the Learning StartupFrom Business_Idea to Company_CreationCustomer_Problem_Solution Market_Competitive_Landscape Master of Complex Actions, SISSA, Trieste Leonardo Zangrando, MBA, MSc February 26th, 2011
One view on Startups STARTUP Company A temporary organisation searching for atested, repeatable, and scalable Business Model
the Lean Startup concept A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertaintyThis section based on the work of Eric Ries Startup = Experiment Looking for product / market fit
the Lean Startup concept Pivot change direction but stay ground in what you have learnedIf we can reduce time between pivotswe can increase our odds of success before we run out of money
the Lean Startup concept Value Which activities create value and which are just a waste? In traditional business, value is createdby delivering a product or a service to customers
the Lean Startup concept Value in startups In a startup, the product and customer are still unknownValidated learning about customers Looking for product / market fit
photoButler San Francisco, Jan 2011Pitched: Software application to sort down your best photos quickly.
Signal Booth Chicago, Nov 2010Pitched: Platform for finding cool activities around you spontaneously.
scootScooters New York, July 2010 Pitched as an online storefront for environmentally-friendly (electric) scooters.● Assumption: Scooter owners care about the environment and will prefer electric scooters over gas scooters.● Learned: (1) Functional transportation and "cool factor" primary motivation for buying (2) Environmental concerns unimportant, people uncomfortable with electric models (3) Trial key stage of buying process.● Pivot: Rent-to-own agreement for Vespa scooters to offer low- commitment trial of product.● CustDev: Over 40 in-person and phone interviews with scooter dealers, sellers, buyers, LSM participants, and people minding their own business in Starbucks. Used Craigslist to get phone interviews with local buyers and sellers.
Test / Learn / Validate or Pivot● You do this even before modeling your business, you are still testing your Business Idea assumptionsTest Assumptions Lessons Learned Validate / Pivot
Test Assumptions● What is the Minimum viable Product to test my assumption(s)?● Classic startup fallacy: “ship it and see what happens.” Whenever you use this plan, you are guaranteed to succeed – at seeing what happens.● You want to learn, and – most importantly,● get another turn through the feedback loop● Plan your MVP and measures so that you test/reject your assumption and in the process learn something that will allow you to proceed
Validate Business Idea● Business Idea assumptions ● Customer / Problem / Solution ● Competitive Landscape ● Market
Customer / Problem / Solution● Its the key starting point● Iterate through this all the time● Objectives ● Problem Statement ● Product Requirements ● Customer Archetype (a-day-in-the-life)
Competitive Landscape● How is your market? Porter 5 forces + 1 New Entrants Suppliers Industry Clients Complementors Substitutes
Competitive Advantage ● Disruptive Innovation → get market share Buyer value generated (willingness to pay) ● Sustaining Innovation Costs incurred → get market share ● Differentiate on – Cost – Value Industry Successful Successful Competitor – Customer Relationship average differentiated low-cost with dualcompetitor competitor competitor advantage
Market Size, Segmentation, Targeting ● Market Size Questions: Business ● How big can this market be? Idea ● How much of it can we get? ● Market growth rate ● Market structure (Mature or in flux?) Startup Target Market ● Most important ● Talk to Customers and Sales Channel Served Available Market ● Next important Total ● Desk ResearchAvailable ● Industry analysis reports Market ● Financial analysis reports
the Learning StartupFrom Business_Idea to Company_Creation thank you! Leonardo Zangrando the Learning Startup email@example.com