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Foundation Day - dotForge - April 2013
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Foundation Day - dotForge - April 2013

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    Foundation Day - dotForge - April 2013 Foundation Day - dotForge - April 2013 Presentation Transcript

    • F-Day!
    • 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.”
    • LearningGoals
    • Not livingyour dream?
    • We will fail.
    • Our job is to bringourselves the badnews sooner.
    • BuildLearnMeasure
    • Principles,not process.
    • IterationDo LessImprove the big pictureLearn, then confirmTangible next stepsPrinciples
    • Today10:30 Lean Flow11:30 Doing Less1:30 Lunch2:30 Prioritisation3:30 Stakeholder Analysis4:30 Learning Goals5:30 Pub
    • Feedback!
    • Do less.
    • Don’t work hard tomask your inefficiency.
    • Not enough time?Not enough money?
    • Grow with efficiency.
    • 3 ways toDo Less.Limiting work-in-progress.Letting go.Being picky about yourfirst customers.
    • Limit yourwork in progress.
    • Good for vision,inventing and improving.Bad for getting stuck onspecifics that don’t work.Tenacity
    • WIP yourself.
    • Early traction.
    • EarlyvangelistsHave the problemKnow they have the problem!Have budget to solve it.Have looked for a solution.Have tried to build a solution.
    • Is this conversation useful?
    • Choose yourcustomer.
    • Vague customer definitions.Multiple customerdefinitions.
    • Lack of direction.
    • 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!
    • Product Market
    • Action Customer
    • 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.
    • Customer SlicingJobs Obstacles GainsCurrentSolution
    • Balancing focus &opportunity
    • What Ican doWhat I’vegotSmall partnerships.Affordable Loss.
    • Are you a frog?Or a fish?
    • Startups arelearningorganisations.
    • 2 stages of learningDiscovery Validation
    • A man wakes up,turns on the radio,goes upstairs, turnson the light, and killshimself.
    • Image by wstryderImage by wstryder
    • Image by wstryderImage by wstryder
    • 2 stages of learningDiscovery Validation
    • 2 stages of learningLearn Confirm
    • 2 stages of learningAsk Sell
    • 2 stages of learningObserve Experiment
    • Does anyonecare at all?Do we understandthe industry?
    • Does anyonecare at all?Do we understandthe industry?Will anypay for it?Are we buildingthe right product?
    • Anyone will tell you that youridea is great if you annoythem long enough.
    • Dear Mom,Don’t you thinkI’m great?Love,Your son
    • Actually, not just your mom lies.Your customers are full of shit too.www.foundercentric.com
    • Past, not futureFact, not opinionSpecifics, not general(Talk about their life, not your idea.)The Mom Test
    • Good or bad questions?
    • ❝❞Do you think it’sa good idea?
    • ❝❞Do you think it’sa good idea?
    • ❝❞Would you buy aproduct which solvedthis problem?
    • ❝❞Would you buy aproduct which solvedthis problem?
    • ❝❞How do you currentlydeal with this problem?
    • ❝❞How do you currentlydeal with this problem?
    • ❝❞How have you dealtwith this problem?
    • ❝❞When does thisproblem pop up?
    • ❝❞When does thisproblem pop up?
    • ❝❞When’s the last timethat happened?
    • ❝❞What makes this time-consuming or go off-track?
    • ❝❞What makes this time-consuming or go off-track?
    • ❝❞Has this ever been moretime-consuming thannormal or gone off-track?
    • Their words - not yours!One phrase per card.Pair. One interviewer, one notetaker.Recording theright stuff.
    • ❝❞Please show mehow you...
    • ❝❞Please show mehow you...
    • ❝❞Please tell me how...I’m trying to learn howyou...
    • ❝❞Please tell me how...I’m trying to learn howyou...
    • ❝❞Talk me through the lasttime you had thisproblem.
    • ❝❞Talk me through the lasttime you had thisproblem.
    • ❝❞What did you tryto do about it?
    • ❝❞What did you tryto do about it?
    • Person Job Problem Measure Solution Excited Guilty UpsetImportant signals
    • ❝❞Please help meunderstand...
    • ❝❞Please help meunderstand...
    • ❝❞How much wouldyou pay for this?
    • ❝❞How much wouldyou pay for this?
