •Whats the Minimum viable product (MVP) ? •Minimal set of functionality to solve each problem of the customer #1: The Lean Canvas Key Partners Key Activities Value Proposition Value Proposition Customer Relationships Customer Segments Key Partners Key Resources Value Proposition Value Proposition Channels Customer Segments Cost Structure Cost Structure Cost Structure Revenue Streams Revenue Streams Revenue Streams Your Turn!
45. Lean Startup Essentials Channels •How does the customer learn about your product? •B2B and B2C vastly different! •SEM, SEO, Friend Invites, Social Media, Direct Sales, Tradeshows, PR, Content Marketing, etc. #1: The Lean Canvas Key Partners Key Activities Value Proposition Value Proposition Customer Relationships Customer Segments Key Partners Key Resources Value Proposition Value Proposition Channels Customer Segments Cost Structure Cost Structure Cost Structure Revenue Streams Revenue Streams Revenue Streams
46. Lean Startup Essentials #1: The Lean Canvas CRM Example: Content Marketing Partnerships Af liate Marketing Channels
47. Lean Startup Essentials Channels •How does the customer learn about your product? •B2B and B2C vastly different! •SEM, SEO, Friend Invites, Social Media, Direct Sales, Tradeshows, PR, Content Marketing, etc. #1: The Lean Canvas Key Partners Key Activities Value Proposition Value Proposition Customer Relationships Customer Segments Key Partners Key Resources Value Proposition Value Proposition Channels Customer Segments Cost Structure Cost Structure Cost Structure Revenue Streams Revenue Streams Revenue Streams Your Turn!
48. Lean Startup Essentials Revenue Streams •How much is the problem worth to the customer? •Not how much it costs you to implement the solution •Avoid Free and Freemium Its just a marketing tactic! #1: The Lean Canvas Key Partners Key Activities Value Proposition Value Proposition Customer Relationships Customer Segments Key Partners Key Resources Value Proposition Value Proposition Channels Customer Segments Cost Structure Cost Structure Cost Structure Revenue Streams Revenue Streams Revenue Streams
49. Lean Startup Essentials #1: The Lean Canvas CRM Example: Subscription: $29/month per user Revenue Streams
50. Lean Startup Essentials Revenue Streams •How much is the problem worth to the customer? •Not how much it costs you to implement the solution •Avoid Free and Freemium Its just a marketing tactic! #1: The Lean Canvas Key Partners Key Activities Value Proposition Value Proposition Customer Relationships Customer Segments Key Partners Key Resources Value Proposition Value Proposition Channels Customer Segments Cost Structure Cost Structure Cost Structure Revenue Streams Revenue Streams Revenue Streams Your Turn!
51. Lean Startup Essentials This document is alive and easy to update (not like your rusty old business plan) #1: The Lean Canvas
52. [ break ]
53. How can we work on our business model?
54. Team Discussions
55. Team Discussions
56. Team Discussions Collaboration
57. Experts & Mentors
58. Prototypes & Mockups
59. Customers!
60. Customer Interviews!
61. Imagine you want to build: Mobile app that helps you find a good nightclub
62. 3min Problem Interview • What kind of customer? (youngster, folks in their 20/30s, etc) • How often to you go to a club? • Do you have your favourite club, or do you look for a place with good DJs on that night? • Do you care about entrance fee?
63. 3min Solution Interview • We offer you a curated list of nightclubs each day • You get 1 drink free / discounts • App costs 0.99EUR •Would you buy this app?
64. Take Notes Using Index Cards
65. Price changes the conversation
66. Summary
67. Don’t ask yourself "Could this startup work?"
68. Ask: "Who is my customer?" “What are they trying to do?” “How can they nd us?”
69. Your task this weekend: Find better answers to these questions.
73. Questions? Email me at lukas@spark59.com anytime!