Lean StartupsTechStars Patriot Boot Camp
Zach Nies            @zachnies
Why I careabout startups
Font Samplerhttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg   http://en.wikip...
2,500,000         CustomersRevolutionized an industry
Amazingteam, culture, product, and   process
One problem…
Bad business
Revolutionized   nothing
Amazing team, culture,product, process
and…
Great business
Revolutionizing  an industry
I love to change    industries
Apply new  disciplinesto your startup
Become disciplined   explorers…
who know how tobalance exploration   and execution
Increase your odds    of success
What is a startup?
How do we navigate that uncertainty?
Explore     Execute          h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
When to explore vs    execute?
Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
Where are you?
Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
What to doExecute    Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
What to do   Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
What to do   BigCompanies     Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindl...
BigCompanies            h"p://www.flickr.com/photos/ironnickel/6076087519>
Startupsh"p://www.flickr.com/photos/elcapitan/2387917709>
What to doExecute    Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
Explore vs. Execute
30 yearsof science
Unordered                    OrderedChaotic   Complex   Complicated Simple
Unordered                                                          Ordered                                                ...
Unordered                     Ordered          Complex   ComplicatedChaotic                           Simple
Unordered                Ordered      Complex    Complicated       Chaotic     Simple
Unordered                          Ordered Complex                          Complicated Cause & Effect is only   Cause & E...
Music Industry in 2000 - Napster Complex                            Complicated  Independent              Managing a large...
Unordered       Ordered        E   E        x   x        p   e        l   c        o   u        r   t        e   e
Unordered       Ordered        P        r   P        e        p   l        a   a        r   n        e
Unordered           Ordered        E        n        t   G   M        r   e   a        e   n   n        p   e   a        r...
Ideal team sizesComplex                          Complicated < 30 People                < 150 People < 7 People           ...
Not Black and White Complex                                  Complicated              Create            market buzz       ...
Market Dynamics Complex                         Complicated            Product/market fit                   Disorder Chaot...
What to doExecute    Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
h"p://www.flickr.com/photos/virtualeyesee/6107062655>
Create a plan thatpredicts the future
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
HOW MANY GUESSES?
CUSTOMER VALIDATION
h"p://www.flickr.com/photos/oregondot/4132135156>
Create an environmentthat can discover    the future
h"p://www.richard3feynman.net/gallery.htm>
Disciplined way to   turn guesses into knowledge
Fundamental guess?
Business Model
Build your canvas today Modify it as you learn   Use it to prepare    for Demo Day
h"p://www.flickr.com/photos/virtualeyesee/6107062655>
Lean Startup
Customer Development
Explore     Execute          h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
Startups are NOT smaller versionsof big companies
Discover and solvecustomer’s problem
“Get out ofthe building!”Steve Blank
The Customer Development            process magnified         Empathize                    EmpathizeLearn                 ...
John Boyd’s OODA Loop
Explore          h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
TAKE EACH MAJOR GUESS
h"p://www.youtube.com/watch?v=Iyjs3zeoSrM>
Problem Discovery
Who isfeeling the pain?
What painare they feeling?
How do they makethat pain go away      today?
“Customers don’t care about your solution. They care about their problems.                  Dave McClure
h"p://www.richard3feynman.net/gallery.htm>
Experiment designFrame: [customer segment] needs a wayto [describe user’s need] because[problem description].Hypothesis: E...
Maximize learning – Don Reinertsenhttp://jchyip.blogspot.com/2010/05/lean-software-and-systems-conference.html
Problem Interview OverviewRunning Lean by Ash Maurya, page 118.
h"p://www.flickr.com/photos/adacMo/2535502416>
Typicalmarket research:   Customer   attributes
h"p://www.flickr.com/photos/serpicolugnut/172616929>
Innovationmarket research:    Customer circumstances
h"p://www.flickr.com/photos/serpicolugnut/172616929>
h"p://www.flickr.com/photos/indigoprime/2481346616>
h"p://www.flickr.com/photos/twostoutmonks/664314897>
Milkshake Test    What job isyour solution being hired to perform?
Solution Discovery
Validateprimary problems
Test yourlow fidelity Minimum   Viable Product
Solution Interview OverviewRunning Lean by Ash Maurya, page 142.
FindEarlyvangelists
Explore          h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
Validation
Validate Positioning
Product PositioningFor (target customers)Who (have the following problem)The (product name) is a (describe theproduct or s...
Validate Roadmap
Sales Roadmap       8/31/10>                10/30/10>                   1/?/11>                   3/?/11>       Release 1 ...
Validate Value
Get out and sell
Pivot    orPersevere?
Vision
h"p://www.flickr.com/photos/klearchos/4541072707>
Executeh"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
Explore     Execute          h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
“Tiger, one day you will  come to a fork in the  road.
“You can be somebody.  You will have to make  compromises and you  will have to turn your  back on your friends.  But you ...
“Or you can do  something –  something for your  country and for your  Air Force and for  yourself.
“you may not get promoted … but you won’t have to compromise yourself. You will be true to your friends and to yourself. A...
“To be somebody or to  do something. In life  there is often a roll  call. That’s when you  will have to make a  decision....
“Which way will you go?
Books that informed this talk
People who informed this talk David      Max        Ash       ClaytonSnowden    Boisot     Maurya   Christensen           ...
h"p://www.flickr.com/photos/fla"op341/224597838>
@zachnies
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
Lean Startups - TechStars Patriot Boot Camp
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Lean Startups - TechStars Patriot Boot Camp

