Lean startup meetup
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This document summarizes the lean startup methodology for developing and testing new business ideas. It outlines 13 steps: 1) Determine if there is a problem worth solving, 2) Identify who has the problem, 3) Find where those people are, 4) Probe how they respond, 5) Determine if they are desperate for a solution, 6) Make useful connections, 7) Build and test an MVP, 8) Achieve product-market fit, 9) Measure qualitatively and quantitatively, 10) Learn validated lessons, 11) Improve based on learning, 12) Beware of vanity metrics, 13) Pivot or persevere. It encourages entrepreneurs to build, measure, and learn continuously and advises several types
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Lean startup meetup
- 2. Meetup Group • Kochi Lean Start-up Meetup Group • Founded Dec 15, 2014 • 150+ Members
- 3. How long did it take for you to find your start up idea?
- 4. How long did it take to ship the first release of your product?
- 5. How long did it take to acquire your first user?
- 6. How long did it take to acquire 100 users?
- 7. How long did it take to realize that your users are NOT willing to pay for your product?
- 8. How long did it take to stop working on your original idea and to move on ?
- 9. Problem with Ideas? o Ideas are cheap; acting on them is really expensive and consume time. o Entrepreneurs act on idea.
- 10. Most Products Fail ! o 66% changed their original plan o How to find the best plan that works? before running out of resources
- 11. Step 1: Wait ! Do I have a problem worth solving?
- 12. Step 2: Who ? Who’s problem is it anyway?
- 13. Step 3: Where ? Where exactly do I find them?
- 14. Step 4: Probe ! How do they Respond?
- 15. Step 5: Harder ! Are they desperate?
- 16. Step 6: Connect ! Make some good connects
- 17. Step 7: Convinced? BUILD an MVP, Quickly !
- 19. Step 8: Product-Market Fit Have I built something that people really want?
- 20. Step 9: Measure ! o Qualitative o Quantitative
- 21. Step 10: Learn! Validated learning-a rigorous method for demonstrating progress when one is embedded in the soil of extreme uncertainty.
- 22. Step 11: Improve ! o Improve the product so that customers can realize the value proposition o Use experiments to test the hypothesis that will improve the metric
- 23. Step 12: Watch Out! o Beware of Vanity Metric ! o Tools: Cohort Analysis, A/B testing
- 24. Are you converging to that ideal metric on your business plan?
- 25. Step 13: Pivot or Persevere?
- 26. Types of Pivots • Zoom-in pivot: what previously was considered a single feature in a product becomes the whole product. • Zoom-out pivot: what was considered the whole product becomes a single feature of a much larger product. • Customer segment pivot: product solves a real problem, but needs to be positioned for a more appreciative segment • Customer need pivot: same customer segment, different problem • Platform pivot: change from an application to a platform, or vice versa. • Business architecture pivot: high margin, low volume, or low margin, high volume • Engine of growth pivot: Viral, Sticky, Paid • Technology pivot, Engine of growth pivot, Value capture pivot
- 27. Finally: Adapt & Grow
- 28. Principles of Lean Start-up • Entrepreneurs are everywhere • Entrepreneurship is Management • Validated Learning • Innovation Accounting • Build-Measure-Learn
- 31. What’s next? • Get the book • http://theleanstartup.com/ • http://www.leanstartupcircle.com/ • http://www.startuplessonslearned.com/ • Follow on Twitter: @leancircle @leanstartup @ericries
- 32. T h a n k Y o u !
Notas do Editor
- Look for places Early Adopters hang out Get out of the building
- Throw some bone. Are they reacting?
- Can your solution make them die for it?
- Talk to those desperate ones in person; what do they like about your idea? What do they love changed?
- Worried someone will steal your Startup Idea?
- Talk to those desperate ones in person; what do they like about your idea? What do they love changed?
- Once entrepreneurs embrace validated learning, the development process can shrink substantially. When you focus on figuring the right thing to build-the thing customers want and will pay for-you need not spend months waiting for a product beta launch to change the company's direction. Instead, entrepreneurs can adapt their plans incrementally, inch by inch, minute by minute.
- Talk to those desperate ones in person; what do they like about your idea? What do they love changed?
- Vanity metrics devolve into what Ries calls “success theater” which is the action of “making people think that you are being successful rather than energy you could put into serving customers.”
- Business architecture pivot. Geoffrey Moore, many years ago, observed that there are two major business architectures: high margin, low volume (complex systems model), or low margin, high volume (volume operations model). You can’t do both at the same time. Value capture pivot. This refers to the monetization or revenue model. Changes to the way a startup captures value can have far-reaching consequences for business, product, and marketing strategies. The “free” model doesn’t capture much value.
- You don’t have to work in a garage to be a startup. Definition: a human institution designed to create new products or services under conditions of extreme uncertainty Startup is an in institution, not just a product, so it requires special management technique geared to the context of extreme uncertainity Startup exists not just to make stuff, make money or even serve customers. They exist to learn how to build a sustainable business. Learning can be validated scientifically by running frequent experiments that allow enterprenerous to test each element of their vision Build-measure-learn: fundamental activity of a startup is to turn ideas into products, measure how customers respond and then learn whether to pivot or persevere. How to accelerate that feedback loop Innovation Accounting: To improve entrepreneurial outcome and hold innovators accountable, we need to focus on the boring stuff; how to measure progress, how to setup milestones and how to prioritize work.