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Innovative
Entrepreneurship
Noorderlingen workshop - February 4th 2015
Leon Pals
Chairman Startup Foundation
Founder of several of its initiatives
@leonpals
leon@startupfoundation.co
Startup Foundation
An independent not for profit [or for impact] organisation,
driving innovation by supporting startups
Who are you?
Name & expertise
Problem?
“A startup is a temporary organisation
searching for a repeatable and
scalable business model”
- Steve Blank
Effectuation
A framework for entrepreneurial thinking
Causal thinking
=
Managerial thinking
=
Choosing the best means to achieve a goal
Effectual thinking
=
Entrepreneurial thinking
=
Imagining new ends with a given set of means
Effectuation
principles
To get you started on the right track
12
Bird in hand
Who are you and what do you have?
14
Affordable loss
What can you afford to lose?
Lemonade
Embrace surprises
Lemonade
Embrace surprises
And always bring salt & tequila
19
Crazy quilt
Form partnerships to cover your weaknesses
21
Pilot in the plane
Focus on what you can control
Pilot in the plane
Control vs. predict
Because the future is made
Control vs. predict
Let’s do a small game
We love games.
“If I can predict the future, I can
control it”
- ?
“If I can predict the future, I can
control it”
- Any experienced manager
“If I can control the future, I don’t
need to predict it”
- ?
“If I can control the future, I don’t
need to predict it”
- Any experienced entrepreneur
“Great Scott!”
- ?
“Great Scott!”
- You
Innovative
entrepreneurship
Or Effectuation, Customer Development, Lean
Startup and dozens of canvasses.
Startup ≠ small version
of big company
Startup ≠ small version
of big company
Startups are temporary organisations in search of
a repeatable and scalable business model
Startup ≠ small version
of big company
Startups are temporary organisations in search of
a repeatable and scalable business model
search = innovative
Startup ≠ small version
of big company
Startups are temporary organisations in search of
a repeatable and scalable business model
search = innovative = uncertain
Companies
execute
Which is what they are good at
They have managers that predict, operate and
plan using something called the Waterfall method
Webvan
The tale of a Startup that wanted to be a Company
$1.200.000.000
$1.200.000.000
Nothing left, except
Nine out of ten fail
Nine out of ten fail
Because they try to be a company:
Plan, Build & Launch
Time
Waterfall
Time
Risk Waterfall
Time
Risk
Agile
Waterfall
Startups don’t fail because
of product development
Most of us know what we can build
Startups fail because
of a lack of customers
Just because you build it,
that does not mean they will come
By Steve Blank
Customer development
Customer development
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Pivot
Search
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Pivot
Search
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Execute
Pivot
Search
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Execute
Learn
Pivot
Search
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Execute
Learn Confirm
Pivot
Search
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Execute
Learn Confirm AARRR
Pivot
Search
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Execute
Learn Confirm CEO hired
Pivot
AARRR
Search
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Execute
Learn Confirm CEO hired
Entrepreneurs start to think about leaving
Pivot
AARRR
Lean Startup =
Customer development combined with Agile product development
Search
Customer
Discovery
Customer
Validation
Learn Confirm
Pivot
Learn
Learning is mostly done
by talking to potential
customers.
But can also be achieved
through observation
and customer feedback
Search
Customer
Discovery
Customer
Validation
Learn Confirm
Pivot
Confirm
Confirmation can be
achieved through
several kinds of tests,
depending on what
you want to confirm.
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Pivot
Build
Measure
Learn
Lean Startup Process
Build Measure Learn Loop
Ideas
ProductData
Validated learning
Decreases uncertainty
Validated learning
Decreases uncertainty
Minimises risk
Validated learning
Decreases uncertainty
Minimises risk
Increases chances of success
Seriously though
You do not launch a startup, you steer it to success.
It is okay to start like this
Time for a challenge
Challenge
Who knows?
W O R K S H O P I N T R A C T O
Challenge
Who knows?
Illustrations by
Esther Gons @wilg
Illustrations by
Esther Gons @wilg
Customer Conversations
Learn Confirm
Why would you have
Customer Conversations?
87
What would you like
to be more sure of?
Topics
Generate topics
Customer
Development
Ga het gesprek aan
W O R K S H O P I N T R A C TO
Dear mom,
Don’t you think I’m great?
Love,
Your son
It’s not just your mom
People want to be helpful, more than being honest.
How can we get facts?
How can we get facts?
- Talk about their life, not your concept
How can we get facts?
- Talk about their life, not your concept
- Ask about specifics,
How can we get facts?
- Talk about their life, not your concept
- Ask about specifics, from the past
How can we get facts?
