Tweet
Tweet

Slide 1

Slide 1 text

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.

Slide 2

Slide 2 text

About Me •Entrepreneur (USERcycle, Ef cient Cloud, Soup.io) •Member of Spark59 (Lean Canvas, Running Lean) •http://founderswiki.com/

Slide 3

Slide 3 text

What We’ll Do •What is Lean Startup? •Create our Lean Canvas •How can we test assumptions? •MVP Case Studies •De ne our First Experiment

Slide 4

Slide 4 text

So, how do we start a company?

Slide 5

Slide 5 text

No content

Slide 6

Slide 6 text

No content

Slide 7

Slide 7 text

Lean Startup Essentials Failed Startup Launch RISK TIME BUILD BUILD BUILD

Slide 8

Slide 8 text

Lean Startup Essentials Lean Startup Launch RISK TIME Launch Launch Launch

Slide 9

Slide 9 text

What is Lean Startup?

Slide 10

Slide 10 text

Lean Startup Essentials Focus •Presenting to Investors & Press •Make Something People Want

Slide 11

Slide 11 text

Lean Startup Essentials Focus •Presenting to Investors & Press •Make Something People Want

Slide 12

Slide 12 text

Lean Startup Essentials Based on the work by these folks & many others

Slide 13

Slide 13 text

Lean Startup Essentials Startup: Temporary organisation used to search for a repeatable and scalable business model. As de ned by Steve Blank.

Slide 14

Slide 14 text

Lean Startup Essentials WOW! It works! o o $$$

Slide 15

Slide 15 text

Lean Startup Essentials Years! $$$

Slide 16

Slide 16 text

Lean Startup Essentials Why am I doing this? o o Years! $$$

Slide 17

Slide 17 text

“The most consistent predictor of failure was startups engaging in premature scaling.” - Startup Genome Project

Slide 18

Slide 18 text

“74% of high growth Internet startups fail due to premature scaling.” - Startup Genome Project

Slide 19

Slide 19 text

Examples: Overspend on customer acquisition Hire too many employees Focus too much on engineering Raise too much money too early

Slide 20

Slide 20 text

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

Slide 21

Slide 21 text

So, how do we do that?

Slide 22

Slide 22 text

Lean Startup Essentials Your Focus. What you do What you ignore

Slide 23

Slide 23 text

Lean Startup Essentials You’re focused on your Solution.

Slide 24

Slide 24 text

Lean Startup Essentials But: Who is your customer? How do you reach them? Why do they care?

Slide 25

Slide 25 text

Lean Startup Essentials Don’t ignore your Customers.

Slide 26

Slide 26 text

Lean Startup Essentials Find your Customers.

Slide 27

Slide 27 text

Lean Startup Essentials Focus on your Customers.

Slide 28

Slide 28 text

Lean Startup Essentials Understand Your Business Model #1: The Lean Canvas Lean Startup Essentials

Slide 29

Slide 29 text

Lean Startup Essentials The Business Model Canvas #1: The Lean Canvas Alex Osterwalder - Business Model Generation http://businessmodelgeneration.com

Slide 30

Slide 30 text

Lean Startup Essentials The Lean Canvas BM Canvas adjusted for early-stage #1: The Lean Canvas Ash Maurya - Running Lean http://book.runningleanhq.com

Slide 31

Slide 31 text

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

Slide 32

Slide 32 text

Lean Startup Essentials

Slide 33

Slide 33 text

Lean Startup Essentials Example: CRM Software for Business Development

Slide 34

Slide 34 text

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

Slide 35

Slide 35 text

Lean Startup Essentials Customer Segments #1: The Lean Canvas CRM Example: BizDev People in BigCorp

Slide 36

Slide 36 text

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!

Slide 37

Slide 37 text

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

Slide 38

Slide 38 text

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

Slide 39

Slide 39 text

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!

Slide 40

Slide 40 text

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

Slide 41

Slide 41 text

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

Slide 42

Slide 42 text

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!

Slide 43

Slide 43 text

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

Slide 44

Slide 44 text

Lean Startup Essentials #1: The Lean Canvas CRM Example: Content Marketing Partnerships Af liate Marketing Channels

Slide 45

Slide 45 text

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!

Slide 46

Slide 46 text

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

Slide 47

Slide 47 text

Lean Startup Essentials #1: The Lean Canvas CRM Example: Subscription: $29/month per user Revenue Streams

Slide 48

Slide 48 text

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!

Slide 49

Slide 49 text

Lean Startup Essentials This document is alive and easy to update (not like your rusty old business plan) #1: The Lean Canvas

Slide 50

Slide 50 text

Questions?

Slide 51

Slide 51 text

What is an Experiment?

