Running lean - YearOneLabs, Montreal

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Running lean - YearOneLabs, Montreal

  1. 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. 2. 9/10 startups fail
  3. 3. 66% drastically change their original plans
  4. 4. Not a better Plan A. But a path to a plan that works.
  5. 5. Running Lean is a systematic process for iterating from Plan A to a plan that works.
  6. 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. 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. 8. About Me
  9. 9. Practice Trumps Theory
  10. 10. What is Running Lean Customer Development + Lean Startup + Bootstrapping
  11. 11. Startups that succeed are those that manage to iterate enough times before running out of resources. - Eric Ries Speed
  12. 12. Get out of the building. - Steve Blank Learning
  13. 13. Right Action, Right Time. - Bijoy Goswami Focus
  14. 14. Speed, Learning, Focus.
  15. 15. There are no silver bullets
  16. 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. 17. 1. Document your Plan A 2. Systematically Test your Plan A
  18. 18. Business Model vs Business Plan A single diagram of your business A document investors make you write that they don’t read
  19. 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. 20. The 3 Stages of a Startup Problem/Solution Fit Product/Market Fit Scale
  21. 21. Validate Problem/Solution Fit Problem/Solution Fit Product/Market Fit Scale Do I have a problem worth solving?
  22. 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. 23. Achieve Product/Market Fit Have I built something people want? Problem/Solution Fit Product/Market Fit Scale
  24. 24. Requirements ReleaseDevelopment QA “Greatest risk is not development of new product, but development of customers and markets.” - Steve Blank
  25. 25. Requirements ReleaseDevelopment QA Some learning “Greatest risk is not development of new product, but development of customers and markets.” - Steve Blank
  26. 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. 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. 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. 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. 30. Optimize for Scale How do I accelerate growth? Problem/Solution Fit Product/Market Fit Scale
  31. 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. 32. Before Product/Market Fit Validated Learning Pivots Problem/Solution Fit Product/Market Fit Scale
  33. 33. After Product/Market Fit Growth Optimizations Validated Learning Pivots Problem/Solution Fit Product/Market Fit Scale
  34. 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. 35. Not just limited to code
  36. 36. Speed, Learning, Focus.
  37. 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. 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. 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. 40. Leap of Faith: Being known as an “expert” will drive early adopters Hypothesis: Blog post will drive >100 early sign-ups
  41. 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. 42. Time is more valuable than money.
  43. 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. 44. Qualitative Quantitative Start here Verify with data
  45. 45. Words matter Images matter
  46. 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. 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. 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. 49. Not a better Plan A. But a path to a plan that works.
  50. 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

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