Fredi Schmidli, experienced entrepreneur, explains in this presentation, why conventional business plans are not needed and how lean startup changes the way to start your business.

1. Why Lean Startup changes everything
Fredi Schmidli
STARTUPFAIR Zürich, 17.09.2013
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2. Fredi Schmidli
• Entrepreneur
• Business Angel and Boardmember :
www.startangels.ch
• Community Builder:
- meetup.com/Lean-startup-Zurich/
- www.stoosnetwork-zurich.ch
- Agile Breakfasts
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3. Content
• Goals
• How? 2 ways
• Conventional way
• Lean startup way
• Examples
• Conclusions
Based on the Book: The lean startup, Eric Ries, 1st ed. 2011
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4. What? Goals
• Increase capital efficiency
• Increase survival rate
• 60% last 3 years, 35% last 10 years
(US: http://idee.vc/tag/uberleben-von-startups/)
• 66% last 3 years, 50% last 5 years
http://www.bfs.admin.ch/bfs/portal/de/index/themen/06/02/blank/key/02/ueberlebensraten.html
• 56% losses in 3.5, 10% bring 80% return in 7 years
(UK: Nesta-Studie 2009 mit BBAA and more than 1000 firms)
• Fail early
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5. How? There are 2 ways
1. Conventional way or do the things right
• Assumption: machine, excellent plan and execution
• Focus: Perseverance myth
• Example: most Startups
2. Lean startup way or do the right things
• Assumption: Dynamic systems require self-organisation
• Focus: Genchi Gembutsu
• Example: Zappos, Dropbox
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6. Conventional way
• Culture: „Cowboy Mentality“ - „Paralysis by Analysis“
• Method: Planning more important than experiments
• Goal: best product possible
• Characteristics - symptoms:
• Which product can we build with this technology?
• Long business plans with hockey stick figures
• Need funds for sales & marketing boost
• Long discussions about plans or features
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7. Lean startup way
• Culture: Success can be engineered, learned, taught
• Pre-requisites: Transparency, trust and courage
• Method: Short feedback loop
• Goal: MVP asap and minimise cycle time
• Characteristics
• Can we build a sustainable business?
• Business Model Canvas
• Every product, marketing campaign, etc. is experiment
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8. Feedback loop
8
Turn ideas in ......
Min. viable Prod. (MVP)
Innovation accounting
Pivot or persevere?
Entrepreneurial Mgt: Stupid! It‘s the boring stuff, ......
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9. Examples
9
Interview MDs by pig
1. Test BP assumptions for TM app: price, cost of sales
MVP: Questionnaire &
live demos
70 interviews & pattern
Pivot to public health?
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10. Examples
10
Picture of shoe online
2. Test business model for Zappos
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11. Examples
11
MVP: Video
3. Test vision of service offering for Dropbox
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12. Conclusions
• Resource limitations can be an asset: CH
• Genchi Gembutsu, experiment and succeed or ... ?
• Be courageous and transparent
• Can we build a sustainable business?
• MVP and Business Modell Canvas change everything
• Minimise TOTAL time through the loop
• Your preferred example?
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