It's the end of the (startup) world as we know it...

The end of the (startup) world as we know it San Diego Startup Leadership Program Nov 17, 2010
Brant Cooper
@brantcooper
marketbynumbers.com

The New Startup Reality
Global
Inexpensive
Social
Data-intelligent
Savvy

The End of the (Startup) World As We Know It
100s of thousands of Entrepreneurs
Lean Startups to prove business model
Capital to serve entrepreneurs (not vice versa)
End of the dominance of the “big win”
Creating an economic “Innovation Machine”

Not only are the market applications for disruptive technologies unknown at the time of their development, they are unknowable.
-Clayton Christensen, The Innovator’s Dilemma

The vast majority of successful [startups] abandoned their initial plans and learned what would and would not work in the market.
-Clayton Christensen, The Innovator’s Dilemma
Idea #FAIL vs Startup #FAIL

Basic Tenet of a Lean Startup
Your business model will change
You have limited $
 Maximize pivots/$

Product + Customer Development

Philosophy Question your assumptions Get out of the building Don’t “Just Do It”

Principles The 4 Steps Iterate vs Pivot MVP= Viable is as important as Minimum Product Market Fit is not a binary state Launch early <> Marketing Launch Customer Development <> Data

Minimum Viable Product

Product-Market Fit
The Shangri-La of startups
- You know you’re there when you don’t have to ask
- You have scalability issues
You grow despite your flaws
You look and feel young, but are growing old quickly
You may get there today and be lost tomorrow

Nail it Before You Scale it
Pre-mature Self-Aggrandization is Anathema
- PR is vanity
- “Launch early” means get users while imperfect
- Marketing launch = fill up your funnel
Pre P-M fit do the former, not the latter
Tech crunch bump can be deadly

Customer Development Practices Business Model Whiteboard Document Your Assumptions Build MVP to Minimize Risk Flip your Funnel Get Out of the Building

Business Model White Board

Core Business Assumptions
Who is your customer
What Problem are you solving
What is the proposed (high-level) solution?

Minimum Viable Product
What functionality do you propose?
What features are your early adopters asking for?
What do you hope to achieve with your MVP?
What “currency” is your customer willing to pay?

How did they get to be a passionate customer?
What did you do to convince them to buy?
Why did they go from web site researcher to trial user?
What convinced them to explore your web site?
How did you get them to visit your web site?
Flipping the Funnel

Get Out of the Building
If instead of learning you, “Just Do it,” you face 1 of 2 scenarios:
If you hit out of the park, you don’t care. Good Job. Ka Ching. Break a leg.
If you don’t, you’ve you’re lost.

Next: Lean Startup

Lean Startups ≠ Bootstrapping

Lean Startups ≠ Small

Lean Startups ≠ Dictatorship of the Customer Your customer

Lean Startups ≠ Deterministic

Lean Startups ≠ Any Guarantee of Success

Lean Startup Resources @sgblank – www.steveblank.com @ericries – startuplessonslearned.com @seanellis – startup-marketing.com @hnshah – blog.kissmetrics.com @richcollins – LSC google group San Diego Resources San Diego Tech Founders Meetup San Diego Tech Coffee sdtechscene.org CONNECT Springboard

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It's the end of the (startup) world as we know it...

by Brant Cooper

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It’s the end of the (startup) world as we know it... Presentation Transcript