Lean startup - Startup Weekend Tucson


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A quick presentation Warner Onstine and Aaron Eden presented for Startup Weekend Tucson participants on Lean Startup.

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  • Ask people to raise their hands if they have started a business. Ask them to keep them up if the plan they had in mind for the business changed after launching
  • Give descriptions of our businesses. IT: Basecamp Web-based project management application Non-IT: Residential Wind Turbines
  • Based on lean manufacturing
  • Wouldn't it be better to know that customers will be willing to buy your product after the weekend instead of the reverse after spending months building your product?
  • Focus on your customers What are the problems you think they have?
  • Keep segments SMALL A customer is someone that pays for your product
  • We are a Tucson based energy company and are currently working on a new service to help single family home owners reduce their energy costs. We are specifically looking to build small wind turbines. I would love to get 30 minutes of your time to help us understand your current green energy use. I'm not selling anything, just looking for advice. Intro Demographic Questions Tell a story (problem context) Rank / validate needs (rank, don't need, nice to have, must have) Ask for referrals
  • Wind Turbine team learned: Bigger turbine Market education Neighbor's Approval
  • Lean startup - Startup Weekend Tucson

    1. 1. Lean Startup Aaron Eden @aaroneden Warner Onstine @warneronstine
    2. 2. What is Lean Startup? <ul><li>A way to go from Plan A to a plan that works 1 </li></ul><ul><li>1 Yes I stole this from Ash Maurya's book Running Lean </li></ul>
    3. 3. Not just for IT <ul><ul><li>Easy to take the basic methods in Lean Startup to apply to any non-software business. </li></ul></ul><ul><ul><li>Every business has customers that you will be selling to. </li></ul></ul>
    4. 4. The basic tenets <ul><ul><li>Avoid waste wherever/whenever possible </li></ul></ul><ul><ul><li>Lean does not mean cheap </li></ul></ul><ul><ul><li>Only build what you need when you need it </li></ul></ul><ul><ul><li>Learn directly from your customers as quickly as possible </li></ul></ul>
    5. 5. The basic building blocks (for software projects) <ul><ul><li>Customer Development (CustDev) </li></ul></ul><ul><ul><ul><li>What problem are you solving? </li></ul></ul></ul><ul><ul><ul><li>Who is your market? </li></ul></ul></ul><ul><ul><ul><li>What is your solution? </li></ul></ul></ul><ul><ul><ul><li>Do they NEED it? </li></ul></ul></ul><ul><ul><li>Commodity Hardware/Software </li></ul></ul><ul><ul><ul><li>Use off-the-shelf whenever possible, until it's no longer viable </li></ul></ul></ul><ul><ul><ul><li>Cloud computing </li></ul></ul></ul><ul><ul><li>Agile Development </li></ul></ul><ul><ul><ul><li>Build/Measure/Learn </li></ul></ul></ul><ul><ul><ul><li>Iterate often </li></ul></ul></ul><ul><ul><ul><li>Gather feedback/metrics </li></ul></ul></ul>
    6. 6. The basic building blocks (non-software projects) <ul><ul><li>Customer Development (CustDev) </li></ul></ul><ul><ul><ul><li>What problem are you solving? </li></ul></ul></ul><ul><ul><ul><li>Who is your market? </li></ul></ul></ul><ul><ul><ul><li>What is your solution? </li></ul></ul></ul><ul><ul><ul><li>Do they want it? </li></ul></ul></ul><ul><ul><li>Outsourced services </li></ul></ul><ul><ul><ul><li>Use off-the-shelf whenever possible, until it's no longer viable </li></ul></ul></ul><ul><ul><ul><li>Utilize vendors / partners </li></ul></ul></ul><ul><ul><li>Agile Business Development </li></ul></ul><ul><ul><ul><li>Build/Measure/Learn </li></ul></ul></ul><ul><ul><ul><li>Iterate often </li></ul></ul></ul><ul><ul><ul><li>Gather feedback/metrics </li></ul></ul></ul>
    7. 7. What can I possibly do with LS in a weekend? <ul><li>Quite a bit </li></ul><ul><ul><li>Initial problem you are solving </li></ul></ul><ul><ul><li>Initial market you are solving it for </li></ul></ul><ul><ul><li>Do they need it? </li></ul></ul><ul><li>All of these questions can be answered over one weekend using CustDev </li></ul><ul><li>We will be focusing on using CustDev during this presentation  </li></ul>
    8. 8. What are the 3 problems you are trying to solve? <ul><li>Basecamp (PM Tool) </li></ul><ul><ul><li>Proj Mgmt too complicated </li></ul></ul><ul><ul><li>It's difficult to share status with clients </li></ul></ul><ul><ul><li>It's difficult to get clients involved in the process </li></ul></ul><ul><li>Residential Wind Turbines </li></ul><ul><ul><li>Wind Energy Too Expensive </li></ul></ul><ul><ul><li>Green status symbol </li></ul></ul><ul><ul><li>Short ROI </li></ul></ul>
    9. 9. Who are your customers? <ul><li>Basecamp (PM Tool) </li></ul><ul><ul><li>Small creative businesses </li></ul></ul><ul><ul><li>Medium-sized businesses that manage multiple projects </li></ul></ul><ul><ul><li>Their clients </li></ul></ul><ul><li>Residential Wind Turbines </li></ul><ul><ul><li>Single family home-owner </li></ul></ul><ul><ul><li>House rental groups </li></ul></ul><ul><ul><li>Home remodelling contractors </li></ul></ul>
    10. 10. Interview early adopters <ul><ul><li>First degree contacts </li></ul></ul><ul><ul><li>Ask for introductions </li></ul></ul><ul><ul><li>In person or over the phone </li></ul></ul><ul><ul><li>Learn / don't SELL </li></ul></ul><ul><ul><li>Pair up </li></ul></ul><ul><ul><li>No surveys </li></ul></ul><ul><ul><li>No statistical significance </li></ul></ul><ul><ul><li>Would they pay? </li></ul></ul>“ Customers don’t care about your solution. They care about their problems.”  - Dave McClure (500Startups)
    11. 11. When your problem isn't big enough <ul><ul><li>Is there another related, larger problem for your target market? </li></ul></ul><ul><ul><li>Is this a solution for a different market? </li></ul></ul><ul><ul><li>Is there are a similar problem but for a smaller market? </li></ul></ul><ul><ul><li>Is there a piece of your solution that might be a product on it's own? </li></ul></ul><ul><ul><li>Or, if all else fails you can ditch it all together and try something else </li></ul></ul>
    12. 12. What about after Startup Weekend? <ul><ul><li>Startup Drinks </li></ul></ul><ul><ul><li>LS Lunches </li></ul></ul><ul><ul><li>Additional Lean Startup presentations  </li></ul></ul>
    13. 13. Resources <ul><li>Books </li></ul><ul><ul><li>4 Steps to the Epiphany by Steve Blank </li></ul></ul><ul><ul><li>Entrepreneur's Guide to Customer Development by Brant Cooper and Patrick Vaskovitz (http://custdev.com) </li></ul></ul><ul><ul><li>Lean Startup by Eric Ries  </li></ul></ul><ul><ul><li>Running Lean by Ash Maurya </li></ul></ul><ul><li>Free </li></ul><ul><ul><li>http://steveblank.com </li></ul></ul><ul><ul><li>http://ashmaurya.com </li></ul></ul><ul><ul><li>http://startupslessonslearned.com </li></ul></ul>