Lean Startups - TechStars Patriot Boot Camp

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.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeg

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..>Kindle>EdiMon.>>

BigCompanies h"p://www.ﬂickr.com/photos/ironnickel/6076087519>

Startupsh"p://www.ﬂickr.com/photos/elcapitan/2387917709>

Explore vs. Execute

30 yearsof science

Unordered OrderedChaotic Complex Complicated Simple

Unordered Ordered An example Chaotic Complex Complicated Simpleh"p://www.ﬂickr.com/photos/ksionic/383240468>

Unordered Ordered Complex ComplicatedChaotic Simple

Unordered Ordered Complex Complicated Chaotic Simple

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

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

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 r g e a e n l r e u r

Ideal team sizesComplex Complicated < 30 People < 150 People < 7 People > 150 PeopleChaotic Simple

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

Market Dynamics Complex Complicated Product/market fit Disorder Chaotic SimpleUnordered Ordered

h"p://www.ﬂickr.com/photos/virtualeyesee/6107062655>

Create a plan thatpredicts the future

Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS

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

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 Learn Build Build Measure Measure h"p://www.slideshare.net/sblank/the3startup3owners3manual3sxsw311954724>

John Boyd’s OODA Loop

Explore 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: 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?

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 solution)That provides (key benefit)Unlike (reference competition),The product/solution (describe the keypoint of competitive differentiation)

Validate Roadmap

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

Validate Value

Get out and sell

Pivot orPersevere?

Vision

h"p://www.ﬂickr.com/photos/klearchos/4541072707>

Executeh"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 will be a member of the club and you will get promoted.

“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. And your work might make a difference.

“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.

“Which way will you go?

Books that informed this talk

People who informed this talk David Max Ash ClaytonSnowden Boisot Maurya Christensen Frank H. Eric Knight RiesGeoffrey Steve Moore Blank

h"p://www.ﬂickr.com/photos/ﬂa"op341/224597838>

@zachnies

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Lean Startups - TechStars Patriot Boot Camp

by Zach Nies on Jul 19, 2012

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Lean Startups - TechStars Patriot Boot Camp Presentation Transcript