This is part 1 of the presentation given Feb 2013 to Wharton undergrad and MBA students participating in the Wharton Business Plan Competition (BPC). Previous BPC winners have included companies like Warby Parker (eyewear).

1. Lean Startups
From Idea to Traction:
Tricks & Traps for
Maximizing Success
Steve Barsh
steve@barsh.com * +1.215.888.2101
@sbarsh
Jeff Deville
jeffdeville@gmail.com * +1.484.278.1852
@jeffdeville
1
Copyright © 2009-2013 by Steve Barsh. All Rights Reserved.
Monday, February 18, 13

2. Observations
• Don’t understand key
assumptions
• Don’t de-risk before
• Building the product
• Pitching
• Don’t use out-of-box
techniques
• Ask for money too early
• Look for validation from
investors
2 Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Monday, February 18, 13

3. 3 – 7 Key Assumptions
3 Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Monday, February 18, 13

4. De-Risking Goals
• Convert assumptions into
knowledge
• At lowest cost
• As quickly as possible
• Decrease assumptions
to increase value
• Consume intellectual capital
before outside capital
• Succeed or fail quickly
4 Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Monday, February 18, 13

5. Stop Waving, Start Pointing!
5 Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Monday, February 18, 13

6. Experiment
• Hypotheses
• Prove or Disprove
• Build -- Release,
measure, learn,
iterate
• Research
• Valid proxies
6
Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Monday, February 18, 13

7. Example of Experimentation to De-risk Key Assumptions
✓ Used when full guest details don’t flow through the supply chain
✓ Like “checking in” for a flight or cruise
✓ Collects all guest arrival and contact details
✓ Coordinates a smooth arrival
7 Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Monday, February 18, 13

8. Things to think about
1. Don't debate, A/B test. (applies to software,
messaging / positioning (e.g., Adwords))
2. Innovate in real time
3. Get an unfair advantage (mentors, advisors, Board,
LinkedIn, University, wherever you can)
4. Ask for advice, not money. (1 mouth, 2 ears)
5. What are you learning?
6. What are your key assumptions?
7. What can you prove with $0?
8. Minimum viable product (MVP) -- get things to
users.
8 Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Monday, February 18, 13