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Lean Canvas Process and Examples

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Lean Startup Essentials         #1




                Part 1:
           Why? & Lean Canvas
Lean Startup Essentials                #1: Lean Startup




         Most startups fail from a lack of
              (paying) customers.
Lean Startup Essentials                               #1: Lean Startup




                      Startup:
           Temporary organization used to
         search for a repeatable and scalable
                   business model.
                          As defined by Steve Blank.
Lean Startup Essentials                           #1: Lean Startup




                    Your initial Goal:
         Improve likely success rate of your venture,
                 and reduce risk of failure.

                 Enable yourself to actually
         make the jump into a full-time entrepreneur.
Lean Startup Essentials                              #1: Lean Startup




                             Your Process:
                          Likely entirely chaotic.

              No one implements the lean startup
                      as a strict process.

             Similar to agile adoption (e.g. Kan-ban)
               you need to make a slow transition
                 into more structured thinking.
Lean Startup Essentials               #1: The Canvas




          Product is only 1 of the 9
         critical aspects that make your
                  company work.

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Lean Canvas Process and Examples

  • 1. Lean Startup Essentials #1 Part 1: Why? & Lean Canvas
  • 2. Lean Startup Essentials #1: Lean Startup Most startups fail from a lack of (paying) customers.
  • 3. Lean Startup Essentials #1: Lean Startup Startup: Temporary organization used to search for a repeatable and scalable business model. As defined by Steve Blank.
  • 4. Lean Startup Essentials #1: Lean Startup Your initial Goal: Improve likely success rate of your venture, and reduce risk of failure. Enable yourself to actually make the jump into a full-time entrepreneur.
  • 5. Lean Startup Essentials #1: Lean Startup Your Process: Likely entirely chaotic. No one implements the lean startup as a strict process. Similar to agile adoption (e.g. Kan-ban) you need to make a slow transition into more structured thinking.
  • 6. Lean Startup Essentials #1: The Canvas Product is only 1 of the 9 critical aspects that make your company work.
  • 7. Lean Startup Essentials #1: The BM Canvas The Business Model Canvas
  • 8. Lean Startup Essentials #1: The BM Canvas Day Month Year No. Who are our Key Partners? What Key Activities do our Value Propositions require? What value do we deliver to the customer? What type of relationship does each of our Customer For whom are we creating value? Who are our key suppliers? Our Distribution Channels? Which one of our customer’s problems are we helping to solve? Segments expect us to establish and maintain with them? Who are our most important customers? Which Key Resources are we acquiring from partners? Customer Relationships? What bundles of products and services are we offering to each Customer Segment? Which ones have we established? Which Key Activities do partners perform? Revenue streams? Which customer needs are we satisfying? How are they integrated with the rest of our business model? How costly are they? What Key Resources do our Value Propositions require? Through which Channels do our Customer Segments Our Distribution Channels? Customer Relationships? want to be reached? Revenue Streams? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? What are the most important costs inherent in our business model? For what value are our customers really willing to pay? Which Key Resources are most expensive? For what do they currently pay? Which Key Activities are most expensive? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