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This talk reveals the surprising science behind building successful startups. Even though building a startup is hard work with high failure risk, entrepreneurs Steve Blank and Eric Ries have popularized practices that can increase the odds of success. Following the Customer Development or Lean Startup practices will show you what to do. This talk will give you an understanding of why these techniques work, which will allow you to better apply them to your startup or scale them into your enterprise.

Published in: Business, Technology

Lean Startups - TechStars Patriot Boot Camp

  1. 1. Lean StartupsTechStars Patriot Boot Camp
  2. 2. Zach Nies @zachnies
  3. 3. Why I careabout startups
  4. 4. Font Samplerhttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg http://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeg
  5. 5. 2,500,000 CustomersRevolutionized an industry
  6. 6. Amazingteam, culture, product, and process
  7. 7. One problem…
  8. 8. Bad business
  9. 9. Revolutionized nothing
  10. 10. Amazing team, culture,product, process
  11. 11. and…
  12. 12. Great business
  13. 13. Revolutionizing an industry
  14. 14. I love to change industries
  15. 15. Apply new disciplinesto your startup
  16. 16. Become disciplined explorers…
  17. 17. who know how tobalance exploration and execution
  18. 18. Increase your odds of success
  19. 19. What is a startup?
  20. 20. How do we navigate that uncertainty?
  21. 21. Explore Execute h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
  22. 22. When to explore vs execute?
  23. 23. Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
  24. 24. Where are you?
  25. 25. Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
  26. 26. What to doExecute Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
  27. 27. What to do Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
  28. 28. What to do BigCompanies Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
  29. 29. BigCompanies h"p://www.flickr.com/photos/ironnickel/6076087519>
  30. 30. Startupsh"p://www.flickr.com/photos/elcapitan/2387917709>
  31. 31. What to doExecute Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
  32. 32. Explore vs. Execute
  33. 33. 30 yearsof science
  34. 34. Unordered OrderedChaotic Complex Complicated Simple
  35. 35. Unordered Ordered An example Chaotic Complex Complicated Simpleh"p://www.flickr.com/photos/ksionic/383240468>
  36. 36. Unordered Ordered Complex ComplicatedChaotic Simple
  37. 37. Unordered Ordered Complex Complicated Chaotic Simple
  38. 38. Unordered Ordered Complex Complicated Cause & Effect is only Cause & Effect is not understandable in obvious and requires retrospect, and is not analysis or expertise repeatable Cause & Effect is Cause & Effect not obvious to all perceivable and is repeatable Chaotic Simple
  39. 39. Music Industry in 2000 - Napster Complex Complicated Independent Managing a large tour musicians self publishing online Disorder Managing a NIN tour Major label online Major label CD distribution distribution Chaotic SimpleUnordered Ordered
  40. 40. Unordered Ordered E E x x p e l c o u r t e e
  41. 41. Unordered Ordered P r P e p l a a r n e
  42. 42. Unordered Ordered E n t G M r e a e n n p e a r r g e a e n l r e u r
  43. 43. Ideal team sizesComplex Complicated < 30 People < 150 People < 7 People > 150 PeopleChaotic Simple
  44. 44. Not Black and White Complex Complicated Create market buzz Sales comp plans Increasing Terms of signups service Disorder > Server Ordering hacked office supplies Chaotic SimpleUnordered Ordered
  45. 45. Market Dynamics Complex Complicated Product/market fit Disorder Chaotic SimpleUnordered Ordered
  46. 46. What to doExecute Brown,>Tim>(2009309316).>Change>by>Design>(Kindle>LocaMon>1984).>Harper>Collins,>Inc..>Kindle>EdiMon.>>
  47. 47. h"p://www.flickr.com/photos/virtualeyesee/6107062655>
  48. 48. Create a plan thatpredicts the future
  49. 49. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  50. 50. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  51. 51. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  52. 52. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  53. 53. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  54. 54. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  55. 55. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  56. 56. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  57. 57. HOW MANY GUESSES?
  58. 58. CUSTOMER VALIDATION
  59. 59. h"p://www.flickr.com/photos/oregondot/4132135156>
  60. 60. Create an environmentthat can discover the future
  61. 61. h"p://www.richard3feynman.net/gallery.htm>
  62. 62. Disciplined way to turn guesses into knowledge
  63. 63. Fundamental guess?
  64. 64. Business Model
  65. 65. Build your canvas today Modify it as you learn Use it to prepare for Demo Day
