Lean Startup Essentials - STARTup Live GrazPresentation Transcript
Lean Startup Essentials Lean Startup Essentials Lukas Fittl lukas@ﬁttl.com STARTup Live Graz 30th April 2011
Lean Startup Essentials Agenda Today’s focus: The early stage • 10 - 20min blocks, quick Q&A after each • 1: Why? & The Canvas • 2: Customer Discovery • 3: Case Study
Lean Startup Essentials #1 Part 1: Why? & Lean Canvas
Lean Startup Essentials #1: Introduction About Me • 2nd time entrepreneur • 2007-2010: Soup.io (Co-founder) • The Efﬁcient Cloud “Heroku for Europe” to “PaaS technology for hosting providers” (Seedcamp 2011 company) • Collaborated with Ash Maurya on the Lean Canvas
Lean Startup Essentials #1: Introduction Where this all comes from • Steve Blank - Customer Development • Alex Osterwalder - Business Model Canvas • Eric Ries - The Lean Startup • Ash Maurya - Lean Canvas
Lean Startup Essentials #1: Lean Startup Most startups fail from a lack of (paying) customers.
Lean Startup Essentials #1: Lean Startup Startups are not just a small version of a big company.
Lean Startup Essentials #1: Lean Startup Startup: Temporary organization used to search for a repeatable and scalable business model. As deﬁned by Steve Blank.
Lean Startup Essentials #1: Lean Startup Your initial Goal: Improve likely success rate of your venture, and reduce risk of failure. Enable yourself to actually make the jump into a full-time entrepreneur.
Lean Startup Essentials #1: Lean Startup Your Process: Likely entirely chaotic. No one implements the lean startup as a strict process. Similar to agile adoption (e.g. Kan-ban) you need to make a slow transition into more structured thinking.
Lean Startup Essentials #1: The Canvas So, we need a language in order to talk about your startup.
Lean Startup Essentials #1: The Canvas Product is only 1 of the 9 critical aspects that make your company work.
Lean Startup Essentials #1: The BM Canvas The Business Model Canvas
Lean Startup Essentials #1: The BM Canvas Alex Osterwalder - Business Model Generation
Lean Startup Essentials #1: The BM Canvas Day Month Year No. Who are our Key Partners? What Key Activities do our Value Propositions require? What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value? Who are our key suppliers? Our Distribution Channels? Which one of our customer’s problems are we helping to solve? Segments expect us to establish and maintain with them? Who are our most important customers? Which Key Resources are we acquiring from partners? Customer Relationships? What bundles of products and services are we offering to each Customer Segment? Which ones have we established? Which Key Activities do partners perform? Revenue streams? Which customer needs are we satisfying? How are they integrated with the rest of our business model? How costly are they? What Key Resources do our Value Propositions require? Through which Channels do our Customer Segments Our Distribution Channels? Customer Relationships? want to be reached? Revenue Streams? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? What are the most important costs inherent in our business model? For what value are our customers really willing to pay? Which Key Resources are most expensive? For what do they currently pay? Which Key Activities are most expensive? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
Lean Startup Essentials #1: The Lean Canvas The Lean Canvas
Lean Startup Essentials #1: The Lean Canvas Focused on Early-Stage integrates Problem/Solution ﬁelds
Lean Startup Essentials #1: The Lean Canvas Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Top 3 problems Top 3 features Single, clear, Can’t be easily Target customers compelling copied or bought message that states why you are different and Key Metrics worth buying Channels Key activities you Path to measure customers Cost Structure Revenue Streams Customer Acquisition Costs Revenue Model Distribution Costs Life Time Value Hosting Revenue People, etc. Gross Margin Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.
