Startup
Fuze
June 2014
Lean Startup
Customer Development
Validation Process
Startup Fuze
June 2014
Day 1
HOLA
GRACIAS
Entrepreneurship coordinator, serial
entrepreneurs,consultant, teacher,
researcher.
Business & TI	

Blogger, Social Media,...
The 5 hottest mexican tech blogs:
http://www.seedstarsworld.com/5-hottest-mexican-tech-blogs/
@lmalmanza
lmalmanza.wordpress.com
about.me/luismiguelalmanza
why you are here?
First steps
ç
First steps
@lmalmanza
history…
2006: Dozens and dozens of 

cloud storage companies
VC: “There are a million 

cloud storage startups!”



Drew: “Do you use any
of them?”



VC: “No”



Drew: “…”
Learn early, learn often
Dropbox’s minimum viable product:
!
3 min screencast on Hacker News (Apr 07):
Lots of immediate, high-quality feedback
Simple landing page: capture interest/email
address
Private beta launch video à 12,000 diggs; 

beta waiting list jumps from 5,000 to 75,000 in
one day (Mar 2008)
Public launch (Sep 2008): Time to get real
Public launch (Sep 2008): Time to get real
Our Web 2.0 Marketing Plan
!
• Big launch at TechCrunch50
• Buy some AdWords
• ...
Experiment: Paid
search
Hired experienced SEM & affiliate marketing
guy ($$)
Picked out keywords, made landing pages
Hid the...
Cost per acquisition: $233-$388
Cost per acquisition: $233-$388
For a $99 product. Fail.
Experiments failing left
and right
Problem: Most obvious keywords bidded way up
Probably by other venture-backed startups
...
But we were still doing well…?
• Reached 1mm users 7 months after launch
• Beloved by our community
Fourteen Months to the
Epiphany
Typical Dropbox User
New strategy: viral
• Give users better tools to spread the love
• Referral program w/ 2-sided incentive
permanently incre...
Trailing 30 days (Apr 2010) : users sent 

2.8 million direct referral invites
Results
• September 2008: 100,000 registered users
• January 2010 (15 mos later): 4,000,000
• Mostly from word-of-mouth an...
what is the goal today?
– @RAMONSCOTT
“The best entrepreneurship methodology is:
EXECUTION”
The rules of the game are different
Grid vs cloud
old
new
Think and idea, work
on it and…
see whats happen
¡EL COSTO DE INICIAR ES
MÁS BARATO QUE NUNCA!
new business rate
98% of startups fail
why?
why?
most startups fail from
a lack of customer ($)
they build the wrong things
for the customers!
Why so dumb?
• Love
• Bias
• Passion
• Lack of vision
goal: have a chance
Source: The Center of Entrepreneurship and Technology / Berkeley
What to build?
understanding basics
lean
lean
Startup Company
lean startup?
Sales + Costs -
$
one example
Methodologies
Marshmallow
challenge
marshmellow
challenge
LESSONS LEARNED
TED talk
Customer
Development
Build
customers
first
4 steps to ephifany
Customer
Problem
Solution
Product
Market
Company
Why is important
customer
perspective?
Mentores
customer is more
important than you!
how?
get out of the building
what is the
problem?
NO
Instructions
• Teams (3)
• As many NO´s as you can.
• Unknown people
• Record in video (1 x px)
• Send it to:
Validation Process
validation
comprobation
comprobar que
método científico
scientific method
1. Construct hypotheses	

