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Running lean - YearOneLabs, Montreal
- 1. RUNNING LEAN A systematic process for iterating your web application from Plan A to a plan that works ASH MAURYA @ashmaurya http://www.ashmaurya.com
- 2. 9/10 startups fail
- 3. 66% drastically change their original plans
- 4. Not a better Plan A. But a path to a plan that works.
- 5. Running Lean is a systematic process for iterating from Plan A to a plan that works.
- 6. Agenda 1. What is Running Lean? 2. What does a Lean Startup look like? 3. How can you use Lean to define and measure progress?
- 7. Agenda 1. What is Running Lean? 2. What does a Lean Startup look like? 3. How can you use Lean to define and measure progress?
- 8. About Me
- 9. Practice Trumps Theory
- 10. What is Running Lean Customer Development + Lean Startup + Bootstrapping
- 11. Startups that succeed are those that manage to iterate enough times before running out of resources. - Eric Ries Speed
- 12. Get out of the building. - Steve Blank Learning
- 13. Right Action, Right Time. - Bijoy Goswami Focus
- 14. Speed, Learning, Focus.
- 15. There are no silver bullets
- 16. Agenda 1. What is Running Lean? 2. What does a Lean Startup look like? 3. How can you use Lean to define and measure progress?
- 17. 1. Document your Plan A 2. Systematically Test your Plan A
- 18. Business Model vs Business Plan A single diagram of your business A document investors make you write that they don’t read
- 19. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unfair Advantage Can’t be easily copied or bought Customer Segments Target customers Problem Top 3 problems Key Activity Activity that drives retention/revenue Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Channels Path to customers Customer Segments Target customers Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Revenue Streams Revenue Model Life Time Value Revenue Gross Margin
- 20. The 3 Stages of a Startup Problem/Solution Fit Product/Market Fit Scale
- 21. Validate Problem/Solution Fit Problem/Solution Fit Product/Market Fit Scale Do I have a problem worth solving?
- 22. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unfair Advantage Can’t be easily copied or bought Customer Segments Target customers Problem Top 3 problems Key Activity Activity that drives retention/revenue Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Channels Path to customers Customer Segments Target customers Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Revenue Streams Revenue Model Life Time Value Revenue Gross Margin
- 23. Achieve Product/Market Fit Have I built something people want? Problem/Solution Fit Product/Market Fit Scale
- 24. Requirements ReleaseDevelopment QA “Greatest risk is not development of new product, but development of customers and markets.” - Steve Blank
- 25. Requirements ReleaseDevelopment QA Some learning “Greatest risk is not development of new product, but development of customers and markets.” - Steve Blank
- 26. Requirements ReleaseDevelopment QA Some learning Most learning happens here “Greatest risk is not development of new product, but development of customers and markets.” - Steve Blank
- 27. Requirements ReleaseDevelopment QA Some learning Very little learning Most learning happens here “Greatest risk is not development of new product, but development of customers and markets.” - Steve Blank
- 28. Requirements Release Customer Discovery Customer Validation Continuous Deployment “Startups that succeed are those that manage to iterate enough times before running out of resources.” - Eric Ries
- 29. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unfair Advantage Can’t be easily copied or bought Customer Segments Target customers Problem Top 3 problems Key Activity Activity that drives retention/ revenue Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Channels Path to customers Customer Segments Target customers Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Revenue Streams Revenue Model Life Time Value Revenue Gross Margin
- 30. Optimize for Scale How do I accelerate growth? Problem/Solution Fit Product/Market Fit Scale
- 31. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unfair Advantage Can’t be easily copied or bought Customer Segments Target customers Problem Top 3 problems Key Activity Activity that drives retention/revenue Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Channels Path to customers Customer Segments Target customers Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Revenue Streams Revenue Model Life Time Value Revenue Gross Margin
- 32. Before Product/Market Fit Validated Learning Pivots Problem/Solution Fit Product/Market Fit Scale
- 33. After Product/Market Fit Growth Optimizations Validated Learning Pivots Problem/Solution Fit Product/Market Fit Scale
- 34. Agenda 1. What is Running Lean? 2. What does a Lean Startup look like? 3. How can you use Lean to define and measure progress?
- 35. Not just limited to code
- 36. Speed, Learning, Focus.
- 37. How to build a validated learning loop 1. Formulate falsifiable hypotheses 2. Time-box experiments 3. Validate Qualitatively, Verify Quantitatively 4. Create accessible dashboards 5. Communicate learning early and often
- 38. How to build a validated learning loop 1. Formulate falsifiable hypotheses 2. Time-box experiments 3. Validate Qualitatively, Verify Quantitatively 4. Create accessible dashboards 5. Communicate learning early and often
- 39. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unfair Advantage Can’t be easily copied or bought Customer Segments Target customers Problem Top 3 problems Key Activity Activity that drives retention/revenue Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Unique Value Proposition Single, clear, compelling message that states why you are different and worth buying Channels Path to customers Customer Segments Target customers Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Revenue Streams Revenue Model Life Time Value Revenue Gross Margin
- 40. Leap of Faith: Being known as an “expert” will drive early adopters Hypothesis: Blog post will drive >100 early sign-ups
- 41. How to build a validated learning loop 1. Formulate falsifiable hypotheses 2. Time-box experiments 3. Validate Qualitatively, Verify Quantitatively 4. Create accessible dashboards 5. Communicate learning early and often
- 42. Time is more valuable than money.
- 43. How to build a validated learning loop 1. Formulate falsifiable hypotheses 2. Time-box experiments 3. Validate Qualitatively, Verify Quantitatively 4. Create accessible dashboards 5. Communicate learning early and often
- 44. Qualitative Quantitative Start here Verify with data
- 45. Words matter Images matter
- 46. How to build a validated learning loop 1. Formulate falsifiable hypotheses 2. Time-box experiments 3. Validate Qualitatively, Verify Quantitatively 4. Create accessible dashboards 5. Communicate learning early and often
- 47. How to build a validated learning loop 1. Formulate falsifiable hypotheses 2. Time-box experiments 3. Validate Qualitatively, Verify Quantitatively 4. Create accessible dashboards 5. Communicate learning early and often
- 48. We thought (Hypotheses): Our Customers told us (Insights): Next Steps (Future Experiments): 0 12.5 25 37.5 50 Jan Feb Mar Apr May June July $20K $15K $10K $5K $0 • Personal Authority would be a viable channel to early adopters • Customers would vote the problem as “must-have” • Customers would pay $49/mo • Most early adopters did come through blog and twitter • Customers voted #3 problem as “must- have”. Others as nice-to-have • $49/mo works for customers with early traction •Test MVP based on “must-have” problem •Test a “Free” model Results from last iteration
- 49. Not a better Plan A. But a path to a plan that works.
- 50. Thanks! Ash Maurya twitter: ashmaurya blog: http://www.ashmaurya.com Running Lean - the book Systematically iterate your product from plan A to a plan that works http://www.RunningLeanHQ.com
