DISRUPT FACTory: Lauren Valbert, Founder of Empowering Management - Startup Mini Bootcamp

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Empowering Management

Empowering Management

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  • 1. EMPOWERING MANAGEMENT © 2012 DISRUPT FACTORY STARTUP BOOTCAMP LEAN STARTUP/CUSTOMER DEVELOPMENT WORKSHOP 3 JULY, 2014
  • 2. EMPOWERING MANAGEMENT © 2012  20 years in customer-focused roles for high tech companies  Have worked for Fortune 500 companies such as Microsoft and Cognizant Technology Solutions  Provided coaching and consultation for more than 20 start-ups in high-tech, consumer, B2B and B2C  Have managed marketing budgets from thousands to millions of Euros  A mentor at many top accelerator programs in the Netherlands, including Startupbootcamp, Rockstart, Utrechtinc., ACE Venture Lab, and the Startupweekend program MY BACKGROUND
  • 3. EMPOWERING MANAGEMENT © 2012 12.35 – 14:35: Workshop Session 1 1) Lean Startup Methodology introduction 2) Business Model Canvas introduction 3) Business Model Canvas exercise 4) Test your riskiest assumption with customer validation 14.35 – 15.55: Lunch Break – Outside Exercise: Customer Validation 15.55 – 18.25: Workshop Session 2 1) Building the customer journey introduction 2) Customer journey exercise 3) Creating an investor pitch introduction 4) Volunteers from audience present pitches AGENDA
  • 4. EMPOWERING MANAGEMENT © 2012
  • 5. EMPOWERING MANAGEMENT © 2012 OLD “WATERFALL” METHODOLOGY Only customer interaction
  • 6. EMPOWERING MANAGEMENT © 2012
  • 7. EMPOWERING MANAGEMENT © 2012 LEAN STARTUP METHODOLOGY
  • 8. EMPOWERING MANAGEMENT © 2012
  • 9. EMPOWERING MANAGEMENT © 2012 Failure equals progress
  • 10. EMPOWERING MANAGEMENT © 2012
  • 11. EMPOWERING MANAGEMENT © 2012 Embrace uncertainty
  • 12. EMPOWERING MANAGEMENT © 2012 Fail fast and Fail often in order to Succeed soon
  • 13. EMPOWERING MANAGEMENT © 2012 "A startup is a temporary organization whose only goal is to find a repeatable and scalable business model." - Steve Blank
  • 14. EMPOWERING MANAGEMENT © 2012 New business planning is problematic because it places too much emphasis on the initial idea
  • 15. EMPOWERING MANAGEMENT © 2012 The difficult discipline is in deciding. How much effort you want to put into execution and optimization, before you are certain that you are on the right path…
  • 16. EMPOWERING MANAGEMENT © 2012 Proven way to success for startups (No guarantees!) 1. Explore business model options 2. Know your customer 3. Run experiments and iterate 4. Build a highly-performing team 5. Use tools and capture learning 6. Move fast, fail fast, succeed fast
  • 17. EMPOWERING MANAGEMENT © 2012 "The only way to win is to iterate faster than the competition!" - Eric Ries, The Lean Startup
  • 18. EMPOWERING MANAGEMENT © 2012 A business model describes the rationale of how an organization creates, delivers and captures value.
  • 19. EMPOWERING MANAGEMENT © 2012
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  • 24. EMPOWERING MANAGEMENT © 2012
  • 25. EMPOWERING MANAGEMENT © 2012 Cost Structure Revenue StreamsKey Resources Channels Key Partners Customer Segments Key Activities Customer Relationships Value Proposition
  • 26. EMPOWERING MANAGEMENT © 2012
  • 27. EMPOWERING MANAGEMENT © 2012 Brainstorm possible models
  • 28. EMPOWERING MANAGEMENT © 2012
  • 29. EMPOWERING MANAGEMENT © 2012
  • 30. EMPOWERING MANAGEMENT © 2012 Your assumptions are mostly wrong
  • 31. EMPOWERING MANAGEMENT © 2012 A set of hypotheses
  • 32. EMPOWERING MANAGEMENT © 2012 Focus on riskiest parts first
  • 33. EMPOWERING MANAGEMENT © 2012 Systematically test your model
  • 34. EMPOWERING MANAGEMENT © 2012 Systematically test your model
  • 35. EMPOWERING MANAGEMENT © 2012 Systematically test your model
  • 36. EMPOWERING MANAGEMENT © 2012 Systematically test your model
  • 37. EMPOWERING MANAGEMENT © 2012 The Value Proposition
  • 38. EMPOWERING MANAGEMENT © 2012
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  • 40. EMPOWERING MANAGEMENT © 2012
  • 41. EMPOWERING MANAGEMENT © 2012
  • 42. EMPOWERING MANAGEMENT © 2012
  • 43. EMPOWERING MANAGEMENT © 2012 Your Turn: Business Model/ Value Proposition Canvas Goals: • What are your riskiest assumption(s)? • What customer assumptions are you making that you can test?
