Foundation Day - dotForge - April 2013Presentation Transcript
Do not open the kit until I say GO!Build the tallest freestanding structure.The entire marshmallow must be on the verytop.You’ll have 18 minutes.Use as much or as little of the kit contents asyou want, but nothing else!
CoderDigital agency5 startupsLeancamp
“I wish I knew that sooner.”
Not livingyour dream?
We will fail.
Our job is to bringourselves the badnews sooner.
IterationDo LessImprove the big pictureLearn, then conﬁrmTangible next stepsPrinciples
Speciﬁc deﬁnitionsallow for validation or invalidation.And that speeds progress.
Take a look at thecustomers’ worldLooking at different aspects oftheir lives, we’ll examine ourown beliefs about them, whothey are – and if they reallyexist, how to frame our value intheir context.
Find early adopters.Find speciﬁc customers.Speciﬁc value propositions aremore compelling and help youget early traction.Speciﬁc customer deﬁnitionshelp ﬁnd them quickly, andpoint out scalable channels toreach them.Zoom in!
How deep do you go?They are real people (not attributes!)It’s clear where to ﬁnd them.You’ll walk away if they aren’t a good ﬁt.
DesignersConsumersFan BaseSelling ClothesFacebookFacebookYou design -we do the rest.Faster productionProductionPersonalsupportOnlinetoolsPool of talent
Use the Canvas asX-Ray goggles.
What on earth areyou on about?
Pick my brain.
Good for vision,inventing and improving.Bad for getting stuck onspeciﬁcs that don’t work.Tenacity
Platform PlatformMass customisationValue-basedpricingApp sale +in-app purchaseSubscriptionTransactionalMulti-sidedmarketLicensingCrowdsourceAd-supportedEvent-supportedSaaSBundlingViralDirect-over-viralPurchase-timing
Know your options.
What’s thebig opportunity?
Business model prototypingNo writing on the canvas - use post-itsUse the post-its as you discuss. Move them around.3 minutes max per model - quantity over quality
Business model prototypingNo writing on the canvas - use post-itsUse the post-its as you discuss. Move them around.3 minutes max per model - quantity over qualityTip - aim for around 4-7 post-its per model
Nail down your business model,one bit at a time.Option cards
One dynamic per card.1 -3 dots per card.How doauthorsprebuildcustomer lists?Sell to y2ksoftware housesthrough InitrodeEvan can introme to Joe atInitrode.Will ppl buy petfood onFacebook?
Lock-inthrough re-installationcosts.Will this offerdifferentiateagainst GMail?Big funding,scale userbasethrough paidchannels.Greater cloudadoptionopening amarket?
Understanding our options.
Who will our ﬁrst 10 customers be?Where are they looking? And for what?
What needs do your customers have?How do they solve them now?
After I have 100 customers, I will acquire the next1,000 through _____________ .
I will make money by ___________ .
How would our business change if we could onlycharge 5% of we’re planning to?
How would our business change if we didn’t havea web site?
When customers have this problem, or aretackling this task, where do they seek help andadvice?
Which customers have different expectationsabout service levels or relationship?
What are our possible revenue streams? Whatcustomers pay for that, in that way, and why?
Are there customers at the low-end who wouldpay less for lower performance? What if theywere our ONLY customer?
How could we increase switching costs?
Who are the people in our network that can fast-track our business? How?
StickyPaid AcquisitionViralUnderstanding growthGrowth Engines,from The Lean Startupby Eric Ries
AcquisitionActivationRetentionReferralRevenuePirate Metrics, by Dave McClureWhich number matters most?B2C Free - retention, referral, activation, acquisition, revenueFreemium - retention, revenue, referal, activation, acquisitionEnterprise - revenue, referral, activation, acquisition, retention
Acquisition cost, capacity, rateActivation cost, rate, %Retention rate, %Referral rate, k-factor, %Revenue per customer, per userYour naked numbers.
Write down the big numbers andgrowth engines you’reconsidering, one per card.Option cards
Cohort analysisSimple rates
Cohorta group of people who share a commoncharacteristic within a deﬁned period.
1.Pick a metric you want to improve.2.Group users into cohorts based on date,or experiment, or characteristic.3.Track, looking for improvement.In 3 steps.
only tells you one thing.Split Testing
works in low volume if you’re testingfor big enough changes.Split Testing
Your DashboardDraw it on a page.Keep it simple.Keep it actionable.(What is your goal?)
Grow like weeds!Spring up in unexpected places.Grow quickly, or die and move on.
Being clear onyour next step.
“I wish I knew that sooner.”
Building witha heartbeat.
Minimum ViableWhat is the minimum thing I need to buildto prove or disprove this?
Pick alearning goalWhat big make-or-break risksor idea is the one you want tonail down this week?(Hint: use the Canvas ormetrics to make sure it’srelevant.)
Have a conversationwith your idea.
How can I isolate the part I want to test?
Starting low ﬁdelity.
One pieceat a time.
Making sureyou’re in theright place.
Start with yourlearning goal.Pick a learning goal.Pick a measurement.Draw your MVP on a blank sheet.BuildLearnMeasure
Meeting every week with fellow founders to share ourweekly progress, and get advice to stay on track.Braintrust
Braintrust3 minutes each to presentyour learning & goals. 5minutes each for feedback.Feedback is focused on risks,learning methods &environment - not your ideas!
Take 3 minutes to prepare at:foundercentric.com/learningprogress
What you learned.ProgressObstacles in reaching your learning goal.ProblemsWhat will you learn by next week?Learning Goal
Investor relationsTransparency & clarity onwhere they can help.
Make the accelerator accelerate you!Lead time
IterationImprove the big pictureLearn, then conﬁrmTangible next stepsDo LessPrinciples