  66. 66. h"p://www.flickr.com/photos/virtualeyesee/6107062655>
  67. 67. Lean Startup
  68. 68. Customer Development
  69. 69. Explore Execute h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
  70. 70. Startups are NOT smaller versionsof big companies
  71. 71. Discover and solvecustomer’s problem
  72. 72. “Get out ofthe building!”Steve Blank
  73. 73. The Customer Development process magnified Empathize EmpathizeLearn Learn Build Build Measure Measure h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
  74. 74. John Boyd’s OODA Loop
  75. 75. Explore h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
  76. 76. h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
  77. 77. h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
  78. 78. h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
  79. 79. TAKE EACH MAJOR GUESS
  80. 80. h"p://www.youtube.com/watch?v=Iyjs3zeoSrM>
  81. 81. Problem Discovery
  82. 82. Who isfeeling the pain?
  83. 83. What painare they feeling?
  84. 84. How do they makethat pain go away today?
  85. 85. “Customers don’t care about your solution. They care about their problems. Dave McClure
  86. 86. h"p://www.richard3feynman.net/gallery.htm>
  87. 87. Experiment designFrame: [customer segment] needs a wayto [describe user’s need] because[problem description].Hypothesis: Educated guess how[specific repeatable action] will create[expected result]Experiment Design: How will youattempt to invalidate your hypothesis?Measures: How will you measure theresults?Safety: What could indicate thisexperiment isn’t safe to run or continue?
  88. 88. Maximize learning – Don Reinertsenhttp://jchyip.blogspot.com/2010/05/lean-software-and-systems-conference.html
  89. 89. Problem Interview OverviewRunning Lean by Ash Maurya, page 118.
  90. 90. h"p://www.flickr.com/photos/adacMo/2535502416>
  91. 91. Typicalmarket research: Customer attributes
  92. 92. h"p://www.flickr.com/photos/serpicolugnut/172616929>
  93. 93. Innovationmarket research: Customer circumstances
  94. 94. h"p://www.flickr.com/photos/serpicolugnut/172616929>
  95. 95. h"p://www.flickr.com/photos/indigoprime/2481346616>
  96. 96. h"p://www.flickr.com/photos/twostoutmonks/664314897>
  97. 97. Milkshake Test What job isyour solution being hired to perform?
  98. 98. Solution Discovery
  99. 99. Validateprimary problems
  100. 100. Test yourlow fidelity Minimum Viable Product
  101. 101. Solution Interview OverviewRunning Lean by Ash Maurya, page 142.
  102. 102. FindEarlyvangelists
  103. 103. Explore h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
  104. 104. Validation
  105. 105. Validate Positioning
  106. 106. Product PositioningFor (target customers)Who (have the following problem)The (product name) is a (describe theproduct or solution)That provides (key benefit)Unlike (reference competition),The product/solution (describe the keypoint of competitive differentiation)
  107. 107. Validate Roadmap
  108. 108. Sales Roadmap 8/31/10> 10/30/10> 1/?/11> 3/?/11> Release 1 Release 2 Release 3 Release 4Theme: UI Theme: Reporting Theme: Dashboards Theme: AdminFor X, this UI release For <who>, this release For <who>, this release For <who>, this releaseprovides <what value> provides <what value> provides <what value> provides <what value>Key Features: Key Features: Key Features: Key Features: 1. Feature A 4. Feature B’ 7. Feature B’’ 10. Feature F 2. Feature B 5. Feature C’ 8. Feature D’ 11. Feature G 3. Feature C 6. Feature D 9. Feature E
  109. 109. Validate Value
  110. 110. Get out and sell
  111. 111. Pivot orPersevere?
  112. 112. Vision
  113. 113. h"p://www.flickr.com/photos/klearchos/4541072707>
  114. 114. Executeh"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
  115. 115. Explore Execute h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>
  116. 116. “Tiger, one day you will come to a fork in the road.
  117. 117. “You can be somebody. You will have to make compromises and you will have to turn your back on your friends. But you will be a member of the club and you will get promoted.
  118. 118. “Or you can do something – something for your country and for your Air Force and for yourself.
  119. 119. “you may not get promoted … but you won’t have to compromise yourself. You will be true to your friends and to yourself. And your work might make a difference.
  120. 120. “To be somebody or to do something. In life there is often a roll call. That’s when you will have to make a decision. To be or to do.
  121. 121. “Which way will you go?
  122. 122. Books that informed this talk
  123. 123. People who informed this talk David Max Ash ClaytonSnowden Boisot Maurya Christensen Frank H. Eric Knight RiesGeoffrey Steve Moore Blank
  124. 124. h"p://www.flickr.com/photos/fla"op341/224597838>
  125. 125. @zachnies

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