Download - "Lunch 'n Learn" Deck on "The Lean Startup"
INTRO TO THE LEAN STARTUPLUNCH & LEA(R)N - DEC 2015
WHY DO I CARE?
I’M A 3X “WANT-TREPRENEUR”.
▸ 2007: Online Social Language Learning! #fail
▸ 2008-2010: Emotive Social Profiles! #fail!
▸ 2012-?: Dance Online! (fail date TBD)
FOX INTERACTIVE MEDIA - 2006
QUIT GOOD JOB, 9 MONTHS SPAM & RICE, $$$$ FAMILY LOAN THAT I’M STILL PAYING BACK
2 YEARS DEV OUTSIDE DAY JOB, ALMOST LOST FUTURE WIFE
3 MONTHS DEV, $$ AD SPEND
LEARNED SOME THINGS!
WHAT HAPPENED?
REDUCED WASTE & EMPHASIZED LEARNING
I READ THIS BOOK
5 PRINCIPLESWHAT IS THE LEAN STARTUP?
PRINCIPLE #1: ENTREPRENEURS ARE EVERYWHERE.
Eric Ries
LEAN PRINCIPLE #1: ENTREPRENEURS ARE EVERYWHERE.
A STARTUP: A HUMAN INSTITUTION DESIGNED TO CREATE NEW PRODUCTS AND SERVICES UNDER CONDITIONS OF EXTREME UNCERTAINTY.
Eric Ries
LEAN PRINCIPLE #1: ENTREPRENEURS ARE EVERYWHERE.
I THINK WE’RE A STARTUP.
Me
LEAN PRINCIPLE #1: ENTREPRENEURS ARE EVERYWHERE.
PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
Eric Ries
LEAN PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
A STARTUP IS AN INSTITUTION, NOT JUST A PRODUCT, AND SO IT REQUIRES A NEW KIND OF MANAGEMENT SPECIFICALLY GEARED TO ITS CONTEXT OF EXTREME UNCERTAINTY.
Eric Ries
LEAN PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
BECAUSE STARTUPS OFTEN ACCIDENTALLY BUILD SOMETHING NOBODY WANTS, IT DOESN’T MATTER MUCH IF THEY DO IT ON TIME AND ON BUDGET.
Eric Ries
LEAN PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
THE GOAL OF A STARTUP IS TO FIGURE OUT THE RIGHT THING TO BUILD— THE THING CUSTOMERS WANT AND WILL PAY (OR SIT THROUGH ADS) FOR— AS QUICKLY AS POSSIBLE.
Eric Ries
LEAN PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
GIVEN OUR COMPETITIVE MARKET AND LEAN TEAM, I FEEL THE IDEAS WE IMPLEMENT SHOULD BE MANAGED LIKE STARTUPS TO ACHIEVE MEASURABLE RESULTS AS QUICKLY AND EFFICIENTLY AS POSSIBLE.
LEAN PRINCIPLE #2: ENTREPRENEURSHIP IS MANAGEMENT.
PRINCIPLE #3: VALIDATED LEARNING.
Eric Ries
LEAN PRINCIPLE #3: VALIDATED LEARNING.
STARTUPS EXIST TO LEARN HOW TO BUILD A SUSTAINABLE BUSINESS.
Eric Ries
LEAN PRINCIPLE #3: VALIDATED LEARNING.
THIS LEARNING CAN BE VALIDATED SCIENTIFICALLY BY RUNNING FREQUENT EXPERIMENTS THAT ALLOW ENTREPRENEURS TO TEST EACH ELEMENT OF THEIR VISION.
Eric Ries
LEAN PRINCIPLE #3: VALIDATED LEARNING.
PRINCIPLE #4: BUILD-MEASURE-LEARN.
Eric Ries
LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN.
THE FUNDAMENTAL ACTIVITY OF A STARTUP IS TO TURN IDEAS INTO PRODUCTS, MEASURE HOW CUSTOMERS RESPOND, AND THEN LEARN WHETHER TO PIVOT OR PERSEVERE.
Eric Ries
LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN.
ALL SUCCESSFUL STARTUP PROCESSES SHOULD BE GEARED TO ACCELERATE THAT FEEDBACK LOOP.
LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN.
Eric Ries
LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN.
THE LEAN WAY TO BUILD-MEASURE-LEARN
▸ Take your great idea (“Vision”) and identify its Leap-of-Faith assumptions. Identify the riskiest assumption.
▸ Devise the smallest thing you can build in order to test that assumption (“MVP”).
▸ Release MVP and measure user engagement.
▸ Learn from the data whether your assumption was validated.
▸ If so, great! Build and test the next assumption of your Vision.
▸ If not, decide whether to change your idea/strategy (“pivot”) or persevere.
THE LEAN STARTUP METHOD BUILDS CAPITAL-EFFICIENT COMPANIES BECAUSE IT ALLOWS STARTUPS TO RECOGNIZE IT’S TIME TO PIVOT SOONER, CREATING LESS WASTE OF TIME AND MONEY.
LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN.
Eric Ries
WHAT IDEAS CAN YOU THINK OF THAT COULD BE APPROACHED IN A “LEAN” WAY?
LEAN PRINCIPLE #4: BUILD-MEASURE-LEARN.
PRINCIPLE #5: INNOVATION ACCOUNTING.
Eric Ries
LEAN PRINCIPLE #5: INNOVATION ACCOUNTING.
TO IMPROVE ENTREPRENEURIAL OUTCOMES AND HOLD INNOVATORS ACCOUNTABLE, WE NEED TO FOCUS ON THE BORING STUFF: HOW TO MEASURE PROGRESS, HOW TO SET UP MILESTONES, AND HOW TO PRIORITIZE WORK.
Eric Ries
LEAN PRINCIPLE #5: INNOVATION ACCOUNTING.
LEAN PRINCIPLE #5: INNOVATION ACCOUNTING.
ACCOUNT FOR INNOVATION WITH 3 LEARNING MILESTONES
▸ Learning Milestone #1: Choose your Engine of Growth and baseline its key metrics.
▸ “Sticky” Growth Engine: Growth = (User Acq Rate >> Churn Rate)
▸ “Viral” Growth Engine: Growth = (Viral Coefficient > 1.0)
▸ “Paid” Growth Engine: Growth = (Rev per User >> User Acq Cost)
▸ Learning Milestone #2: Tune your engine with MVPs that actually drive its metrics.
▸ Learning Milestone #3: Over time, see if your numbers are trending towards Growth — If not, decide whether to Pivot or Persevere!
WHAT DO YOU THINK?THANKS FOR LISTENING!