Slide 52

Slide 52 text

Lean Startup Essentials Build-Measure-Learn #2: Run Experiments IDEAS PRODUCT DATA MEASURE BUILD LEARN Experiment

Slide 53

Slide 53 text

Lean Startup Essentials IDEAS PRODUCT DATA MEASURE BUILD LEARN Launch = First iteration #2: Run Experiments

Slide 54

Slide 54 text

Lean Startup Essentials Speed of iteration beats Quality of iteration #2: Run Experiments

Slide 55

Slide 55 text

Lean Startup Essentials How can you experiment faster? #2: Run Experiments

Slide 56

Slide 56 text

Lean Startup Essentials Instead of “Will it work?” ask “Do customers care?” #2: Run Experiments

Slide 57

Slide 57 text

Lean Startup Essentials IDEAS PRODUCT DATA MEASURE BUILD LEARN Feature-complete Product Customer Interviews Teaser Pages Concierge MVP Wizard of Oz MVP Ask Smaller Questions

Slide 58

Slide 58 text

Lean Startup Essentials Reduce Scope to Learn Faster.

Slide 59

Slide 59 text

Lean Startup Essentials Examples of Experiments

Slide 60

Slide 60 text

Understand Problem: Explorative Customer Interviews De ne Solution: User Testing With Prototypes Validate Qualitatively: Release MVP and hand-collect feedback 10s to 100s of customers Verify Quantitatively: Partial Rollout or Split Test and measure improvement 100s to 10,000s of customers

Slide 61

Slide 61 text

Lean Startup Essentials Customer Interviews 30 minutes in-person with your prototypical customer People like talking about their eld - explore their worldview. #2: Run Experiments

Slide 62

Slide 62 text

Lean Startup Essentials Send Targeted Traf c To Teaser Page with “Signup to be noti ed when we launch” “Can we call you to ask a couple of Qs?” Lean Startup Essentials #2: Run Experiments

Slide 63

Slide 63 text

Blog post Teaser Page

Slide 64

Slide 64 text

Lean Startup Essentials MVP: Minimum Viable Product #2: Run Experiments

Slide 65

Slide 65 text

Lean Startup Essentials Idealab’s CarsDirect #2: Run Experiments Wizard of Oz MVP

Slide 66

Slide 66 text

Lean Startup Essentials mjam.at #2: Run Experiments Concierge MVP

Slide 67

Slide 67 text

Lean Startup Essentials Or: Setup a Live Usability Lab http://ux.red-gate.com/running-a-live-lab-at-a-tradeshow

Slide 68

Slide 68 text

Lets De ne an Experiment!

Slide 69

Slide 69 text

Lean Startup Essentials Formulate our hypothesis (= write down assumptions)

Slide 70

Slide 70 text

No content

Slide 71

Slide 71 text

Results Validated Learning Experiment Scope Minimum Build Learning Goal Falsi able Hypotheses LEARN BUILD MEASURE

Slide 72

Slide 72 text

Learning Goal What are you trying to learn or achieve?

Slide 73

Slide 73 text

CRM Example: Test our Solution with a mockup, and get people to commit to buy with a letter of intent

Slide 74

Slide 74 text

Learning Goal What are you trying to learn or achieve? Your Turn!

Slide 75

Slide 75 text

Experiment Scope How many and/or how long will the experiment last?

Slide 76

Slide 76 text

CRM Example: End the experiment after 20 conversations or 4 weeks

Slide 77

Slide 77 text

Experiment Scope How many and/or how long will the experiment last? Your Turn!

Slide 78

Slide 78 text

Minimum Build Plan List the build plan step by step to get your measurement and experiment.

Slide 79

Slide 79 text

CRM Example: 1. Create Quick Mockups 2. Setup Invitation Form 3. Create Letter of Intent 4. Email People

Slide 80

Slide 80 text

Minimum Build Plan List the build plan step by step to get your measurement and experiment. Your Turn!

Slide 81

Slide 81 text

Falsi able Hypothesis [Speci c Repeatable Action] will [Expected Measurable Outcome]

Slide 82

Slide 82 text

CRM Example: Emailing Our Network will result in 20 conversations Our conversations will lead to 5 signed letter-of-intents (on the spot)

Slide 83

Slide 83 text

Falsi able Hypothesis [Speci c Repeatable Action] will [Expected Measurable Outcome] Your Turn!

Slide 84

Slide 84 text

Results Enter the data.

Slide 85

Slide 85 text

CRM Example: Setup 15 conversations within timeframe Got 1 commitment (LOI), people liked it, but hard to reach actual BizDev people

Slide 86

Slide 86 text

Validated Learning Summarise your Learning & Validate/Invalidate.

Slide 87

Slide 87 text

CRM Example: INCONCLUSIVE We didn’t get enough commitments, we should do a shorter cycle with fresh mockups.

Slide 88

Slide 88 text

Questions?

Slide 89

Slide 89 text

Questions? Email me at [email protected] anytime!