Start Up Lessons from the Zen Masters


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Start Up Lessons from the Zen Masters. Starting out with the Lean Startup Approach.

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Start Up Lessons from the Zen Masters

  1. 1. Start-up Lessons From the Zen Masters Pivot
  2. 2. What is a Start-up?
  3. 3. “The first thing tounderstand is,there are 6different types ofstartups” Steve Blank
  4. 4. Lifestyle Start-UpServe known customers with a known productGet paid for their passion Source:
  5. 5. Lifestyle Start-Up Work to live their Passion
  6. 6. Small BusinessStart-Up Serve known customers with a known product Work to feed the family Source:
  7. 7. Small BusinessStart-Up Exit Criteria Business Model found Small Startup Profitable business Existing team Business < €100K in revenue Source:
  8. 8. Scalable Start-Up Search for a Business Model
  9. 9. Scalable Start-Up Goal is to solve for: unknown customers & unknown features. Born to be Big
  10. 10. Scalable Start-Up August 2011 2,014,100 August 2009 January 2009 905,980 October 2007 400,980 +1530% 131,600 +688% +304% There are now 2,014,000 Facebook accounts active in Ireland, which means that 44pc of Ireland’s 4.5m population is on Facebook Source: media/item/23292-now-2m-facebook-accounts-in/ Exit Criteria Search Execute Scalable Business model found Large Total Available Market > €300m Company Startup Can grow to €50/year
  11. 11. Scalable Start-Up Source:
  12. 12. Scalable Start-Up A scalable start-Up is designed to grow big Needs risk capital What Silicon Valley means when they say “Startup”
  13. 13. Scalable Start-Up Scalable Large Transition Company Startup Search Execute Build Founders depart Professional Mgmt Process Beginning of scale
  14. 14. Buyable Start-Up Goal is to solve for: internet, mobile, gaming apps. Born to be sold
  15. 15. Large Company SustainingInnovation Serve known customers in existing known market Known product features Innovate or Die
  16. 16. Large Company SustainingInnovation Scalable Large Transition Startup Company Pic Source:
  17. 17. Large Company DisruptiveInnovation New Market New tech, customers, channels New Large Transition Division Company Disruptive Innovation
  18. 18. Large Company DisruptiveInnovation New Large Transition Division Company Build Partner Disruptive Innovation Acquire
  19. 19. Social Entrepreneurship Solve pressing social problems Social Enterprise: Profitable Social Innovation: New Strategies Source:
  20. 20. Start-Up Each Start-Up Requires Different Skills They Can Not Be Taught the Same way Source:
  21. 21. Define a Start-Up?
  22. 22. “A startup is atemporary organisationused to search for arepeatable scaleablebusiness model”
  23. 23. “A startup is a humaninstitution designed tocreate new products andservices underconditions of extremeuncertainty”Eric Ries
  24. 24. Start-up = Experiment Pic Source:
  25. 25. Entrepreneurship is Management Entrepreneurship is an institution, not just a product, and so it requires a new kind of management specifically geared to its context of extreme uncertainty.
  26. 26. Validated Learning “search for a repeatable scaleable business model” Startups exist to learn how to build a sustainable business. This learning can be validated scientifically by running frequent experiments that allow entrepreneurs to test each element of their vision.
  27. 27. Build-Measure-Learn The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or preserve. All successful startup processes should be geared to accelerate that feedback loop.
  28. 28. Innovation Accounting To improve entrepreneurial outcomes and hold entrepreneurs accountable, how to measure progress, how to set up milestones & how to prioritize work.
  29. 29. Problem 1 1st problem is caused by the allure of a good plan, a solid strategy, and No business plan survives thorough market research. Startups first customer contact operate with too much uncertainty. Startups do no know yet who their customer is or what their product should be. Pic Source:
  30. 30. Problem 2 2nd problem is that after seeing traditional management fail to solve this problem, some entrepreneurs and investors have thrown up their hands and adopted the “just do it” school of startups.
  31. 31. Solution = Lean Startup Taiichi Ohno Shigeo Shingo Lean Startup takes its name from the lean manufacturing revolution that Taiichi Ohno and Shigeo Shingo are credited with developing at Toyota.
  32. 32. Traditional Product Development Waterfall Requirements Specifications Design Problem: known Solution: known Implementation Unit of progress: Verification Advance to the next stage Maintenance
  33. 33. Agile Product Development “Product Owner” or in-house customer Problem: known Solution: unknown Unit of progress: A line of working code
  34. 34. Lean Start-up Pivot Customer Development Hypotheses, Experiments, Problem: unknown Insights Solution: unknown Data, Feedback, Insights Agile Development Unit of progress: Customer Validated learning Development: My Model Requires about customers you to get out of the building ($$$)
  35. 35. Bu siness Mod el Go & Search
  36. 36. Use the lean startup tool box
  37. 37. key activities value customer proposition relationships key customerpartners segments cost revenuestructure key streams resources channels 37 images by JAM
  38. 38. Course Books
  39. 39. Follow
  40. 40. Follow
  41. 41.