“Are you designing an amazing solution
that solves no problem?”
- Franki Chamaki
Franki Chamaki
Trends and threats put push on us…
Constant connectivity, collaboration and
crowdsourcing, customised consumption,
cloud c...
Traditional way to secure funds and bring
ideas to market
Franki Chamaki 3
Got an idea
We brainstorm
Create a business plan
Design the product
(mostly in sleuth mode)
Cha-ching $$
Big launch
Yay!!
booom!
Franki Chamaki 5
If you like this story and you like should
read this book…
Franki Chamaki 6
Franki Chamaki 7
A startup is an organization formed to
search for a repeatable and scalable
business model.
- Steve Blank
8Franki Chamaki 8
9
A startup vs. company?
Franki Chamaki 9
10
Start up CompanyTransition
Franki Chamaki 10
Start up Transition CompanyStart up Company
Problem/
Situation
Fit
Scale
Transition
Product/
Market
Fit
Franki Chamaki 11
12
Do we have
a problem
worth
solving?
Have we
built
something
people
want?
How do
we
accelerate
growth?
Start up Transiti...
13
Start up Transition CompanyStart up Company
Problem/
Situation
Fit
Scale
Transition
Product/
Market
Fit
Focus:
Validate...
14
Start up Company
Problem/
Situation
Fit
Scale
Search Execute
Transition
Product/
Market
Fit
Focus:
Validated learning
P...
Franki Chamaki
So how do we go about searching for
the right business model?
15
Method: Lean Startup
16Franki Chamaki 16
A Lean Startup is an iterative process
to reduce risk in searching for the right
business model based on validated
learnin...
So, how to we actually do this?
18Franki Chamaki 18
There are three key principles
19Franki Chamaki 19
1. Document our plan “A”
20Franki Chamaki 20
1. Document our plan “A”
21
2. Identify the riskiest parts of plan
Franki Chamaki 21
1. Document our plan “A”
22
2. Identify the riskiest parts of plan
3. Systematically test our plan.
Get out of the office!...
23
1. Document our plan “A”
Franki Chamaki 23
24
1. Document our plan “A”
http://www.ashmaurya.com/2012/02/why-lean-canvas author of Running Lean
Franki Chamaki 24
25
What are the product, customer and
market risks?
2. Identify the riskiest parts of plan
p p p m
mm
m
c
c
cp
Franki Cham...
26
Problem interviews
Validate top problems? Any new
problems? Rank the problems? How they
solve it today?
2. Identify the...
27
Solution interviews
Does it resonate? What most important?
Missing? Add? Remove? Will they pay $X?
2. Identify the risk...
28
Systemically eliminate risk: customer side
1 2 3
4
Franki Chamaki 28
29
1
2
3
4
Systemically eliminate risk: product side
Franki Chamaki 29
30
1
2
3
4
Systemically eliminate risk: market side
Franki Chamaki 30
31
How do we actually test our riskiest
assumptions?
Franki Chamaki 31
32
Minimum Viable Product (MVP) is a
minimum set of solution features we
can use to test.
But its really more like…
MVE - ...
33
Minimum Viable Product (MVP) is a
minimum set of solution features we
can use to test
Franki Chamaki 33
34
We test our MVP by making falsifiable
statements rather the leap of faith
assumption
Franki Chamaki 34
35
It gives us the permission to move
forward
Franki Chamaki 35
A
36
People will be interested in renting their physical
space to unrelated people?
Launch page will drive 500 sign up?B
F...
37
Success metric: 500 people or more in a given month
interested
Franki Chamaki 37
38
Exchange value: Do people exchange currency (e.g. sign up)?
Franki Chamaki 38
39
Pivot the customer segment…
Franki Chamaki 39
40
Target ‘earlier adaptors’ (e.g. car
enthusiasts and owners of classic and
vintage cars in the key city areas (eg
Potts ...
We will validate the problem and
customer of your idea!
Franki Chamaki 41
Quick tutorial video (4mins)…
Franki Chamaki 42
43
So you have a great idea?
Franki Chamaki 43
44
Prove it!
Franki Chamaki 44
Reading options
URL: http://hbr.org/2013/05/why-the-lean-start-up-changes-everything/ar/pr
Franki Chamaki
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Getting lean startup - quick reference guide

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Do you want to get a quick overview of Lean Startup? Well, this guide gives you a good overview of key aspect of applying lead startup method to your startup ideas.

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  • Got a great idea  brainstorm  business plan  pitch  cha-ching build an awesome product (and in sleuth mode) booom!  Big launch! Yay!!
  • Got a great idea  brainstorm  business plan  pitch  cha-ching build an awesome product (and in sleuth mode) booom!  Big launch! Yay!!
  • Got a great idea  brainstorm  business plan  pitch  cha-ching build an awesome product (and in sleuth mode) booom!  Big launch! Yay!!