    • ❝❞Can I ask why?
    • ❝❞Can I ask why?
    • ❝❞Talk me throughhow you decide.
    • ❝❞Talk me throughhow you decide.
    • ❝❞Talk me throughhow you decided.
    • ❝❞How much money doesthis problem cost you?
    • ❝❞How much money doesthis problem cost you?
    • ❝❞How much money hasthis problem cost you?
    • ❝❞How much shouldwe charge?
    • ❝❞How much shouldwe charge?
    • ❝❞What’s yourbudget?
    • ❝❞What’s yourbudget?
    • ❝❞How soon canyou start?
    • ❝❞How soon canyou start?
    • ❝❞What would need tohappen before you couldreally start using it?
    • ❝❞What would need tohappen before you couldreally start using it?
    • ❝❞Ever had any problems ordelays getting somethinglike this going/bought?
    • ❝❞Who elseshould I talk to?
    • ❝❞Who elseshould I talk to?
    • Opinions are worthless.
    • 2 stages of learningDiscovery Validation
    • 2 stages of learningLearn Confirm
    • So, we had a meeting!
    • ❝❞ClaudiaSounds great. Ilove it!
    • ❝❞ClaudiaSounds great. Ilove it!
    • ❝❞JeremyBrilliant -- let me knowwhen it launches!
    • ❝❞JeremyBrilliant -- let me knowwhen it launches!
    • Compliment?Stalling tactic?They don’t care. :(
    • ❝❞JeremyThere are a couplepeople I can intro youto, when you’re ready.
    • ❝❞JeremyThere are a couplepeople I can intro youto, when you’re ready.
    • Partial commitment?
    • Validate by going forfull commitment.
    • ❝❞ClaudiaI would definitelybuy that!
    • ❝❞ClaudiaI would definitelybuy that!ANGER!
    • Meetings succeed when theyadvance to the next step.
    • Examples ofadvancement> Permission to contact again> Clear next meeting> Introduction to decision-maker> Commitment to run a trial> Pre-purchase
    • Real learning comes fromFacts Commitment
    • Always know yourbig 3 questions.
    • Tweetable TextHow do authors pre-build their customer list?How do authors test copy and learn about their readers?How do authors prioritise their time when writing?
    • LeancampWhat awareness channels can we partner with?What do people learn at Leancamp that they apply?What do famous thought-leaders get out of conferences?
    • What are your Big 3 right now?Does it do what it says on the tin?Can we make it usable enough?Do people really, truly want it?Take 3 minutes to write them down.Are they to learn or confirm?
    • BusinessModelDesign
    • What’s the most preciousresource for a startup?
    • You’ve got a ton of options
    • Early stage strategy isfinding the few that matter.
    • Where isthe love?
    • We obsess overthe details.
    • And miss the big picture.
    • 4% conversion rate = win!
    • 4% conversion rate = win?
    • Marketing Success!
    • Business fail.
    • We had abig pictureproblem!
    • Alex Osterwalder’sBusiness Model Canvasis the big picture.
    • Your business model has holes
    • We wanted more users, sowe marketed...
    • ...which was renderedworthless by our retention.
    • Stuff’s going wrong...Let’s embrace it!
    • Test thescary bits first.(not the fun bits)
    • Navigating through options, hypotheses& environmental changes.Understanding dynamics betweenparts & articulating a clear story.PartsWholeProgressChecklists & dashboards123
    • Changing somethingchanges everything.
    • A “simple”change.
    • You can’t thinkabout any one partwithout thinkingabout the rest.
    • Clothinglabels &distributorsFaster tomarketFaster productionProductionProduction fees
    • 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 Platform
    • 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
    • Mentor MentalFiltering
    • Halo Effect
    • 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?
    • BusinessModelHacker!
    • 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?
    • Metrics
    • 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.
    • forentrepreneurs.com
    • 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.
    • BuildLearnMeasure
    • 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.
    • Signal.ly
    • Understandinganalogs
    • Making sureyou’re in theright place.
    • 48-hourMarshmallow
    • 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
    • BuildLearnMeasure
    • 2 stages of learningLearn Confirm
    • Make it your own.
    • Salim Virani@SaintSalsalim@saintsal.comwww.foundercentric.comThanks!