• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Lean Startup talk at Business Bootcamp, Brunel
 

Lean Startup talk at Business Bootcamp, Brunel

on

  • 518 views

Slides that I used at the Startup Bootcamp one-day event a

Slides that I used at the Startup Bootcamp one-day event a

Statistics

Views

Total Views
518
Views on SlideShare
518
Embed Views
0

Actions

Likes
1
Downloads
6
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Lean Startup talk at Business Bootcamp, Brunel Lean Startup talk at Business Bootcamp, Brunel Presentation Transcript

    • Lean Startup An overview
    • Disclaimer
    • Disclaimer• No silver bullets• No substitute for experience• Just one tool• Not the whole tool
    • Disclaimer• No silver bullets• No substitute for experience• Just one tool• Not the whole tool
    • Disclaimer• No silver bullets• No substitute for experience• Just one tool• Not the whole tool
    • Disclaimer• No silver bullets• No substitute for experience• Just one tool• Not the whole tool
    • “Lean Startup”
    • What is a startup?
    • What is a startup?“The act or fact of starting something; asetting in motion.” -Dictionary (useless)
    • What is a startup?“Startups are fresh, new companies tryingto do cool stuff.” -Instinctive (still mostly useless)
    • What is a startup?“A startup is an organization formed tosearch for a repeatable and scalablebusiness model.” -Steve Blank
    • What is a startup?“A startup is a human institution designed todeliver a new product or service underconditions of extreme uncertainty.” -Eric Ries
    • What is a startup?“...essentially a startup is a new businessdesigned for scale.”“A startup is a small company that takes on ahard technical problem.” -Paul Graham
    • What is a startup?“A startup is a business which has ambitionsand plans to grow by a large factorover the next few years.” -Me!
    • Key points• Uncertainty, search, difficulty• Ambition, growth• Methods, plans• Business, money
    • How should I build a startup?
    • Some typicalapproaches that don’t work
    • 1. First, write a business plan...
    • 2. Raise lots of moneyand then figure it out
    • 3. Plan it, build it and they will come
    • 4. Get lots of users andfigure the rest out later
    • 5. Don’t spend anything at all.
    • A better method... “Lean”
    • Lean is not...• Cheap• Rigid• Limited to simple ideas• The magic key to success
    • Lean is...• A method to organise the chaos• Less waste• Less risk• More learning• A common language
    • The fundamentalprinciple of “Lean”
    • • A business is there to achieve a purpose• Building things people don’t need is waste• Building large things that people don’t need is large waste• You have no idea what you’re doing• You have no idea what to build
    • • A business is there to achieve a purpose• Building things people don’t need is waste• Building large things that people don’t need is large waste• You have no idea what you’re doing• You have no idea what to build
    • • A business is there to achieve a purpose• Building things people don’t need is waste• Building large things that people don’t need is large waste• You have no idea what you’re doing• You have no idea what to build
    • • A business is there to achieve a purpose• Building things people don’t need is waste• Building large things that people don’t need is large waste• You have no idea what you’re doing• You have no idea what to build
    • • A business is there to achieve a purpose• Building things people don’t need is waste• Building large things that people don’t need is large waste• You have no idea what you’re doing• You have no idea what to build
    • Sounds hard!
    • The “Lean” approach:Build the smallest, easiest, smartest thing thatteaches you what you need to learn
    • The “Lean” approach:Build the smallest, easiest, smartest thing thatteaches you what you need to learn
    • What do you need to learn?
    • Do people want it?
    • Can I sell it?
    • Can I build it?
    • A startup plan1. Do people want it?2. Can I sell it?3. Can I build it?
    • The “Lean” approach:Build the smallest, easiest, smartestthing that teaches you what you need tolearn
    • Minimum Viable Product
    • Minimum Viable Product• Landing page• Paper prototype• Presentation/pitch• Anything that enables you to learn!•
    • Minimum Viable Product• Landing page• Paper prototype• Presentation/pitch• Anything that enables you to learn!•
    • Minimum Viable Product• Landing page• Paper prototype• Presentation/pitch• Anything that enables you to learn!•
    • Minimum Viable Product• Landing page• Paper prototype• Presentation/pitch• (Fake) demo video• “Concierge MVP”• Anything that enables you to learn!
    • Minimum Viable Product• Landing page• Paper prototype• Presentation/pitch• (Fake) demo video• “Concierge MVP”• Anything that enables you to learn!
    • Minimum Viable Product• Landing page• Paper prototype• Presentation/pitch• (Fake) demo video• “Concierge MVP”• Anything that enables you to learn!
    • MVP• MVP is not a crappy version of the product.• MVP is driven by the questions you need answered.
    • The Lean Cycle
    • The Lean Cycle (backwards) ExperimentHypothesis Text Metric
    • Lean Toolkit
    • Metrics
    • Up and to the right...
    • Vanity metrics• User signups• Traffic• Retention rate• Any metric in a vacuum
    • Good metrics• Mostly: A/B test results• Cohort breakdowns• Retention rates over time• Activity stream• Any metric that’s actionable
    • Actionable?• Must be related to the key engines of your business...
    • Engines:value and growth
    • Engine of value• How much value is your startup delivering?• Is it enough to be worth paying for?• Do people perceive that and agree?
    • Engine of growth• How does your startup acquire new customers? • Paid • Viral • Sticky
    • Engine of growth• How does your startup acquire new customers? • Paid (CAC & LTV) • Viral (Viral Coefficient) • Sticky (Retention rate)
    • Actionable Metrics• Actionable metrics are the ones which lead to a change which you know will impact your key drivers.
    • “InnovationAccounting”
    • Lean reporting• If you only report usage/revenue, that’s what you’ll be judged on• Track validated learning instead
    • Pivots(hot buzzword alert)
    • Experiment failed... what now?• Why did it fail? Which assumption was wrong?• Can the assumption be tweaked, or does it need to be thrown out?• How can we rework the business model now we know that we know this?
    • Experiments succeeded, but...• If it’s not working well enough to build a sustainable business, it’s not working, period.
    • • Zoom-in pivot: single feature becomes the whole product• Zoom-out pivot: the product becomes a feature of a larger product
    • • Customer segment pivot: some customers like us, but not the ones initially targeted• Customer need pivot: the product doesn’t solve a big enough problem for our customers
    • • Business architecture pivot: low margin, high volume, vs. high margin, low volume• Value capture pivot: change the way you monetise
    • But... don’t abuse pivots.
    • Let’s recap...
    • Startups areexperiments
    • Test critical things as quickly as possible
    • Work back from what you want to test... ExperimentHypothesis Text Metric
    • Actionable metrics, not vanity metrics
    • Report on learning progress
    • Pivot whenassumptions are wrong
    • Lean is just a method Be smart Get advice
    • Where to go from here...• “The Lean Startup” - Eric Ries• “Running Lean” - Ash Maurya• “The entrepreneur’s guide to customer development” - Brant Cooper & Patrick Vlaskovits• Numerous blogs online...• Mentors...• EXPERIENCE!