Lean Startup Essentials #1: The Lean Canvas Market • Customer Segments • Problem • Revenue Streams (Pricing)
Lean Startup Essentials #1: The Lean Canvas Market <=> Product • Unique Value Proposition • Distribution & Marketing Channels • Key Metrics
Lean Startup Essentials #1: The Lean Canvas Example: Tupalo Problem Solution Unique Value Unfair Customer Proposition Advantage Segments #1 Finding Business DB information, Yellowpages Herold / ED #1 9-to-5 folks quality & location #1 Search online. Partnership looking for lunch of a business function, Sitemap options, etc. #2 Business CP Find the best SEO Know-How #2 Promoting a restaurant/etc. #1 Long-tail business, Key Metrics near you. Channels mainstream providing correct information to #1 Avg. Reviews #1 Long-tail SEO #2 Business customers per user owners #2 European (restaurants, etc.) #2 Avg. Revenue Directories (B2B per business Sales) Cost Structure Revenue Streams Software Development #1 Free SEO Partnership Deals #2 Hundreds/Thousands of EUR (recurring)
Lean Startup Essentials #1: The Lean Canvas Example: Freckle Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Tracking time Time tracking precisely without with superb UX, Time tracking Existing Freelancers effort no unnecessary software that audience: fuss you’ll actually Mailinglists, Agencies Easily invoice use. Twitter, etc. clients with good report on Key Metrics Channels performed work Hours tracked - Word of mouth - Cross-sales Rev. per user - Freebies - Existing audience Cost Structure Revenue Streams Software Development 12-50 USD / month (dep. on company size) Marketing/Copywriting CC fees Hosting
Lean Startup Essentials #1: The Lean Canvas Example: Garmz Problem Solution Unique Value Unfair Customer Proposition Advantage Segments #1 Mass- No-barriers producing a fashion #1 Make your Team with #1 Fashion fashion garment production, design talent industry designers chosen by the visible experience #1 Marketing & community #2 Trend-chasing sales #2 Find the latest hipsters Key Metrics fashion trend & Channels #2 Buy trendy be unique clothes #1 New designs Fashion blogs Partnerships uploaded #1 Fashion schools #1 Fashion events #2 Conv. rate to #2 Word of mouth / actual sale strong brand Cost Structure Revenue Streams Production! (super expensive) #2 100 EUR / piece Prototyping Payout to designer Marketing, Biz Dev, Software Dev
Lean Startup Essentials #1: The Lean Canvas Live Example: Rails on Fire
Lean Startup Essentials #1 Q&A
Lean Startup Essentials #1 [break]
Lean Startup Essentials #2: Customer Discovery Part 2: Customer Discovery
You probably already have a product idea
Lean Startup Essentials #2: Customer Discovery And an implict assumption about your market
Lean Startup Essentials #2: Customer Discovery Focus on qualitative feedback from the market
Lean Startup Essentials #2: Customer Discovery Listen to what customers have to say - don’t execute a fabricated value proposition
Lean Startup Essentials #2: Customer Discovery Customer Interviews 30 min in-person with your prototypical customer People like talking about their ﬁeld - explore their worldview.
Lean Startup Essentials #2: Customer Discovery How to conduct an interview 1. Set context & tell your story 2. Tell your problem hypothesis 3. Listen to their worldview 4. Ask for follow up / references
Lean Startup Essentials #2: Customer Discovery Online Market Tests: Google Adwords Fake Landing Page with “Signup to be notiﬁed when we launch” “Can we call you to ask a couple of Qs?”
Lean Startup Essentials #2: Customer Discovery User Groups & Conferences: Hand out cards with invite codes - landing page with “join our soon-to- launch beta programme” SolidRails European VPS cloud. Fully-integrated Rails hosting. Your private beta access code: OEWO8C
Lean Startup Essentials #2: Customer Discovery Amy Hoy’s Sales Safari: Lurk in online forums of your customer segment, learn how they talk about products & beneﬁts
Lean Startup Essentials #2 Q&A
Lean Startup Essentials #2 [break]
Lean Startup Essentials #3: Case Study Part 3: Case Study
Lean Startup Essentials Literature Literature
Lean Startup Essentials Literature Steve Blank - The Four Steps to the Epiphany steveblank.com
Lean Startup Essentials Literature Alex Osterwalder - Business Model Generation businessmodelgeneration.com
Lean Startup Essentials Literature Eric Ries - The Lean Startup lean.st
Lean Startup Essentials Literature Ash Maurya - Running Lean book.runningleanhq.com
Lean Startup Essentials Literature Neil Davidson - Don’t Just Roll the Dice