i realize lean startup hack-nov2010
TRANSCRIPT
LEAN STARTUP AT THE GATE
17-11-2010
Map And the winner is...
Customer Development
Lean Startup
Map And the winner is...
Customer Development
Lean Startup
Nessuna vita è rovinata tranne quella la cui crescita si è arrestata
Oscar Wilde
Felix qui nihil debetProverbio latino
Source: Wikipedia through CIA’ s World Factbook 2010
And the winner is...
GROWTH
in particular...
Job Growth in U.S. Driven Entirely by Startups, According to Kauffman Foundation Study
The importance of Startups in Job Creation and Job Destructionwww.kauffman.org
GROWTH through STARTUPS
A startup is......a human institution designed to deliver a new product or service under conditions of extreme
uncertaintySource: Eric Ries
www.startuplessonslearned.com
and...
...an organization formed to search for a repeatable and scalable business model.
Source: Steve Blankhttp://steveblank.com
Startup
Scalable
Big Business
>100M$VC*
NotScalable
Small Business
<10M$No VC*
*Venture Capital
Investment Web based Start-ups
Semiconductors, Pharma, etc.
20K!
1M!
-
+
Barriers to entry 100 10
-
Same Risk? Same ROI?
Trends...
Investment Web based Start-ups
Semiconductors, Pharma, etc.
20K!
1M!
-
+
Barriers to entry 100 10
-
Same Risk? Same ROI?
Trends...
...but too many fail!!
...most startups fail from a lack of
customers than from a failure of product
development...
Source: Steve Blank - http://steveblank.com/
Map And the winner is...
Customer Development
Lean Startup
Source: Steve Blank - http://steveblank.com/
FROM...
Concept/ Bus. Plan
Product Dev.
Alpha/Beta Test
Launch/ 1st Ship
PRODUCT DEVELOPMENT
TO...
Company Building
Customer Discovery
Customer Validation
Customer Creation
CUSTOMER DEVELOPMENT
Product/Market FIT
PIVOT
Customer development is a 4 step framework to:
Discover and validate the market for your product,
build product features that solve customer's needs,
test the correct method for acquiring and converting customers,
deploy the right resources to scale the business.
During your customer
development process
DO NOT FORGET:
1) Discover your MARKET TYPE
If you are introducing a new product you can choose:to enter an existing market
to introduce a new product into a new market
to re-segment an existing market
1) Discover your MARKET TYPE
If you are introducing a new product you can choose:to enter an existing market
to introduce a new product into a new market
to re-segment an existing market
requires millions of
marketing dollars
1) Discover your MARKET TYPE
If you are introducing a new product you can choose:to enter an existing market
to introduce a new product into a new market
to re-segment an existing market
Even if you think that you
are launching
a new product into a new market, most
likely you are re-segm
enting a market
requires millions of
marketing dollars
SEGMENTATION - the practice of breaking down a large market into a smaller groups of users who share specific needs/interests and who reference each others.
Segmentation allows you to:
learn faster about market fit,find an unoccupied segment,become market leader, focus existing resources.
2) Pay attention to SEGMENTATION
3) Try to find your EARLY ADOPTERS...
They are important because:
they seek out a new technology to solve their real problems,they want you to be successful,they enjoy opportunities that allow them to be heroes.
EARLY ADOPTERS -passionate, early users of new technology or products who understand its value before mainstream market.
Source: E. M. Rogers - “Diffusion of Innovation”
4) Hack your business model
4) Hack your business model
Alexander Osterwalder Business model tool
www.alexosterwalder.com
Map And the winner is...
Customer Development
Lean Startup
Source: Eric Ries - www.startuplessonslearned.com
LEAN STARTUP
Product Development at Lean StartupUnit of Progress: Validated Learning About Customers ($$$)
Problem: unknown
Solution: unknown
Customer Development
Hypotheses,Experiments,Insights
Data,Feedback,
Insights
A s t ar t u p w h i c h comb i n e s i t e r at i v e development methodologies with customer development
Validate your core hypothesis CustomerProblemSolution
By Developing the MVPBy Pivoting
The process
Validate your core hypothesis CustomerProblemSolution
By Developing the MVPBy Pivoting
The process
Achieve Product/Market
Fit
Validate your core hypothesis CustomerProblemSolution
By Developing the MVPBy Pivoting
The process
Produce a development and marketing roadmap for SCALING
Achieve Product/Market
Fit
C.P.S. - Customer Problem Solution
You must understand and describe the problem you are solving from the customers perspective.
Useful questions:who has the problem ?what problem are you trying to solve ?How are you solving the problem ?How is the person dealing with the problem now ?How is your solution better ?Witch benefits does the user get by using your solution ?
C.P.S. - Customer Problem Solution
Write specific assumptions. It is better to be wrong than vague. if you are wrong you iterate. If you are vague you have wasted your time.
A product with the fewest number of features needed to achieve a specific objective and that people are willing to pay for (or they are very disappointed without this product).
MVP Minimum Viable Product
Pivot means to change an element in your customer-problem-solution hypothesis or business model BUT DON'T ABANDON WHAT YOU'VE LEARNED (AND YOUR CORE ASSETS).
The sooner you realize an HP is wrong THE FASTER YOU CAN UPDATE IT.
PIVOT
Are you on the right way ???
Business plan and market report will show you the way
Are you on the right way ???
Business plan and market report will show you the way
Are you on the right way ???
Metrics will show you the way...
Business plan and market report will show you the way
“Our” favorite set of metrics
METRICS DESIRED RESPONSE from users
Acquisition clicks links Activation download/play
Retention signup
Revenue personalized easy purchased
Referral mentions
“Our” favorite set of metrics
METRICS DESIRED RESPONSE from users
Acquisition clicks links Activation download/play
Retention signup
Revenue personalized easy purchased
Referral mentions
Dave McClureStartup Metrics
for Pirates
Requires 3 criteria be satisfied:
1. the customer is willing to pay for the product,
2. the cost of acquiring a new customer is less then what they pay for the product,
3. there is sufficient evidence indicating the market is large enough to support the business.
ALL BUSINESS MUST HAVE A PRODUCT MARKET FIT MILESTONE
PRODUCT/MARKET FIT
Finally you have to scale...MVP
ProductMarket
Fit
from sta
rtup t
o large
compan
y(Startups don't last forever)
VC Boost
Focus on:positioningcustomer acquisitionhiringmarketing
Finally you have to scale...MVP
ProductMarket
Fit
from sta
rtup t
o large
compan
y(Startups don't last forever)
VC Boost
Focus on:positioningcustomer acquisitionhiringmarketing
Lean Startup:IS NOT about spending/raising less money, IT IS about spending/raising money more efficiently
IS NOT just for web / tech startups, IT IS for any company working on innovation
IS NOT about replacing vision with feedback/data, IT IS about making sure you have the right vision
Lean Startup encourage to be honest with yourself !!!
Myths about Lean Startup
THAN
KS
www.top-ix.orgwww.irealize.eu
@top_ix@i_realize