2. Test by doing an experiment	

3. Validate or invalidate
most startups fail from a
lack of customer ($)
there is no process
hypotheses =
assumptions
experiments
experiments
metrics /
documentation
take decision
take decision
pivot
Types of pivot
• Zoom - in
• Zoom - out
• Customer
segment
• Customer need
• Platform
• Business
architecture
• Value capt...
tools
are they important?
is a framework
Javelin Board
ideas
experiments
Brainstorm
Execution
Customers h1
Problems h1
Solution
Risks h1
h2
h2
h2
h2
h3
h3 h4
yeahhh, now what?
MVP?
minimum viable product
– Eric Ries
“The minimum amount of effort you have to do
to complete exactly one turn of the Build -
Measure - Lear feedba...
how?
1. Exploration
observation
observation
story board
Story board
talk!
interviews
surveysNot now
record, evidence
record, evidence
2. pitch!
cold email
cold email
cold call
cold call
fake ad
Walking into a
store and pitching
the owner
Meetings, user
groups, conferences
meetings, user groups, conferences
Hand out cards with invite to:
landing page
options
• launchrock
• unbounce
• checkthis.com
www.unbounce.com
www.launchrock.com
www.checkthis.com
don´t forget the
ACTION
“Singup to be notified when we launch”
one example
examples
demos
videos
dibujos
drawings
maquetas
model
real life simulation
extra: research
OK. Let´s do it.
Today
• Javelin Board & at least 2 iterations
• 10 interviews by team
Tomorrow
• Proposed MVP
• At least your landing page
how i can find people?
where are they?
get out of the building
¿fin?
I did it!
next steps
Gracias!
contactolmalmanza.wordpress.com
about.me/luismiguelalmanza
Imágenes
• flickr.com	

• slideshare.com
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
Startup Fuze: Lean Startup, Customer Development & Validation Process
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Startup Fuze: Lean Startup, Customer Development & Validation Process

  1. 1. Startup Fuze June 2014
  2. 2. Lean Startup Customer Development Validation Process Startup Fuze June 2014 Day 1
  3. 3. HOLA
  4. 4. GRACIAS
  5. 5. Entrepreneurship coordinator, serial entrepreneurs,consultant, teacher, researcher. Business & TI Blogger, Social Media, Startups Computer Systems Engineer MBA IT Management Master Degree Who is talking? basket ball, tech, human complexity
  6. 6. The 5 hottest mexican tech blogs: http://www.seedstarsworld.com/5-hottest-mexican-tech-blogs/
  7. 7. @lmalmanza lmalmanza.wordpress.com about.me/luismiguelalmanza
  8. 8. why you are here?
  9. 9. First steps ç First steps @lmalmanza
  10. 10. history…
  11. 11. 2006: Dozens and dozens of 
 cloud storage companies
  12. 12. VC: “There are a million 
 cloud storage startups!”
 
 Drew: “Do you use any of them?”
 
 VC: “No”
 