  • Traditional view in has been to prepare “Business Plan” but no business plan survives first contact with customers. Why? Its based on series invalidated assumptions from solution right through to customer how it would be distributed.1.Problem – list the top one to three problems need to be solved? How are their solved today? Existing alternatives?2. Customer Segment – who are we solving it for? Who are the early adopters - main segment to solve first’3. UVP - Why are we different and worth getting people’s attention? High level pitch - getting the idea across quickly “Aliens: Jaws in space” , Star wars “cowboys and Indians in space”4. Solution - how we are going to solve the problem5, Channels- very important – the path to customers (ie inbound – blogs, SEO vs outbound SEM, ads, cold calling)6. Revenue stream – how going to charge and make money7. Cost structure – cost to build mvp, interview 30 to 50 people, burn rate (fixed and variable costs) What is the break even point?8. Key metrics – AARRR - acquisition (make interest to your solution), activation ( sign up or walk into your store), retention (come back), revenue (get money from them) and referrel (NPS – refer others)9. Unfair advantage- something that cant be copied or brought easily Dream team - FB purchase of Instgram for $1b, Steve Job and Pixa or “Community” FB vs Google +Each 9 areas of the busines model needs to be tested. These are all GUESS. Need to turning them in FACT
  • How do we systemically turn theses GUESS into FACT? We priorities else it would be to overwhelming.Order: Problem - are we solving the right problem for our customers? Channel - do we have easy and sustainable path to our customers?Revenue stream/Cost structure – what we charge to customers is based on WHO we target (eg Fuji water customers)Customer segment – is the market big enough? Is the problem worth solving?Solution - is it feasible to build and maintain?Often use “Advisors” to first validate the model by asking What do they think is the riskiest aspect of the plan? Have that overcome similar risks? How? How would they go about testing the risks? Are there other people we should speak with?One approach is use Analogs and Antilogs, as described by John Mullins and Randy Komisar in their book; Getting to Plan B. This approach looks at the history of successful companies and uses this knowledge to learn what the risky assumptions within your business model may be.
  • Arm with a clearer understanding of the problem we are trying to solve, prioritized problem
  • 1. Product risk scenario might be understand the (1), with this understanding we define a minimal set of features to test with customers (2) and we validate MVP and see if we can realize the UVP (3) and early adopters. We track this against our metrics (4)
  • 1. Product risk scenario might be understand the (1), with this understanding we define a minimal set of features to test with customers (2) and we validate MVP and see if we can realize the UVP (3) and early adopters. We track this against our metrics (4)2. Customer risk scenariomight be identify who is experience pain points (1), narrow down to early adopters (2), establish a channel to keep engaging segment (3), keep building channel to scale to acquire customers (eg community base solution) (4)
  • 1. Product risk scenario might be understand the (1), with this understanding we define a minimal set of features to test with customers (2) and we validate MVP and see if we can realize the UVP (3) and early adopters. We track this against our metrics (4)2. Customer risk scenariomight be identify who is experience pain points (1), narrow down to early adopters (2), test channels to keep engaging segment (3), keep building channel to scale to acquire customers (eg community base solution) (4)3. Market risk scenario – might be identity competition/ alternative solutions (1), than test price what customers would verbal say they will pay (2) and than (3) what they actually will pay (3) and optimize cost
  • Full solution is time consuming and could lead to waste, We want to build something that is just enough of a solution in front of customers to ‘test’ and get their reaction and help define further changes or “pivots”
  • Full solution is time consuming and could lead to waste, We want to build something that is just enough of a solution in front of customers to ‘test’ and get their reaction and help define further changes or “pivots”
  • This turns our Leap of Faith assumption from: Our event will attract a large enough audience to make the project sustainable.To the falsifiable hypothesis: 20% of the customers we speak to will register for our eventEg “Being know as an “Expert” will drive early adapters vs “A blog post will drive 10 sign up”Falsifiable hypothesis: “Specific Repeatable action” will generated “Expected measureable outcome”
  • Positive results means we can go forward, else we need to quickly refine (pivot) or abandon the test.
  • We need to first test “qualitatively” (eg customer interviews) THEN “quantitatively”. This example is about “quantitatively” testing the experiment.
  • Full solution is time consuming and could lead to waste, We want to build something that is just enough of a solution in front of customers to ‘test’ and get their reaction and help define further changes or “pivots”
  • Full solution is time consuming and could lead to waste, We want to build something that is just enough of a solution in front of customers to ‘test’ and get their reaction and help define further changes or “pivots”
  • Positive results means we can go forward, else we need to quickly refine (pivot) or abandon the test.
  • Positive results means we can go forward, else we need to quickly refine (pivot) or abandon the test.
