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Lean startup
        - the Italian way -

                                                    Nicola Junior Vitto
                                                            Blomming
                        Programmers in Padua - April 27, 2012 - Padova
                                                @njvitto - @blomming
                                                nicola@blomming.com


lunedì 30 aprile 12
What’s a startup?


        A startup is first of all an experiment, it is a human
        institution designed to deliver a new product or
        service under conditions of extreme uncertainty

        At its heart, a startup is a catalyst that transforms
        ideas into product.

                      (From Lessons Learned blog By Eric Ries)



lunedì 30 aprile 12
Ideas




                      How important are ideas?
lunedì 30 aprile 12
Team




                      Team is the key
lunedì 30 aprile 12
Passion




                      It’s very difficult to succeed without passion
lunedì 30 aprile 12
Market research




lunedì 30 aprile 12
Market: B2C




                      B2C
lunedì 30 aprile 12
Market: B2B




                      B2B
lunedì 30 aprile 12
Market: B2B2C




                       B2B2C
lunedì 30 aprile 12
Business Plan




lunedì 30 aprile 12
Prototype




                      Or as a developer, you will probably start
                             prototyping your software
lunedì 30 aprile 12
Questions



                        How do you choose features?

                How much wait before launching the product?

                      What’s your development process?




lunedì 30 aprile 12
Go Ahead


                             Having a good idea,
                       a proved and experienced team,
                      market research and a good plan...
                            ...and/or a prototype


                           ...last missing thing is...



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Money




lunedì 30 aprile 12
VC Funding




                      Venture Capitals or Angel Investors
                      can give you money based on your plan
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And then?




                      (Classic) Product Development



lunedì 30 aprile 12
Development: Waterfall model
                            Waterfall




           Problem: known               Solution: known




lunedì 30 aprile 12
Wait a minute




                          ...but we said...


                      ...the Italian way!



lunedì 30 aprile 12
Bootstrapper




                      You should be a bootstrapper.
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Searching for Money




                      Do you have a plan a/o prototype
                            and a (good?) idea?
lunedì 30 aprile 12
Searching for Money




                      No money for ideas
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A classic full-featured product




                  Yes...it can be well organized,
    but not all features are required to your lean startup.
lunedì 30 aprile 12
Minimum Viable Product



                          MVP: A product with the
                          fewest number of features
                          needed to achieve a
                          specific objective, for
                          which users are willing to
                          ‘pay’ in some form of a
                          scarce resource.



lunedì 30 aprile 12
Intermediate MVPs




                      Final MVPs test the business model
                       Intermediate MVPs test high risk
                       components of the business model.
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Business Models (examples)




                      Free/Adv      Freemium
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Business Models (WTF)




lunedì 30 aprile 12
                      ???
What’s wrong?


                       9/10 Startups fail


                       66% of successful
                        changed plans


                      58 ideas = 1 success

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What’s the problem?




                      Lack of customers
lunedì 30 aprile 12
What’s the problem?




                      Build a product no one wants

lunedì 30 aprile 12
What about Business Plans?




                           No business plan
                                survives
                      the first customer contact




lunedì 30 aprile 12
What about Business Plans?


                      Plans are for a known future
                        not for a startup context




                        So, plans fail in startups




lunedì 30 aprile 12
Assumptions on Product Development




lunedì 30 aprile 12
Business Models




                      It’s all about business models




lunedì 30 aprile 12
What’s a Lean Startup?



                      Lean startup is a rigorous process
                            for iterating from Plan A
                             to a plan that works.

                                (by Ash Maurya)




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Lean is not cheap




lunedì 30 aprile 12
Lean startup is...



                      Open Source software




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Lean startup is...



                          Open Source software

                      Cloud computing architectures




lunedì 30 aprile 12
Lean startup is...



