Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Lean Startup: A Founder's Guide

5,400 views

Published on

My guest lecture for MIT's The Founder's Journey - a course for graduate level CS end engineering students interested in founding their own startups.

Published in: Technology, Business

Lean Startup: A Founder's Guide

  1. 1. The Founder’s Journey Lean Startup A Founder’s Guide Abby Fichtner Hacker Chick Founding Executive Director, hack/reduce http://HackerChick.com | http://hackreduce.org
  2. 2. What makes entrepreneurs entrepreneurial? Saras D. SarasvathyThe Founder’s Journey - @HackerChick Paper: http://bit.ly/fj-wmee
  3. 3. The Founder’s Journey - @HackerChick
  4. 4. “Considering the incredible amount of human energy, passion, and creativity that we invest in creating new products & services…The Founder’s Journey - @HackerChick @EricRies
  5. 5. … it’s a terrible waste that so many of them fail.”The Founder’s Journey - @HackerChick @EricRies
  6. 6. Promise of the Lean Startup Instead of building our startups according to myths We can guide them with facts and knowledgeThe Founder’s Journey - @HackerChick @EricRies
  7. 7. The Founder’s Journey - @HackerChick
  8. 8. The Founder’s Journey - @HackerChick
  9. 9. The Founder’s Journey - @HackerChick
  10. 10. The Founder’s Journey - @HackerChick Andrew Mason, CEO of Groupon (NY Tech Meetup)
  11. 11. “You’re way too dumb to figure out whether your idea is good”The Founder’s Journey - @HackerChick Andrew Mason, CEO of Groupon (NY Tech Meetup)
  12. 12. Startups are NOT small versions of large organizationsThe Founder’s Journey - @HackerChick
  13. 13. The Founder’s Journey - @HackerChick
  14. 14. Founder Lesson #1 The unit of progress for entrepreneurs is learning, not executionThe Founder’s Journey - @HackerChick
  15. 15. The Founder’s Journey - @HackerChick
  16. 16. What fun is spending months building something that nobody wants?The Founder’s Journey - @HackerChick
  17. 17. muda any activity that is wasteful and doesn’t add value or is unproductiveThe Founder’s Journey - @HackerChick wikipedia
  18. 18. Founder Lesson #2 Eliminate muda (building things nobody wants is the worst kind of muda)The Founder’s Journey - @HackerChick
  19. 19. $5 BILLION ENGINEERING TRIUMPH MILLIONS of CUSTOMERS FAIL One of the Largest Bankruptcies in US HistoryThe Founder’s Journey - @HackerChick
  20. 20. “We’re a classic MBA case study in how NOT to introduce a product. First, we created a marvelous tech. achievement Then, we asked how to make money on it.”The Founder’s Journey - @HackerChick Iridium Interim CEO John A. Richardson
  21. 21. “Most technology start-ups fail not because the technology doesn’t work, but because they’re making something that there is not a real market for”The Founder’s Journey - @HackerChick @EricRies
  22. 22. What should startups do differently?The Founder’s Journey - @HackerChick
  23. 23. The Founder’s Journey - @HackerChick
  24. 24. The Founder’s Journey - @HackerChick
  25. 25. The Founder’s Journey - @HackerChick
  26. 26. The Founder’s Journey - @HackerChick
  27. 27. Minimum Viable Product (MVP) strategy for fast & quantitative market testing of a product or featureThe Founder’s Journey - @HackerChick wikipedia
  28. 28. “Papa built our last tree house in a day!” “Yeah, but that tree house was a couple pallets and a ladder”The Founder’s Journey - @HackerChick The Minimum Viable Tree House by Christian Wyglendowski
  29. 29. The Founder’s Journey - @HackerChick
  30. 30. The Founder’s Journey - @HackerChick
  31. 31. Founder Lesson #3 Don’t build mansions in the sky Start with a couple of pallets & a ladderThe Founder’s Journey - @HackerChick