Anything future related is worthless as we cannot
predict the future with certainty.
Do you think this is a
good idea?
Do you think this is a
good idea?
How do you currently
deal with this?
How do you currently
deal with this?
When does this
happen?
When does this
happen?
Would you buy a product
that would solve this?
Would you buy a product
that would solve this?
Please show me how
you do this?
Please show me how
you do this?
Can you talk me through the last
time that you experienced this?
Can you talk me through the last
time that you experienced this?
How much would you
pay for this?
How much would you
pay for this?
How much does this
currently cost you?
How much does this
currently cost you?
How do we do this as
casual as possible?
Scene of the customer
Start with softball [easy
to handle] questions
How do you screw it up?
How do you screw it up?
- Use a script or survey instead of topics
How do you screw it up?
- Use a script or survey instead of topics
- Talk about your business, instead of listening
How do you screw it up?
- Use a script or survey instead of topics
- Talk about your business, instead of listening
- Try to sell, instead of learn
Learn Confirm
Good or bad
conversation?
“That’s so cool. I love
it!”
“That’s so cool. I love
it!”
“There are a couple of people I can
introduce you to, when you’re
ready.”
“There are a couple of people I can
introduce you to, when you’re
ready.”
“What are the next steps?”
“What are the next steps?”
“Looks great, let me know
when it launches.”
“Looks great, let me know
when it launches.”
“Can I buy the prototype?”
“Can I buy the prototype?”
“When can you come back and
talk to the rest of the team?”
“When can you come back and
talk to the rest of the team?”
Commitments
Commitments
- Time [next meeting, taking part in trial]
Commitments
- Time [next meeting, taking part in trial]
- Reputation risk [introduction to peers]
Commitments
- Time [next meeting, taking part in trial]
- Reputation risk [introduction to peers]
- Cash [letter of intent, deposit, pre-order or sale]
128
JFDI
- Set topics
- Do at least 5 to 10 Customer Conversations
Test Design
Learn Confirm
Minimum
Viable
Product
Minimum
Viable
Product
Test
Minimum effort
towards validated
learning
Search
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
Execute
Learn Confirm CEO hired
Entrepreneurs start to think about leaving
Pivot
AARRR
Search
Customer
Discovery
Customer
Validation
Learn Confirm
Pivot
Confirm
Confirmation can be
achieved through
several kinds of tests,
depending on what
you want to confirm.
Test cases
Options are merely limited by your imagination
Video + Landingpage
75.000 signups
Wizard of Oz
Proved people would buy shoes online
Concierge
Created early customers
A test drives
validated learning
But what do we
need to learn?
You need to find your riskiest assumption, and a way
to (in)validate it.
The riskiest assumption is
the one that, if proven false,
will kill your business
How to design a test
How to design a test
- Set your learning goal
How to design a test
- Set your learning goal
- Form a falsifiable hypothesis to test
How to design a test
- Set your learning goal
- Form a falsifiable hypothesis to test
- Make it measurable
How to design a test
- Set your learning goal
- Form a falsifiable hypothesis to test
- Make it measurable
- Set a fail condition
How to design a test
- Set your learning goal
- Form a falsifiable hypothesis to test
- Make it measurable
- Set a fail condition
- Set a time-box
Build
Measure
Learn
Lean Startup Process
Build Measure Learn Loop
Ideas
ProductData
If you cannot fail,
you cannot learn
About half your tests should fail
Accept failure as
validated learning
Swallow your pride, become successful
JFDI
Design a test, conditions:
Must have a learning goal, based on a falsifiable
hypothesis and measurable.
Also think about the time-box and fail conditions.
What have we learned?
Let’s get real
Ideas are generic
Jargon & Buzzwords
Make a Startup less actionable
Tests
Why get hands on?
Why get hands on?
"Entrepreneurship is something
you learn best by doing it”
- Paul Graham
But most of all
It is reality
The red pill
“Put your ideas into practise, they will improve
if you take note of what happens next”
- Leon Pals
“Put your ideas into practise, they will improve
if you take note of what happens next”
So why do we see so many
peers struggling?
So why do we see so many
peers struggling?
Fear
“The greatest barrier to
success is the fear of failure”
Sven Goran Eriksson
What is Lean Startup?
“Do a little, see if it works”
- Tendayi Viki
Theorising/debating/
planning
Might make you sound smart, or not
Lessons learned
Gain credibility
You might create
something
Red pill
Assumptions
Meetings
Theory
Your comfort zone
Blue pill
Validated learnings
Running tests
Experience
Where the magic happens
Thank you.
Any questions?
@LeonPals
Thank you. Any
questions?

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