  • 9. The Business Model Canvas - Example KP KA VP CR CS LEGO has to LEGO Factory provide and builds a Long Tail Thousands of new, manage the LEGO Factory community around customer designed platform/ logistics substantially customers who are kits perfectly Customers who expands the scope truly interested in complement LEGO’s that allow build new LEGO of the off-the-shelf niche content and standard sets of packaging/ delivery designs and post kit offering by giving want to go beyond blocks. LEGO of customer made them online LEGO fans the tools off-the-shelf kits Factory connects sets become key to build, showcase, customers who partners generating and sell their own create customised content and value KR custom designed CH designs with other LEGO has not yet kits customers, thus fully adapted its LEGO Factory’s becoming a resources and existence depends customer match- activities, which are heavily on the Web making platform and optimised primarily channel increasing sales for the mass market LEGO Factory aims to generate C$ R$ small revenues from a large number The Factory leverages production of customer designed items. This and logistics costs already incurred represents a valuable addition to by its traditional retail mode traditional high-volume retail revenues.
  • 10. Lean Startup Essentials #1: The Lean Canvas The Lean Canvas
  • 11. Lean Startup Essentials #1: The Lean Canvas Focused on Early-Stage integrates Problem/Solution fields
  • 12. Lean Startup Essentials #1: The Lean Canvas Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Top 3 problems Top 3 features Single, clear, Can’t be easily Target customers compelling copied or bought message that states why you are different and Key Metrics worth buying Channels Key activities you Path to measure customers Cost Structure Revenue Streams Customer Acquisition Costs Revenue Model Distribution Costs Life Time Value Hosting Revenue People, etc. Gross Margin Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.
  • 14. Lean Startup Essentials #1: The Lean Canvas Product • Solution • Cost Structure • Unfair Advantage
  • 15. Lean Startup Essentials #1: The Lean Canvas Market • Customer Segments • Problem • Revenue Streams (Pricing)
  • 16. !"#$%&'(&)*+,-%./!+-01+2&34"& •  !"#$%&"'()*+$,)$-$./0"$/$12)34"5$6)27.$')408*9:$$ •  ;"<)2"$8*0"'(*9$5)*7.'$)2$#"/2'$)<$"=)27$7)6/2>'$ 3&84>8*9$/$12)>&?7@$7."$A2'7$'7"1$8'$>"7"258*8*9$8<$7.8'$ 12)>&?7$8'$')5"7.8*9$6)27.$>)8*9B$C)&$>)$7.8'$3#$ >"?)&148*9$7."$12)34"5$<2)5$7."$')4&()*$/*>$7"'(*9$ "/?.$7.2)&9.$?&'7)5"2$8*7"208"6'$D$/$12)?"''$E7"0"$ ;4/*F$?/44'$GH&'7)5"2$,8'?)0"2#IB$$ •  J"'(*9$7."$12)34"5$7.8'$6/#$4"7'$#)&$0/48>/7"$6."7."2$ #)&$./0"$/$G12)34"5$6)27.$')408*9I$3"<)2"$8*0"'(*9$ "=)27$3&84>8*9$)&7$/$')4&()*B$K2)5$7."2"$#)&$7."*$ >"280"$7."$58*85&5$<"/7&2"$'"7$7)$/>>2"''"'$7."$289.7$ '"7$)<$12)34"5'$D$7."$L8*85&5$M8/34"$N2)>&?7$OLMNPB$$
  • 17. !"#$%&'()*+(,-./#'&"(0&1'&*/.( •  !"#$%&'#'()#*#)+(,-./&#0(+#'1.#23&'(/.+#&.4/.5'#6(3#7+.#8(+9%54# 8%'1:#;.&2+%,.#'1.#'()#!<*#)+(,-./&#'1.6#5..;#&(-=.;"# –  >0#6(3#6(3#)-75#'(#&.--#'(#/756#23&'(/.+#&.4/.5'&#6(3#17=.#'(#;(#'1%&# 0(+#.721???#@(+#.A7/)-.:#%0#6(3#)-75#'(#&.--#'(#/%5%54#2(/)75%.&#,3'# 7-&(#'(#/%5%54#2(/)756#&3))-%.+&:#%2./(3"#$%&'.(4#"(&)56(#*&7( •  B"#$%&'#.A%&C54#7-'.+57C=.&#'1.5#;(23/.5'#1(8#6(3#'1%59#6(3+#.7+-6# 7;()'.+&#7;;+.&&#'1.&.#)+(,-./&#'(;76"#D5-.&&#6(3#7+.#&(-=%54#7# ,+75;#5.8#)+(,-./#E35-%9.-6F:#/(&'#)+(,-./&#17=.#.A%&C54# &(-3C(5&"#G756#C/.&#'1.&.#/76#5('#,.#7#+.7;%-6#(,=%(3&# 2(/).C'(+"## –  H&#75#.A7/)-.:#'1.#,%44.&'#7-'.+57C=.#'(#/(&'#(5-%5.#2(--7,(+7C(5# '((-&#%&#5('#75('1.+#2(--7,(+7C(5#'((-:#,3'#./7%-"#I(%54#5('1%54#2(3-;# 7-&(#,.#7#=%7,-.#7-'.+57C=.#0(+#7#23&'(/.+#%0#'1.#)7%5#%&#5('#723'.# .5(341# •  *"#>;.5C06#('1.+#3&.+#+(-.&"#J.A'#%;.5C06#756#('1.+#3&.+#+(-.&#'17'# 8%--#%5'.+72'#8%'1#'1%&#23&'(/.+"#
