Presentation slides for a talk given by Robert Love at WeTeachSydney: Startup and Business Speed Teaching at Fishburners, Ultimo on Thursday 17 May 2012. http://weteachme.com/gala/sydney

1. Lean Startup Methodology
Robert Love

4. What is "Lean"?
● Takes its name from "Lean Manufacturing"
● Toyota Production System (TPS)
● Preserving value with less work
● Value is defined as any action or process
that a customer would be willing to pay for

5. What's a "Startup"?
A human institution designed to create new
products and services under conditions of
extreme uncertainty.

6. The five principles:
1. Entrepreneurs are everywhere
2. Entrepreneurship is management
3. Validated learning
4. Innovation accounting
5. Build-Measure-Learn

7. Entrepreneurs are everywhere
● You don't have to work in a garage to be in a
startup
● All industries
● All sectors

8. Entrepreneurship is management
● A startup is an institution, not just a product
● Requires management
● A new kind of management specifically
geared to its context of extreme uncertainty

9. Validated learning
● Startups exist not to make stuff, make
money, or serve customers
● They exist to learn how to build a
sustainable business
● This learning can be validated
scientifically, by running experiments that
allow us to test each element of our vision

10. Innovation accounting
● Improve entrepreneurial outcomes
● Hold entrepreneurs accountable
● Focus on the boring stuff:
○ How to measure progress
○ How to setup milestones
○ How to prioritize work
● This requires a new kind of accounting
specific to startups

11. Build-Measure-Learn
● The fundamental activity of a startup is to:
○ Turn ideas into products
○ Measure how customers respond
○ Learn whether to pivot or persevere
● All successful startup processes should be
geared to accelerate that feedback loop

13. "Founders that learn
are more successful"

14. "Startups that pivot
once or twice raise 2.5x
the money"

15. http://getlisted.me/

16. Problem
It's hard to determine the best person for a job
(both ways).

17. Solution
If we could create a list of the best people for a
given profession...
● Employers could find the best people
● The best people could land jobs perfectly
matched to their skills

18. Smoke test
● What can we test before we build anything?
● What can we do before we have to build?
● How can we find out if anyone finds this list
valuable enough to pay for it?

21. Experiment #1: Hypothesis
Recruiters will pay for a list of top talent in a
profession.

22. Experiment #1: Method
Create a list of 50 fake software engineers and
sell it to 25 recruiters for $200 each.

24. Experiment #1: Results
No lists were sold.

25. Experiment #1: Learnings
● Recruiters didn't see the value in the list
● Felt that's what their job was
● "Why would we just pay for a list"
● Felt threatened
● (and so they should - after all - we are trying
to disrupt them!)

26. Pivot or Persevere?

27. Pivot!

28. Experiment #2: Hypothesis
In order to avoid expensive recruiter fees,
businesses will pay for a list of top talent in a
profession.

29. Experiment #2: Method
Take our list of 50 fake software engineers and
sell it to 25 businesses for $200 each.

30. Experiment #2: Results
No lists were sold.

31. Experiment #2: Learnings
● Don't offer a flat list
● Offer a service where users create lists from
people in their own networks (Facebook and
LinkedIn)
● We'll be growing the network of GetListed
users without having to do the initial service
● Requires strong viral coefficient (V-Co) to
maintain sustainable growth

32. Pivot or Persevere?

33. Pivot!

34. Experiment #3: Hypothesis
1. A user creates a list
2. Listees are notified via Facebook wall post
or LinkedIn message that they have been
added to a list
3. Listees sign up to GetListed and become
users
4. Rinse and Repeat
5. V-Co of 1+ will be achieved

35. Experiment #3: Method
Build and Measure the following:
1. Spread of the network
New members / lists created
2. Conversion
New members signed up / new members added
3. Cycle
Signups who created a list
4. Returning users
Existing signed in users / existing base users

38. Experiment #3: Results
● 509 listees
● 157 sign-ups
● 0.31 V-Co

39. Pivot or Persevere?

40. Persevere!

41. Next steps...
Achieve a V-Co of 1+ by connecting via email and
experimenting with different messaging.
● Hey Bosco - Michael just joined GetListed - why not add
him to a list?
● Hey Bosco - Michael added you to X list - why not list
him back?
● Hey Bosco - Phil added Michael to X list - why don't you
list him?

42. Thanks
● robert@pollenizer.com
● http://au.linkedin.com/in/robertlove