  32. 32. The Founder’s Journey - @HackerChick
  33. 33. Founder Lesson #4 It’s just as important to develop your customers as it is to develop your productThe Founder’s Journey - @HackerChick wikipedia
  34. 34. Customer DevelopmentThe Founder’s Journey - @HackerChick @SGBlank
  35. 35. Lean StartupThe Founder’s Journey - @HackerChick @SGBlank
  36. 36. Product/Market Fit When a product shows strong demand by passionate users representing a sizeable marketThe Founder’s Journey - @HackerChick The Entrepreneur’s Guide to Customer Development
  37. 37. The Founder’s Journey - @HackerChick
  38. 38. Customer DiscoveryWhat is the problem?Who has the problem?The Founder’s Journey - @HackerChick @SGBlank
  39. 39. Customer DiscoveryHow important is the problem’s solution to the customer?How valuable is the problem’s solution to the customer?The Founder’s Journey - @HackerChick @SGBlank
  40. 40. The Founder’s Journey - @HackerChick
  41. 41. The Founder’s Journey - @HackerChick
  42. 42. The Founder’s Journey - @HackerChick
  43. 43. Founder Lesson #5 To be successful, you need to make money. Until people are giving you money, your idea isn’t validated.The Founder’s Journey - @HackerChick
  44. 44. The Founder’s Journey - @HackerChick
  45. 45. Single Biggest Predictor of Failure?Sticking to Initial Business PlanThe Founder’s Journey - @HackerChick 300 startups surveyed (src: Don Sull, "The Upside of Turbulence”)
  46. 46. How do we measure progress?LearningThe Founder’s Journey - @HackerChick
  47. 47. Fastest way to learn if our product is working?Get out of the building!(customer validation)The Founder’s Journey - @HackerChick
  48. 48. Founder Lessons so far…1. Unit of progress: learning2. Eliminate muda (waste)3. No mansions, a couple of pallets & a ladder4. Develop your customers not just your product5. Your idea isn’t validated until: show me the $$$!The Founder’s Journey - @HackerChick
  49. 49. We had an idea for a new product. We went off & built it, put it on our website. Not a single person clicked thru to it What did we learn from that?The Founder’s Journey - @HackerChick
  50. 50. We had an idea for a new product. We went off & built it, put it on our website. Not a single person clicked thru to it Was there a faster way to get through that learning loop?The Founder’s Journey - @HackerChick
  51. 51. The Founder’s Journey - @HackerChick
  52. 52. The Founder’s Journey - @HackerChick
  53. 53. The Founder’s Journey - @HackerChick
  54. 54. The Founder’s Journey - @HackerChick
  55. 55. The Founder’s Journey - @HackerChick
  56. 56. Founder Lesson #6 If you’re not embarrassed by your 1st version, you waited to long to releaseThe Founder’s Journey - @HackerChick
  57. 57. The Founder’s Journey - @HackerChickBoston Startup School - @HackerChick
  58. 58. The Founder’s Journey - @HackerChick
  59. 59. The Founder’s Journey - @HackerChick
  60. 60. The Founder’s Journey - @HackerChick
  61. 61. The Founder’s Journey - @HackerChick
  62. 62. The Founder’s Journey - @HackerChick
  63. 63. What are some equivalents for hardware products?The Founder’s Journey - @HackerChick
  64. 64. Your Turn 1. What is your Big Idea? 2. What are your Top 3 Assumptions (guesses)? • Who cares? • Who pays? • How you’ll reach customers 3. Pick 1 assumption: • How would you validate it (what data do you need)? • What’s the MVP to validate it?The Founder’s Journey - @HackerChick
  65. 65. Learn More Eric Ries @EricRies http://startuplessonslearned.com/ Steve Blank @sgblank http://steveblank.com/ Ash Maurya @ashmaurya http://ashmaurya.com/ Abby Fichtner @HackerChick http://HackerChick.comThe Founder’s Journey - @HackerChick

×