                         Open Source software

                      Cloud computing architectures

                         Agile methodologies




lunedì 30 aprile 12
XP

                                Agile (XP)
           “Product owner” or
          “in-house” customer




               Problem: known                Solution: unknown


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“Problem” in startups




                      ...but in startups problem is unknown




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“Problem” in startups




                      What can help me?




lunedì 30 aprile 12
Customer Development




lunedì 30 aprile 12
Four Steps to the Epiphany




lunedì 30 aprile 12
Business Plans




         While the death of the business plan as a
         method to engage investors is a welcome
         development, it doesn’t eliminate the need to
         think through your business – a process aided
         by, ironically, the writing of a business plan.




lunedì 30 aprile 12
Get out of the building (by Steve Blank)




                      Your business assumptions can be wrong
                       Go out and speak with your customers
lunedì 30 aprile 12
Don’t broadcast




lunedì 30 aprile 12
Talk with your customers




lunedì 30 aprile 12
Business Models




                                    We said:
                      “It’s all about business models”




lunedì 30 aprile 12
Many different business models




                    The same technology, product or service
                  can have many different business models




lunedì 30 aprile 12
Sketch out your Business models




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Iterate on guesses (set of hypotesis)




          Iterate fast and often to find your business model
lunedì 30 aprile 12
Customer Development: pivoting




lunedì 30 aprile 12
Business Models Canvas




lunedì 30 aprile 12
OODA Loop




lunedì 30 aprile 12
AARRR Metrics




                                By Dave McClure
                      More on: http://500hats.typepad.com/

        Initial hypotesis must be precise to be measured
lunedì 30 aprile 12
Product/Market fit




lunedì 30 aprile 12
Customer Development: scaling




lunedì 30 aprile 12
What’s a Lean Startup?



        Problem:
        unknown




                                 Solution:
                                unknown



lunedì 30 aprile 12
Scalable (lean) startup




lunedì 30 aprile 12
Scalable startup




lunedì 30 aprile 12
Early Adopters




                   The MVP is for your first customers:
            they are called Innovators and Early adopters.

lunedì 30 aprile 12
Experience




lunedì 30 aprile 12
Entrepreneurship



        ...Entrepreneurs recognize they are going to have
         to follow their own internal compass and embrace
              the uncertainty as part of the journey.

                                        - Steve Blank -
         more info on http://steveblank.com/2009/06/29/agile-opportunism-entrepreneurial-dna/




lunedì 30 aprile 12
Courage




lunedì 30 aprile 12
Find the right people




                      Your partners and your team

lunedì 30 aprile 12
Focus focus focus




lunedì 30 aprile 12
Be frugal




               Do you REALLY NEED that new: phone, car,
               shoes, to go out for dinner or beers every day,
                                  etc.???
lunedì 30 aprile 12
Blog-Magazine: LikePicasso




                      A blog as a Customer Development tool
lunedì 30 aprile 12
On your Blomming pages




       Creating
       a Shop
       on Blomming
       you can
       immediately
       sell...




lunedì 30 aprile 12
On your Blomming pages




                              On websites and/or blogs




       Creating
       a Shop
       on Blomming
       you can
       immediately
       sell...




lunedì 30 aprile 12
On your Blomming pages




                              On websites and/or blogs




       Creating
       a Shop
       on Blomming
                               On your Facebook page
       you can
       immediately
       sell...




lunedì 30 aprile 12
On your Blomming pages




                                  On websites and/or blogs




       Creating
       a Shop
       on Blomming
                                   On your Facebook page
       you can
       immediately
                      On Blomming’s Storefront
       sell...




lunedì 30 aprile 12
On your Blomming pages




                                        On websites and/or blogs




       Creating
       a Shop
       on Blomming
                                         On your Facebook page
       you can
       immediately
                            On Blomming’s Storefront
       sell...

                                                       On other sites
                                                       and mobile
                      API                              devices

lunedì 30 aprile 12
The Lean Startup




lunedì 30 aprile 12
Running Lean




lunedì 30 aprile 12
Business Models




lunedì 30 aprile 12
Useful on how to pitch investors




lunedì 30 aprile 12
Work only from 9 to 5




                       Is it possible?
lunedì 30 aprile 12
An alternative?




                         Lifestyle business
lunedì 30 aprile 12
Italian Lean Startup Meetup




    http://www.meetup.com/Lean-Startup-Bologna-Meetup


lunedì 30 aprile 12
How to start a Startup?




               http://www.venture-lab.org/




lunedì 30 aprile 12
Thanks

                      Blomming.com
                      Company.Blomming.com
                      Magazine.Blomming.com
                        Help.Blomming.com
                       Twitter.com/Blomming
                      Facebook.com/Blomming

                      Personal blog: njvitto.com
                       nicola@blomming.com
                      On FB & Twitter as: njvitto



lunedì 30 aprile 12

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