  • 44. EMPOWERING MANAGEMENT © 2012 Fill in the Business Model Canvas
  • 45. EMPOWERING MANAGEMENT © 2012 Fill in the Value Proposition Canvas
  • 46. EMPOWERING MANAGEMENT © 2012  What are your riskiest assumptions?  How can you test these assumptions?  One way is to talk to customers... BUT PEOPLE WILL LIE TO YOU! TALKING TO CUSTOMERS: THE MOM TEST
  • 47. EMPOWERING MANAGEMENT © 2012 Why do they lie? Because they: WANT TO BE NICE TO YOU DON’T WANT TO SEEM STUPID WANT TO SEEM BETTER THAN THEY ARE Bad data is worse than no data
  • 48. EMPOWERING MANAGEMENT © 2012  Don’t ask closed or leading questions Ex: “Wouldn’t you like to save time?”  Do ask open questions Ex: “What are your biggest challenges?”  Don’t ask future or theoretical questions Ex: “Would you use this product?”  Do ask past behavior questions Ex: “In the past year, have you tried to solve this problem? If so, how?” HOW TO ASK QUESTIONS
  • 49. EMPOWERING MANAGEMENT © 2012 Listen to ALL input, but apply (almost) none of it! “It’s not the consumer’s job to know what they want.” – Steve Jobs Turn the input around and find out the source:  “Why do you want that?”  “What would that let you do?”  “How are you coping without it now?” WHEN THEY WANT TO GIVE YOU IDEAS
  • 50. EMPOWERING MANAGEMENT © 2012  In the Business Model Canvas and Value Proposition Canvas, you started to identify target customers through their pains and gains.  Find target customers with those pains and/or gains to test your assumptions WHO DO YOU TALK TO?
  • 51. EMPOWERING MANAGEMENT © 2012 "There are no facts in the building… so get the hell out and talk to customers." - Steve Blank
  • 52. EMPOWERING MANAGEMENT © 2012 Your Turn: Lunch Exercise 1)Leave the building 2)Find at least one person who might be in your target customer group 3)Test one of your riskiest assumptions with them using the Mom Test approach If you are not likely to find a customer over lunch, join a team that can for the exercise.
  • 53. EMPOWERING MANAGEMENT © 2012 AGENDA 15.55 – 18.25: Workshop Session 2 1) Building the customer journey introduction 2) Customer journey exercise 3) Creating an investor pitch introduction 4) Volunteers from audience present pitches
  • 54. EMPOWERING MANAGEMENT © 2012 CUSTOMER DEMOGRAPHICS B2B versus B2C • What’s the difference? • Every sale is made emotionally, to individuals • The main difference is the number of individuals in the decision-making process Who is your customer? • Age? Gender? Social status? Education? Income? • Do they understand what you’re selling? • Are they negative, neutral, or positive about the issue?
  • 55. EMPOWERING MANAGEMENT © 2012 CUSTOMER ADOPTION CURVE Search Phase Scale Phase
  • 56. EMPOWERING MANAGEMENT © 2012
  • 57. EMPOWERING MANAGEMENT © 2012 The customers you have in your search phase will not be the same as in your scale phase. Keep talking to customers and keep using the Business Model Canvas!
  • 58. EMPOWERING MANAGEMENT © 2012 CUSTOMER JOURNEY The BMC and Value Prop Canvas are snapshots of where your customer is in a moment of time... But now we need to think about the journey your customers will make with you.
  • 59. EMPOWERING MANAGEMENT © 2012 HOW and WHY does my customer: FIND ME? TRY ME? INTERACT with ME? LOVE ME?
  • 60. EMPOWERING MANAGEMENT © 2012 WHY is the trigger: • What pain do they have that drives them? • What desire do they have that makes them want to buy? HOW is the tool, channel or method
  • 61. EMPOWERING MANAGEMENT © 2012 FIND is (mostly) marketing. • Strangers to acquaintances TRY is because people want to “try before they buy” • Acquaintances to friends INTERACT is the ongoing relationship they will have with you. • Friends to BFFs LOVE is how they become fanatics!