 Drew: “…”
  13. 13. Learn early, learn often
  14. 14. Dropbox’s minimum viable product: ! 3 min screencast on Hacker News (Apr 07): Lots of immediate, high-quality feedback
  15. 15. Simple landing page: capture interest/email address
  16. 16. Private beta launch video à 12,000 diggs; 
 beta waiting list jumps from 5,000 to 75,000 in one day (Mar 2008)
  17. 17. Public launch (Sep 2008): Time to get real
  18. 18. Public launch (Sep 2008): Time to get real Our Web 2.0 Marketing Plan ! • Big launch at TechCrunch50 • Buy some AdWords • Hire a PR firm, or a VP of Marketing, or 
 something
  19. 19. Experiment: Paid search Hired experienced SEM & affiliate marketing guy ($$) Picked out keywords, made landing pages Hid the free account option for people arriving via paid search, replace with free time-limited trial Went live in early 2009
  20. 20. Cost per acquisition: $233-$388
  21. 21. Cost per acquisition: $233-$388 For a $99 product. Fail.
  22. 22. Experiments failing left and right Problem: Most obvious keywords bidded way up Probably by other venture-backed startups Problem: Long tail had little volume Problem: Hiding free option was shady, confusing, buggy Affiliate program, display ads, etc sucked too Economics totally broken
  23. 23. But we were still doing well…? • Reached 1mm users 7 months after launch • Beloved by our community
  24. 24. Fourteen Months to the Epiphany
  25. 25. Typical Dropbox User
  26. 26. New strategy: viral • Give users better tools to spread the love • Referral program w/ 2-sided incentive permanently increased signups by 60% (!!) – Inspired by PayPal $5 signup bonus • Big investment in analytics
  27. 27. Trailing 30 days (Apr 2010) : users sent 
 2.8 million direct referral invites
  28. 28. Results • September 2008: 100,000 registered users • January 2010 (15 mos later): 4,000,000 • Mostly from word-of-mouth and viral: – 35% of daily signups from referral program – 20% from shared folders, other viral features • Sustained 15-20%+ month-over-month growth since launch
  29. 29. what is the goal today?
  30. 30. – @RAMONSCOTT “The best entrepreneurship methodology is: EXECUTION”
  31. 31. The rules of the game are different
  32. 32. Grid vs cloud old new
  33. 33. Think and idea, work on it and… see whats happen
  34. 34. ¡EL COSTO DE INICIAR ES MÁS BARATO QUE NUNCA!
  35. 35. new business rate 98% of startups fail
  36. 36. why? why?
  37. 37. most startups fail from a lack of customer ($)
  38. 38. they build the wrong things for the customers!
  39. 39. Why so dumb? • Love • Bias • Passion • Lack of vision
  40. 40. goal: have a chance
  41. 41. Source: The Center of Entrepreneurship and Technology / Berkeley
  42. 42. What to build?
  43. 43. understanding basics
  44. 44. lean lean
  45. 45. Startup Company
  46. 46. lean startup?
  47. 47. Sales + Costs - $
  48. 48. one example
  49. 49. Methodologies
  50. 50. Marshmallow challenge
  51. 51. marshmellow challenge
  52. 52. LESSONS LEARNED TED talk
  53. 53. Customer Development
  54. 54. Build customers first
  55. 55. 4 steps to ephifany
  56. 56. Customer Problem Solution Product Market Company
  57. 57. Why is important customer perspective?
  58. 58. Mentores
  59. 59. customer is more important than you!
  60. 60. how?
  61. 61. get out of the building
  62. 62. what is the problem?
  63. 63. NO
  64. 64. Instructions • Teams (3) • As many NO´s as you can. • Unknown people • Record in video (1 x px) • Send it to:
  65. 65. Validation Process
  66. 66. validation comprobation
  67. 67. comprobar que
  68. 68. método científico scientific method 1. Construct hypotheses 2. Test by doing an experiment 3. Validate or invalidate
  69. 69. most startups fail from a lack of customer ($) there is no process
  70. 70. hypotheses = assumptions
  71. 71. experiments experiments
  72. 72. metrics / documentation
  73. 73. take decision take decision pivot
  74. 74. Types of pivot • Zoom - in • Zoom - out • Customer segment • Customer need • Platform • Business architecture • Value capture • Engine of growth • Channel
  75. 75. tools
  76. 76. are they important?
  77. 77. is a framework
  78. 78. Javelin Board
  79. 79. ideas experiments
  80. 80. Brainstorm
  81. 81. Execution
  82. 82. Customers h1 Problems h1 Solution Risks h1 h2 h2 h2 h2 h3 h3 h4
  83. 83. yeahhh, now what?
  84. 84. MVP? minimum viable product
  85. 85. – Eric Ries “The minimum amount of effort you have to do to complete exactly one turn of the Build - Measure - Lear feedback loop”
  86. 86. how?
  87. 87. 1. Exploration
  88. 88. observation observation
  89. 89. story board Story board
  90. 90. talk!
  91. 91. interviews
  92. 92. surveysNot now
  93. 93. record, evidence record, evidence
  94. 94. 2. pitch!
  95. 95. cold email cold email
  96. 96. cold call cold call
  97. 97. fake ad
  98. 98. Walking into a store and pitching the owner
  99. 99. Meetings, user groups, conferences meetings, user groups, conferences Hand out cards with invite to:
  100. 100. landing page
  101. 101. options • launchrock • unbounce • checkthis.com www.unbounce.com
  102. 102. www.launchrock.com
  103. 103. www.checkthis.com
  104. 104. don´t forget the ACTION “Singup to be notified when we launch”
  105. 105. one example
  106. 106. examples
  107. 107. demos
  108. 108. videos
  109. 109. dibujos drawings
  110. 110. maquetas model
  111. 111. real life simulation
  112. 112. extra: research
  113. 113. OK. Let´s do it.
  114. 114. Today • Javelin Board & at least 2 iterations • 10 interviews by team
  115. 115. Tomorrow • Proposed MVP • At least your landing page
  116. 116. how i can find people? where are they?
  117. 117. get out of the building
  118. 118. ¿fin?
  119. 119. I did it!
  120. 120. next steps
  121. 121. Gracias!
  122. 122. contactolmalmanza.wordpress.com about.me/luismiguelalmanza
  123. 123. Imágenes • flickr.com • slideshare.com

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