Lean Startup With Rob Kunz


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The Northfront Entrepreneur Alliance is a entreprenuer networking association in Northern Utah. This presentation was given on 04.06.11 to the group by Rob Kunz- a successfull entrepreneur, investor., and co-founder of BoomStartup. He discusses the Lean Startup Business Model and how to apply it.

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Lean Startup With Rob Kunz

  1. 1. Lean Startup Practices and ApplicationMore startups fail from a lack of customersthan from a failure of productdevelopment... @robbkunz http://about.me/robbkunz
  2. 2. My Lean Startup Background Started Back in 1991: RAD / JAD / 4GL / CASE / LINCII Founded KnowledgeBlue in 2002: Open Source Systems Integrator and Software-as-a-Service / Cloud Services Company; 800 Clients, 25K Users; ---> 15 Lean Startup Companies / Projects Founded ventureblue Capital in 2007: High Tech, Early-stage Investment Firm applying Lean Startup to Investment Portfolio Companies ---> 7 out of 14 Investments are Lean Startups Founded BoomStartup in 2010; Mentorship-driven Seed Accelerator ---> 5 out of 10 Companies utilized Lean Startup
  3. 3. What Is Lean Startup? Lean, in sense low-burn...with much less waste Startup, a set of processes and tools used by entrepreneurs to develop products and markets An application of Lean Thinking...Toyota Active Evangelists Eric Ries and Steve Blank
  4. 4. Latest Thinking....and Experiments Expand beyond Product Development into: - Lean Business Modeling (Bus. Model Validation) - Lean Marketing - Lean Support (Crowd Sourcing) Expand into other industry segments; Consumer Products and Light Manufacturing Developing Community-based lean artifacts, best practices, tools and techniques
  5. 5. Trends & Drivers of Lean Startup Open Source and Free Software  Development: LAMP, Testing, Widgets  Business Applications: CRM, ERP, BI, VOIP Development Processes and Tools  Agile / Scrum / Customer Development  Minimal Viable Product (MVP) Cloud Services and Virtualization  IaaS, PaaS and SaaS
  6. 6. Leverage Cloud Solutions
  7. 7. Idea The “Old Way” Business Plan Func. Spec Some Learning Design Build More Learning Test Market Sell Most Learning
  8. 8. Idea? The “New” Way Market Sizing Minimal Business Viable MVP MVP Model Product for for Generation / (MVP) Adoption Revenue Validation Usage 3-5 Clients Month 1 Month 2, 3 & 4 Month 5 Month 6
  9. 9. key value customer activities proposition relationships key customer partners segment s cost revenuestructure key streams resources channels 4/6/11 30 images by JAM
  10. 10. CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done?4/6/11
  11. 11. VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care?4/6/11
  12. 12. CHANNELS how does each customer segment want to be reached? through which interaction points?4/6/11
  13. 13. CUSTOMER RELATIONSHIPS what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?4/6/11
  14. 14. REVENUE STREAMSwhat are customers really willing to pay for? how? are you generating transactional or recurring revenues?4/6/11
  15. 15. KEY RESOURCES which resources underpin your business model? which assets are essential?4/6/11
  16. 16. KEY ACTIVITIES which activities do you need to perform well in your business model? what is crucial?4/6/11 14
  17. 17. KEY PARTNERS which partners and suppliers leverage your model? who do you need to rely on?4/6/11
  18. 18. COST STRUCTURE what is the resulting cost structure? which key elements drive your costs?4/6/11
  19. 19. Tricks & Traps for Business Model Try mobilize a Mentor to help facilitate discussions Bring all founders / key players together in person Limit sessions to 2 hours max, Plan 3 x 2hrs Leverage online tools for easy access & updates Produce several poster size prints for awareness “Get out of the Office” To Validate the model Test it on Companies that are already operating Capture Requirements Backlog During Sessions
  20. 20. Idea? The “New” Way Market Sizing Minimal Business Viable MVP MVP Model Product for for Generation / (MVP) Adoption Revenue Validation Usage 3-5 Clients Month 1 Month 2, 3 & 4 Month 5 Month 6
  21. 21. Minimal Viable Product (MVP)
  22. 22. Agile Development Values Individuals and interactions over processes / tools Working software over comprehensive documents Customer collaboration over contract negotiation Responding to change over following a plan
  23. 23. Scrum Project Organization
  24. 24. Scrum Development Process
  25. 25. Measure Your Burndown: Daily
  26. 26. RallyDev: Automated Scrum Tools
  27. 27. Idea? The “New” Way Market Sizing Minimal Business Viable MVP MVP Model Product for for Generation / (MVP) Adoption Revenue Validation Usage 3-5 Clients Month 1 Month 2, 3 & 4 Month 5 Month 6
  28. 28. Leverage Crowdsourcing
  29. 29. Lean Startup Lessons Learned Many talk about it, few can really execute it... Cross Team Trainingg is a Critical Success Factor (CSF) MVP tends to ignore architecture and scalability It is difficult to find Clients who want to be on your MVP / Early Adoption team...many say they will, few do Its easy to let MVP become single Customer centric Measure, Measure and Measure
  30. 30. Key Resources Alex Osterwalder Steve Blankhttp://www.businessmodelgeneration.com/ http://steveblank.com/ http://boomstartup.com/ Eric Ries Taking Company Applications Now Summer 2011 Program – 3 Months http://www.startuplessonslearned.com/ ------------- Apply Online ------------