  • 62. EMPOWERING MANAGEMENT © 2012 Two Examples:
  • 63. EMPOWERING MANAGEMENT © 2012 Your Turn: Customer Journey 1)Choose one target customer segment (preferably the one who is paying you). 2)Answer at least the first 3 customer journey questions. 3)If you can begin to think about the 4th, do so!
  • 64. EMPOWERING MANAGEMENT © 2012 HOW and WHY does my customer: FIND ME? TRY ME? INTERACT with ME? LOVE ME?
  • 65. EMPOWERING MANAGEMENT © 2012 TELLING THE WORLD Creating a “pitch” is the primary way to tell the world about your idea before you have something to show.
  • 66. EMPOWERING MANAGEMENT © 2012 Start with the “Why”
  • 67. EMPOWERING MANAGEMENT © 2012
  • 68. EMPOWERING MANAGEMENT © 2012 THE GOLDEN CIRCLE
  • 69. EMPOWERING MANAGEMENT © 2012 Create your “elevator pitch”: a 1 minute description of your company, starting with the WHY, that can be told to anyone, anywhere, at any time.
  • 70. EMPOWERING MANAGEMENT © 2012 CREATING AN INVESTOR PITCH The purpose of your pitch is to sell, not to teach. Your job is to excite, not to educate.
  • 71. EMPOWERING MANAGEMENT © 2012 Investors (mainly) want to know 3 things: • Is there something unique in the idea? • Is someone going to pay for it? • Will I make money from it?
  • 72. EMPOWERING MANAGEMENT © 2012 Something unique can be: • IP, proprietary technology, patents, etc. • A new model for an existing solution (i.e., SaaS instead of software licenses) • A disruptive model for an existing industry (i.e., Netflix versus the video rental industry) • A strong team
  • 73. EMPOWERING MANAGEMENT © 2012 Is someone going to pay for it? • A proven product/market fit (research) • Addressable market figures (how big is the potential market?) • Actual, committed (paying) customers
  • 74. EMPOWERING MANAGEMENT © 2012 Will I make money from it? • (Proposed) business model(s) • How much of the addressable market will you own? • Actual, committed (paying) customers • Product/service roadmap: where are you going in 1-3 years?
  • 75. EMPOWERING MANAGEMENT © 2012 SUGGESTED PITCH ORDER FOR INVESTORS (1) 1) Company Overview: what is your Value Proposition? 2) Team 3) Problem/Opportunity 4) Addressable Market 5) Solution (as non-technical as possible, depending on audience) 6) The “Secret Sauce” (this may need extra emphasis) 7) Solution Delivery
  • 76. EMPOWERING MANAGEMENT © 2012 SUGGESTED PITCH ORDER FOR INVESTORS (2) 8) Benefits/Value to Target Market 9) Competitive Advantage 10) Go to Market Strategy (especially emphasize beta or interested customers) 11) Business Model 12) Financial Projections 13) Financing Requirements 14) Summary: What 3 points do you want them to remember?
  • 77. EMPOWERING MANAGEMENT © 2012 Your Turn: Any volunteers want to pitch their idea to us?
  • 78. EMPOWERING MANAGEMENT © 2012 TEAM DYNAMICS • Entrepreneurs have strong personalities! • As your startup grows, and the pace gets faster, you have even less time to communicate • Industry Disruptors has developed a tool to help you understand your team’s strengths and weaknesses, called Rate Your Startup • http://industrydisruptors.org/index.php/projects/rat e-startup-2
  • 79. EMPOWERING MANAGEMENT © 2012 COMING UP NEXT: HOW TO SCALE • Startups that are successful in their “search” or “pilot” phase need to scale • But scaling is not just about selling more products • Three areas for focus  Growing the internal organization  Automating processes where possible  Improving customer delivery and service • More info coming in September!
  • 80. EMPOWERING MANAGEMENT © 2012  The Lean Startup, Eric Ries  Four Steps to the Epiphany, Steve Blank  Running Lean, Ash Maurya  The Startup Owner’s Manual, Steve Blank and Bob Dorf  Business Model Generation, Alexander Osterwalder  The Mom Test, Rob Fitzpatrick  Do More Faster, Brad Feld and David Cohen  Scaling Up Excellence, Robert Sutton  And coming... Building the Customer Journey, Lauren Valbert BIBLIOGRAPHY
  • 81. EMPOWERING MANAGEMENT © 2012
  • 82. EMPOWERING MANAGEMENT © 2012 QUESTIONS?