  • Transcript of "Getting lean startup - quick reference guide"

    1. 1. “Are you designing an amazing solution that solves no problem?” - Franki Chamaki Franki Chamaki
    2. 2. Trends and threats put push on us… Constant connectivity, collaboration and crowdsourcing, customised consumption, cloud computing, convergence and competitor pressures Franki Chamaki 2
    3. 3. Traditional way to secure funds and bring ideas to market Franki Chamaki 3
    4. 4. Got an idea We brainstorm Create a business plan
    5. 5. Design the product (mostly in sleuth mode) Cha-ching $$ Big launch Yay!! booom! Franki Chamaki 5
    6. 6. If you like this story and you like should read this book… Franki Chamaki 6
    7. 7. Franki Chamaki 7
    8. 8. A startup is an organization formed to search for a repeatable and scalable business model. - Steve Blank 8Franki Chamaki 8
    9. 9. 9 A startup vs. company? Franki Chamaki 9
    10. 10. 10 Start up CompanyTransition Franki Chamaki 10
    11. 11. Start up Transition CompanyStart up Company Problem/ Situation Fit Scale Transition Product/ Market Fit Franki Chamaki 11
    12. 12. 12 Do we have a problem worth solving? Have we built something people want? How do we accelerate growth? Start up Transition CompanyStart up Company Problem/ Situation Fit Scale Transition Product/ Market Fit Franki Chamaki 12
    13. 13. 13 Start up Transition CompanyStart up Company Problem/ Situation Fit Scale Transition Product/ Market Fit Focus: Validated learning Process: Pivots Focus: Growth Process: Optimization Franki Chamaki 13
    14. 14. 14 Start up Company Problem/ Situation Fit Scale Search Execute Transition Product/ Market Fit Focus: Validated learning Process: Pivots Focus: Growth Process: Optimization Franki Chamaki 14
    15. 15. Franki Chamaki So how do we go about searching for the right business model? 15
    16. 16. Method: Lean Startup 16Franki Chamaki 16
    17. 17. A Lean Startup is an iterative process to reduce risk in searching for the right business model based on validated learning 17Franki Chamaki 17
    18. 18. So, how to we actually do this? 18Franki Chamaki 18
    19. 19. There are three key principles 19Franki Chamaki 19
    20. 20. 1. Document our plan “A” 20Franki Chamaki 20
    21. 21. 1. Document our plan “A” 21 2. Identify the riskiest parts of plan Franki Chamaki 21
    22. 22. 1. Document our plan “A” 22 2. Identify the riskiest parts of plan 3. Systematically test our plan. Get out of the office! Franki Chamaki 22
    23. 23. 23 1. Document our plan “A” Franki Chamaki 23
    24. 24. 24 1. Document our plan “A” http://www.ashmaurya.com/2012/02/why-lean-canvas author of Running Lean Franki Chamaki 24
    25. 25. 25 What are the product, customer and market risks? 2. Identify the riskiest parts of plan p p p m mm m c c cp Franki Chamaki 25
    26. 26. 26 Problem interviews Validate top problems? Any new problems? Rank the problems? How they solve it today? 2. Identify the riskiest parts of plan Franki Chamaki 26
    27. 27. 27 Solution interviews Does it resonate? What most important? Missing? Add? Remove? Will they pay $X? 2. Identify the riskiest parts of plan Franki Chamaki 27
    28. 28. 28 Systemically eliminate risk: customer side 1 2 3 4 Franki Chamaki 28
    29. 29. 29 1 2 3 4 Systemically eliminate risk: product side Franki Chamaki 29
    30. 30. 30 1 2 3 4 Systemically eliminate risk: market side Franki Chamaki 30
    31. 31. 31 How do we actually test our riskiest assumptions? Franki Chamaki 31
    32. 32. 32 Minimum Viable Product (MVP) is a minimum set of solution features we can use to test. But its really more like… MVE - minimum viable experiment Franki Chamaki 32
    33. 33. 33 Minimum Viable Product (MVP) is a minimum set of solution features we can use to test Franki Chamaki 33
    34. 34. 34 We test our MVP by making falsifiable statements rather the leap of faith assumption Franki Chamaki 34
    35. 35. 35 It gives us the permission to move forward Franki Chamaki 35
    36. 36. A 36 People will be interested in renting their physical space to unrelated people? Launch page will drive 500 sign up?B Falsifiable hypothesis: OR Franki Chamaki 36
    37. 37. 37 Success metric: 500 people or more in a given month interested Franki Chamaki 37
    38. 38. 38 Exchange value: Do people exchange currency (e.g. sign up)? Franki Chamaki 38
    39. 39. 39 Pivot the customer segment… Franki Chamaki 39
    40. 40. 40 Target ‘earlier adaptors’ (e.g. car enthusiasts and owners of classic and vintage cars in the key city areas (eg Potts Point) Franki Chamaki 40
    41. 41. We will validate the problem and customer of your idea! Franki Chamaki 41
    42. 42. Quick tutorial video (4mins)… Franki Chamaki 42
    43. 43. 43 So you have a great idea? Franki Chamaki 43
    44. 44. 44 Prove it! Franki Chamaki 44
    45. 45. Reading options URL: http://hbr.org/2013/05/why-the-lean-start-up-changes-everything/ar/pr Franki Chamaki
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