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  • 19. !"#$%&&'(&)*+,-."/0#*1%"&23"& •  !"#$%&"'()*+$,-$.$/&0120*3$')-"450*3$6")61"$ 78*49$$ –  :*;"$#)&$58<"$8$6=)/1"-$7)=45$')1<0*3$8*2$#)&=$ 02"8$)>$8$')1&()*?$#)&$;8*$45"*$'48=4$45"$6=);"''$ )>$1"8=*0*3$>=)-$;&'4)-"='$8*2$4"'(*3$5)7$7"11$ #)&=$')1&()*$')1<"'$45"$6=)/1"-@$ –  A*0B&"$C81&"$D=)6)'0()*$20'(11'$45"$"''"*(81$ <81&"$)>$#)&=$6=)2&;4'$4)$#)&=$-8=E"4$$
  • 20. Lean Startup Essentials #1: The Lean Canvas Market <=> Product • Unique Value Proposition • Distribution & Marketing Channels • Key Metrics
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  • 24. !"#$ •  %&'$(!)'$*&!+$&,,-+.%/$$ •  0$12334567628$973:2$;<=;=5>?=@$$ •  A76BC25$D=:<$=E2<>@F$1>6C$;<=G32H5$=<$@2285$=I$7$ ;7<?B:37<$B:56=H2<$52FH2@6$ •  #=5>?=@5$D=:<$=E2<>@F$>@$B=@6<756$6=$B=H;2?6=<5J$ =E2<>@F5K$
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  • 42. Lean Startup Essentials #1: The Lean Canvas Example: Tupalo Problem Solution Unique Value Unfair Customer Proposition Advantage Segments #1 Finding Business DB information, Yellowpages Herold / ED #1 9-to-5 folks quality & location #1 Search online. Partnership looking for lunch of a business function, Sitemap options, etc. #2 Business CP Find the best SEO Know-How #2 Promoting a restaurant/etc. #1 Long-tail business, Key Metrics near you. Channels mainstream providing correct information to #1 Avg. Reviews #1 Long-tail SEO #2 Business customers per user owners #2 European (restaurants, etc.) #2 Avg. Revenue Directories (B2B per business Sales) Cost Structure Revenue Streams Software Development #1 Free SEO Partnership Deals #2 Hundreds/Thousands of EUR (recurring)
  • 43. Lean Startup Essentials #1: The Lean Canvas Example: Freckle Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Tracking time Time tracking precisely without with superb UX, Time tracking Existing Freelancers effort no unnecessary software that audience: fuss you’ll actually Mailinglists, Agencies Easily invoice use. Twitter, etc. clients with good report on Key Metrics Channels performed work Hours tracked - Word of mouth - Cross-sales Rev. per user - Freebies - Existing audience Cost Structure Revenue Streams Software Development 12-50 USD / month (dep. on company size) Marketing/Copywriting CC fees Hosting
  • 44. Lean Startup Essentials #1: The Lean Canvas Example: Garmz Problem Solution Unique Value Unfair Customer Proposition Advantage Segments #1 Mass- No-barriers producing a fashion #1 Make your Team with #1 Fashion fashion garment production, design talent industry designers chosen by the visible experience #1 Marketing & community #2 Trend-chasing sales #2 Find the latest hipsters Key Metrics fashion trend & Channels #2 Buy trendy be unique clothes #1 New designs Fashion blogs Partnerships uploaded #1 Fashion schools #1 Fashion events #2 Conv. rate to #2 Word of mouth / actual sale strong brand Cost Structure Revenue Streams Production! (super expensive) #2 100 EUR / piece Prototyping Payout to designer Marketing, Biz Dev, Software Dev
  • 45. Lean Startup Essentials #2: Customer Discovery Part 2: Customer Discovery
  • 46. Lean Startup Essentials #2: Customer Discovery Customer Interviews 30 min in-person with your prototypical customer People like talking about their field - explore their worldview.
  • 47. Lean Startup Essentials #2: Customer Discovery How to conduct an interview 1. Set context & tell your story 2. Tell your problem hypothesis 3. Listen to their worldview 4. Ask for follow up / references
  • 48. Lean Startup Essentials #2: Customer Discovery Online Market Tests: Google Adwords Fake Landing Page with “Signup to be notified when we launch” “Can we call you to ask a couple of Qs?”
  • 49. Lean Startup Essentials #2: Customer Discovery User Groups & Conferences: Hand out cards with invite codes - landing page with “join our soon-to- launch beta programme” SolidRails European VPS cloud. Fully-integrated Rails hosting. Your private beta access code: OEWO8C
  • 50. Lean Startup Essentials #2: Customer Discovery Amy Hoy’s Sales Safari: Lurk in online forums of your customer segment, learn how they talk about products & benefits