Lean Startup Machine - These are the slides I used for the LeanStartupMachine module on Customer Development held in Rome's first edition, in May 2014 at the EnLabs accelerator. My gurus are Steve Blank, Eric Ries, Brant Cooper, Patrick Vlaskovits, Ash Maurya, Trevor Owens and many others I have not listed. Lean startup and lean methodologies have proved to be incredibly invaluable to the development of our startup www.netlexweb.com, a SaaS for the legal profession.

1. CUSTOMER DEVELOPMENT
#RomeGoesLean - @LSMRome
MAY 2014 - LuissEnLabs
Roberto Magnifico @RMagnifico

2. YOU CANNOT UNDERSTAND A SYSTEM UNTIL
YOU TRY TO CHANGE IT
Kurt Lewin (1890-1947)

3. Problem( Solu+on(
Key(Metrics(
Unique(Value(
Proposi+on(
Unfair(
Advantage(
Channels(
Customer(
Segments(
Cost(Structure( Revenue(Structure(
1( 1(2(
3(
4(
5( 5(
6(
7(
“HOLISTIC” APPROACH = WHO ARE YOUR STAKEHOLDERS?
Top 3 Problems
Top 3 Solutions
Target Segments
PRODUCT MARKET

4. “A startup is a temporary
organization designed to
search for a scalable and
repeatable business model..”
!
!
“..Under conditions of extreme
uncertainty.”
!
What does this mean?

5. “A startup is a temporary
organization designed to
search for a scalable and
repeatable business model..”
!
!
“..Under conditions of extreme
uncertainty.”
!
We have embarked on a
discovery journey!

6. WHAT ARE WE TRYING TO DISCOVER?
!
A BUSINESS MODEL
!
CUSTOMERS

7. This discovery journey we have
embarked upon is called:
!
Evidence-Based
Entrepreneurship

8. Evidence-Based Entrepreneurship
!
Before Customers
Before Revenues
!
Early Evidence of Startup Progress
!
Using Lean Principles

9. MOST STARTUPS FAIL

10. PRODUCTS
MOST STARTUPS FAIL
!

11. MOST STARTUPS FAIL
BECAUSE THEY RUN OUT OF CASH
!
SIMPLY BECAUSE CUSTOMERS
DON’T BUY THEIR PRODUCTS
!
!

12. CUSTOMERS DON’T CARE ABOUT
YOUR SOLUTION

13. CUSTOMERS DON’T CARE ABOUT
YOUR FEATURES

14. CUSTOMERS DON’T CARE ABOUT
YOUR BELLS ’N’ WHISTLES

15. CUSTOMERS DON’T CARE ABOUT
YOUR EGO

16. CUSTOMERS DON’T CARE ABOUT
YOUR PRODUCT

17. THEY ONLY CARE ABOUT ONE THING
ONLY

18. THEY ONLY CARE ABOUT THEIR
FUCKING PROBLEMS

19. IT’S NOT ABOUT THE PROBLEMS
YOU THINK THEY HAVE

20. GET THEM TO TELL YOU ABOUT THE
PROBLEM/S THEY HAVE

21. WE DON’T “I THINK”
WE DON’T “I BELIEVE”
IN FACT WE JUST DON’T… KNOW

22. WE JUST LEARN TO…

23. LISTEN - LISTEN - LISTEN

24. CUSTOMER DISCOVERY
EARLY ADOPTERS?

25. EARLY ADOPTERS:
FRIENDS
NEIGHBOURS
FAMILY
!
STRANGERS

26. EARLY ADOPTERS:
STRANGERS - WITH A PROBLEM

27. EARLY ADOPTERS:
STRANGERS - ALREADY SPENDING
CURRENCY TO SOLVE

28. SO WHERE ARE THESE STRANGERS?

29. IS IT A B2B OR A B2C?

30. LISTEN & LEARN

31. #JUSTDOIT
DO IT FAST

32. TIME IS YOUR SCARCEST RESOURCE

33. LISTEN & LEARN
FROM REAL PEOPLE

34. SO GET OUT OF THE BUILDING

35. DO SURVEY

36. DO INTERVIEW

37. GET REAL CONVERSATIONS GOING

38. YOU SHOULD ALWAYS BE IN TWO
!
MARKETING NERD AND TECH GEEK

39. WHY DO YOU WANT TO ASK?
Q1

40. WHAT IS YOUR END GOAL?
DISCOVER IF THE PROBLEM IS FOR
RETAIL CUSTOMERS

41. WHAT IS YOUR END GOAL?
DISCOVER IF THE PROBLEM IS FOR
BUSINESS CUSTOMERS

42. WHAT BEHAVIOUR ARE YOU TRYING
TO CHANGE?

43. WHAT DECISION DO YOU NEED TO
MAKE?

44. IS THIS A VALIDATION PHASE?

45. REMEMBER:
IT’S ABOUT THE FUCKING PROBLEMS

46. WHO DO YOU WANT TO ASK?
Q2

47. THE MARKET SEGMENT
THE POPULATION

48. SAMPLE POPULATION
FOR SURVEY

49. REMEMBER:
IT’S ABOUT THE FUCKING PROBLEMS

50. Problem( Solu+on(
Key(Metrics(
Unique(Value(
Proposi+on(
Unfair(
Advantage(
Channels(
Customer(
Segments(
Cost(Structure( Revenue(Structure(
1( 1(2(
3(
4(
5( 5(
6(
7(
“HOLISTIC” APPROACH = WHO ARE YOUR STAKEHOLDERS?
Top 3 Problems
Top 3 Solutions
Target Segments
PRODUCT MARKET

51. (DO YOUR HOMEWORK)

52. WHAT DO YOU WANT TO ASK?
Q3

53. OBJECTIVES
SAMPLE POPULATION
AND THE QUESTIONS?

54. ASK QUESTIONS THAT
MEASURE
TANGIBLES AND/OR INTANGIBLES

55. IF YOU CANNOT
MEASURE
DON’T ASK

56. REMEMBER:
IT’S ABOUT THE FUCKING PROBLEMS

57. HOW DO YOU WANT TO ASK?
Q4

58. KEEP IT SIMPLE AND CONCISE

59. YES/NO

60. HOW?
WHERE?
WHY?
WHEN?
EXAMPLE?

61. MEASUREABLE
DATA
ANALYSE

62. WHEN DO YOU WANT TO ASK?
Q5

63. WORKING HOURS

64. FREE TIME

65. LUNCH TIME

66. Q1. WHY DO YOU WANT TO ASK?
Helps understand
Q2. WHO YOU WANT TO ASK
Helps understand
Q3. WHAT YOU WANT TO ASK
Helps understand
Q4. HOW YOU WANT TO ASK
Helps understand
Q5. WHEN YOU WANT TO ASK

67. LISTEN
LISTEN
LISTEN

68. LEARN - BUILD - MEASURE
FAST
LISTEN

69. LEARN - BUILD - MEASURE - FAST
YOU ARE YOUR CLIENT’S INNOVATOR

70. LEARN - BUILD - MEASURE - FAST
INCREASE ODDS OF SUCCESS BEFORE WE RUN OUT OF MONEY!

71. SO GO GET OUT OF THE FUCKING
BUILDING..
..AND LEARN!

72. Roberto Magnifico
• Netlex - CFO & Founder - www.netlexweb.com
SaaS for the Legal Profession
!
• LVenture Group - Board Member - Co-Founder
• InnovAction Lab - Board Member
@NetLexWeb
@RMagnifico Profile Page